Section Index
- Our HR Partners
- HR Services
- Main Services HR
- Challenges HR
- Compensation System
- Cultural Differences
- FAQ HR
Service providers
- Our HR Partners
- HR Services
- Main Services HR
- Challenges HR
- Compensation System
- Cultural Differences
- FAQ HR
With turnover rates exceeding 100% in parts of Mexico, competitive wages, benefits, and well-being programs are essential to retain talent, reduce costs, and boost productivity.
Mexecution HR Partners
From headhunting, conducting interviews and psychometric tests to assisting with hiring, offering tailored fringe benefits, and supporting business transformation, our Experts advice and facilitate international companies all around HR-topics in the expansion process to Mexico.
Click on a profile to learn more about each Human Resource company
Main Industries: Healthcare, Finance, Construction
Main Industries: Retail, Manufacturing, Food
Main Industries: Manufacturing, Finance and Services
Main Industries: Anything with responsible and/or sustainable production or consumption
Main Industries: Manufacturing, Accounting, Construction
Main Industries: Telecommunications, Real State, Fintech and Consumer Product
Corporate Services offered by our HR Partners
Partial List of the Services
- Headhunting
- White & Blue Collar Recruitment
- Psychometric Tests
- Background Check
- Talent Acquisition and Retention
- Fringe Benefits / Compensation System
- Business Transformation
- Organizational Structure & Building Teams
- Employee Retention & Fringe Benefits
- Large Candidate Pool
Main Services in HR
Here are some core services offered by our HR Partners.
Recruitment
Recruitment services for white and blue collar employees encompass beside having different hiring methods or being compliant with the Mexican labor law:
- Understanding cultural nuances
- Compliance with Mexican labor laws
- Job stability and benefits
- Background checks
- Collecting references
- Psychometric tests
Cultural Integration
Successful cultural integration during an international expansion requires a strategic approach to align teams and overcome potential challenges.
- Guidance by organizing cultural awareness training
- Team-building activities
- Communication sessions to help employees understand new culture
- Fostering mutual respect to ensure smoother collaboration, builds trust, and promotes a unified, productive workforce.
Business Transformation
Developing and implementing Organizational Diagnostics to empower companies with valuable insights into their work environment. This process enables businesses to establish precise and impactful action plans aligned with corporate objectives.
- Fostering understanding, identification, and engagement among employees
- Creating a positive workplace culture that drives success
- Thriving with motivated and aligned collaborators
Challenges of Human Resource in Mexico
Although the hiring process and methods in Mexico are similar to those in other parts of the world, there are distinct challenges that must be considered.
High Turnover of Blue Collar
High turnover rates among blue-collar workers in Mexico’s manufacturing sector, exceeding 100% in some areas, drive up costs and impact productivity and quality. Workers often leave quickly if undervalued or offered slightly higher wages.
Solution
- Improving Employee Engagement by implementing health programs, recognition systems, and community-building events to boost worker morale and loyalty.
- Competitive Compensation by providing fair wages and benefits tailored to local labor market dynamics
- Work-Life Balance Programs by addressing personal needs with e.g. transportation assistance
- Long-Term Training to develop the employees to create a more specialized, committed workforce
Employee Termination
Employers must pay to its employees a severance packages they they are terminating the contract without a cause. Particularly for long-tenured workers, can be a significant financial burden, and improper handling of terminations may result in costly legal disputes over wrongful dismissal claims.
Severance packages include
- Three Months' Salary
- 20 Days' Salary per Year of Service
- Accrued Benefits: Proportional Vacation Pay / Proportional Christmas Bonus / Unpaid Wages
- Seniority Premium
Background Checks
Conducting background checks on employees in Mexico is crucial to ensure that individuals hired are trustworthy and have no involvement in criminal activities or unethical behavior.
- Verifying a candidate’s criminal record
- Employment history and qualifications
Finding Blue Collar
Finding blue-collar workers in Mexico is increasingly challenging, especially in industrial hubs like Tijuana, Ciudad Juárez, and Monterrey, where high demand and market saturation persist. Many workers travel from southern states, staying for just five days before returning home, adding to turnover issues.
Labor shortages in these regions exacerbate competition, driving up wages and recruitment costs. For example, Tijuana faces a labor deficit of over 14,000 workers, while Ciudad Juárez reports more than 21,000 job vacancies, highlighting the critical need for sustainable workforce solutions.
Due to the high investments of companies into the Mexican Markets and scarcity of talents, it is a challenge to find the right people. Our HR experts have developed proven systems and a large candidates of pool to find the right talents
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How can I retain employees in my Company
Offering attractive employee benefits is key to retaining top talent and ensuring workplace satisfaction in Mexico. While statutory benefits like the Christmas bonus and social security are legally required, companies can stand out by offering additional perks.
Christmas Bonus: At least 15 days of pay annually, distributed before December 20th.
Paid Time Off (PTO): Starts with 12 days after the first year of service, increasing incrementally.
PTO Bonus (Prima): Additional 25% pay on top of regular salary when employees take PTO.
Profit Sharing: 10% of company profits, distributed among employees annually.
Severance Pay: Varies depending on the reason for termination, from small packages to significant payouts for dismissals without cause.
Maternity and Paternity Leave: Mothers receive 12 weeks of paid leave, while fathers get 5 days of paid leave.
Social Security and Healthcare: Covers basic healthcare, funded through employer and employee contributions.
Overtime Pay: 200% pay for standard overtime, 300% after nine hours, and a 25% bonus for Sunday work.
Food Vouchers: Redeemable at grocery stores and general goods outlets.
Private Health Insurance: Supplemental plans offering access to better clinics and shorter wait times.
Life Insurance: Provides coverage for employees’ families in the event of death.
Savings Funds: Matched employee contributions, released annually.
Productivity Bonuses: Incentives for achieving specific goals.
Transportation Stipends: Includes gasoline vouchers, company-run transport, or parking subsidies.
Loans and Credits: Low-interest personal, payroll, mortgage, or car loans.
Company Cars: Typically for high-level employees, for both personal and work use.
Cell Phones: Company-provided devices and service plans.
Internet Service: Employer-covered internet bills, especially for remote work setups.
Cultural Differences
Family plays a central role in Mexican culture and business, influencing holidays, family days, and benefits. Leadership often stays within families, but Mexican executives are highly skilled. Embracing this family-oriented approach is key to building successful business relationships.
Corporate sponsorship of family events underscores tradition's role in Mexican business culture. Unlike the U.S., Mexican workplaces often embrace religious practices, reflecting their societal importance. The business culture also features a paternal structure, fostering close manager-employee relationships and strong worker loyalty.
In Mexico, punctuality is flexible, with slight delays often acceptable, especially in informal settings. Business lunches focus on trust-building over strict schedules, making lengthy meals a way to strengthen relationships, not a sign of inefficiency.
Mexican business culture is high-context, with personal relationships and power dynamics shaping communication. Nonverbal cues and indirectness are key, as conflict avoidance often leads to subtle negotiation styles that vary by region and individual.
Micromanagement in Mexico often arises from hierarchical structures and a strong focus on authority and personal relationships at work. Managers may feel responsible for every detail, leading to a lack of trust in employees’ abilities.
Mexico is a predominantly Catholic country, with around 80% of the population identifying as Catholic. Many employees in Mexico value strong family ties, respect for authority, and the importance of religious holidays.
This cultural influence is key for businesses to consider, as it can impact workplace dynamics, employee motivation, and expectations.
FAQ about the topic Human Resource Management in Mexico
Some General questions and Answers about the Topic Human Resource Management in Mexiko.
Employees start with 12 days of vacations after their first year, increasing over time with additional days for each year of service.
Employees in Mexico have the right to join, form, and participate in unions to protect and negotiate their collective rights.
No, unions are not mandatory, but employees have the right to form and join unions to collectively negotiate labor conditions.
No, they are elective benefits, though they are commonly offered by companies to attract talent.
Yes, companies can offer low-interest loans, such as personal, payroll, mortgage, or car loans.
Severance depends on the reason for termination. Employees fired without cause are entitled to a minimum of three months’ salary plus additional compensation.
Overtime is paid at 200% of the regular rate for up to nine hours, and 300% for any hours beyond that. Sunday work earns a 25% bonus.
Yes, companies must distribute 10% of their annual profits among employees.
Why Choose Mexecution?
Transparency & Honesty
Transparency and honesty are the cornerstones of our business, as we firmly believe in fostering trust and open communication with our clients and partners.
Reliability & Punctuality
Our service providers deliver reliable, timely services while prioritizing client satisfaction and fostering trust to build long-lasting, successful partnerships.
Trust
Trust is the foundation of our and our Service Providers' relationships, built on open communication, integrity, and exceptional service delivery.
Quality & Standards
Our Service Providers are committed to excellence through meticulous detail, continuous improvement, and strict quality control in all operations.
Industry Sectors
15+
C-Level Contacts
80+
Clients
500+
Years of experience
20+