A Breakdown of Hiring in Mexico

por Katherine Casaccia    |    April 13, 2022    |      7 min read

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Over the past few years, Mexico has become a hotspot for hiring top tech talent. Software developers and engineers are well-educated and ready to join a hard-working team. There are various reasons why companies based in the U.S. would focus on hiring in Mexico, including:

  • Reduced costs. Currently, the cost of living in Mexico is almost 300% less than in the United States.
  • Proximity. With more than 300 flights each day between the U.S. and Mexico, hiring software developers in this country is an easy way for organizations to build a talented team without worrying about the distance.
  • Similar time zones. Mexico shares a maximum two-hour difference in time zones compared to the U.S. This makes it easy for teams to grow with one another, not worrying about missing deadlines.
  • Cultural similarities. Both Mexico and the U.S. celebrate a strong work ethic, workplace hierarchies, and an emphasis on technology.
  • Growing talent. Mexico has more than 130,000 tech graduates each year – a number that continues to increase. For growing companies, this means there’s no shortage of talented software developers to choose from.

If you’re looking to hire tech talent in Mexico, here’s what you need to do.

Conduct Thorough Research

Each country is different, so before diving into the hiring process, you’ll need to conduct research regarding your business and its employment practices. For example, consider where you’re hoping to hire in Mexico and the exact legalities required for this region. Your specific industry may also have requirements your company will need to remain aware of.

You’ll also want to consider the technological landscape in Mexico, including the average number of graduates, salaries, and prominent cities for hiring. These details include:

  • Amount of graduates per year: 130,000
  • Most common software developers: Front-end developers, Full-stack developers
  • Average salary: $3,165/month ($20 – $30/hour)
  • Top companies with an outsourcing presence: Honeywell, Cisco, Salesforce
  • Outsourcing specialty: Build Operate Transfer, Staff Augmentation, BPO, Software Development
  • Top tech cities: Mexico City, Guadalajara, Monterrey, Tijuana, Yucatàn Peninsula
  • Shared U.S. time zones: PST, MST, CST, EST

Get clear on your goals for hiring in Mexico and the benefits your business will receive by doing so. You may have heard about the tech talent sweeping the country, but it’s best to conduct your own research before diving in. 

Understand Labor Laws

Should you fail to abide by the labor laws established in Mexico, you’ll be jeopardizing the future of your team and the success of your organization. So before you begin the hiring process, you’ll need to focus on Mexico’s employment requirements. These include:

  • Contracts. ​​According to the Mexican Federal Labor Law (FLL), all contracts must state:
    • The place where an employee will work
    • Descriptions of any training
    • All salary and benefit details
    • Rest days and holidays 
    • Employment duration (if not defined, the timeline is indefinite) 
    • A lengthy job description
    • Nationality, civil status, and a tax ID number
    • Sometimes, the residence of the employee and employer 
  • Working hours. There are specific hours in which employees can work in Mexico:
    • Day shifts: 8 hours between 6:00 a.m. – 8:00 p.m., 48 hours per week maximum
    • Night shifts: 7 hours between 8:00 p.m. – 6:00 a.m., 42 hours per week maximum
    • Mixed: 7 ½ hours between both day and night hours, with the night shift not exceeding 3 ½ hours, 45 hours per week maximum
  • Benefits and bonuses. All employees working in Mexico are entitled to paid time off. After one year of employment, team members are given a minimum of 6 paid days off each year. This number will increase with time and does not include Mexico’s 7 annual paid public holidays, including:
    • January 1 – New Year’s Day
    • February 5 – Constitution Day
    • March 21 – Benito Juarez Day
    • May 1 – Labor Day
    • September 16 – Independence Day
    • November 20 – Revolution Day
    • December 25 – Christmas Day
    • Mexican workers are also entitled to a year-end bonus, comprised of at least 15 days of their daily base salary, paid no later than December 20 each year.
  • Background checks. All employers in Mexico can request a background check – nothing prohibits them from doing so. However, the Mexican Federal Law on the Protection of Personal Data Held by Private Parties is in charge of the treatment of data collected, giving employees the right to determine who uses the data and what it’s used for.
  • Termination. In Mexico, there must always be just cause for termination. If not, employees will be eligible for severance pay. Many of these causes come from employee behavior. Just causes include:
    • Dishonesty
    • Mistreatment of employers
    • Insubordination
    • Disobedience
    • Disclosure of trade secrets
    • 3 unjustified absences within 30 days
  • Wages. Mexico’s National Minimum Wage Commission is in charge of updating the minimum wage requirements, often doing so each year. As of January 1, 2022, the commission increased Mexico’s general minimum wage to 172.87 pesos per day, a 23% increase from the 2021 wage of 141.70. This equates to $8.65 per day in the U.S.

Chances are, a handful of these requirements are different than those your business is used to considering. That’s why it’s vital to understand Mexico’s legalities before moving forward.

Work With a Trusted Partner

If you’re completely new to hiring in Mexico, it’s best to work with a trusted partner. When it comes to recruiting new talent, there are several options to consider. A recruitment agency can help in the following ways:

  • Direct hiring. A recruitment agency finds tech talent throughout Mexico that will go directly into your team and payroll.
  • Staffing services. The agency can source and hire fully dedicated remote developers in Mexico, from a single contractor to a whole team. Access managed payroll, benefits, and performance. 
  • On-demand hiring. Source and hire talented remote developers in Mexico who can jump into a project in an on-demand and temporary capacity. 

Suppose your HR team will be taking over the hiring process but is already stretched too thin. In that case, CodersLink will help deliver qualified candidates that can be hired directly by your company. We help with any legal or visa requirements initially, but once we find qualified candidates, your hiring process will resume as you welcome your new employee.

Different recruitment agencies also help with HR payroll and benefits management are known as PEOs – Professional Employer Organization. These companies help businesses find, hire, and manage team members.

Consider CodersLink

At CodersLink, we’ve helped 90+ growing companies fill essential tech roles through hiring in Mexico. So whether you’re looking for a full-time, long-term employee or seeking to fill a temporary part-time position, our educated, experienced developers are ready to join your team. 

CodersLink has partnered with several companies such as Amazon, PayStand, and OneInc, providing their organizations access to 12,000+ specialized tech consultants throughout Latin America. With us, you’ll gain access to the following benefits using external talent: 

  • The ability to assess candidates before hiring them as internal employees.
  • Various developers with specialized, high-demand skillsets to choose from.
  • An increase in your workforce capabilities and efficiencies.
  • Staffing specific projects and initiatives without adding more to your schedule.

We aim to make the recruitment and hiring process easier for companies while connecting qualified, highly-trained developers with the right opportunities. We’re dedicated to studying and building relationships with new talent pipelines in Mexico – a growing tech talent hub – and forming connections between them and U.S companies looking to grow, scale, or staff their operations.

Most businesses can’t afford to take the chance on bad hires. We’re here to help with that. Connect with us today to find out more.

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