5 Reasons to Outsource Recruitment in Mexico

Your success in Mexico is heavily dependent on having skilled, reliable employees. With well-established networks and working relationships, outsourcing human resources and recruitment functions to a service provider in Mexico allows you to make use of skills and established systems that help your operation run smoothly.

Human Resources and Recruitment, Simplified

For foreign companies inexperienced with manufacturing and Mexican labor laws, building a sound human resources infrastructure presents a broad range of challenges, including:

• Attracting candidates qualified for your specific operation
• Creating a workforce that is able and competent
• Understanding the Mexican labor market
• Working within Mexico’s system of labor unions

These are just a few of the difficulties human resources teams face. Given these potential obstacles, choosing to work with a service provider for recruitment and human resources management can highly simplify the process.

Reason #1: Make Use of Established Experience

As a new entrant to the Mexican manufacturing landscape, finding the right networks, support, and workers can be challenging. Rather than taking on the challenge of building a robust labor network on your own, outsource the work. Choosing to outsource your recruitment efforts to a service provider allows you to benefit from established experience.

Service providers like Tetakawi provide increased investment in technology and education and study changes in local and regional labor markets. As a result, our HR team that is highly skilled and knowledgeable in all aspects of labor management. Our expertise spans 33 years of experience – and this is heavily backed by immersion in the labor landscape in Mexico. One of the main advantages of outsourcing to a service provider is gaining complete knowledge of the employee lifecycle as it functions in the Mexican environment.

Reason #2: Get the Best Candidates for Your Team

Each manufacturing operation is unique – which means that the workforce required to support it will have specific needs. But as a standalone entity, how do you find reliable, skilled candidates tailored to your individual needs? Choosing to outsource your recruitment efforts to a service provider experienced in recruiting candidates for specific industries and functions can be a smart choice.

Companies often look to Tetakawi to fill anywhere from one to hundreds of direct labor positions. In particular, hard-to-find technical positions, skilled or trainable workers, and experienced supervisors are highly demanded but potentially hard to source for standalone entities. As a qualified service provider with an extensive network of over 24,000 employees, we help source employees and fill positions to ensure operational continuity and performance.

Outsourcing often allows you access to a vast talent network. Developing, screening, and hiring from a tailored applicant pool based on your specific requirements is therefore much easier to accomplish.

Reason #3: Easily Manage Administrative Tasks Like Payroll

Once a well-tailored workforce is in place, many companies find that managing the payroll process is exceptionally challenging. Between withholding, incident calculation, and conflict resolution among the many other tasks required, payroll administration can be a headache worth outsourcing to a service provider.

Ensuring your employees are compensated correctly, on time, and in compliance is a specialty of service providers like Tetakawi. Our payroll team, for example, understands requirements for gross pay, benefits, and deductions as required by Mexican labor law. These requirements are then calculated and incorporated while processing payroll.

In particular, compliance with government, legal, union, and 3rd party regulations is an advantage of outsourcing. Related functions are often more easily performed with a provider who is regularly engaged in this type of work. At Tetakawi, our HR teams perform multiple tasks to ensure compliance, including:

• Accurate withholding of federal (LFT), state, union, employer, and other benefits
• Management of employee savings accounts, pensions, loans, memberships, and safety deposit boxes

Reason #4: Improve Employee Retention and Satisfaction

Keeping your team in place and satisfied is just as important as building it. Many foreign companies find it challenging to provide the necessary resources to keep their employees motivated and productive. They may also lack the bandwidth to establish and run incentive programs that bolster retention. Enlisting the help of a service provider is a beneficial way to retain your employees – and keep them happy.

Employee satisfaction is vital to maintaining a stable workforce. Choosing to outsource your human resource functions to a service provider experienced in best practices for satisfaction and retention in the Mexican labor environment ultimately helps improve productivity. At Tetakawi, for example, our employee relations management team supports employee productivity by:

• Deploying surveys
• Promoting positive working and living conditions
• Implements retention programs such as adult education, housing credit, and childcare

These services all work to ensure that employees are receiving the necessary tools to remain motivated and productive at work.

Reason #5: Easily Manage Labor Union Relations

Understanding Mexican labor law and building strong relationships with local labor unions is a highly specialized skill. Choosing to outsource the management of these relationships to a service provider can help navigate the Mexican legal environment, maintaining communication and policies, and remaining compliant.

At Tetakawi, we negotiate the terms and conditions of the Collective Bargaining Agreement with the local labor union on your behalf. These negotiations allow you to seek a balance between your interests and that of the local labor market so that labor contract terms are favorable to all involved. And beyond negotiations, outsourcing your HR functions allows you to confidently address any conflicts or disputes that arise with unionized workers.

Outsourcing your recruitment and HR functions provides numerous benefits. It’s no wonder many companies find it an attractive alternative to managing these duties in-house. We can help you determine if enlisting external recruitment services is the right choice for you. To learn more about outsourcing your recruitment and human resources functions to a service provider, contact us for a detailed overview of available options and services.