Hiring In Mexico: Work Culture & Employee Benefits

Hiring In Mexico

Hero image hiring in mexico

Setting up a business and hiring the local workforce there. First of all, let us explore the benefits of why Mexico.

Mexico has one of the most unrestrained markets in the world, with 13 Free Trade Agreements with 50 countries. With this in mind, your business connection is with the Mexican and the 50 country markets, without any typical difficulties one faces with international trading.

These  trade agreements include the The United States, which gives you a significant edge in the country’s market.

Ranked 16th as the largest exporters in the world. Extensive exports foster development in local businesses by creating more sales and connecting with new markets.

Aguinaldo, or Christmas bonus, is a statutory benefit in Mexico. The bonus is equivalent to a minimum of 15 days worth of the worker’s salary. Moreover, the bonus comes before the 20th of December, for the upcoming holidays. 

After a year of employment, your employees are entitled to paid time off. For the first year, it is six days of vacation time. An additional two days of time off is given from year two up until five. 

After the fifth year mark of your employee working, an additional two days off is given only after every 5th year, compared to the annual before.

Employees who work on Sunday must be given 25% of their regular salary as compensation since Sunday dictates a rest day for the nation.

With some of the benefits your employee needs when hiring in Mexico explained, let us delve into the hiring environment of the nation.

In Mexico, the majority of Mexicans speak Spanish as their primary language. Be that as it may, your company needs to have a firm grasp of Spanish for excellent communication.

In Mexico, there are three kinds of duration in a contract. These labels are indefinite, project, and seasonal. Your company needs to be specific with the contracts as this will determine the employee type of job. One of the reasons why the agreement is vital is that Mexico does not have mandatory unemployment insurance.

There is a mandatory need for companies to share 10% of their profit with their employees annually. The sharing does not include high-ranking employees. Moreover, new companies are not subjected to this system for their first opening year.

 

The sharing system splits into two equal parts. The first is an equal distribution for all workers in the company. The computation is with the number of working days of each employee in that year. The second distribution computation is with their working days alongside their annual wage.

Having a deep relationship with your workers is vital in Mexico. Your employees should trust you and have fully formed a proper personal connection for the business’s success.

 

Talking about one another’s personal life is the norm in the nation. People there also give crucial effort and time to form said business relationships. Charisma is the key to your approach, with transparency to engage with your workforce as this dictates how they will approach you and if they deem themselves fit for your company.

The Mexican culture of the time is ambiguous. They use words such as “tomorrow” or “these days” instead of being direct. Therefore, you need to clarify the exact time of what they mean. Furthermore, Mexicans tend to be more laid back in time compared to other cultures. The start and end of meeting times are used as estimates and not as absolute.

Mexico is a country that progressed a lot in recent years. They hold a plethora of benefits and advantages with having a business put up there. Furthermore, these employee benefits and the country’s work culture give you a glimpse of the nation.



Global People is a leading local employment solutions provider for national and international corporations and can advise and escort you in your next destination.

About Us

Global People aims to assist its clients to fully focus on their development and success in their target destinations without having to worry about the regulation and compliance involved in the employment of their local and expat employees.

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