Why Mexico should be on your contingent workforce program expansion list

As many start to think about vacation plans, one country usually comes to mind…Mexico. While Mexico is a Top Ten Tourist destination country, there many other reasons to consider this country in your expansion plan.

Mexico has withstood the economic meltdown quite well and continues to see mild GDP growth. With a new President, Enrique Pena Nieto who was inaugurated in December 2012, there seems to be positive changes in store for Mexico. For example, the new President recently signed the biggest education reform in 7 decades. According to a recent New York Times article, Mexico is the next comeback kid. Did you know that Mexico has a population of 116 million people and a GDP per capita of 10,153 USD and has improved on the global competitive index up 5 spots from 58 to 53 in 2013. While the Mexican temporary staffing market is not as large as other developed nations, there are over 700 private employment agencies in this growing country making this a viable option in your contingent staffing expansion plans. At Beeline, we have been working closely with our clients, partners, and sister companies to make sure that our team and solutions are ready to support you as we work with you in Mexico and wanted to pass along some of our learning’s:
  • The rich diversity of its many cultures is by far Mexico’s most valuable asset. As with any country expansion, it is important to be aware of regional differences within this dynamic country.
  • Communication tends to be indirect and subtle, and presented in such a way as to be diplomatic and non-confrontational. Meaning is conveyed through non-verbal forms.
  • Do expect that your document and literature to be translated into Spanish. Even though large multi-national companies may do business in English, staffing companies and contractors will expect for information to be translated.
  • Temporary agencies must obtain an authorization by the ministry of labor as a “Staffing Agency”
  • The minimum wage is based on 3 geographic zones (A, B, C)
  • There are different tax rates for bordering areas than the rest of Mexico.
If you have plans to expand into other countries in the Americas in 2013, Mexico is a good place to start.