5 Mexico HR Trends To Watch For In 2019

In the words of Greek philosopher Heraclitus: “There is nothing permanent except change.”  2019 is going to be a year full of changes and challenges for the Mexican workforce; nevertheless, the overall picture is promising. According to the Annual Remuneration Poll (TRS), the salary increase for executives in 2019 will be of 5.4%; while for managers, sales and professionals, it will be 5.3%. However, this increase is not a guarantee of better competitiveness.

So, how can the Mexico workforce be more competitive for these new challenges? In order to ensure competitiveness, top workplaces in Mexico are adopting most of the following HR trends.

1. Flat Organizational Structure

According to Michael Ferrari, CEO of GPTW Mexico, one of the strongest trends is the alteration of the organizational structure. Work styles have transformed into more collaborative and multifunctional teams and made pyramidal structures change into more plane or horizontal structures.

This has also impacted the workplace; more organizations are opting for open and functional workspaces created to form networks, and thus further develop the business from the commercial point of view.

2. Recognition Programs

To develop effective HR strategies, you need to know the main demotivators of your employees. According to Page Remuneration Study, in 2018, 22% of the Mexican workforce considers the lack of recognition as one of the strongest demotivators. That’s why it’s very important to recognize top performers and to give feedback to the rest of the organization on a regular basis but at least twice a year. These are some examples of the most popular recognition programs:

• Employee of the month. – Its principal objective is to recognize those employees who live by the company values and core competencies.
• President Club. – This is a way to recognize the top performer of each department. Some companies give a certificate, others give an all paid trip to a popular vacation destination, and still others invite the recognized employee to a one-on-one dinner with the President and spend time getting to know them better.
• As needed. – You don´t need to wait until the end of the month or at the Christmas party to recognize an employee. When an employee or a coworker is doing a good job, just say it. This will make recognition a habit.

3. Flextime

Flextime is a scheme in which the schedule or workplace is modified considering the specific limitations demanded by the needs of the company or the position. This trend is allowing better work-life balance and bigger productivity. The most popular flextime practices are:

• Home Office. – Working from home or any other place remotely.
• Part-time. – Working 4-5 hours inside the company or remotely.
• Full-time with a flexible schedule. – Working 8-9 hours daily, but with the possibility of modifying when you enter and when you leave the workplace
• Short week. – Working more hours for 4 days in order to have 3 days off a week.

4. Competitive Benefits

Today, an employer offering the minimum Mexico required legal benefits is not enough for keeping your employees happy.  That is why organizations need to have competitive benefits in order to attract and retain the best talent. According to Page Remuneration Study, here are some of the most valuable perks for the Mexican workforce:

• Private Health, Dental and Life Insurance
• Cellphone
• Corporate Car Lease or Car Allowance
• Gasoline Allowance
• Gym/Private Club Allowance

5. Young Talent Programs

Another trend that shores up an innovative and productive workforce, is having a specialized program to select, develop and retain university students and recent graduates. Even though they don´t have the experience, they have the necessary potential and creativity to incorporate new oxygen to companies. Participating in university job fairs and having good communication with the alumni and career departments is essential. Universities should be our greatest allies, as providers of the most valuable asset: human capital. Mexico’s new President, Lopez Obrador has launched a new initiative “Program for Young Adults Building the Future”  in which the Mexican government will offer to pay for internships with companies for up to a year with a monthly salary of 3,600 Mexican Pesos.

By Fernando Ortiz-Barbachano

About Barbachano International

Barbachano International (BIP) is the premier executive search and leadership advisory firm in the Americas (USA, Mexico, Latin America, & Canada) with a focus on diversity and multicultural target markets.  Outplacement and Executive Coaching services are provided by our sister allied company Challenger Gray & Christmas. Since 1992, BIP and its affiliates have impacted the profitability of over 50% of Fortune 500 Companies.  BIP has been recognized by Forbes as Americas’ Best Executive Search Firms and currently ranks #27 and #3 on the West Coast.  Headquartered in San Diego, California with satellite offices in Florida and Mexico.  As member-owners of NPAworldwide Recruitment Network, we are supported by partner offices in over 50 countries.