Top Advantages of Choosing Monterrey for Your Remote Staffing Hub

Top Advantages of Choosing Monterrey for Your Remote Staffing Hub

Monterrey, the capital of Nuevo Leon, is located in northern Mexico. With a population of 5.3M (Metro Monterrey) and a GDP of 190 billion USD (37,000 USD per capita, making it the highest GDP per Capita in Mexico), it is considered one of North America’s primary business and industrial hubs. 

Companies such as Tesla, General Electric, and Whirlpool have strategically chosen Monterrey as major manufacturing centers for the future, further solidifying its reputation as a business hub.  

However, Tesla wasn’t the first company to understand Monterrey’s potential. 9 of the top 15 major Mexican companies are originated from Monterrey: 

Monterrey has a proven track record of attracting global companies and fostering their success. For instance, Cemex, the third-largest cement company in the world, chose Monterrey as its headquarters. With 79% of its revenue from international clients, this strategic decision has paid off. Monterrey has also been a magnet for major Mexican companies in various industries, as well as global companies from the aerospace, automotive, electronics, appliance, and medical sectors. These success stories should inspire confidence in the potential of Monterrey as a remote staffing hub.    

To understand better what attracts such significant players to set up strategic operations in Monterrey, one must understand the significant advantages: 

  1. Education: Monterrey is home to the leading universities in Mexico. Companies looking for new talent can recruit locally from universities such as Tec de Monterrey, which is considered by many to be one of the elite private universities in LATAM. It is also home to Universidad Autónoma de Nuevo León, Mexico’s third-largest public university, regularly ranked as the top Northen Mexico educational institute.  
  2. Location: Monterrey’s strategic location is a significant advantage for businesses. It is only 140 miles away from Laredo, Texas, making exportation to the US fast and easy. The closest sea port for other international exportation in the Gulf of Mexico is Altamira, Tamaulipas, located 300 miles from the city. This central location not only makes Monterrey logistically convenient for global trade but also provides businesses with easy access to the US market, invoking a sense of convenience and accessibility. Robust Infrastructure: From modern highways to technological parks, a massive investment in infrastructure has made Monterrey one of the most modern cities in Mexico. Over 70% of nearshore investment in Mexico has gone to Nuevo Leon, and with Tesla’s new mega-factory under construction, more players are expected to move in following more investments. 
  3. Economic Policies: The state of Nuevo Leon has business-friendly policies, including low corporate taxes and streamlined business registration processes. Through the non-governmental Invest Monterrey, they promote Foreign Direct Investment (FDI) by offering a convenient legal and tax framework, investment incentives, and consultancy services to foreign companies. The goal is to position Monterrey as a leading business and industrial hub by giving investors access to local HR services (such as Wexpand) and business networks and leveraging the available industrial infrastructure.Strong Industrial Base: As mentioned before, Monterrey hosts leading industries. Over the years, those industries have produced numerous advantages over other cities, such as highly trained personnel, infrastructure, and tiered suppliers. 

Now that we have realized why Monterrey is in such a unique position to serve as your destination for building your remote team, it’s time to learn what are the steps to put together such a team effectively: 

Five key steps to land your remote team: 

Choose the right Staffing Agency.

A staffing agency can help you overcome entry-barrier challenges when expanding your business to Monterrey. You can save time and money by partnering with an agency that is familiar with the area and has the expertise to recruit the best local talent. However, not all agencies are capable of meeting your needs, so it’s essential to keep the following in mind while selecting one:

Choose the right Staffing Agency

1. Online presence: Agencies that lack a solid online presence may need to be updated and better understand modern recruitment practices. If you’re looking to hire younger candidates, such agencies may not suit you.

2. Size: Most recruitment today happens online, so agencies that lack an online presence may need more money to compete effectively. They may need help to source suitable candidates for you.

3. Newness: Agencies that have just started may lack experience. You don’t want to be their guinea pig, so choosing an established agency with a proven track record is best.

4. Client references: Established agencies will be more than happy to provide references. It may be a red flag if a potential agency is unwilling or unable to do so.

5. Transparency: A good agency will provide clear information about taxes, benefits, and laws. If it is hesitant to break down its costs and discuss the governing rules, it may indicate a lack of knowledge or hidden costs.

6. Locations: Check if the agency has experience working in different markets in Mexico. Those operating in multiple locations can provide more coverage and have a bigger talent pool.

7. 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 can offer you all the benefits of having your entity in Mexico without the liability of hiring them under your company. They can handle the recruitment, onboarding, and HR management of your remote team, allowing you to focus on your core business operations. It can become your quickest entry into working in Mexico.  

Develop Cultural Awareness

Cultural awareness is crucial to building a remote team, mainly when working with a team in Monterrey, a rapidly growing city with a unique blend of Mexican and international cultures. To manage a team in Mexico, managers must familiarize themselves with the local customs and values. Family is highly valued in Mexico, and social ties are more robust than in the USA or Canada. Personal relationships are essential to society, and social interactions are crucial for work. Therefore, detaching a Mexican worker from social interactions could be difficult and negatively affect their work quality. Understanding the internal dynamics of a team is vital for its success. By creating a well-constructed team, the company can benefit from its employees’ loyalty for years and improve performance. For instance, team-building activities encouraging social interactions can be highly effective in Monterrey’s work culture.

Determine English Proficiency Requirements

 Mexico’s official language is Spanish, but English has become more prevalent among the younger generation. Many skilled workers in Monterrey have experience working for international companies and are proficient in English as their second language. However, setting realistic expectations for English proficiency is essential based on the job requirements. Instead of expecting 100% fluency from all candidates, consider setting proficiency levels that align with the job responsibilities. This approach will attract diverse candidates while ensuring the necessary language skills for the position. A language assessment test or interview can be conducted to gauge the candidate’s English proficiency.

skilled workers in Monterrey

Prepare your Technology Infrastructure

 Technology has made it possible for your remote team to consider Mexico. In recent years, especially since the pandemic, there has been a significant increase in the demand for tech companies to develop solutions for remote teams. As a result, investors have made immense contributions to accelerate the development of these tools. The tools are readily available, and you must define the ones you need for your remote team.

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 personnel to Mexico.

Learn about Legal Compliance

When operating in a foreign country, it is essential to have a thorough understanding of its legal landscape. It’s crucial to avoid assuming that the contracts and laws you have in your home country apply to the new one. Every country has its own set of rules, and knowing them can save you from legal issues. To ensure compliance and the necessary protection, it is advisable to have a legal consultant or use the services of a staffing company to guide you through the new country’s laws.

If you have decided to recruit a remote team as a strategic move to grow your company, then choosing Monterrey as your target city could offer many advantages that can make the process efficient, quick and effective. Working with a professional staffing agency like Wexpand can help you overcome the obstacles of entering a new country such as setting up offices, recruitment, payroll and legal compliance. To schedule a free consultation, please click on the link provided HERE.

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