4 Reasons Why Outsourcing HR Services in Mexico Is Valuable
02.14.20
Expanding operations to a foreign country requires the knowledge and insight of professionals who are well-versed in the laws, workforce, and culture of the region. This is crucial for every aspect, especially when it comes to human resources (HR), since one of the key objectives of successfully manufacturing in Mexico is recruiting the most skilled and reliable employees.
It can be challenging to navigate the ins and outs of Mexico’s competitive job market. However, working with a shelter services company, like IVEMSA, provides an established network and cultural expertise that gives your business an advantage when recruiting new workers. We can ensure your company is aligned with what employees are looking for in the hiring process and in turn, identify the specific qualifications they have to offer to get the job done.
HR solutions through IVEMSA are achieved as part of a maquiladora program or as an outsourced individual project, based on your business and workforce needs. As part of the suite of HR services available, a shelter company assists with:
- Recruiting and training employees
- Staying competitive among Mexico’s workforce
- Performing associated administrative tasks
- Understanding and complying with Mexican labor laws
Although there are countless details that go into the entire scope of HR management, these four main areas illustrate why it’s best to work with a shelter services team to handle such a significant part of your operations.
Reason #1: Recruit the Most Qualified Candidates Available
Mexico has a strong, technical workforce that makes it ideal for manufacturers to expand their operations across the border. However, as with any job recruiting, not all candidates have the exact same skill set or experience. IVEMSA works with your company’s outlined job descriptions to match the people that fit your unique requirements and conduct interviews to make the best possible hires.
Companies maintain as much control and oversight over the process as they’d like. Many prefer to delegate full responsibility to the shelter company under a maquiladora program. The shelter becomes responsible for interviewing, hiring, and training new employees. In other situations, manufacturers may want final approval over hires and take care of training on their own. Either way, rather than sifting through endless applicants, IVEMSA can hone in on a particular region or group that has the particular talent and skills needed for the project.
Reason #2: Maintain a High Employee Retention Rate
A major part of HR is not only attracting the right candidates, but holding onto them as well. Due to the competitive nature of the workforce in Mexico, there is also a high turnover rate among foreign manufacturing companies. Employees often keep their sights on more favorable working conditions and/or benefits. When the retention factor is lacking, it becomes more costly to a company in terms of the time and money it takes to hire and train replacements.
To maintain top-notch individuals, part of HR services may include creating plans to measure employee satisfaction and invest in ways to entice employees to stay productive and motivated. This can be achieved by:
- Conducting employee surveys
- Offering additional benefits (or at least maintaining a competitive compensation package)
- Implementing incentive programs
- Increasing learning opportunities to keep people dedicated to their work
We can provide our recommendations and initiate any of your chosen retention solutions.
Reason #3: Manage Administrative Functions Such as Payroll
Keeping track of the number of employees and the breakdown of pay across several roles can be a hassle to handle single-handedly. Our HR representatives ease this burden since we are familiar with what’s required per Mexican labor law. Administrative assistance also benefits businesses that wish to scale or downsize quickly to meet changing demand.
Additional duties may include drafting and reviewing contracts, updating employee handbooks and/or guidelines, and any other tasks that are relevant under the human resources umbrella, either as part of a maquiladora program or on an individual basis. While there are standard types of expected functions that may apply across the board, each company has distinctive needs and we can customize our services accordingly.
Reason #4: Understand and Comply with Mexican Labor Law
In addition to payroll withholdings, it’s important for companies to understand the complexities of employee rights in Mexico, particularly in terms of labor contracts and handling employee termination. While a company likely has their own code of conduct and rules of engagement for all its employees, these must be adapted in order to uphold the legal requirements in other countries.
For example, in Mexico, there are labor contracts for seasonal employees and separate training contracts meant for worker trial periods. Each type of contract has its own stipulations regarding contract terms and how a worker is classified. Additionally, there are termination and severance protocols to abide by as well.
On a basic level, once an employee receives permanent worker status, he or she is entitled to severance. This is applicable unless the employee voluntarily resigns from the position or there is proven cause for termination. Failure to comply with these local laws can result in fines, fees, and unnecessary headaches for the employer.
Hiring a Shelter Services Company for Your HR Services
A human resources department takes on a heavy load as part of the operations for any company. When this is handled in a foreign country, there can be an overwhelming learning curve. Outsourcing HR responsibilities to an experienced shelter services company gives you the opportunity to recruit the best candidates, maintain competitiveness and a higher employee retention rate, and ensure administrative duties are being completed in compliance with Mexican labor laws.