Sourcing Labor for YOUR Mexico Operation: Options in Human Resources Consulting Services

July 26, 2021

Sourcing Labor for YOUR Mexico Operation: Options in Human Resources Consulting Services

Foreign companies with little experience in Mexico’s labor laws or manufacturing industry may run into various human resource challenges. From understanding the labor market to attracting the top available candidates, manufacturers have many different hurdles to overcome while remaining compliant with Mexican law.

As a result, many companies choose to enlist the assistance of a business that offers human resources consulting help, like NAPS, to ensure their labor sourcing and human resource management follow Mexican law while supporting their business.

Human resources consulting services are an integral part of NAPS’ Administration and Compliance Management Program. It can be helpful to rely on an external provider like this that looks at current HR programs, implements new policies and procedures, recommends solutions, and more, with the goal of ensuring a company reaches its goals. Some of the most common services that consultants offer include:

  •   Recruitment
  •   Talent management
  •   Compensation & benefits
  •   Employee relations
  •   HR technology

HR Outsourcing in Mexico

To assist in sourcing labor in Mexico, HR consultants work with manufacturers throughout the recruiting, selection, and hiring processes, helping them find the right personnel through a strategic approach that considers cultural differences. Companies also utilize HR consulting services to more easily navigate the complexities of compensation and benefits, which vary greatly from the United States but are an essential part of quickly finding the right job candidates.

Different from a recruitment agency, HR outsourcing services are able to help companies with a wide variety of human resource needs that facilitate the process of expanding to Mexico while ensuring compliance, in addition to assisting with the recruitment of a workforce that will meet the company’s needs.


Common challenges of sourcing labor in Mexico

Targeting the best labor market

Locations throughout Mexico differ in terms of the cost-effectiveness, availability, and skill of their labor market. Larger cities may have a more skilled workforce, but the pay may be more competitive. Small suburbs typically offer the opposite.

If a manufacturer requires a facility that is too large to be located in a city at all, the amount of available labor often decreases as a result of transportation obstacles. An HR consultant can facilitate this process by helping you analyze available labor markets according to where your operations are located and what your business objectives are.


Setting your company apart

Mexico’s business culture and regulations are, naturally, different from the United States.  So making your company stand out will require different strategies. For instance, employee benefits are required by law, and good benefits are almost always expected.

An HR consultant will help you design a benefits program that goes beyond the minimum required by law and actually attracts the top candidates you’re looking for.


Job advertisements

Individuals seeking employment take a different approach in Mexico than they do in the United States. Most job seekers in the U.S. start off searching job boards, whereas in Mexico, candidates tend to begin on social media. Even then, the vast majority of job applicants in Mexico usually utilize Facebook as opposed to LinkedIn, the most common social network used for job hunting in the United States.

Having a strategy for sourcing labor that takes these local norms into consideration is crucial, and it’s part of an HR consultant’s job to help you develop this strategy while aligning to your business needs and objectives.


Employment regulations

Perhaps the most difficult aspect of recruitment in Mexico, and manufacturing in Mexico in general, is remaining compliant with Mexico’s employment and labor laws. From different regulations around background checks to creating detailed employment contracts once you’ve decided to make a hire, you’ll want to ensure you’re performing each aspect of recruitment correctly so your business can succeed.

Enlisting the services of an HR consultant is one of the best ways to avoid the risk of noncompliance. They are deeply familiar with local laws, you can source the labor your business needs the right way, and you can do it faster; there’s no need to spend time and resources on navigating the laws yourself.


How NAPS can help

NAPS’ Administration and Compliance Management program has been helping businesses successfully expand into Mexico for decades. Understanding a company’s human resource requirements is an integral component of this program and helps us recruit a workforce that meets our clients’ unique needs. Reach out to us today to learn more about how our HR services can help you source the labor that your business needs to thrive in Mexico.