After COVID broke into the market, operational and essential workers were the first to return to the new normal. Although on many occasions, these people do not receive the recognition they deserve, it became very clear that they are the backbone of the global economy.

If the pandemic was the spark that ignited the need for strategic operational recruitment, nearshoring has already transformed it into a fire that urgently needs to be attacked. Companies that do not prioritize operational workers will soon find their long-term survival threatened.

Nearshoring and market pressures

Over the past five years, the supply chain has faced many challenges, probably more than ever before in its history. The pandemic exacerbated and exposed weaknesses in the supply chain and, now, a few years later, we are still seeing The impact left by the global shutdown in the global economy.

“Everyone who had extensive and long supply chains was hit during the pandemic and one of the solutions is to move your location closer to your market,” according to the president of Redwood Mexico, Troy Ryley. “The advantage of shorter chains is that they increase cash conversion cycles and provide margin for more customers.”

In turn, political and economic instability in countries that were previously attractive for offshore operations makes companies want to choose more predictable and closer territories.

Leaders are currently evaluating how they can prevent situations such as those caused by pandemic chaos. Companies that once operated in the East are looking to relocate closer using nearshoring and reshoring.

In fact, a recent study reveals that 74% of supply chain professionals in SMEs say they plan to have most or all of their suppliers in North America, and only 4% say they have no plans to apply nearshoring.

What impact will nearshoring have on operational recruitment?

As mentioned above, the first workers to return to normal after COVID were operational and essential employees. The pandemic made it clear that these people are indispensable for the proper functioning of the global economy.

Adaptation is essential, both for local and foreign companies, which are impacted by nearshoring. Operational recruiters will see significant changes in their daily lives, including:

• Increased competition for operational employees: Nearshoring represents an opportunity for growth in the Mexican economy, but as with any opportunity, it also comes with a cost. The increase in potential employers will also increase competition in an already tight operating employment market. And, while people may choose to relocate from other parts of Latin America, the pool of candidates may not grow as fast as the company needs. Operational recruiters will be pressured to provide candidate experiences that result in loyal employees, or run the risk of not having the necessary coverage.

• Increased workload for talent attraction teams: In turn, talent attraction teams that already have a high workload are likely to see that burden increase as competition and opportunities grow in the country. This means there is a greater chance of burnout among recruiters, worse experience for candidates, and longer coverage time.

• Increased opportunities for recruiters: Faced with a hyper-competitive talent market, operational recruiters have become strategic resources for the success of local and foreign companies. This leads to talent attraction professionals having greater security in their role, as well as more options in other companies.
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While there will be other changes that professionals in this industry will have to face, talent attraction teams will be better positioned if they are prepared.

Let's explore what recruiters can do to plan for the changes that are coming.

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What should recruiters do to adapt to nearshoring?

While the idea of managing operational recruitment during the transition to nearshoring and reshoring can be overwhelming, there are a few ways talent attraction teams can prepare.

Here are 5 recommendations for recruitment teams to adapt and thrive in this new reality:

1. Embrace a digital transformation

While some industries such as manufacturing and retail have been slower to adopt digital solutions, this transformation is already more of an obligation than an option. If companies want to continue competing, they have to prioritize innovation over comfort. As Alfonso De los Ríos, CEO and co-founder of Nowports, the first digital freight forwarder in Latin America, said in a recent interview with Forbes, “According to a study published in 2021, of 400 supply chain and logistics executives, 40% indicated that the image of their companies has been damaged by missing delivery dates, delays in product launches or costs caused by disruptions in operations. All of those consumer complaints, delays in launches, and losses of brand loyalty can be avoided. The solution lies in the digital transformation of supply chains thanks to artificial intelligence tools.”

2. Take advantage of automated recruitment

 It may be easier to think of automation as a need only for factories or distribution centers, but it's also essential for other functions of a business. For mass recruitment in a competitive market, automating part of the attraction, selection and hiring process is a must. Companies cannot have teams as large as those required to complete all tasks manually. Automated recruitment platforms such as Emi, have managed to increase the productivity of talent attraction teams by 2X.

3. Optimize the recruitment process

‍Slow follow-ups, lack of response from recruiters and processes with multiple complex stages will not be welcome in this hyper-competitive labor market. Now, more than ever, it's a requirement to create a recruitment process that doesn't frustrate candidates. Companies should focus on reducing coverage time and reviewing each candidate's feedback after their interviews, to ensure that the recruitment process is as optimal and pleasant as possible.

4. Expand recruitment horizons

In the era of digital recruitment, it's possible to reach a completely different geography of candidates with just a few clicks. Teams that have historically been limited to recruiting locally must now expand to new regions.

5. Improve employee benefits

Operational candidates will be more demanding than ever, so it's essential that the job offer is competitive. This is not only to transform a candidate into an employee, but also to retain them. Keep in mind that benefits aren't just about salary. There are other ways employers can attract the best talent, including educational benefits and flexible hours.

How will nearshoring benefit operational workers?

While big changes in the Mexican market can be terrifying, they also tend to bring great opportunities. Mexico has become the focus country for nearshoring, and is preparing for exponential growth in production, due to the existing experience and infrastructure that support these efforts. Undoubtedly, the demand for skilled operating workers will continue to grow.

Economic pressures, as happened during the pandemic, work to the advantage of operational workers. Investment in infrastructure and the productive sector in Mexico is expected to continue, thus generating an increasing demand for a labor force in production, which translates into greater job opportunities for candidates.

Here are some of the various ways nearshoring will benefit operational candidates:

• Increased number of opportunities: It's like a simple mathematical formula. More companies mean more jobs, and more jobs mean more opportunities for operational candidates. People who have the desired skills will have a greater job offer, or even benefit from the presence of other companies to move up in their current jobs.

• Better compensations and benefits: As the demand to attract operational candidates to existing companies increases, so do the opportunities that candidates have with future potential employers. Just as we saw the shortage of workers in the post-pandemic period, employers will have to sweeten their offers in order to attract and retain the best operational candidates, which generally translate into better compensation and greater benefits.

• Improve the worker experience: Increased competition for candidates won't be the only challenge, companies will have to work even harder to retain their current operational employees. As a result, teams will need to improve the work experience, including educational support or internal promotions.

How will nearshoring challenge operational workers?

While nearshoring will bring more qualified and talented operational workers new opportunities, there are some challenges to consider.

• Relocation of operational workers: The biggest challenge that candidates may face is the physical relocation that will have to be done in order to have a greater number of opportunities. Companies may offer to pay for relocation or relocation to ensure they attract the best employees, which can lead to greater competition in areas where it wasn't before.

• Labor market speed: While making improvements to the experience of operational candidates will be essential, the speed of the process may require some adjustments on their part. Candidates will need to act more quickly when applying and maintaining communication with the recruiting team, as well as to detect vacancy opportunities early in order to obtain the positions they want.

Although adjustments will be necessary for the entire economy, nearshoring shows that it will bring greater benefits than challenges to the operational workforce.

Nearshoring: Is it a good or bad thing for operational recruiters?

At the end of the day, nearshoring is a change, and like any change, it has both benefits and challenges. While nearshoring will stimulate the macroeconomy, companies will have to find ways to balance increased demand from suppliers, real estate, and existing workforce.

The companies that will succeed will be those that can best adapt to the coming changes, take care of their work experience and meet the growing needs of their market

How Emi can support operational recruiters during nearshoring

In 2021, the 73% of companies they had difficulty attracting new employees, this is about three times more than the previous year. This labor shortage increases in operating industries that suffer from a turnover rate up to three digits.

So let's consider, how much greater will the impact of nearshoring be in the face of this need?

Although nearshoring has already begun to put more pressure on the operational recruitment universe, there are tools that can help these teams by automating manual processes, as Emi does. Emi is an automated operational recruitment platform that helps companies fill massive roles quickly.

Because Emi has been in the Mexican market for more than 3 years, we have extensive experience and knowledge about the Mexican workforce. We have helped leading companies such as Walmart, Burger King, KFC and Heineken to carry out complex recruitment processes and automate their processes. These leading operational recruiters trust Emi to automatically filter thousands of requests, streamline the interview process, and personalize every interaction for a quality candidate experience.

If your company is experiencing recruitment changes due to nearshoring, contact Emi's experts to learn how Emi can help you manage these changes. Request your personalized demo today.

Glossary

Below are some terms related to nearshoring.

What is nearshoring?

What are these different production concepts? Let's develop phrases you can hear when it comes to nearshoring.

The term nearshoring refers to relocating production and search to a nearby country. It aims to reduce production and search costs while maintaining proximity to the desired market. Nearshoring has been particularly relevant in Mexico, which has become an attractive destination for producers seeking to relocate from China to be closer to the U.S. market

What is reshoring?

Reshoring refers to the process of bringing production back to the country where the products will be sold. This trend has been accelerated by interruptions in the supply chain, increased production costs in Asian countries such as China, and the unpredictable geopolitical context. Today, companies are looking for ways to reduce risks, lower costs and improve the efficiency of their supply chains. As a result, reshoring has become an attractive option for businesses looking to optimize their operations and bring more employment back to the U.S.

What is offshoring?

Offshoring is a practice by which a company moves its operations to another country seeking lower labor costs, lenient regulations or new markets. It may involve moving production facilities, services, and jobs overseas.

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