Mexico Talent Market Overview
| Market Appeal: | Mexico’s tech ecosystem is rapidly growing, positioned as a viable dark horse in global innovation and startups, especially in software development |
| Most common roles US companies hire in Mexico: | Primarily software developers and engineers, with front-end and full-stack developers being the most common roles |
| Skill Density: | Mexico produces over 130,000 tech graduates annually, contributing to a robust talent pool in software development and engineering |
| Cost Advantage of hiring in Mexico: | Hiring in Mexico offers significant cost savings, with salaries for tech professionals being 40-60% less than those in the U.S. |
| Ease of Hire: | The average length of the interview process is about 20 days for tech roles, with candidates preferring a hiring timeframe of about 2 weeks |
| Working Hours Overlap with US time zones: | Mexico aligns with several U.S. time zones, including US PT and US MT in the majority of the country, facilitating real-time collaboration |
| Typical Working Week in Mexico | Day shifts are 8 hours (max 48 hours/week) |
| Public and Local Holidays in Mexico | Mexico observes 7 annual paid public holidays, including New Year’s Day, Constitution Day, Benito Juarez Day, Labor Day, Independence Day, Revolution Day, and Christmas Day |
| Most common talnet hiring / engaging methods that US companies use in Mexico | U.S. companies typically use contracting, staff augmentation, and employment through Employer of Record (EOR) providers |
| Most common payment methods that US companies use to pay talent in Mexico | #1 SWIFT #2 PayPal #3 Wise #4 Payoneer |
| Cultural Compatibility with US companies | Mexico is known for its cultural compatibility with U.S. companies |
| English level by EF EPI score in Mexico | About 47.4% of tech professionals in Mexico have advanced or fully bilingual English skills, and another 36.5% have an intermediate-level |
| Average Retention Rates in Mexico | 2-3 years |
| Global brands that hire in Mexico | Google, Apple, Intel, Microsoft, Lyft, Oracle, Amazon, Stripe, Paystand, SAP and more |
| Talent Market Capacity | 700,000 tech talent, including 130k software engineers |
| Employee tax: | 36.69% |
Mexico Tech Ecosystem
International Companies with Offices in Mexico: Google, Apple, Intel, Microsoft, Lyft, Oracle, Amazon, Stripe, Paystand, SAP, Verato, One Inc, Skycatch, YaloChat, MSIGHTS, Scale AI, Nextiva, Blue Yonder, Honeywell
Local Unicorns: Kavak, Bitso, Clip, Konfio, Stori, Merama, Nowports, Clara
Internet Connectivity: With a growing internet penetration rate, Mexico offers a digitally connected environment.
Mobile Penetration: Mexico has a high mobile penetration rate, indicating a tech-savvy population. América Móvil is a Mexican telecommunications corporation headquartered in Mexico City, Mexico. It is the 7th largest mobile network operator in the world in terms of equity subscribers, as well as one of the largest corporations in the world. América Móvil is a Forbes Global 2000 company.
Mexican Salary Insights
Common Leave in Mexico
Paid time off: 12 days + 7 bank holidays
Paid sick leave: 52 weeks (+26 weeks)
Maternity leave: 12 weeks
Paternity leave: 5 days
Common Benefits in Mexico
Meal Vouchers
Health Insurance
Opto to WFH
Paid relocation
Flexible/Remote Work
Life insurance
Holiday schedule in Mexico 2024
- Monday, January 1, 2024New Year’s Day
- Monday, February 5, 2024Constitution Day
- Sunday, February 18, 2024Benito Juarez Day
- Wednesday, May 1, 2024Labor Day
- Monday, September 16, 2024Independence Day
- Monday, November 18, 2024Revolution Day
- Wednesday, December 25, 2024Christmas Day
Payments
Popular methods include bank transfers (SWIFT), Payoneer, PayPal, and Wise. Cryptocurrencies like Bitcoin and Ethereum are also emerging as options.
Payment Frequency: Typically, payments are made monthly.
Read more: Payroll Taxes for Employers in Mexico
Talent Acquisition
Job Search Platforms: LinkedIn, Glassdoor, Indeed, OCCMundial, and Computrabajo are popular.
Talent Acquisition: Companies like GoGloby.io are key in sourcing talent in technology, marketing, and more.
Interview Behavior: In Mexico, job interviews often reflect a blend of warmth and professionalism. Candidates are expected to be punctual, demonstrating respect for the interviewer’s time. However, there’s a balanced approach to time, acknowledging that relationships and human interactions are as important as the strict adherence to schedules. This cultural nuance allows for a more relaxed conversation, fostering an environment where both the interviewer and the candidate can engage more meaningfully.
Salary Negotiation: In Mexico, negotiation of salary and benefits is a standard and expected part of the interview process. Candidates are likely to discuss and negotiate their compensation package, including salary, health benefits, vacation time, and other perks. This negotiation typically occurs in the later stages of the interview process, once the employer has shown a clear interest in hiring the candidate. Employers should be prepared for this phase and have a clear understanding of the market rates and benefits for the roles they are hiring for. It’s important to approach these negotiations with flexibility and an understanding of the candidate’s expectations and needs.
Probation Period: Usually 30 to 90 days, allowing assessment of fit and performance.
Further reading: Hiring Employees in Mexico, How to Hire Software Developers in Mexico and Employer of Record in Mexico
Working Culture in Mexico
Cultural Compatibility: The Mexican work culture shows a high degree of alignment with U.S. corporate culture, making it easier for U.S. companies to integrate Mexican employees into their teams. This compatibility is reflected in work ethics, business practices, and communication styles.
Relationships: Building strong personal and professional relationships is a cornerstone of the Mexican workplace. Mexican professionals often place a significant emphasis on creating and maintaining relationships, which can lead to more collaborative and loyal work environments.
Time & Punctuality: While there is a general expectation of punctuality in the Mexican professional setting, there’s also an understanding that time can be flexible. This flexibility reflects a cultural approach that values relationships and outcomes over strict adherence to schedules.
Hierarchy & Decision-Making: The Mexican workplace is traditionally hierarchical, with decisions typically made at higher levels of management. However, there’s a growing trend towards more collaborative and inclusive decision-making processes, reflecting global shifts in workplace dynamics.
Workplace Environment: The work environment in Mexico is known for being friendly and collaborative. Emphasis is placed on team integration and creating a supportive atmosphere. This approach not only enhances team cohesion but also drives productivity and innovation.
Further reading: Employee Benefits in Mexico, Leave Policies in Mexico: Including Maternity Leave and Work Hours and Regulations for Hiring in Mexico
Employment Termination in Mexico
Notice Period:
In Mexico, neither employers nor employees are generally required to provide advance notice for dismissal or resignation. While employee notice is not recognized under Mexican law, employer notice can be enforced if previously agreed upon. However, Mexican employers rarely establish such obligations. For contractors, the notice period is typically subject to the terms of the individual agreement or contract, often amounting to a two-week notice period.
Read more: Employee Termination and Severance Pay in Mexico
Hiring in Mexico: Guides
Frequently Asked Questions
Mexican tech talent is emerging as a significant force, particularly in areas like software development, data science, artificial intelligence, and cybersecurity. With a young and highly skilled workforce, Mexico’s tech landscape is dynamic and competitive, producing over 130,000 relevant engineering graduates annually. This talent pool is known for strong technical skills, creativity, and an understanding of the North American market, making them highly sought after by U.S. companies
Employment in Mexico can be categorized into several models: specific task (obra determinada), fixed-term (por tiempo determinado), seasonal (por temporada), and indefinite term (por tiempo indeterminado). The last category may include probation periods or initial training. Additionally, there’s a provision for paternity leave of five working days.
Mexican professionals are well-versed in U.S. business practices and fluent in English, facilitating seamless collaboration. The cultural proximity and understanding of U.S. business environments enhance productivity and communication, enabling effective integration into U.S. company cultures. This is further supported by close economic ties under the USMCA, fostering a cooperative framework for cross-border hiring and relationship building
Generally, international payment methods like SWIFT, PayPal, and Wise are used. Cryptocurrency usage is also emerging as a viable option.
PEOs and EORs (Employer of Record) simplify the hiring process in Mexico by managing various HR tasks, including staffing, payroll, and compliance with local laws. They are particularly useful for international companies without a local entity in Mexico. PEOs help navigate the complexities of employment contracts, payroll setup, and adherence to local labor laws, ensuring compliance and efficient management of administrative tasks
