Why a Mexico Recruitment Agency is Not the Labor Sourcing Solution You Need
July 12, 2021
If you’re moving your operations to Mexico, you’ll need to consider how you’ll be recruiting new employees. One option would be to set up a subsidiary and do the recruitment yourself; however, this can be a complicated and costly process. Another option would be to outsource recruitment to a Mexico recruitment agency, but this too comes with numerous disadvantages such as a loss of control over the process and the risk that you’ll get an agency that’s more focused on filling roles than finding quality candidates.
To receive support in key components of sourcing talent, many companies that are moving their manufacturing operations to Mexico choose to outsource their HR or utilize the HR services of a shelter company rather than outsource to a recruitment agency.
When looking to hire in Mexico, companies need to take a different approach to hiring than they would if hiring within the U.S. Social media is used differently, with Facebook, rather than LinkedIn, being the most popular platform for job seekers. Individuals looking for jobs are also less likely to reach out to companies directly to inquire about openings, so it’s up to the companies to build their connections and contact lists.
As a foreign company, it can be difficult to adjust your recruitment approach while simultaneously trying to deal with other parts of setting up your manufacturing in Mexico. A shelter company that includes recruiting as part of their services will be able to help strategically source the talent you need while letting you keep control of the process.
Outsourcing your recruitment to an HR service or through a shelter company is also an ideal way of sourcing labor because of its focus on compliance. While you worry about shoring up your operations, a shelter company will handle finding the right employees while staying fully compliant with Mexico’s labor and employment laws. Some of the many laws that you must follow include:
You may wish to conduct a background check on job candidates, and while there is nothing preventing you from doing so, there are strict laws governing how the information collected can be used.
Employment contracts are always required and must be written in the local language with a detailed outline of compensation, benefits, termination requirements, and more.
There are three specific shift times outlined in Mexico’s labor laws:
- Day shifts: any eight hours between 6 a.m. and 8 p.m.
- Night shifts: any seven hours between 8 p.m. and 6 a.m.
- Mixed: seven and a half hours between both day and night hours
Employees that work beyond the time set in their contract are entitled to overpay at 100% of their normal hourly pay and 200% if they work beyond 9 hours. In any case, work time is limited to 11 hours per day and 49 hours per week.
Mandatory benefits include an annual bonus, seven yearly paid public holidays, and six days of paid vacation after one year of employment (which increases as employment length increases)
Smooth onboarding is an important part of the employee experience, but it can be difficult to execute for foreign companies that have set up as a subsidiary and may be busy with other aspects of getting their business up and running or may not have a strong grasp of Mexico’s business culture. Furthermore, the onboarding process can take much longer for companies doing it themselves, as no employees can be hired until the subsidiary is officially established.
Shelter companies are one of the most effective solutions since they allow you to forego setting up as a subsidiary completely, significantly reducing the time it takes to source and onboard new employees and become fully operational in Mexico. Taking this route also means you have complete control over the onboarding process but with expert insight into important cultural differences.
Labor sourcing with NAPS
If you’re looking to source labor in Mexico, partnering with NAPS will give you the knowledge and resources you need to do so successfully. With decades of experience in Mexico manufacturing and human resources, we’re ready to help you find—and manage—the right people for your business, all while guaranteeing full compliance with Mexico’s regulations. Contact us today to find out how we can help your business specifically.