As a company that tries to stay competitive and retain the best talent, it may be relevant to analyze not only its legal obligations with its workforce, but also the general trends of the work culture. In Mexico, some companies are stellar in providing the benefits legally required for their employees. However, it is important to recognize that most employees are constantly looking for broader and higher quality provisions, which are becoming more popular due to competition and a high employment rate.
To help demonstrate this trend, a study completed by Merca 2.0 reveals some large differences between the first list of 12 legally binding, compared to some of the 8 most popular and sought after benefits for administrative positions.
Legally Mandatory Benefits
- Social security
- Holiday bonus
- Payment of utilities
- Rest days
- Sunday bonus
- Maternity leave
- Adoption and paternity leave
- Seniority Bonus
- Resignation benefits
- Unjustified dismissal benefits
Most Desired Benefits
- Health Insurance
- Food vouchers
- Insurance for major medical expenses
- Savings funds
- Productivity bonuses
The study found that, unfortunately, 18.2% of workers were not provided any benefits, 2.9% relied on benefits that are inferior to those included in the law, and 42.2% received benefits only provided by the law. However, 35.9% of workers had benefits superior to the law, and another study completed at the end of 2018 indicates that 22.1% of businesses planned to improve their benefits in the future.
The fact of the matter is that while the provision of additional benefits is not the overwhelming norm right now, it still has a significant presence in labor culture. In addition, the study shows future growth trends in the provision of extra benefits.
Another factor that may potentially contribute to a growth in additional benefits within companies is the new Mexican Labor Reform passed in 2019. This reform, in theory, allows for unions more representative of their workforce rather than government officials and company executives, as well as more freedom and independence for these unions. This could indicate higher employee pressure for more extensive rights over the next four years of the Labor Reform’s implementation.
Workers have made it clear they are on the hunt for jobs with benefits additional to those provided by the law, and trends indicate a potential increase in the provision of these benefits by companies. Given this information, businesses might want to consider implementing more extensive provisions for their employees in the future, in order to keep their employees from searching elsewhere as these benefits become more popular. Make retention a top priority in your company.
Madeleine BrennerMarket Intelligence Prodensa HR
International Business Development