Building a Remote team in Queretaro

Building a Remote team in Queretaro

Mexico has been a preferred destination for building a remote team for leading US-based companies for over a decade, but the choice of which city to open an office is not straightforward. Mexico, a massive country with a population of 130 Million people, is composed of 32 states with vastly different features in each state.

Queretaro, the capital of the state with the same name, is located in the center of Mexico. With a population of just above 1 Million people, it is considered one of the leading economic powerhouses in Mexico. With a population growth of 3.5% annually and a GDP per capita of 20,000 USD with an annual growth of 5.1%, the future is brimming with potential for your remote team.

What makes Queretaro a promising destination for companies building a remote team in Mexico?

High Rankings for Business Environment

Queretaro consistently ranks well in business surveys in Mexico and LATAM. It is the second-best business environment in Mexico, second only to Monterrey.

Infrastructure and cost-effectiveness

Massive foreign investments have contributed to the development of numerous industrial parks in Queretaro. The city is attracting major industries, including automotive, food processing, chemicals, and electronics. For instance, companies like Bombardier, Michelin, and Samsung have established their operations in Queretaro, contributing to the city’s economic growth. In fact, 26% of job opportunities created are attributed to foreign companies.

Supportive investment in infrastructure by local government

The local government is investing in infrastructure, public services, and amenities such as parks and cultural centers, improving the quality of life for its residents and attracting national and international migrants.

Safety

Queretaro is not just a promising business destination, but also one of the safest cities in Mexico, boasting one of the lowest crime rates in the country. This commitment to security ensures a continuous attraction for foreign and national migrants, providing a safe and secure environment for your remote team.

Dipper insights into Queretaro’s key industrial sectors  

Automotive is the largest industry in Queretaro, representing roughly 30% of the state’s exports. A little behind is the aeronautical sector, which makes Queretaro among the leading centers worldwide in the industry in terms of investments. The Aeronautical University of Queretaro is America’s 2nd MRO (Maintenance, Repair, and Overhaul) facility.

The next prominent sector in Queretaro is the IT sector, which has over 100 organizations in the IT cluster and over 15,000 employees in that sector alone.  

 

Five key steps to land your remote team: 

Choose the right Staffing Agency.

A staffing agency can dramatically reduce your entry-barrier challenges. Having a de facto partner in Queretaro who is familiar with the state and the city, as well as the best practices for recruiting local talents, could save you money and time. 

However, not all agencies are capable of getting you what you need. You need to check for the following to make sure they are the right fit:

  1. Online presence: An agency that has no solid online presence could mean the following:
    1. Old fashion Agencies are still in the analog era, and they have little understanding of how recruitment has shifted to the online world. If you are looking for the younger generation, they might not be a good fit.
    2. Too small: Since the majority of recruitment today uses online tools, a lack of presence can mean that the agency doesn’t have the budget to be present online, and thus, recruitment won’t be easy. 
    3. Newbies: They just created the agency, which can mean an inexperienced agency. Do you want to be their guinea pig? 
  2. Client reference: Ask for a client reference. Some clients are not really open to talking to staffing agency prospects, but an established agency would be happy to try getting you in front of a client. That shows that they are confident in their services and performance. 
  3. Information provided: After speaking to a few staffing agencies you will be able to tell if the information given about taxes, benefits, laws etc, are consistent. If they avoid breaking down all their costs and refrain from speaking about the governing laws – it might be a red flag for lack of knowledge or simply hiding their true costs. Remember, you want your staffing agency to get value from working with you, and earning is not a bad word. Still, it needs to be as transparent as possible.  
  4. Locations operated: Check the agency’s experience working in different markets in Mexico. Those who work in several locations can provide more coverage and potentially have a bigger talent pool. Although not a deal breaker, there is an advantage to working with a staffing agency that operates in multiple markets. 
  5. Visit: Depending on the size of your planned operation in Mexico, consider visiting the agencies you were most impressed with. Meeting them in person will give you the confidence that your team is in good hands. 

A professional staffing agency would offer you all the benefits of having your entity in Mexico without the liability of hiring them under your company. It can become your quickest entry into working in Mexico.  

Develop Cultural Awareness

Preparing for cultural differences is critical to building a remote team. Queretaro is a fast-growing city with many expats enjoying its secure and multinational environment. Located in the heart of Mexico, it is also greatly influenced by the rich and colorful Latin culture. 

To run a team in Mexico, managers must familiarize themselves with the local habits and taboos. 

 Mexico is a family-oriented society. Therefore, foreigners must respect and understand that there are solid social ties and Mexicans are less individualistic compared to the USA or Canada. As a society, personal relationships are significant, and social interactions are essential to work. As such, detaching a Mexican from social interactions could be challenging and affect his work quality. Understanding the internal dynamics of a team is crucial for its success. This could be used to the company’s advantage if used right. A well-constructed team could be loyal for years and able to perform better as one unit. For example, team-building activities that foster social interactions can be highly effective in Queretaro’s work culture. 

Set Realistic English Proficiency Requirements

 Mexico is Spanish-speaking, and English is now more widespread among the younger generation than ever. Many of Queretaro’s talent pool have experience working for international companies and master English as their second language. That said, you must ensure that you set the English level required for the recruiting position. Don’t ask for 100% proficiency from someone who would not work directly with clients. Instead, consider setting a range of proficiency levels based on the job requirements. This way, you can attract a diverse pool of candidates without compromising on language skills. 

Prepare your Technology Infrastructure

 Technology allows us to consider Mexico as an option for your remote team. Over the last few years, especially since the pandemic, Tech companies developing solutions for remote teams have seen an exponential demand. With that, investors made immense contributions to accelerate the development. The tools are out there, and you need to define the tools you need. There are general tools like communication and CRM, and each industry has more industry-specific tools (for example, Yardi is an industry-specific tool for the property management industry). 

If you use a staffing agency, ensure they have IT support to help you prepare the workstations for your employees. Otherwise, you must do it remotely or send IT to Mexico. 

Learn about Legal Compliance

Operating in a new country requires a thorough understanding of its legal landscape. It’s crucial to refrain from assuming that the contracts and laws you have in the US apply to Mexico. The rules are different, and knowing them can save you from legal issues. Having a legal consultant or using your staffing company to guide you through Mexican law can provide the necessary protection and ensure your operations are compliant. 

Queretaro is a great location to build a remote team. To ensure a successful move, strategic decisions and a structured approach are critical. Using a staffing company to help you achieve your goals is critical, and Wexpand has the expertise to help you throughout your journey. Reach out to us for a free consultation to determine the best strategy for you.

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