Acquiring talent in Mexico offers many benefits for U.S. companies looking to expand their workforce. Here are some of the key benefits to consider:
Large talent pool: Mexico has a population of more than 130 million people, the 10th largest country in the world. Its population, with a mix of indigenous peoples and people of European, African and Asian descent means that U.S. companies can find talented professionals with a wide range of skills and backgrounds. In addition, the Aztec country has a high number of university graduates, with more than 3 million students enrolled in higher education in 2021. This ensures that there is a large pool of qualified candidates available for companies looking to hire top talent.
Cost savings: The most attractive factor for U.S. investors in talent acquisition in Mexico is cost savings. The cost of labor in Mexico is significantly lower than in the United States, which can result in significant cost savings for U.S. companies. According to a Deloitte study, labor costs in Mexico can be up to 50% lower than in the U.S., depending on the industry and type of work.
Favorable business environment: Mexico has made significant strides in recent years to improve its business environment. In 2022, for example, Mexico ranked 49th out of 190 countries in the World Bank’s “Ease of Doing Business” report. This ranking reflects Mexico’s commitment to improving its business climate by implementing reforms to simplify business procedures, reduce bureaucracy, and promote investment. In addition, Mexico has a favorable tax environment, with a corporate tax rate of 30% by 2023, lower than many other Latin American countries.
Strategic location: Mexico’s location makes it an ideal hub for companies looking to expand their operations in Latin America. Mexico is strategically located geographically, bordering the United States to the north and Central and South America to the south. It is also a member of the North American Free Trade Agreement (NAFTA), which provides U.S. companies with access to a market of more than 450 million consumers in North America.
Cultural affinity: Mexico, given its proximity to the United States, has strong cultural ties to the U.S., which can help facilitate talent acquisition and integration into the culture of U.S. companies. Mexican culture is known for its warmth and hospitality, and many Mexicans speak English, which facilitates communication with U.S. colleagues. In addition, many Mexicans have experience working with U.S. companies, which mitigates those potential cultural differences and facilitates collaboration.