With the start of a new decade comes many changes. The Bank of Mexico is estimating Mexico economic growth in 2020 between 0.2% to 0.7%. As of December 2019, Mexico's unemployment rate hit a record low of 3.13% for the last five years. Such a competitive unemployment rate has drastic impacts on talent acquisition, development, and management. While the projections for this year are for the economy to continue to slowdown, it has the potential to be challenging for hiring in Mexico. HR professionals can prepare themselves for these challenges by being aware of this years' HR trends.
Corporate and Employee Activism
Activism is on the rise globally. People are becoming more invested in giving back to their communities and making a change in the world. Employees want to work at companies that allow them to give back and have active corporate social responsibility programs. One HR study showed that 62% of employees said they would be more likely to recommend their company as a great place to work if the company and CEO made a real effort with corporate activism.
HR teams can work to create and promote programs that will inspire employees and millenials. Ensure there is buy-in from upper management, so the employees genuinely believe in the initiative.
Diversity & Inclusivity
Diversity and inclusivity have been a key HR principle for years now. However, this is one of those Mexico HR trends that is going to continue to stay strong. Companies have robust systems and processes in place to ensure they're hiring across a broad scope of genders, races, and nationalities. Research shows that it's incredibly invaluable to have multiple voices in the room from diverse backgrounds to help with employee engagement, retention, and corporate decision-making.
It is up to HR teams to address existing issues within an organization if diversity isn't embraced. Mexico has an outstanding problem with the gender wage gap. From 2015-2018, on average, women earned 14% less than their male counterparts for the same roles. Change starts at the individual company level and the HR employees who act to close the gap. In an exciting change, PepsiCo appointed a female CEO for their Latin American unit in 219. This is just the start of a shift towards more diversity in big companies and small.
The HR sector in Mexico, in particular, is embracing artificial intelligence (AI) more and more in the last couple of years. AI programs can scan through hundreds of applications to choose ideal candidates, update candidates on their status, and chatbots can help visitors navigate through the application process.
In a new approach to AI in HR, some AI programs are now being used to predict which employees are going to quit soon. These programs run analytics for "predictive attrition." Supplying this information to upper management can allow managers to re-engage with employees and teams to help convince them to stay.
The Gig Economy
The gig economy is becoming "the new normal" for many employees. More and more individuals don't want to be locked down in a regular 9 to 5 job. This is a trend that anyone looking to fill positions in Mexico will need to accept. Allow job postings to be flexible with options for remote work, flexible hours or contract positions whenever appropriate. Adapting to this trend ensures organizations aren't missing out on the full range of talent that exclusively works in the gig economy.
With more employees being hired in nontraditional aspects, HR needs to protect both the employer and the employees. Defined roles and expectations need to be outlined to ensure that the work delivered for payment is agreeable to both parties.
Generation Z Employees
Generation Z is defined as people who were born in the mid- to late- 1990s. As of 2020, these workers will be between 21-25 years of age. Many of these individuals will be finishing school and entering the workplace this year. HR employees can benefit from understanding how to appeal to Generation Z applicants. They're tech-savvy, risk-averse, and value opportunities to grow within a company. Despite being tech-savvy, 55% of Gen Zers in Mexico deeply value in-person communication the most. They value their co-workers and management’s respect the most. Flexibility in their work schedules is important. Responding to applications over the phone can have a stronger pull than exclusive email communication with Gen Z applicants.
Open Pay Discussions
In recent trends, money has stopped being such a taboo topic. Friends, coworkers, and family members have become more and more comfortable sharing their salaries. In the last five years, studies show that 37% more workers believe it's acceptable to share their salary with their coworkers.
Additionally, with platforms such as OCC Mundial and Glassdoor, transparency around pay is at an all-time high. HR employees should keep this in mind when making hiring decisions. Coworkers may likely end up sharing their payscale, so significant discrepancies should be able to be explained.
New Industries, New Candidates
A recent trend in hiring is looking outside your industry for applicants. Individuals with transferable skills from different sectors are still strong candidates. Don't discount an applicant simply because they haven't worked in the "right" field before. In fact, employees from external industries may bring a refreshing approach and new ideas to their roles. This open approach to hiring from external industries will especially play a critical factor in 2020 hiring, with the lowered unemployment rate and a shrinking applicant pool.
Employee retention and talent acquisition are the backbones of any organization. A company can only operate as well as its employees. Understanding what is on the horizon for hiring in Mexico will allow HR professionals to recruit top talent and keep them engaged and motivated at work.
By Fernando Ortiz-Barbachano
President and CEO of Barbachano International (BIP), the Human Capital Solutions leader in Mexico, Latin America, and the USA, offering high-impact executive search, executive coaching, and outplacement.
At Barbachano International, we understand the importance of executive recruitment and the return on investment that top talent can deliver for you. With 27 years in the industry, we know firsthand how imperative it is for an organization to have the right people to achieve its business objectives. We help you avoid painful hiring mistakes and reduce turnover by identifying top performers for your team that result in long-term success.