Skilled Workers & Mexico Shelter Services: An Overview

U.S. manufacturers have been struggling with finding enough workers to fulfill their increasing production needs. As advances in technology and market competition have caused American companies to ramp up their output, the lack of industrial worker availability has posed a challenge.

Therefore, many operators, OEMS, and suppliers have turned to manufacturing in Mexico as a solution to their current labor problem. For decades, Mexico has invested in its industrial workforce through advanced education and collaborative training programs. The availability and cost-effectiveness of labor in Mexico is further emphasized by the close proximity between Mexico and the U.S.

Mexico shelter services include recruiting and retaining labor needed for each project, across all job levels. A shelter company helps manufacturers facilitate the decision-making process by providing salary, benefits, and other employee information. Finding qualified labor is one of the first important steps when launching production.

Here’s an overview of how a shelter company can assist with finding and securing skilled workers:

Recruiting

Manufacturers unfamiliar with operating in Mexico may not know where to start when recruiting for their projects. A shelter company has the local knowledge and network to recruit for the particular number of roles necessary within the designated area(s). Manufacturers save not only on time, but most also save up to 30% on HR department costs when shelter services are in place.

Hiring

Although manufacturers maintain complete control over their hiring and onboarding procedures, shelter services in Mexico can assist with the administrative side of hiring. This involves candidate screening, ensuring compliance with Mexico’s labor laws, and offering consulting regarding competitive pay and benefits.

Onboarding

Additionally, Mexico shelter services provide onboarding assistance to get new workers trained and up to speed per the processes the manufacturer outlines. Part of the full scope of HR management also includes providing market intelligence information and status report updates to help companies make adjustments as needed.

Retention

Though labor rates in Mexico are significantly less compared to wages in the U.S., the workforce remains competitive. Therefore, evaluating industry trends and salary expectations are part of what will help manufacturers retain their best workers.

Shelter services in Mexico include insight regarding competitive compensation packages and building a strong work culture to keep retention levels high and avoid the cost of losing valuable labor.

Severance

Addressing a severance scenario is quite different from what companies in the U.S. may be familiar with. There are certain rules and requirements that need to be followed when cutting ties with employees.

In Mexico, employees with permanent worker status are entitled to severance pay, starting with 90 days of wages equal to the employee’s most recent pay rate. Exceptions are employees who voluntarily resign or are terminated with cause, which makes it crucial to maintain documentation regarding each employee. Typically, the severance payment applies if the employer is unable to demonstrate a performance issue or a disciplinary action so it is important to have strong HR support to minimize these types of cases.

Learn How We Can Help

Lower labor rates and skilled worker availability are part of the many advantages of manufacturing in Mexico. However, even if you’re in the early stage of exploration, we are here to help.

Our team can evaluate your project requirements and provide valuable information as you go through the decision-making process. Contact IVEMSA today.