The main objective is to apply your recruitment process, rewarding system, and employee benefits and adapt it to Mexican standards. We also assist you how to overcome communication and cultural difference and ensure your companies values will be lived.
The main objective is to apply your recruitment process, rewarding system, and employee benefits and adapt it to Mexican standards. We also assist you how to overcome communication and cultural difference and ensure your companies values will be lived.
1. Human Resource in Mexico
Especially for foreign firms with no experience in Mexican labor law, it can be challenging to set up a company in Mexiko. Finding the right people, make them ready to get used to work for a new organization from another countries, are challenging tasks which must be well prepared und should not be underestimated.
We will familiarize you with Mexican recruitment processes, cultural differences, employee contracts, labor unions, salaries, and benefit packages in Mexico. We are happy to assist you in hiring the right employees that meet your specific needs.
A critical advantage is that we cannot only choose between people from Mexico (125 million) but also from the whole continent of America (800million) - Work permissions or visas are not as difficult to get as for example in Europe.
Since Mexico is already very advanced in the digitization process, it offers a modern infrastructure, IT expertise, wide internet access, and a majority of people is familiarized with online recruitment (home office, online interviews, sharepoints, etc.), this will facilitate the process a lot.
The objective is that we can implement your actual HR-processes (documents, descriptions, processes in general) and modify them to Mexican standards. The long-term goal is to increase the performance and retention of your employees using our unique, proven and effective process of attracting and evaluating candidates in Mexico.
2. Important Recruitment Factors in Mexico
We have listed some main factors below, which we have to take into consideration in terms of Human Resource abroad:
Hiring Process
- How does the recruitment process work?
- Direct & Indirect recruiting in Mexico
- Availability of specialized workforce
- Understanding the labor market and employee relations
- How many employees will be needed?
- Costs of employees
- Create job descriptions
- Payroll
- Relocation of jobs
Attraction
- Attracting qualified candidates
- What to consider about employee retention
- Evaluation system
- Talent management and development
- Training
- Salaries in Mexico
Law
- Employee Law
- Internal rules and regulations
- Payroll in Mexico
- Security and hygiene
- Contract laws
- Work permissions
- Labor union Relations
- Employee Health and Safety
3. Large Talent Pool
A critical success factor when expanding is to hire the right workforce with the right skills. Mexico gives you access to a wide range of employees with any skills needed.
Mexico has a large talent pool with its manufacturing history in various industries. In addition, the country of 125 million inhabitants offers a lot of top universities, which are acknowledged from all over the world.
Besides there are over 10,000 engineers, who earn a university degree per year, which is more than in the United States. We will familiarize you with the best universities and connect you with the most talented workforce.
4. Mexican Universities
As Mexico offers thousands of talented engineers from universities yearly, an option to attract them could be to start cooperating with universities:
- Get engineers from top universities
- Offer internships
- Create talent and development programs
- Start an exchange program with your organization
The main advantage is that we cannot only choose between people from Mexico (125 million) but also from the whole continent of America (800million).
Work permissions or visas are not as difficult to get as in Europe.
5. Implement your digitized recruitment process
Nowadays with digitization, there are quite many recruitment solutions possible without even having a lot of expenses. You create new job descriptions in your country and publish them on various platforms such as LinkedIn, Indeed, or other internet websites, which are quite common in Mexico.
The process works similar to the one in Europe: For finding the right people for the right positions we need to set up a selection process, write down the specifications of what degree, expertise, and education or certifications is expected from the future employees, and define the benefits we want to offer to them.
6. Hiring with Recruitment Agencies
Besides using internet platforms like LinkedIn or Mexican recruiting websites, it often makes sense to cooperate first with a local third partner, who knows the market, law, and employment rights well.
With our Network, we will evaluate your needs an find the right partner!
We will help to get the right partner to find the best talented candidates.
you need more information about the recruitment processes and its regulations in Mexico?
Get in touch with us and we will tell you how we would select the right workforce for your company.
Contact Usdo you have questions regarding the laws and regulations in Mexico?
Get in touch with us, we are happy to help you in any kind of legal questions!
Contact Us7. Work permit / visa to work in Mexico
Many factors must be investigated such as work visas and permissions, creation of contracts, reading into employee laws and rights, or salaries – we will help you and ensure a smooth process.
Many factors must be investigated such as work visas and permissions, creation of contracts, reading into employee laws and rights, or salaries – we will help you and ensure a smooth process.
In order to train and educate employees locally, we must decide on who could bring the necessary knowledge from your company to Mexico and on how the future employees should be trained.
Due to the fact that a lot of trainings can be done through online sessions or 3D google glasses, the integration and education process can be done with much more efficiency than few years ago. Despite of that, it is indispensable to bring employees of your organization over to mexico in order to train employees. Therefore, work permissions will have to be created.
We will be on site for you in Mexico and organize, prepare and submit all the necessary documentation and quality application forms to the Mexican Immigration Department to get these work permits.
This means that we will assist you in obtaining a residency permit allowing to work in Mexico.
The following questions must be asked:
- Will employees of your company be transferred to Mexico to train the new workforce or will Mexicans be sent to your country?
- Are there any employees who will be relocated for a long or just a short period of time?
There are two types of visas;
Entrepreneur Visa; allows a foreign entrepreneuer to stay permanently and run their business in Mexico
Employee Visa;
- FM3 (non-immigrant) visa which the most common for foreigners looking to work in Mexico for one year, with possible on-year extensions
- FM2 (immigrant) visa permits expats to stay and work for one year, and is renewable annually.
- FMM (Multi-Purpose Form) visa allows foreign nationals to visit Mexico for tourism or business purposes. It is only valid for 180 days.
8. Mexican Salaries
The minimum wage in Mexico is 80 pesos per day (4 CHF) and 50% of the population earns around 1,000 CHF or less.
9. Employee Benefits
The goal should be to offer competitive salaries and attractive employee benefit package, which will lead to highly committed employees and accordingly to a low turnover in the long term. We have already gathered information for you in which state which employee can be hired for which salary.
We will analyse what benefit packages could be implemented from your company, respectively what is highly appreciated among the Mexicans’ workforce. Such as:
Paid time off such as PTO, sick days, and vacation days
Health Insurance
Retirement benefits or accounts
Training weeks at the head quarter in your country
Support for further education programs if employee is commited to stay in the company
Tuition reimbursement
Employee recognition programs
Commuting/travel assistance
Workplace perks such as recreation activities, food and coffee, and flexible work schedules
9. Employee Benefits
The goal should be to offer competitive salaries and attractive employee benefit package, which will lead to highly committed employees and accordingly to a low turnover in the long term. We have already gathered information for you in which state which employee can be hired for which salary.
We will analyse what benefit packages could be implemented from your company, respectively what is highly appreciated among the Mexicans’ workforce. Such as:
Paid time off such as PTO, sick days, and vacation days
Health Insurance
Retirement benefits or accounts
Training weeks at the head quarter in your country
Support for further education programs if employee is commited to stay in the company
Tuition reimbursement
Employee recognition programs
Commuting/travel assistance
Workplace perks such as recreation activities, food and coffee, and flexible work schedules
10. Mexican values and cultural differences
«Culture is what is familiar, recognizable, habitual. It is what goes without saying”.
Every country has its own culture and values and you cannot emphasize this often enough – especially nowadays where globalization is becoming more and more important and also if you are an international company and have in mind to expand to a country which is not just around the corner.
There are various aspects that are vital when expanding to a country with a different culture and language such as emotionality, religion, employee relations, body language, power, or individualism.
Examples of Cultural Differences
- Mexicans usually have a very strong bond within their family, e.g. you do not leave your parents´ house unless you get married and in addition they tend to be very religious people.
- Mexicans are also less punctual than in Europe, meaning being on time is +10 minutes. We will help you evaluate possible future Mexican employees and where problems might arise.
- Mexicans are organized much more hierarchical than for example Euroepan Countries
After analyzing which values are important to you and for your company we will advise you how to adapt these values to the Mexican employees as far-reaching as possible.
We will help you get to know the Mexicans’ culture and explain what you have to look into.
«Culture is what is familiar, recognizable, habitual. It is what goes without saying”.
Every country has its own culture and values and you cannot emphasize this often enough – especially nowadays where globalization is becoming more and more important and also if you are an international company and have in mind to expand to a country which is not just around the corner.
There are various aspects that are vital when expanding to a country with a different culture and language such as emotionality, religion, employee relations, body language, power, or individualism.
We will help you get to know the Mexicans’ culture and explain what you have to look into.
Examples of Cultural Differences
- Mexicans usually have a very strong bond within their family, e.g. you do not leave your parents´ house unless you get married and in addition they tend to be very religious people.
- Mexicans are also less punctual than in Europe, meaning being on time is +10 minutes. We will help you evaluate possible future Mexican employees and where problems might arise.
- Mexicans are organized much more hierarchical than for example Euroepan Countries
After analyzing which values are important to you and for your company we will advise you how to adapt these values to the Mexican employees as far-reaching as possible.
11. Labor Law and Unions in Mexiko
Mexican employees are entitled to have 6 days of holidays after 1 year and 2 more days in the following year
Payroll is paid twice a month: on the 14th and 30th of each month
With a local lawyer, who has experience in starting businesses and who knows about the regulations, we can ensure that you will be compliant with all new laws and regulations throughout Mexico.
Another major challenge for manufacturing in Mexico arose with the passing of Mexico’s new Labor Decree of December 2012. This decree has been the first major alteration to labor laws in Mexico in almost 40 years and includes more than 300 changes.
Companies manufacturing in Mexico, both, new and established, are struggling to understand and comply with these new labor laws in Mexico resulting in lost productivity and, in some cases, fines for noncompliance.
We make sure that you will be compliant with laws and reguations in Mexio.
12. Contracts for employees
Labor unions in Mexico also play an important role as they serve to protect the common employment rights for the employees they represent. There are large labor unions in Mexico where collective labor contracts are typically signed with the employer´s representatives and are reviewed every two years.
We will create standardized English and Spanish contracts which will comply with the Employment in Mexico and which is regulated by the Federal Labor Law (FLL). The FFL outlines the appropriate rights and obligations of both, employees and employers (holidays, insurances, taxes, benefits, night shifts, resignation time, probationary period, payroll, etc.).
by VOCSO
