With the labor market becoming increasingly competitive, it is more important than ever for companies to establish and maintain an excellent work environment. A changing culture in a new generation of employees and recent modifications to labor legislation aimed at increasing safety and comfort at work centers have highlighted how key it is to invest in one of a company’s most important resources—its human capital.

Three factors that can contribute to ensuring a positive environment and culture in the workplace and be easily overlooked or not correctly designed, especially by international companies in Mexico, are an effective onboarding process, competitive compensation package and non-monetary benefits and activities for employees, and assessing and continually improving workplace environment and culture.

International companies in Mexico

One of the steps that is most commonly underestimated when hiring is the onboarding process. It is essential to understand that this is the new employees’ first impression of the company and set the tone for a positive relationship in the long term. In the orientation process, it is critical that companies give a realistic view of what working there is like and that a cohesive message is transmitted on all levels, from leaders to services, payment practices, tools and spaces, and overall support. Knowing what to expect and what is expected from them will lead to recruits feeling more familiar and comfortable in their new workplace.

Mexico manufacturing

Next, without a competitive compensation package and the employee’s consequent ability to have a good quality of life, it will be impossible to recruit committed and high-quality personnel. A good goal here is not to overpay but to develop the skills of the labor force while increasing the pay scale to increase engagement and retention in the long term.  Allowing employees the opportunity to gain more skills and offer additional value to the company means that employers must also design a market compensation package that remains competitive throughout the years to minimize attrition. The basis for this is understanding that well-trained employees will be well-paid employees, which will result in very positive long-term engagement.

Just like economic compensation packages, employee services must also follow best market practices. These services include the non-economic benefits offered to employees that can improve their comfort and quality of life. Some examples include offering transportation services, cafeteria services, and social activities that can sometimes include employees’ families. The services commonly offered for this benefit can vary widely from one region to another, so it is good to work with a provider of shelter services in Mexico that can help you determine what is competitive in a specific area.

Nearshore or offshore manufacturing in Mexico

The implementation of Official Mexican Standard (or NOM as it is known in Spanish) NOM-035 aimed at identifying, analyzing and preventing the psychological risk factors and promoting a positive environment at work centers has brought the need to foster a positive workplace culture to the forefront. This NOM makes it mandatory for all companies to carry out a biannual evaluation on work environment factors such as stress, workload, work hours, and appropriate leadership.

Being straightforward and consistent in communication across all levels of a company, designing competitive compensation and benefits packages, and striving for continual improvement in workplace satisfaction and all human resources processes will help ensure the long-term success of companies in Mexico manufacturing and various industries and sectors.


By José Núñez | Chihuahua and Cd. Juárez Human Resources Manager | American Industries Group®
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