Operational recruitment in Mexico: the impact of 40-hour workweek legislation
The possible approval of the law establishing a 40-hour work week in Mexico represents a crucial moment in the history of labor legislation. This initiative, designed to improve working conditions, has received strong support from 94% of Mexican workers, as revealed by a survey conducted by OCCMundial in June 2023.
This is a reduction of 8 hours to the 48-hour work week that has been in effect until now in Mexico. Although many benefits are expected from this change, it is important not to underestimate the challenges that implementing it will pose to companies.
This initiative will have a significant impact on the recruitment process, especially for operating industries. From looking for more candidates to providing support for employees to adapt to a shorter workday, there will be several adjustments that will need to be considered.
Let's closely explore the potential challenges that companies, recruiters and operational workers will face in this new work landscape.
The Impact of the 40-Hour Workweek in Mexico: Business Perspective
It is well known that, historically, the operational workforce in Mexico has been immersed in long working hours. However, the shift to a 40-hour workweek could radically transform the country's social and economic landscape. The impact of this transition cannot be underestimated, given that Mexico currently has the longest average working hours in the world, with 52 hours a week.
Both large corporations and SMEs (small and medium-sized enterprises) will be profoundly affected by this legislative amendment, facing new challenges in recruitment, demanding a more efficient workforce and a review of workers' compensation at all levels.
Local Companies
The transition to a 40-hour workweek will not be limited to simply adjusting schedules; it is a complex and multifaceted task that will require a comprehensive reevaluation of operational frameworks and recruitment processes. Implementing a 40-hour workweek will require fundamental changes, including structural, procedural and program adjustments.
Companies of Nearshoring*
These challenges are not unique to organizations established within Latin America. Companies that have adopted a Strategy of Nearshoring, especially after the pandemic, will not be exempt from these changes either. In fact, hiring teams could face even greater challenges when trying to manage these settings from different geographical locations.
*The Nearshoring It is a business model that establishes or relocates part of a company's operations or production to a country that is geographically close and with a similar time zone, especially choosing it instead of a more distant country.
SMEs and Microenterprises
The impact of this reform on small businesses, such as microenterprises and SMEs, is mainly due to the lack of strategies to adapt to these changes. Business chambers have expressed concern because of the possible damage to the economy if the reform is approved, stressing that a shorter working day could cause the collapse of these companies, increasing unemployment.
To mitigate these effects, it will be crucial to implement hiring practices and training approaches that speed up the workday and boost productivity. SMEs must adopt technology to automate some of their processes and, as a consequence, ensure efficiency even with a shorter working day.
Responding to business concerns
Faced with the expected challenges for all organizations that do business in or with Mexico, the Global Business Council (CEG) spoke out in favor of the reform, but asked representatives to consider four key aspects for its implementation:
- Graduality: Changes must be implemented gradually, in phases.
- Flexibility: Regulations must be flexible to adapt to the reality of each sector and company size.
- Exceptions: Exceptions to the norm should be considered in sectors with particular dynamics.
- Incentives: It's important to provide incentives for companies to invest in more people.
With these considerations, companies will have the opportunity to implement these changes little by little. However, even with a phased approach to implementing this legislation, organizations will need to give priority to innovation.
The impact of the 40-hour workweek on recruiters
We have mentioned the challenges that this change will bring to the general structure of companies and SMEs. But what about recruitment teams? From reviewing resumes to receiving candidate documentation, it's crucial for hiring teams to reevaluate and plan how to adapt to a new form of recruitment.
There are some changes that recruiters are expected to face with the 40-hour workweek:
- Increased pressure to fill operational positions almost immediately to be able to operate within the new labor regulations.
- Greater emphasis on meeting deadlines and objectives, making productivity a fundamental aspect.
- Improved searches for candidates with specific skills such as organization, autonomy and flexibility to increase efficiency and productivity during the working day.
- Reduction of learning curves and streamlining of integration processes. “With an induction strategy, the learning curve will be shorter, that is, the time it takes for the worker to learn a new task or work methodology will be reduced to a minimum.” Carlos Henríquez, commercial director of SOS Group, in America Economy.
For this reason, it is crucial that hiring processes are as efficient as possible without sacrificing quality in selecting the best candidates.
The impact of the 40-hour workweek on operational workers
According to the latest figures from the Organization for Economic Cooperation and Development (OECD), Mexico has ceded its first place to Colombia as the country with the most hours worked.
On average, people in Mexico work 2,405 hours a year, while across North America the average is 2,226 hours. The average for all OECD countries is 1,752 hours a year. In other words, Mexican workers dedicate 482 additional hours a year to work, equivalent to two more months of work annually.
The approval of the 40-hour workweek could be crucial to allowing employees to have a more balanced lifestyle. These are some of the greater benefits that are expected for the operational workforce as a result of this change in labor legislation:
- Higher productivity: A shorter work schedule can increase focus and productivity, as employees feel fresher and more motivated.
- Increased commitment: Employees with time to relax tend to be more engaged and happy, which increases overall morale and retention rates.
- Increased creativity: Without the burden of burnout, workers can use their free time to fuel creativity and innovation, participating in activities that promote their personal and professional growth.
- Lower stress and better health: A shorter workday improves overall health, allowing employees time to exercise, attend medical checkups and prioritize their well-being.
The 40-Hour Workweek and Automated Recruiting
More people will need to be recruited to fill the same number of positions and shifts, assuming that there is no growth in these companies, which, of course, would not be ideal. This, together with the desire of operational workers to find new opportunities quickly, will cause the automated recruitment and AI become essential tools in recruitment processes.
Automated recruitment for employers and operational recruiters
Adopting and implementing new technologies requires time, effort and focus. However, especially with the immediate need to optimize hiring processes in Mexico, the benefits far outweigh the investment this may represent. Here are a few ways automation and AI can support operational recruitment efforts:
1. Mayor quality in hiring
Automation allows for a more accurate evaluation of candidates through the use of profiles defined by the company, which ensures that new employees are aligned with the company's operational needs. This contributes to team stability and reinforces cohesion and effectiveness in the workplace.
2. Fewer redundancies in the hiring process
Automating routine tasks allows recruitment professionals to focus on strategic initiatives and build meaningful relationships with candidates without compromising selection quality.
Solutions aimed at the specific needs of operational recruiters, such as Emi's automated operational recruitment platform, can meet the requirements of the new labor legislation and significantly improve the efficiency, productivity and satisfaction of human resources professionals and candidates for a vacancy.
3. Shorter time to fill vacancies
With automation, organizations can establish communication flows to keep candidates informed about the status of their application, schedule interviews and provide information about the position, all without the need to intervene directly. This reduces delays caused by manual communication processes and helps the hiring process to proceed smoothly.
Automated recruitment for operational candidates
Candidates will also benefit from automation and artificial intelligence tools when seeking new job opportunities. Here are some ways in which automated recruitment can benefit operational candidates:
1. Greater accessibility to different jobs
Recruiting is streamlined with automation, making job opportunities much more easily available to operational workers. By streamlining hiring procedures, automation ensures that operational employees can get employment faster and more efficiently.
2. Higher job satisfaction
By automating routine tasks, recruiters can spend more time understanding the needs and preferences of operational workers. This personalized approach encourages greater job satisfaction among operational employees, as their aspirations are taken into account and assigned the most appropriate role for them.
3. Better candidate experience
The reduction of Recruitment time and streamlining communication processes provides operational workers with clarity about their applications and job offers. This also means that new employees can recommend more potential candidates because of their positive experience with the company.
Emi in Action
Automated recruitment is positioned as one of the most valuable tools in this new work scenario. That is why the Emi's operational recruitment platform, designed for digital recruitment, guarantees a quality experience for the candidate with intelligent selection, automated interview scheduling and personalized onboarding.
Here are some of the organizations that have used automated recruitment and experienced incredible improvements in hiring processes:
Nemak
Using Emi's responsive AI chatbot, Nemak was able to follow up with 100% of its candidates, who were able to get their questions answered 24 hours a day, 7 days a week, instead of having to wait for normal working hours. In the first half of the year, Nemak was able to hire 54% more new employees than the previous year thanks to Emi.
Heineken
By using Emi to streamline every step of the hiring process, Heineken's talent acquisition team was able to reduce more than 10,000 hours of the manual work they were doing. This allowed her to focus on building her employer brand and acting on her talent acquisition strategy.
Burger King
Since partnering with Emi, Burger King's human resources team has been able to recover between 5 and 10% of the time the HR team spent coordinating interviews and accelerating hiring time by 30%, saving an average of 5 days and increasing the satisfaction of both recruiters and candidates within the process.
Become the next success story with Emi
If you are facing the uncertainty and complexity associated with changes in the operating labor market in Mexico, Emi is here to help.
Learn how automated recruitment and artificial intelligence can help meet your company's needs while scaling your mass hiring infrastructure. Experience the power of Emi software by requesting a personalized demo today.