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3 Steps to Outsource with an Employer of Record in Mexico

3 Steps to Outsource with an Employer of Record in Mexico

by Cody Kimmel   |   December 2, 2021   |     6 min read
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Are you looking to outsource your team using an Employer of Record in Mexico and don’t know where to begin? 

There are many benefits to using an Employer of Record. However, with the new Mexican outsourcing law which eliminates using nationally based employers of record  in Mexico, many companies are struggling to find ways to hire and manage nearshore teams. 

CodersLink is able to get around this new change in Mexican law with established federal entities in both the U.S. and Mexico.

As salaries for developers in countries like the US and the UK rise, outsourcing has been a popular and more realistic option for many businesses. Now, they are forced to set up federal entities of their own in Mexico to keep the same low-cost rates. Doing this is not easy. 

This is where CodersLink can help.

We make it easy for you to overcome IT outsourcing problems.

With the rise of the Employee of Record, many companies are using an “EOR” as the preferred method for hiring and managing remote employees. With this, comes some confusion around where to begin the process. 

If you’ve decided an EOR in Mexico is the route for you, here are three ways to get started:

  1. Clarify your goals
  2. Engage with the right partner
  3. Trust the EOR to fulfill your needs

Keep reading for more details on how to hire an EOR in Mexico!

Step 1: Clarify your goals to the Employer of Record in Mexico

The best way to begin the process of using an Employee of Record to outsource your team is to get clear on your goals. What problems are you facing? What goals are you trying to fulfill? What are your reasons for outsourcing to Mexico?

Get clear on your top three goals and keep them in mind when looking for your outsourcing partner. Are you looking to complete a project in the most cost-efficient way possible or is it top priority for you to be able to scale up or down your team with ultimate flexibility? 

Maybe you need a team that is highly skilled and you are looking for a partner that can source top talent from all over the world. Is being able to speak English of little or great importance to your project or ideal team? Is onshore, nearshore, or offshore best for your company?

If you clarify your goals upfront, you can easily share them not only with potential outsourcing partners, but also with the new hires in their onboarding process into your company.

Sonatafy Technology says, “Collaborating with software developers who know your company’s goals can boost your product’s duration to market. These developers can help speed up the process of software development while meeting the quality demand.”

The best way to get started with an Employer of Record is to make sure your goals are clear. 

Step 2: Engage with the right Employer of Record in Mexico for you

The next step to finding the right EOR for you is to begin engaging with different outsourcing partners to see who can best provide solutions to your IT outsourcing needs.

A good outsourcing partner is going to be with you through the sourcing, hiring, and managing phases of the process. You’ll want to make sure that the partner you choose is committed to your success as well as the success of the hirees. 

Do they care about the happiness of the developer and your team? Are they going to find a fast replacement if the software developers they match you with end up not working out? Do they understand the different payroll options in Mexico?

It’s important to find a partner that will take care of coordinating communication, contract, and cultural details that (almost inevitably) arise in each phase of the process.  Things like salary raises, paperwork, and performance reviews should all be part of your partner’s responsibilities that they manage for you. 

Medium.com says, “A good hiring partner has well-structured systems in place to source the best candidates. At the same time, they understand how best to keep remote developers productive, creative, and happy.” 

Choosing the right partner for you is crucial to hiring the right team, especially when working in another country. On top of the typical hiring challenges, candidates in another country present obstacles like language barriers, time differences, and different cultural norms into the equation. A good outsourcing partner should be able to help you manage these challenges with ease.

“Companies like CodersLink will also manage benefits for developers, placed candidate training, paid travel to meet, and more. This helps companies incentivize quality employees and retain the top talent that is needed to make their business thrive.” – Medium.com, “Finding the Right Hiring Partner for Remote Employees.”

A partner that strives for a win-win-win situation and gives added value along the way is the one you want to go with.

Step 3: Trust your Employer of record in Mexico to overcome your IT outsourcing challenges 

Once you’ve chosen the right partner for you, it’s time to let go and trust. If your outsourcing partner is experienced and highly qualified, this part will be easy. 

The main benefit of establishing an Employer of Record is to save you the time and effort of managing the processes, roles and responsibilities of a full team. The EOR will hire software developers, manage payroll, and pay local taxes for your remote workers. 

Establishing an EOR allows you to let go of all IT outsourcing risks and liabilities that come with managing an outsourced team of software developers. 

With an EOR, you can focus on your core business needs while still accomplishing projects and completing goals.

An Employer of Record comes with both short term and longer term benefits. “With a hiring partner, you not only have security and guarantees, but you have added benefits that incentivize your remote employees and keep them happy and more productive.”

Trusting your partner to source the right team to meet your project needs is the fastest way to achieve company growth.

“Software development outsourcing is critical to speeding up a company’s growth, reducing fixed costs, and recruiting skilled software developers fast. Hiring the right software developers can ensure that your company has on-demand services and increase your team skills.” – Sonatafy Technology

Choose CodersLink

At CodersLink, it is our mission to connect growing companies in the U.S. with highly-experienced and well-vetted software developers in Latin American countries like Mexico. As a company, we stay up to speed with the fast-paced landscape and constantly changing technologies in both America and Latin America. 

If you are wanting to grow and expand your business at a rapid rate, getting started with an Employer of Record is a great way to accomplish your goals.

We bring exceptional talent and world-class developers to you that can provide solutions for your business, organization, or project. We stay on-board throughout the whole process to ensure teams run smoothly and are being managed effectively so you can focus on innovation and building your company.  

We are deeply involved in the culture and industry in many countries so that we can provide the most beneficial fit to your team.  At CodersLink, we empower scaling companies to build, grow and manage remote tech teams in Latin America. Through our remote staffing and direct placements, we ensure the best companies find the best talent to continue contributing to your goals and fill skill-gaps with a team that’s right for you.  Hiring CodersLink means you can trust us to fulfill your software development needs.

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