Mexico Talent Forum 2021

Page 1

2021

IMPACT REPORT


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As employers begin to call their workforce back to the office, the empowered post-pandemic worker is using their newfound leverage to call for the permanent implementation of the hybrid work model and other demands. Since this negotiation process is still in the initial phase, its not clear what new employment standards will emerge. However, experts agree that change must come from both employers and employees. While companies were initially resistant to remote work schemes due to fear of decreased productivity, the pandemic demonstrated that these models were not only possible but effective. At the same time, workers saw a significant impact in mental health as a result of prolonged isolation, which also hindered employees’ sense of belonging to their companies. Assimilating employee values and offering added-value learning opportunities, especially in digital and technology tools, will significantly facilitate employers’ ability to retain and attract talent. Preparing and upskilling the workforce in the age of digitalization is particularly important considering the foreseeable disruption robots, automation and AI technologies will have across the economy. At Mexico Talent Forum 2021, industry leaders highlighted the central role that employer-employee communication will play in articulating postpandemic work standards and expectations. Based on this feedback, recruitment officers are working to coalesce worker values with company objectives, looking into upskilling and training the workforce for to embrace Industry 4.0 and other disruptors. As the premier even in the human resources and talent sector, Mexico Talent Forum 2021 provided an ideal space for key decision-makers to share their perspective and build a discussion around the latest trends affecting all industries and sectors of the Mexican economy.


4

C o n f e r e n c e I mpact

121

Breakdown by job title

companies

342

13% CEO/Founder 20% HR Director /VP 32% Manager 8% Consultant 7% Partners 20% Director

conference participants

52

speakers

Conference social media impact

8

sponsors

4,816

visitors to the conference website

Pre-conference social media impact

20,000 direct impressions during MTF 2.5% click through rate during MTF 5.1% conference engagement rate

52,000 direct pre-conference LinkedIn impressions 2.71% pre-conference click through rate 3.2% pre-conference engagement rate

Mexico’s leading B2B conference organizer introduces the world’s leading event networking platform. Delivering intent-based matchmaking powered by Artificial Intelligence that connects the right people. Network, no matter where you are.

193

participants

993

100

matchmaking communications

1:1 meetings conducted

Matchmaking intentions

780Trading Total

1,314

212 Recruitment 159 Investment 163 Networking


5

C o mpa n y Att e n da n c e •

A2B Skin Care

Energy to Market

Ace Oil Tools

Eolis

Adevinta

Eppendorf do Brasil

AhKimPech

EPSCON

Albanesi Tech Legal Consulting

Expat&Co

Alegre, Calderón y Márquez Abogados

Expediente Azul

Alfonso

Export Development Canada

ALLVP

Exterran

AMAVe

F5

Amazon

Facebook

Angel Ventures

Falabella

AOLM

FEMIA

Ap

Finerio

Arcus

Finnu

Aruba, a Hewlett-Packard Enterprise Company

Fintonic

ASCENCIO CE

Ford Mexico

ASESARO

Forte Innovation Consulting

Asesoriaenfarmacias.com

FrontierView

ASOFOM

Galileo

ATCO Energia

General Electric

Atradius Trade Credit Insurance

Genesys

Ausnutria Nutrition

Genpact

Axios International

Global Business Inc

Axon Interconex

Global Health Intelligence

Banco de Mexico

Google

Becerril, Coca & Becerril

GPTW

Belimo Aircontrols (USA), Inc.

GreenID

Boeki Logistics

Grupo Casgo

Brella

Grupo Comercial Chedraui

Briq.mx

Grupo GOCA

C&A Mexico

Grupo Roales

Cámara Nórdica de Comercio en México

Grupo Samaredi

CANIFARMA

HAMOC

Cardinal Health

Heerema Marine Contractors

CHG-MERIDIAN MEXICO

Hellmann Worldwide Logistics

CIMMYT

HKS Architects

Circutor

Holland House Mexico

Climate Bonds Initiative

Honeywell

CMV R&R Partners

Huawei Technologies de Mexico

Cobroamericas

Humanologo

Colegio de Ingenieros de Minas,

Iberdrola México

Metalurgistas y Geólogos de México

ICAN

Commerce Mind

ICM

Conekta

Instituto Nacional de Ciencias Médicas

Cornershop by Uber

Cuéntame

Intel

DESCIFRA

International Rescue Committee

DHL

iPS - Powerful People

DNV GL

IVEMSA

Dostavista Mexico

Jüsto

Dow Mexico

Kannbal Consulting

Dynatrace

Kaspersky

Embassy of Canada in Mexico

KIA

- Ontario Government

Kiewit

Embassy of Italy

Kikoya

y Nutrición Salvador Zubirán


6

C o mpa n y Att e n da n c e •

Klustera

SAFELINK

Konfío

Salud Facil

KPMG

San Luis Potosi City Council

Lalamove

SAP

Lana

Sartorius

Laserline Inc.

Scania

LAVARTEX

Servicio Geológico Mexicano

Lavartex

Siebtechnik Tema

LENDERA crowdleasing

Skyhaus

Luxottica

SocialDiabetes

MBE

Someone Somewhere

MEDICE Arzneimittel Pütter

Speyside Group

Mergermarket

Spinto

Metabase Q

STORI

Mexico Business

Stripe

Mitsui

Sulmara Mexico

Mitsui & Co Power Americas

Swap

Mobility ADO

Syneff Consult

MountX Real Estate Capital

Syngenta

Mureni

Tecnatom

NautechMX

The Adecco Group

Naviera Integral

The Uncommon Lab

Nissan Mexicana

TIBA

NLinBusiness

TIP

nodes.com

TMF Group

Northland Power Energia

Tolko Group

Nu México

Top Management Mexico

Nubank

TRANSPLACE

Oleum Energy

Trebol Capital

OLIVARES

Tridi, Manufactura Aditiva

Ontario Government

Truora

Oplay Digital

Truper

OS City

TSystems

PAE Global

Uala

Partem Projects

UK Department for International Trade

Pearson

Union de Crédito del Soconusco

PharmAdvice

U-Storage

Polymath Ventures

Vaisala

Pragmatec

Veeam

Prana Power

Vera & Asociados

Pretmex

Vexi. Tarjeta de Crédito

Prosegur Security México

Visa

QbD México

Von Wobeser y Sierra

Quartux

VOPAK

RAMA MANTENIMIENTO INDUSTRIAL TOTAL

VTEX

Rappi

Walmart

Rappi Pay

Walworth

REFLY

Wartsila

RelyOn Nutec

Within3

RER Energy Group

Wizlynx Group

Rising Farms

WorldWise Coaching

RM Pharma Specialists

Yalo

Rockwell Automation

Yokogawa de México

S2G Energy


7

P r o g r am D ay 1

08:50

WELCOME TO MEXICO TALENT FORUM - DAY 1

09:00

THE LABOR MARKET AFTER COVID-19

Speaker: Hector Marquez Pitol, Human Capital Commission President of Coparmex and President of AMECH

09:30

OUTSOURCING REALITY UNDER NEW REGULATIONS

Moderator: Gustavo Linares, Founder of TalentHow Panelists: Alberto Alesi, ManpowerGroup General Director For Mexico, Caribbean and Central America Francisco Martinez Domene, CEO of The Adecco Group México Melissa Pereda Nájera, Head of Human Resources of Volkswagen México 10:15

EMPLOYMENT AND USMCA: ADAPTING TO NEW CONDITIONS

Moderator: Guido van der Zwet, General Manager of iPS Powerful People Panelists: Alfredo Kupfer Domínguez, President of Human Capital and Labor Affairs Committee of American Chamber of Commerce of Mexico Luis Monsalvo, Co Managing Partner and Director of Monsalvo Duclaud Carlos Zurita, Human Resources and Compliance Director of Unicarplastics 11:00

NETWORKING OPPORTUNITY - AI-POWERED 1:1 MEETINGS

12:00

TO GO BACK OR NOT TO GO BACK TO THE OFFICE?

Moderator: Wanda Sevilla, General Director of Tallent Up Panelists: Olivia Segura, Director People & Change|HR & Talent Management Consulting of KPMG in Mexico Isela Hernández, VP RH of Walmart México Javier Jaramillo, HRBP | HRSS and Compliance Manager of Lamudi México Javier García Iza, CEO of IOS OFFICES 13:00

NETWORKING OPPORTUNITY - AI-POWERED 1:1 MEETINGS

13:30

PRODUCTIVITY VS. MENTAL HEALTH: IS IT POSSIBLE TO FIND A BALANCE?

Speaker: Alma Puig, CEO of Great Place to Work 14:00

NETWORKING OPPORTUNITY - AI-POWERED 1:1 MEETINGS

15:00

RETENTION STRATEGIES AMID THE “GREAT RESIGNATION”

Moderator: Jorge Ponga, Partner of Humanologo Consulting

Panelist: Maite Delgadillo, HR Director of Scania Elisa Rebolledo, Casai Mexico’s General Manager of Casai Blanca Ruth Ortuño Pacheco, Sales HRBP Senior of Nestlé Victor Velázquez Patrón, Vice President, People & Organization Development of Clip 16:00

THE SKILLS THAT MATTER MOST IN A POST-PANDEMIC WORLD

Moderator: Paulina Cavazos, Director People Ops of Ben & Frank Panelist: Alejandro Zenteno, CHRO of Grupo Lala Antonio Madrid, HR Director of Soriana Geny Oceguera Rojas, Acting HR Head of Samsung Mexico Sergio Arturo Arangua Quiroga, HR Country Manager for OXXO México


8

P r o g r am D ay 2

08:50

WELCOME TO MEXICO TALENT FORUM - DAY 2

09:00

UPSKILLING AND RESKILLING TOWARD THE FUTURE OF WORK

Speaker: Santiago Gutierrez, VP of Pearson 09:30

ARTIFICIAL INTELLIGENCE AND THE FUTURE OF RECRUITING

Moderator: Jordi Ciuro, Partner and Vice President of Recruiting at Bain & Company’s Mexico City office Panelists: Selene Diez, CEO of Forte innovation Pol Morral Dauvergne, Co-founder & CEO of LaPieza.io Maria Fernanda Miretti, Global Talent Acquisition & DO of Multiplica Monica French, Head of New Business Hispanic America of LinkedIn Talent Solutions 10:30

THE SECRET TO HIRING INTERNATIONALLY

Speaker: Ricardo Guerra, Director Business Development of Globalization Partners 11:00

NETWORKING OPPORTUNITY - AI-POWERED 1:1 MEETINGS

12:00

AI, ROBOTS AND AUTOMATION: DISRUPTION IN THE WORKPLACE

Moderator: Daphne S. Leger, CEO & founder of Atrevidea Panelists: Felipe A Villarreal, CEO of Alian Plastics Federico Barcos Von der Heide, CEO of PeopleOPTI Lissy Giacoman, CEO & Co-Founder of Vinco 13:00

CAREERS, SALARIES AND THE ROLE OF MANAGERS IN THE DIGITAL AGE

Moderator: Regina Cabal Urquiza, Co-Founder of Momlancers Panelists: Diego Olcese Díaz, Co-founder, CEO of Crehana Gabriela Villavicencio, Head of Human Resources and General Affairs of Hyundai Motor Ricardo E. Combariza, People & Organization Director of Credijusto Laura Briano, HR Service Delivery of Accenture Latin America 14:00

NETWORKING OPPORTUNITY - AI-POWERED 1:1 MEETINGS

15:00

THE MILLENNIAL TAKEOVER OF THE WORKPLACE

Moderator: Karen Rodarte, Business Developer and Co-Founder of Pai Pai Panelists: Miguel Castuera, VP of People of Conekta German Peralta, Co-founder & CEO of JOKR in LATAM Martha Lucia Riquer Vargas, Organizational Development & Diversity of Enel 15:45

PRIORITIZING MENTAL HEALTH IN MODERN WORKSPACES

Speaker: Javier Andres Cardona Mora, Co-founder & CEO of 1DOC3 16:15

INCLUSION IN THE WORKPLACE: MAKING EVERYBODY COUNT

Moderator: Jorge Garduño Camareena, Ethics and Business Integrity Manager of Sanofi México Panelists:s Jorge Alejandro de lara, Director of American express Denisse Cazú Dávalos, Regional Director HR LATAM Mattel Latin America Courtney Devon McColgan, CEO & Founder of Runa Ana López Mestre M, Executive Vice President and General Director of American Chamber of Commerce of Mexico Daniela Muñoz, CEO of IOIO


9

C o n f e r e n c e H ighlights

STRENGTHENING MEXICO’S FORMAL LABOR MARKET Since the Federal Labor Law (LFT) came

study conducted by the Mexican Institute

into effect in 2019, it has been met with

of Social Security (IMSS) from February

both resistance and enthusiastic support

2020 and August 2021 found that informal

from companies in Mexico. But the reform

labor market has grown by 17,684 jobs,

is not the only challenge employers and

supporting this hypothesis. In contrast,

e m p l oye e s a re f a c i n g . A lth o u g h th e

formal employment has contracted by 1.2

COVID-19 pandemic cratered the labor

percent, representing an absolute loss of

market, it increased employer empathy

286,297 jobs, according to 2021’s findings

prompting them to value the importance

from INEGI. This indicates that the formal

basic benefits for their employees.

sector has taken longer to stabilize even with an accelerated vaccination rollout.

Incentivized by greater support from the Federal Government, the domestic market

Further analysis from IMSS found that

has seen as of September 2021 an estimated

even amidst the pandemic businesses have

2 .7 m i l l i o n e m p l oye e s m i g r a te f ro m

slowly been increasing their minimum wage.

outsourcing to employment with companies

In February 2020, the wages reported to

that offer benefits and services says Héctor

IMSS averaged at MX$12,087 (US$585)

Marquez Pitol, Human Capital Commission

and increased by 2.6 percent in the span

President of Coparmex and President of

of ten months to MX$12,403 (US$601). This

the Mexican Association of Human Capital

trend continued into the new year, albeit at

Companies (AMECH), which helped draft

a slower pace, from MX$13,035 (US$631)

the legislation and has be en helping

in Januar y to MX$13 ,133 (US$636) by

business comply with its requirements over

September, equivalent to a 0.75 percent

the past three years.

increase in nine months.

From November 2020 to September 2021

Although “this change represents a new

subcontracting positions contracted by

epoch in in the labor market,” according to

9,000 as result to the regulatory change.

Marquez, this increase should be examined

This d o es n ot n e cess a rily m e a n that

against the growing inflation that has

formerly subcontracted employees are now

increased the price of goods and services

unemployed as they could have transitioned

across the market, which has not been

to the informal market, which is growing

an isolated event to Mexico. Although

explained Marquez. A comparative of

economists cannot currently predict the


10

C o n f e r e n c e H ighlights progression of this matter until more

take [at least] another two years to stabilize

variables are addressed, “the market will

from here,” said Marquez.

THE OUTSOURCING REFORM BROKE PARADIGMS The new Labor and Tax Reform, regarding

outsourcing reform requires that companies

outsourcing and subcontracting, is changing

hire directly all personnel needed to carry

companies’ operations across Mexico. While

out core business activities.

the new regulations brought considerable challenges to every player involved, they

Under the new legislation, it is considered

opened a new range of possibilities, agreed

outsourcing when an individual or legal

industry experts.

entity provides or puts at the disposal its own employees for the benefit of another

“The biggest challenge, administratively and

individual or legal entity. However, this does

economically, is to incorporate the formerly

not mean that staffing and employment

subcontracted personnel that work in

agencies are going to disappear. These

essential processes of the companies. In the

companies can still intervene in the hiring

long term, it is an opportunity to increase

process of personnel and participate in

production thanks to a higher motivated

recruitment, selection and training but they

workforce. Human Resources departments

will not be considered as employers, since

can take advantage of a robust onboarding

that label is held only by the individual/entity

process to equilibrate talent, know-how

that benefits from the services provided,

and increase productivity in the long term,”

according to International Tax Review.

said Melissa Pereda Nájera, Head of Human Resources of Volkswagen de México.

“We can still offer the subcontracting of specialized services, as long as they are

Published on April 23, 2021 and being

not part of the core business activities of

enforced gradually from April 24 to Aug. 1,

companies. Outsourcing is recognized

2021, the Labor and Tax Reform prohibits

and used across the world, including

outsourcing as it aims to end with “the

international companies operating in

perverse effect of preventing workers

Mexico,” said Francisco Martínez, CEO

from benefiting or participating in profits,”

of The Adecco Group Mexico. There are

according to President Andrés Manuel

many opportunities to take advantage of

López Obrador, who introduced the reform

the new regulation, despite it being “more

in November 2020. In general terms, the

restrictive” than in other countries, he added.


11

C o n f e r e n c e H ighlights “It was necessary to end with bad practices.

is affecting thousands especially following

(The new Reform) will professionalize

the pandemic, agreed industry experts.

subcontracting and outsourcing, leaving only

The COVID-19 pandemic left 13 million

serious, formal operators that comply with

unemployed, according to INEGI; but

law,” said Martínez.

between May 2020 and June 2021, 12.3 million people returned to active economic

Outsourcing of specialized services and

activities, according to IMSS, leaving around

activities that are not part of the core

650,000 still unemployed. The outsourcing

business activities of the beneficiary are still

reform “increased the informal employment

allowed, as long as the contractor has the

rates as around 900,000 lost their jobs,”

Registry for Providers of Specialized Services

while “the deficit caused by the pandemic is

and Specialized Works (REPSE) recognized

still not recovered,” said Alesi.

by the Ministry of Labor. Until Oct. 12, 2021, th e re a re 6 3 , 5 6 1 fo rm a lly- re gis te re d

Months before the Reform was enforced,

contractors in Mexico, according to Héctor

IMSS identified over 5 million people

Marquez Pitol, Human Capital Commission

subcontracted in the country. During the

President of COPARMEX and President

transition period, 2.7 million employees

of AMECH.

were incorporated in their employers payroll, while the rest could remain working under

“Outsourcing and subcontracting evolve and it is a matter of time for things to stabilize. Recruitment, incorporation and training is not exactly the core business activity of many companies, which will continue to contract specialized staffing agencies”

the specialized services scheme where they were already working, according to the Incorporation and Collection division of IMSS. The first months under new regulations are the toughest for everyone involved, said Martínez: “The most affected players have been our own clients. They had to

Alberto Alesi

directly hire the workforce they had already

ManpowerGroup General Director For Mexico, Caribbean and Central America

subcontracted and their budgets have suffered. We adapted rapidly to the new regulations, changing our structures and service portfolio to fully comply with law.

The first two years after the enforcement

The new regulation came here to stay and

of the Reform were uncertain for most

contractors are forced to obtain the REPSE.”

players involved, according to Alberto Alesi, ManpowerGroup General Director for Mexico,

From companies’ perspective, the Reform

Caribbean and Central America. However,

o p e n e d o p p o r tu n iti e s towa rd a n ew

companies are now required to do “thorough

work environment. The transition forced

analyses” to define their main economic

companies to be more conscious about

activities and smartly outsource specialized

their own needs and processes, while

services. While companies will be forced to

client-supplier relationships have been

have larger employee workforces, with their

strengthened, highlighted Pereda.

inherent budget challenges, “outsourcing and subcontracting evolve and it is a matter

Collaboration Rather than Conflict

of time for things to stabilize. Recruitment, incorporation and training is not exactly the

While the Labor and Tax Reform was

core business activity of many companies,

controversial due to the negative impact

which will continue to contract specialized

to both companies and employees, most

staffing agencies,” said Alesi.

of the private sector chose to actively work with authorities to draft the law rather than

The new Labor and Tax Reform could be

fighting it through other legal resources,

beneficial for Mexico but in the meantime, it

such as legal protection (amparo), which


12

C o n f e r e n c e H ighlights was filed by at least 20 companies across the

new regulations, agreed industry experts.

country, reported Expansión. For instance,

“We hope that companies that try to play

cosmetics company Mary Kay won judicial

outside the regulation are prosecuted with

concessions to delay the implementation of

the full force of law. Fortunately, the Ministry

this norm and other companies are arguing

of Labor is opened to receive complaints in

that the law’s applicability can lead to

this regard,” said Alesi.

discrimination, reported MBN.

New Opportunities The Mexican Association of Human Capital (AMECH) initially considered the possibility

The Labor Reform opens new opportunities

of drawing on legal protection. However,

toward a more automated future inside

AMECH members decided to collaborate with

companies. “Innovation and development

the authorities during the process of writing

of competences will grow technology

the law, due to the limited solutions that legal

startups, that will offer innovative solutions

protection offered to staffing companies and

to companies,” said Pereda. While it will

everyone involved, agreed industry experts.

take some time, the reform will break many paradigms in the Mexican industry.

“Innovation and development of competences will grow technology startups, that will offer innovative solutions to companies”

New regulations have to be open to temporary employment, said Martínez. Temporary employment started attracting public policy attention across the world three decades ago,

Melissa Pereda Nájera

when it became popular, according to the

Head of Human Resources of Volkswagen México

International Labor Organization (ILO). Under this scheme, workers are engaged only for a specific period of time, including fixed-term, project or task-based contracts, as well as

“This resource slows you down. A judge could

seasonal or casual work, including day labor.

protect you against the Reform but everyone involved will also need the protection to

“With our international experience, we

legally subcontract employees. Additionally,

noticed that in countries where temporary

protected companies cannot make tax-

employment is regulated, informality is

deductible bills from Aug. 1, 2021. While there

dramatically reduced. For instance, when

were constitutional foundations to follow

bachelor students end their studies, they

this path, this made absolutely no sense to

have the opportunity to work temporarily in

us so we would rather work with authorities

diverse companies for about two years and

to address the situation in the most plural

then decide where to stay. According to our

way possible,” said Alesi. The Reform,

data, 33 percent of them end up staying in

while perfectible, came to eliminate bad

one of those,” said Martínez.

practices and informality, and it made “no sense” to seek legal protection rather than

Temporary employment is an area for

collaborating with legislators throughout the

opportunity in Mexico, said Martínez, and

process, agreed Martínez.

highlighted the benefits it could bring to companies during peak seasons, while

Considering what has happened in other

giving interesting internship opportunities

countries across the world, law enforcement

to younger generations in a regulated

will play a key role during the transition to

ecosystem.

REFORMS, USMCA FORCE EMPLOYERS TO RAPIDLY ADAPT The USMCA led Mexico to review its labor

agreed to. Since the US is Mexico’s largest

practices to fulfill the responsibilities it

commercial partner, compliance with the


13

C o n f e r e n c e H ighlights

agreement plays an important role in their

recognition of effective rights in collective

relationship.

negotiation. To acknowledge the country’s obligations, the country needed to change

Mexico’s 2019 labor reform responds to the

its practices , the federal law and the

obligations the country agreed to when

constitution,” said Luis Monsalvo Duclaud,

it signed the USMCA. It aims to enforce

Co- Managing Par tner and Director at

adherence to fundamental labor rights and

Monsalvo Duclaud.

legislation, guarantee the protection of migrant workers, promote a cooperative

Both the USMCA and the reform aim to

agenda that allows the application of

transform labor practices through five

fundamental labor rights and foster dialogue

p ri n ci p l e s: “ Fre e d o m of a s so ciatio n ,

to address differences in the application of

e ff e c tive n e g oti ati o n , e l i m i n ati o n of

Chapter 23’s commitments.

forced and child labor, minimum working co n ditio n s a n d th e e s t a b lish m e nt of

“Chapter 23, Annex 23.A includes elements

autonomous labor courts.” The latter led

of re g u l a ti o n of l a b o r a s p e c t s , th a t

to the creation of Federal Center for Labor

were firstly triggered by Mexico’s labor

Conciliation and Registration, which aims

reform in 2019 and that incorporates ILO

to offer a public conciliation service to

recommendations,” says Carlos Zurita,

resolve labor disputes between workers

Human Capital Director and Compliance

and employers, individual or collective. This

of Unicarplastics. The chapter seeks to

organization offers both parties an efficient

improve working conditions and wages of

and expeditious solution that provides

workers in Mexico to prevent companies

certainty and legal security. The institute

from Canada or the US from transferring

will be in charge of the registration of the

jobs south to take advantage of Mexico’s

administration agreements of the contracts-

lower wages.

law, collective bargaining agreements and agreements related to them, internal labor

The USMCA came into force on July 1,

regulations and union organizations and of

2020 and, while it was the major force

the administrative processes related to the

behind the labor reform, it was not the only

registration powers.

one. “Mexico had ratified the International Labor Organization’s (ILO) Convention 87,

This reform “will transform the labor

relating to freedom of association. During

relationships that we know now, this will

the early days of this administration the

mean not only to change the law, but to

country ratified Convention 98, relating to

change every company in Mexico,” says


14

C o n f e r e n c e H ighlights Alfredo Kupfer Domínguez, President of

that it will constantly visit businesses to

Human Capital and Labor Affairs Committee

supervise their compliance with the reform.

of American Chamber of Commerce of Mexico. According to Kupfer Domínguez,

“The overall changes on the reform are

the worker’s ability to unionize freely and

expected to increase wages in Mexico by a 17

anonymously will make them more involved

percent but this is a gradual change that will

and aware of their rights.

only occur if we are able to generate better labor conditions,” warns Kupfer Domínguez.

The reform also seeks to prevent violations

In the last three years, Mexico has experience

of workers’ rights and tax evasion, the latter

large general wage increases, especially in

led to measures to regulate outsourcing.

cities near the Mexico-US border, which has

Although subcontracting labor structures

significant costs for companies, he added.

were prevalent in Mexico for many years and even regulated under the former regulation,

Increasing the minimum wage is positive

several outsourcing schemes were also

but it pressures companies, said Zurita.

used to pay less taxes and contribute less

“ The minimum wage must be agreed

to workers’ social security. This led to tax

with the business sector so that increases

frauds and reduced employee’s pension and

are measured and c alculated and do

compensation.

not to cause a strong impact. Hand on hand with this increase, the government

“Mexico’s labor conditions were significantly differently from international standards and the reform needs to be clearer on its deadlines so every company is able to comply”

should encourage business growth and job retention with an accompaniment in production and generation of wealth.” The sector that is dealing with these labor reforms more strongly is the automotive

Luis Monsalvo

industry. Earlier this year, the US announced

Job Co Managing Partner and Director of Monsalvo Duclaud

the conclusion of the labor complaint that reviewed whether workers at a General Motors facility in Silao, Guanajuato, were being denied their freedom of association

“Outsourcing has been associated with

and collective bargaining rights.

dirty practices like reducing salaries and preventing payments, even wage theft.

Workers at a General Motors plant in Silao,

However, there are many outsourcing

Mexico, voted on the approval of their

companies that follow the rules and pay

existing collective bargaining agreement

well, including benefits,” said Guido van

under free and democratic conditions after

der Zwet, General Manager of IPS Powerful

the US requested a review on May 12, 2021.

People. The “prohibitive” approach to

Complying with USMCA’s commitments

outsourcing reflected in recent regulatory

during remediation , workers voted in

changes can be too radical considering

August to reject their collective agreement.

the number of contracts managed through

Inspectors from the Ministr y of Labor

those means, he added.

and Social Welfare (STPS) supervised voting, while INE and International Labor

The reform still lacks of clarity. “Mexico’s

O rganization representatives worke d

labor conditions were significantly differently

as observers. STPS later confirmed the

from international standards and the reform

voting results. The US Trade Representative

needs to be clearer on its deadlines so every

(USTR) Katherine Tai and Labor Minister

company is able to comply,” says Monsalvo.

M a r t y Wa l s h n o t e d t h e “ s u c c e s s f u l

Immediate compliance is utterly important

conclusion” of the first labor complaint

to companies because the Ministry of Labor

under the Rapid Response Mechanism

and Social Prevision (STPS) announced

(RRM) of USMCA.


15

C o n f e r e n c e H ighlights

BEFORE THE OFFICE, THE MEETING ROOM The COVID-19 pandemic may have turned

and the majority have been looking for a

the former work model on its head but

combination of the two.

that does not mean that returning to the office needs to be a dreadful experience. To

To retain their employees for this new

ensure the smooth transition to the office,

post-pandemic phase, companies need

employers must have a frank dialogue with

to address the driving concern of the

employees to avoid resignations, maintain a

Great Resignation: a perceived loss of

high morale and increase productivity.

personal freedom , said Olivia Segura O r tiz, Direc tor People & Change and

Companies have had the technology to

HR & Talent Management Consulting of

work from home for over a decade now

KPMG. The pandemic allowed people to

but employers widely resisted the hybrid

refocus their priorities and have time for

work model thinking it would compromise

themselves, which had previously been

productivity. The COVID -19 pandemic

an afterthought stamped out by the daily

demonstrated that this model is not only

routine. Lockdowns helped employees

possible; it is more efficient and “the best

avoid hour-long commutes, gave them

of both worlds,” said Javier García Iza, CEO

more time with their families and allowed

of IOS Offices.

them to build their work schedules around their needs.

This model underlines that returning to the office does not need to be a binary choice.

In practice, bringing employees back

Just as there are perceived drawbacks to

requires companies to sit down with their

working in an office there are also great

workforce to address the concerns they

benefits such as greater concentration,

have about returning to the workplace.

a m o re co h e sive wo rk cultu re a n d a

Once both parties come to an agreement,

faster exchange of ideas needed to drive

employers must clearly outline standards

innovation. Likewise, working from home

and expectations for their employees

can be distracting, lead to longer work

to avoid misunderstandings, said Javier

hours and introduce some inefficiencies.

Jaramillo, HRBP & HRSS and Compliance

Th e key compon e nt is th e individual

Manager of Lamudi. Beyond this, companies

employee. As demonstrated repeatedly

need to develop a framework to implement

from multiple surveys, some individuals

the changes or requests made on behalf of

thrive better in office spaces, some at home

the employees, added Segura.


16

C o n f e r e n c e H ighlights Addressing employee concerns is central

This change in no way should be perceived

to developing a healthy company culture in

as an added expenditure because

which employees feel valued, which in turn

companies stand to benefit from a more

adds to productivity and retainment, said

productive, healthier and more engaged

Isela Hernández, Vice President of Human

workforce. Furthermore, companies can

Resources of Walmart México. Moreover,

depersonalize and downsize office spaces

companies should be weary of implementing

and reduce the high running costs of

generalized solutions, what makes one

underutilized spaces and electricity.

employee productive and efficient will not be the same for everyone else. Consequently,

The former work model may be dead

employers should anticipate variations of

but that does not mean that returning

their work model within their office space

to office needs to be a singular binary

which will require added communication

choice. Sustained intercommunication

on behalf of employers. This cycle should

between employers and employees should

be cyclical and flexible to environmental

be central to the development of hybrid

changes, situational needs and performance.

work models.

BALANCING PRODUCTIVITY, MENTAL HEALTH M e nta l h e a lth h a d b e e n in cre a singly

it on an occasional basis. “In organizations,

recognized as a critical success factor

l e a d e r s f a il e d to th r u s t e m p l oye e s ,”

for companies and the pandemic only

said Puig.

highlighted its relevance in the workplace. The complete overhaul of work modalities

Working from home was one of the largest

is forcing companies to revolutionize their

shifts during the pandemic and, while cases

approach to employee mental health.

dwindle, companies continue feeling its effects. In the new era, employees proved

“To date, companies are finding themselves

they could be productive regardless of

in a new era in which both collaborators and

the setting. In October 2020, 40 percent

employers have different expectations,”

of organizations in Mexico had reported

s ays A l m a Ro s a P u ig , C EO of G re at

an increase in labor efficiency while labor

Place to Work.

productivity increased by 28 percent, according to Puig. “As a result, today

“Employees may be working relentlessly amid economic uncertainty with few social outlets, and possibly juggling childcare to boot, eviscerating any separation between work and the rest of their life”

over 64 percent of employees work more flexible hours.” However, the pandemic severely impacted employee mental health in different ways. “Employees may be working relentlessly amid economic uncertainty with few social

Alma Puig

outlets, and possibly juggling childcare to

CEO of Great Place to Work

boot, eviscerating any separation between work and the rest of their life,” said the American Physiological Association.

While all jobs require a diverse and often

By May 2021, only 18 percent of organizations

specialized set of skills, in recent years

in Mexico reported increases in efficiency.

companies have been paying increasing

“ Em p l oye e s h a d a l re a d y re a c h e d a n

attention to “sof t skills” derived from

efficiency peak and no attempt was made to

emotional intelligence. In 2020, working

find new channels of efficiency,” explained

from home was only available at less than

Puig. Work stress in Mexico increased after a

19 percent of companies, which only offered

year of pandemic by 8.1 percent because the


17

C o n f e r e n c e H ighlights working day increased by an average of 2.5

work autonomy, which is one of the most

hours, adding other fears such as potential

fundamental calls to action for companies

unemployment. Also, over 56 percent of

and will remain in future working conditions.

employees in Mexico reported burn out

“A stronger focus on the health and physical,

due to the confinement and intra-family

mental and emotional well-being of the

violence, which affected their performance.

employee is also one of the most vocal

“To date, one in four people have mental

demands,” said Puig.

health problems, 75 percent of employees feel socially isolated and anxiety levels have

The new competencies that will make a

increased by 57 percent,” exposes Puig.

difference when recruiting are flexibility and the ability to adapt to change quickly. “In the

The U N , PAHO and ILO responded to

past, we would not see companies worrying

this rapid working shift and its impact on

about emotional intelligence or focusing

mental health with the paper “Managing

on emotional agility and social connection.

Work-Related Psychosocial Risks During

Now, this is a core competence,” said Puig.

th e COV I D -1 9 Pa n d e m ic .” I t exp la in s that for employees to feel and be fully

Technology is playing a large role in the

present at work, their working conditions

redefinition of workspaces. For employees

must guarantee a good environment and

and employees, technology has changed the

work team and a balance workload and

working modality. Accelerated automation

schedule. Their job environment should

will allow employees to evolve their skills

also be free of violence and harassment,

and now a combination of human and AI

offer a balance between work and personal

skills to solve problems is required, Puig

life, provide job securit y and provide

explained. “Organizations should seek

communication, information and training.

customized solutions and agile operating

The repor t highlight s that social and

models, which can only be obtained through

psychological support are fundamental

technology.”

for employees.

Looking Ahead Lacking these spaces “would damage the company,” said Puig. She explained that

Companies are also behind on diversity and

Good Place to Work communicates that

inclusion. The pandemic evidenced how

“good mental health allows one to be more

women are still taking the biggest share of

productive.” The emotions that paralyze the

domestic work. Looking ahead, companies

brain the most are uncertainty, anxiety and

should integrate women on leadership

fear, which have been among most common

positions, provide more flexibility and offer

feelings during the pandemic, according to

equal parental leaves for men and women,

the CDC. In comparison, happy employees

said Puig. The future calls for a digital

increase their productivity at work by 13

wellness environment where collaborators

percent, explains Puig. Moreover, according

balance work and private life through

to WHO, every US$1 invested in prevention

technology. “This has to be based on trust

programs generate US$4 return. “The

and the perfect example for this is working

organization’s contribution to mental health

from home; tech has propelled it, but is only

strengthens the employee’s commitment,”

possible by trusting employees,” said Puig.

said Puig. Great Place to Work promotes a personGood Pace to Work has identified that

centric model because competencies

employees are now demanding technical

are changing and companies need talent

and human skills. “There is also a demand

that learns and applies new skills rapidly.

for more transparency in organizations to

“Organizations will be responsible for

reduce and avoid social tension,” said Puig.

designing a workplace that cultivates

Employees demand greater flexibility and

learning and mental health.”


18

C o n f e r e n c e H ighlights

THE HYBRID MODEL ALONE FALLS SHORT The Great Resignation , an ongoing

out, companies will have to put in effort to

phenomenon that began in information

communicate and identify how they can add

economies like the US, is projected to

value and impart a sense of shared purpose,

make its way to Mexico. Based on the

also known as the “emotional salary,” said

observed consequences companies should

Maite Delgadillo, HR Director at Scania. When

be prepared to meet the demands of the

employees feel like companies have gone out

post-pandemic worker. But is a flexible work

of their way to accommodate their needs

schedule sufficient to retain them? Human

and ambitions, they reciprocate when the

resource experts argue that companies

company needs them, argued Delgadillo. This

should strive towards a motivation-driven,

is all about proportional give and take that is

hybrid work model.

rooted from “communication. Without this, not even the best ideas would work,” she said.

The Mexican market may have 14 million unemployed people, argues Jorge Ponga,

International companies already know that

Partner at Humanologo Consulting, but

they must strategically approach their

Mexico will not be exempt from the great

target markets, so “why not employ that

resignation, warned Blanca Ruth Ortuño,

mindset towards employees?” said Victor

Sales HRBP Senior of Nestlé. The post-

Velázquez Patrón, Vice President, People &

pandemic worker is characterized by

Organization Development of Clip. The task

a newfound autonomy and disposition

from here is to formulate and incorporate

to preser ve their safety, demand fair

conditions that add to career development

compensation and maintain a healthy work-

and growth. Pragmatic solutions include

life balance—even at the expense of their job

training and education programs that

or career. Moreover, while the employee has

expand worker skills, which also adds to

changed, the standards under which they

the value and effectiveness of the company.

are expected to perform have not, and this is the underlying problem driving the great

Businesses should stay clear of generalized

resignation.

solutions, said Elisa Rebolledo, Mexico’s G e n e ral M a n ag e r of C as ai . Com pa ny

This ongoing phenomenon has signaled to

teams and individuals will require different

employers that the singular remunerative

amounts of support and work flexibility

incentive and the traditional top-down

depending on their international function

work model is outdated. From here on

and life context. Ultimately, she said,


19

C o n f e r e n c e H ighlights individuals would be free to work in the

which will lead to a great diversity of ideas

manner that works best for them so long

that will enrich innovation and ensure

as the deliver results, a model that many

permanence. “You can get defensive or you

applicants at Casai have found agreeable.

can learn,” she said.

This flexibility is especially pertinent for new parents, single parents and caretakers that

To avoid the loss of experienced personnel,

have added labor obligations outside of

which will undoubtedly have a salient impact

work. “This understanding demonstrates a

on the companies’ operational performance

sense of humanity and it works,” she added.

and bottom line, employers must open a direct line of communication with their

“People don’t leave companies, they leave

employees. Communication should be

experiences,” said Ortuño. If a company

followed with analysis and the development

has experienced an unusually high

of strategic value-added incentives that will

turnover rate, it may be time reassess the

vary from individual to individual. Instead

current work environment, she said. This

of viewing the great resignation as an

requires businesses leaders to be honest

inevitable phenomenon, companies should

with themselves and learn from their staff,

pivot to reinvent themselves.

THE POST-PANDEMIC WORLD REQUIRES NEW SET OF SKILLS Technology has been gradually changing

professional rules,” said Alejandro Zenteno

people’s personal lifestyles and approach

Sánchez, CHRO Of Grupo Lala.

to their jobs but the COVID-19 pandemic accelerated these changes. Employers are

Automation and the exploitation of digital

looking for a new combination of soft and

technologies have been key factors driving

hard skills in candidates across all economic

companies’ operations. Advances in robotics

sectors, agreed experts.

and AI enable the automation of a greater range of tasks in industries across the world

“Everything is changing rapidly. The train

but human capital remains an essential factor.

is going too fast and if you do not catch

Expectations of candidates and companies

it when you have the opportunity, you

have dramatically changed during the last

will not understand the new realities. New

two years, said Paulina Cavazos, Director

technologies have changed both companies

People Ops of Ben & Frank, with companies

and candidates. We have to catch the train

looking for new skills that go beyond the

with the necessary skills to play with the new

technical ability to perform a job.


20

C o n f e r e n c e H ighlights The pandemic required new solutions in

The pandemic also forced companies to

companies, which needed collaborators that

implement teleworking, which was not a

were able to continuously learn. “The ability

common practice in Mexico. As reported

to learn is important but the ability to

by M B N , videoconference usage rate

unlearn, which is not discussed very much,

grew 2 5 times during 2020, opening

is key in companies. During difficult times,

b ig o p p o r tu n iti e s b ut re q u i ri n g n ew

it is important to eliminate those experiences

communication skills. In Mexico, there are 87

or skills that are not useful at the time and

million internet users, and the growth 10.2

adapt ourselves to the new needs,” said

percent growth in 2020 was the largest in

Antonio Madrid, HR Director of Soriana.

the last 5 years, according to Asociación de

Besides the ability to unlearn and the hard

Internet MX.

skills required to perform a job, other soft skills are required such as resiliency, short-

Teleworking opened big opportunities for

te r m p l a n i fi c a ti o n a n d exe c u ti o n o f

companies to expand the labor market but

strategies , emotional intelligence,

it algo gave way to bigger challenges, said

adaptation and flexibility in changing

Sergio Arturo Arangua Quiroga, HR Country

environments, said Madrid.

Director for OXXO México. “Organizations must focus on implementing and perfecting

“We help collaborators be aware of the importance of continuously learning and developing skills. While providing all kinds of tools, such as conferences, projects, continuous feedback, coaching and mentoring, we favor selfdevelopment and reskilling”

the new tools of collaboration. Also, we have to migrate those processes that were originally done in paper to digital platforms. In this sense, government regulations in Latin America have to catch up with the speed of technology.”

A Conscious Self-Development

Antonio Madrid HR Director of Soriana

While companies must provide tools for their employees and collaborators to learn continuously, individual efforts are required for the best adaptation to new

Technology not only changed the way

circumstances. “We help collaborators be

companies and people work, but also the

aware of the importance of continuously

way that headhunters and recruiters look

learning and developing skills . While

for candidates. “People are in the core of

p rovidin g a ll kin d s of to o ls , su ch a s

our business. Resumes are not the only way

conferences, projects, continuous feedback,

to hunt for talent anymore, candidates have

coaching and mentoring, we favor self-

become more creative and we have better

development and reskilling,” said Madrid.

tools to recruit talent,” said Geny Oceguera Rojas, Acting HR Head of Samsung Mexico.

Technology plays a key role when it comes

Leadership skills, effective communication,

to continuous learning, said Arangua.

innovation and being able to transmit

Easy-access tools, such as Google and

empathy are key in candidates, he said.

YouTube, have been especially helpful during personnel trainings. For example,

The pandemic also boosted the need of

E m p l oye e R e s o u r c e G r o u p s ( ER G s),

talented people in data science and similar

e m ploye e - le d g ro u ps cre ate d at M IT

subjects and people hungry of knowledge,

around common interests, create a positive

explained Zenteno. “We are now immersed

work environment by actively contributing

in data. Data science talent is highly required

to the Institute’s mission , values and

among industries and in Latin America we are

e ff o r t s s p e ci fi c to in cl u sio n , su ch a s

quite underdeveloped in this regard. This is an

recruitment and retention, according to

area of opportunity for younger generations.”

MIT. ERGs implementation, motivation


21

C o n f e r e n c e H ighlights

and natural, intuitive coaching are key to

communication, persuasion and ideas

boost talent’s conscious self-development,

transmission through videoconferences.

said Oceguera.

While a good skills set is highly relevant, the most important part for candidates before

The post-pandemic labor world requires

looking for jobs is to know themselves,

professionals with combined skills,

detect strengths and areas of opportunity

from technic al knowledge to correc t

and set clear goals, agreed experts.

UPSKILLING, RESKILLING NECESSARY TO TRANSFORM HUMAN CAPITAL Technology, digitalization and automation

Hard skills are those talents and abilities

are advancing at a fast pace and

that can be easily measured. These skills

continuously changing companies’ needs

can be acquired through schooling, courses,

and talent requirements. The pandemic

conferences and on-the-job-training, among

further accelerated the transformation of

other resources. Soft skills, on the other

the way of working and led companies to

hand, are hard to measure quantitively and

demand new sets of skills from employees,

are not particularly learnt through specific

said Santiago Gutiérrez, Vice President

schooling. Soft skills are interpersonal

Mexico, Central America & C aribbean

abilities that help people get along with

of Pearson.

each other and collaborate in a positive environment. There are over 20 soft skills,

“In the past, education used to stop at any

according to Gutiérrez, but the key ones

given time of our lives. Currently, everyone

are critical thinking, collaborative work

is continuously learning, regardless of their

and effective communication. “These skills

profession or industry. Change became

are crucial to transform human capital into

the constant. Hard skills, acquired through

a global resource through reskilling and

academia, have always been measured

upskilling,” said Gutiérrez.

by companies, while human resources departments among companies have just

Digitalization has forced employees to learn

begun to measure soft skills,” said Gutiérrez.

continuously to keep track with technology


22

C o n f e r e n c e H ighlights advances and remain relevant to their

institution to do so. In Mexico, 27.5 percent

companies. New professions are emerging

of organizations consider that digitalization

at a rate that the job market cannot keep

implies constant innovation and decision-

pace with, making upskilling and reskilling

making , while 35 percent of M exican

th e b es t a lte rn atives fo r co m p a nies .

companies are training their employees to

“Reskilling is to re-learn and learn new

understand and use technology, according

abilities. If what I used to know is outdated,

to Digital IQ.

I need to reeducate myself in the new needs of the company. Upskilling refers to

“In the past, understanding technology was

upgrading the skills that you already have,”

only necessary in a few areas of companies.

said Gutiérrez.

Nowadays, every area has to learn about tech; it goes across its entire operation. The

“Human resources has to make a diagnosis, taking into account the reality of the company. Once you have the diagnosis, you are able to prioritize where to invest money and time in training, reskilling and upskilling”

cost of technology is no longer a limitation for companies of any size; tech is already democratized,” said Gutiérrez. The new focus on skills put critical thinking on the spotlight. This ability is not only useful for CEOs or decision-makers but also

Santiago Gutiérrez

for employees at any level. “Critical thinking

Vice President Mexico, Central America & Caribbean of Pearson

enables people to analyze situations, discern and then take the best possible decisions, regardless of the job title,” said Gutiérrez.

Seventy percent of the workers in the

Before training their talent, companies must

customer service and sales sectors are

first evaluate it. “Human resources has to

willing to learn new abilities and skills to

make a diagnosis, taking into account the

perform their job, according to BCG. From

reality of the company. Once you have the

those, 66 percent spent more than two

diagnosis, you are able to prioritize where to

weeks developing skills in 2020 and 50

invest money and time in training, reskilling

percent of them used an online education

and upskilling,” said Gutiérrez.

AI: THE FUTURE OF RECRUITING? AI allows recruiters to better leverage their

Talent management, acquisition and demand

application systems, hire more efficiently,

are now centered in finding more specialized

shor tlist more accurately and screen

talent with certain competencies such as

resumes with more fairness, agree experts.

soft skills, according to Selene Diez, CEO

This tool is increasingly necessary after the

& Founder of Forte Innovation Consulting.

disruptions caused by the Great Resignation.

“Digitization, customer centricity and how we strengthen and create better conditions

In this new working era, “attraction and

for our human talent became the priorities

recruitment have become our largest

for HRs areas.”

challenges,” said Jordi Ciuro, Partner and Vice President of Recruiting of Bain &

In the new working era, AI will play a leading

Company. “We can see these challenges in

role because it is one of the five trends

the US market, which is seeing a 4-million-

that has transformed the world during the

worker shortage derived from changes

COVID-19 pandemic, according to Diez.

in the consumer market.” Under these

“AI has demonstrated the capacity to

circumstances, hiring processes must

transform interaction in all aspects of our

innovate in line with the evolution of the

life. At least 50 percent of employees are

workplace, said Ciuro.

immersed in everyday tools that capture


23

C o n f e r e n c e H ighlights

their data.” Employees are more optimistic

not just locally. It also helps re-find talent

about working with AI, said Diez. For

within the same organizations, based on

recruiters, AI and machine learning enable

new skills.”

recognition patterns, catalogs behaviors and even evaluates the employees’ reasons

Recruiters needs and expectations have

for leaving the company, which is one of the

changed but so have the expectations

most common problems companies face.

from workers. Monica French, Head of New Business Hispanic America of LinkedIn

“Companies need to hire the best talent as

Talent Solutions describes these times as

quickly as possible,” said Pol Morral, Co-

“the age of the employee; they make the

founder & CEO of LaPieza.io. In Mexico,

rules and they have certainly changed

hiring processes are still ver y manual

all parameters.” These changes include

b e c a use re cruite rs re ceive C Vs f rom

diversity in the workplace and the remote

different platforms and review them one

work modality. “Companies are responsible

by one. “Mexico has less than 5 percent

for making their company attractive to

companies using data services for candidate

outside talent,” said French.

management. As a result, companies take an average of 40 days to hire,” says Morral.

Companies need to change outdated hiring practices. “We cannot longer base

As AI grows, some are concerned that it

solely on experience, education institutes

might replace humans in the workplace but

or acquaintances . That has been lef t

this concern is unfounded, explained Morral.

behind. Companies are now basing hiring

“Human intervention will continue to be very

decisions on present and future potential,”

important, especially during the final stages

said French. The candidate must also be

of recruiting because recruiters are the

adaptable: “they have to get used to selling

ones who decide if the selected candidates

themselves and highlighting their skills to

share the same vision as the company. This

position themselves better in this working

reinforces the technological decision with

environment,” said Miretti.

the personal one.” A key priority when integrating AI in the A I a l s o b r e a k s b a r r i e r s by a l l ow i n g

recruitment process is ensuring that the

companies to hire employees from virtually

algorithm is properly trained to avoid biases,

anywhere, said Maria Fernanda Miretti,

said French. European Commission released

Global Talent Acquisition & DO of Multiplica.

a series of recommendations to companies

“AI will allow us to reach more allies abroad,

regarding this type training and urged


24

C o n f e r e n c e H ighlights companies to introduce representative data

Regulation will also have to cope with these

to reduce biases. “This algorithm must also

accelerated changes. “When regulations

be supervised by humans to guarantee

arrive, companies have to take steps back

objectivity without bias,” said Ciuro. Avoiding

and revise their processes to identify what

legal and ethical implications of AI in hiring is

can be limited, what should be regulated

difficult, he warned, so companies must be

and what practices should be left behind,”

aware of the presence of potential biases.

said Diez.

“When regulations arrive, companies have to take steps back and revise their processes to identify what can be limited, what should be regulated and what practices should be left behind”

The final responsibility falls on the human element because technology is just a tool. While AI has imperfections, it “is up to us to limit them. The use of AI will reduce errors that we would not be able to reduce on our own,” says French. One of the major

Selene Diez

differences that AI can make is reducing

CEO of Forte innovation

hiring mistakes that cost companies large figures, inhibit project advancement and sink progress, she added.

To avoid this p ro ble m , M o rra l urg e d

AI will allow employers to identify the

companies to always adapt to each market

skills the company will need in the future

and country. “There are several things that

and be prepared, said Miretti. Moreover,

one cannot ask or look for depending on the

AI’s prediction skills could fundamentally

region. For example, salary history and how

change the job hiring process. “I expect the

much employees currently earn,” Morral said.

recruitment system to reverse. We will no

Novel AI algorithms can also find a person’s

longer publish jobs; instead, we will know

criminal records in seconds, which is also

who can do the job and contact them,” said

a violation of law and personal privacy. “It

Miretti. In the future, CVs could also be left

is important to always be aware that AI is

behind due to their distractive elements

ahead of people and even governments but

such as picture, name, age and race,

is up to us to decide for what we want to use

“Creating a portfolio to see precise skills is

these tools,” said Morral.

more targeted.”

INTERNATIONAL RECRUITMENT: COST-EFFECTIVE BUT COMPLEX TOOL Remote work has opened the doors to

study commissioned by Microsoft, Boston

international recruitment, where companies

Consulting Group and KRC Research found

will have recourse to highly qualified talent

that 82 percent of executives reported

from around the world to enrich innovation

that productivity levels remained the

a n d ex p a n d t h e i r p r e s e n c e w i t h o u t

same or increased after shifting to remote

having to open physical offices abroad.

work. Plainly observable results from the

However, hiring abroad entails unknown

pandemic have pushed about 78 percent of

socio-political contexts and regulatory

CEOs to accept remote work as a corporate

compliance processes that can be difficult

norm, according to a PWC survey. Going

and expensive to navigate. This should not

forward about 80 percent of companies

intimidate companies from looking abroad,

plan to allow employees to work remotely

said Ricardo Guerra, Director of Business

at least part-time after the pandemic, found

Development at Globalization Partners.

a Garner Study.

The COVID-19 pandemic proved to formerly

Since corporate perception on remote

resistant companies that remote work is not

work happened relatively abruptly, there

only doable, but effective. Findings from a

is no uniform standard about remote work


25

C o n f e r e n c e H ighlights

hiring and workforce management—nor

International out sourcing is not only

should it be. Employers understand that

a business savvy choice; it is also a an

their hiring process should be different

ESG decision. Allowing people to defer

but this is an ongoing process for many

to remote working keeps cars of the

companies. If hiring domestically is a

road, increases employee wellbeing and

challenge, companies looking abroad

supports international economies by giving

should understand that this entails cultural

their residents added purchasing power.

singularities and legal processes which can

Already some 56 percent of US American

take anywhere from six months to a year

households are considering international

says Guerra. In this context outsourcing

relocation in 2021—and increase of 20

this task to a specialized third party makes

percent from 2020.

sense and is more efficient. Conclusively, companies cannot afford to Although it may be easier for companies

turn away from international outsourcing.

to stay within the limitations of their

Failing to do so limits company growth and

country’s available talent pool, by doing

takes away from the added perspective

so they would be cutting themselves off

foreigners could provide. Businesses that

from cost-effective, highly qualified talent

have taken note of this are growing faster

that would add diversity and stand to

than their competitors as evidenced by

accelerate innovation. Moreover, adding

China’s ride ser vice application DiDi.

personnel from other countries is a de-facto

This expansion process could have been

expansion strategy that could open other

facilitated by locals aware of social rules

markets for business. This is highly pertinent

and market conditions, which normally

to technology and data driven industry

requires costly analyses and assessments.

sectors in information economies that are

In the global talent pool, there are people in

currently grappling with talent deficits. US

limited economies waiting to be hired and,

Tech companies have already taken note

although this process can be intimidating,

of this, practicing nearshoring with their

there are options to bypass and facilitate

closest neighbor Mexico.

this process for businesses.

ROBOTS, AUTOMATION TO CREATE EMPLOYMENT OPPORTUNITIES Artificial Intelligence (AI), robots and

Although these technologies could make

automation are commonly seen as threats

certain human skills obsolete, they create

to e m p l oye e s a m o n g a l l i n d u s t r i e s .

oppor tunities for workers to relocate


26

C o n f e r e n c e H ighlights

th e mse lves in th eir co m pa nies while

or migrate safely to a new position,” said

accessing more secure, less-risky positions,

Villarreal. Furthermore, the automation of

agreed industry experts.

manufacturing industries considerably reduces risk for employees.

“Whether the robots will take humans’ jobs or not is an unfair discussion. Humanity

The labor market is suffering a radical

has come this far thanks to the help of

transition, generating big gaps between

technology, which has already superseded

jobs, said Daphne S. Leger, CEO & Founder

tons of jobs throughout the history. Robots

of Atrevidea. This gap has made data

automate many processes and help us be

scientists one of the most required talents

more human. Labor dissatisfaction rates are

in the last years, agreed experts. “Some

big in repetitive, low-intellectual jobs,” said

years ago, between 50 and 54 percent of

Federico Barcos Von der Heide, Founder &

companies faced issues to attract talent,

CEO of PeopleOPTI.

and the number went up to 75 percent, according to ManPower Group. This means

Machines, and technology in general, have

that academia, schooling and preparation

ended jobs for centuries. About 400,000

has failed to cover industry’s demand,”

jobs were lost to automation in US factories

said Giacoman.

from 1990 to 2007, according to Time. H oweve r, technology a dvances more

One of the biggest challenges for all

rapidly than ever before and the COVID-19

players involved is what to do with those

pandemic accelerated numerous processes.

employees who have been replaced by

Around 50 percent of the jobs in Mexico

machines, said Lissy Giacoman, CEO & Co-

could be eventually lost to automation,

Founder of Vinco. “The first alternative is

according to the World Bank.

reskilling. Our job is to help the operating staff in the transition to their future jobs in

Although it is clear that robots will continue

our companies or elsewhere.” Automation

substituting repetitive, simple tasks currently

also requires new sets of skills for the

performed by humans, they will transform

employees, who may be trained through

human capital demand, according to Felipe

r e s k i l l i n g o r u p s k i l l i n g to m e e t t h e

Armando Villarreal, CEO of Alian Plastics.

current needs of companies, explained

“The pandemic gave us a view that we may

Giacoman. Soft skills, such as effective

have never seen otherwise. Technology and

communication , leadership, creativity

humans are stronger together. Soft skills will

and customer service, have become more

play a key role for humans to keep their jobs

important than ever.


27

C o n f e r e n c e H ighlights Automation will relocate about 85 million

should be seen as an investment rather

jobs across the world in the near future,

than an expense, he added. Responsibility

while also generating 97 million new jobs,

relies heavily on companies since they are

said Villarreal. Throughout this change,

the ones disrupting and accommodating the

companies and governments have a moral

labor market. However, public policies and

responsibility to help employees transition.

individuals’ contributions are also required,

“AI came to help us and make us more

said Barcos.

productive. The first point is to convince employees about the advantages that

Life-long learning has become the new

automation will bring through concrete

standard, said Giacoman . Continuous

examples,” said Villarreal.

education helps workers remain competitive in today’s global marketplace. Soft skills,

“We migrated from the 4-year university and 40 years working scheme to continuous learning. Unfortunately, Latin America is one of the regions with the biggest educational gaps”

Lissy Giacoman

such as innovation, adaptation and flexibility require continuous learning to develop. “We migrated from the 4-year university and 40 years working scheme to continuous learning. Unfortunately, Latin America is one of the regions with the biggest educational gaps,” said Giacoman.

CEO & Co-Founder of Vinco

Regulations must adapt to the changing contexts, said Barcos. “From the legal framework standpoint, the labor market will Working on relocating, reskilling and

have to change to generate fluidity through

u p s k i ll i n g e m p l oye e s wh e n th ey a re

regulations adapted to our current context.

su bs titute d by ro b ot s o r d u e to th e

In Latin America we should improve data

companies’ needs is an ethical, moral

management, it is a fertile ground across all

matter, said Barcos. This work, however,

the continent,” said Barcos.

CAREERS, MANAGEMENT IN THE DIGITAL AGE The technological advances of the digital

Service Delivery of Accenture Latin America.

age have allowed the global workforce to be

This should not be a concern if companies

better connected, more collaborative and

ensure to deliver the on their promise of tech

have greater personal impact. But if not

closely tied to human ingenuity. “If ruled by

carefully managed, technological advances

this thinking, more jobs will be created than

could leave many out of the workforce and

lost,” said Briano.

put mental health at risk. Rather than leaving a role, employees should “The digitization (or the workplace) is the

be adapting to a new one and reinventing their

reflection of what we are living and thinking.

skill set, explained Diego Olcese Díaz, Co-

We have been able to create complex tools

founder and CEO of Crehana. To achieve this,

to support our daily activities but this has

“teams should be willing to train their staff

also let to complex problems that call for

and avoid replacing them with employees

ethical, deep and humane approaches,” says

that have the newly required skills,” said

Ricardo Combariza, People & Organization

Olcese. The idea that automation will replace

Director of Credijusto.

workforce is mistaken, he added, it will make the market to be more competitive due to the

Among these complex problems is career

reskilling of the workforce.

d eve l o p m e n t b e c a u s e te c h n o l o g i c a l advances can leave people out of the

Companies have to watch out for

workforce, according to Laura Briano, HR

polarization of jobs and inequality because


28

C o n f e r e n c e H ighlights

training the workforce in these new skills is a

technology to employees is a less common

joint job between companies, academia and

but equally effective practice. “Sometimes,

people, explained Regina Cabal Urquiza, Co-

people do not have to adapt to the digital

Founder of Momlancers. “Companies have

transformation but the other way around.

to use technology to be more competitive,

By providing only training, there is the

but they should also target the creation of

risk that some sectors are left out due to

a positive social impact.”

biases, such as the belief of being unable

“Undoubtedly, tech has to be more ethical,”

the other hand, by adapting technology

s ays C o m b a riz a . “ C o m p a n i e s a lways

to existing practices many more sectors

talk about their social impact without

can join the digital transformation

realizing that the first step is to achieve

train. Local producers, for example, are

it internally.” Creating true connectivity

using e-commerce to sell their goods,

among collaborators, especially during the

explained Briano.

to afford the digital transformation.” On

pandemic limitations, is how companies can begin to have a positive social impact

“The high-growth, high-speed integration of technology that we are living is inaccessible

Technology can strengthen the social

for others,” said Olcese. Another way

impact of companies both internally and

to generate external social impact is by

externally, said Gabriela Villavicencio,

giving new skills to the future workforce,

Head of Human Resources and General

he added. “Crehana, for example, offers a

Affairs of Hyundai Motor. “Hyundai created

complete portfolio of courses but we know

a program called Yo Cedo, where, during

that some groups cannot access them.

the first months of the pandemic, every

So we developed another platform where

employee could contribute their talents to

we offer the courses to NGOs and social

the company. This not only benefitted us as

entrepreneurs.”

a brand, but it also increased connectivity as a team.” This project was lately expanded

For the digital era to be fair, diverse and

to lend cars to medical professionals that

equal the role of leaders is fundamental.

would allow them to get from home to work

Also, team members should not forget

and reduce contagion risks.

that leaders feel fear, uncertainty and have doubts. “Being compassionate was

While a common approach to the

something uncommon in leaders; this

digitalization of the workplace is to train

changed with the pandemic. We were

employees in the use of tech tools, adapting

also able to have a different approach,


29

C o n f e r e n c e H ighlights a s k p e o p l e h ow th ey f e lt i n s te a d of

During the digital transformation, the role

how they were per forming,” says

of leadership is essential. “Tech eliminates

Villavicencio. Through its new approach

barriers to transcend and have a social

to communic ation , Hyundai was able

impact. But this will only be positive through

to re d u ce n u m e ro u s g a p s eve n with

human managers that empathize with

international collaborators, she said.

businesses and people,” says Combariza.

LEARNING FROM THE MILLENNIAL TAKEOVER OF THE WORKPLACE Millennials have been following through

the work place says Miguel Castuera, VP

with the task assigned to every emerging

of People of Conekta. From there, the task

generation: questioning and breaking

would be incorporating these identified

away from old and outdated norms. In the

values into practical terms such as daily

transition back to the office, millennials are

objectives and company culture.

the ideal teachers to mentor companies adapt to the hybrid work model. Although

Fundamentally, taking into account what

this prospect may seem unnerving to some,

millennials value is the best way to keep

it is optimal and strategic say experts in

them engaged. However, this is not to

the field.

say that millennials should dominate the conversation, nor that they have nothing

“Millennials have new perspectives and

to learn from other generations. In fact, the

ideas that they are willing to try—even if

ideal work environment should aim to create

they don’t work, which is still useful,” says

collaborative spaces that encourage peer

Martha Lucia Riquer Vargas, Organizational

mentoring because everyone has something

Development & Diversity of Enel.

to learn said Riquer. The importance of creating and nurturing this environment

Before this happens, however, employers

should not be underestimated, as it provides

sh o uld o p e n a re cip ro c al ch a n n e l of

employees with the opportunity to network

communication with their workforce to help

with people outside of their team, upskill,

the latter feel listened and engaged with,

collaborate and build a sense of comradery.

says German Peralta, Co-founder & CEO JOKR in LATAM. Strategically listening to

The question for companies is how to create

what employees have to say is essential

this open environment as they transition to

to developing company goals and culture

a hybrid work model, while accommodating

that aligns with what millennial’s value in

for employees who will be working remotely


30

C o n f e r e n c e H ighlights full-time. Ultimately, the goal is to actualize

to maintained. It is easy to revert to old

office spaces so they draw people in and

habits. This should not be considered one-

incentivize them to come in for synergic

sided task however but employers should

work, said Castuera. This realization has

be cognizant that the power dynamic is not

made the hybrid work model the ideal

the same. Employees need to feel as if they

standard because it offers the benefits

are able to speak freely and address any

of presential work without having to ask

perceived grievances, if any.

employees to compromise on the flexibility offered by working at home. According to

Overall, just like any individual person,

Peralta, work environments should aim to

millennials in the workforce are more likely

emulate university campuses were there

to be receptive to companies that they feel

is a sense of shared identity and purpose

are listening to them. Employers should be

where people go learn and contribute to

receptive to what their employees have to

the exchange of ideas. The real obstacle

say in order to identify general values and

will be reproducing this sensation for fully

incorporate them to company culture so

remote workers but, again, this circles

that they feel valued and engaged. In turn,

back to communication with employees. If

this poses to increase retention and enhance

companies want to know, they should ask!

performance and collaboration. Creating such an environment is the current matter

In addition, companies must be

at hand. Nurturing this environment will be

conscientious that the communication

possible through continued communication

highway developed during this period needs

and promises to have high returns.

MENTAL HEALTHCARE IMPROVES COMPANIES’ PRODUCTIVITY Although awareness has been increasing for

to your emotions balanced and knowing how

years, mental health finally grabbed the

to face challenges and problems. Mental

spotlight following the negative effects of

welfare requires the ability to ask for help in

t h e C OV I D -1 9 p a n d e m i c l o c kd ow n s ,

the right moment, to the right person,” said

teleworking and social distancing. Mental

Cardona. “The pandemic brought to light

welfare among a company’s workforce

people’s non-expressed needs.”

translates into savings and production increase, said Javier Andrés Cardona Mora,

Labor health cycle includes physical, social

Co-founder and CEO of 1DOC3.

and mental health, explained Cardona. Social health is defined as the ability to

“In Mexico, there is still a lot of ground to cover. Up to 85 percent of corporations might not offer the optimate conditions to take care of their employees, generating toxic environments to work and causing social disorders such as stress, work addiction, fatigue or even bullying”

interact and form meaningful relationships with others and comfortably adapt to different social situations. Work-related stress, caused by long workdays, heavy wo rklo a d , jo b inse cu rit y o r co n fl ic t s with coworkers and bosses, is a growing problem that affects the health and wellbeing of employees and the productivity of companies. Mexico has one of the worst global rates surpassing even the US and

Javier Andres Cardona Mora

China. In the Latin American country, 75

Co-founder & CEO of 1DOC3

percent of the working population suffers from fatigue caused by work-related stress, according to IMSS.

“Emotional well-being is not about feeling

“In Mexico, there is still a lot of ground to

happy all the time, it is about having the ability

cover. Up to 85 percent of corporations


31

C o n f e r e n c e H ighlights

might not offer the optimate conditions to

perspectives. “One of the positive aspects

take care of their employees, generating

of the pandemic is that there is no return to

toxic environments to work and causing

the stigma people had about mental health.

social disorders such as stress , work

Psychiatrists became more impor tant

a d dic tio n , f atig u e o r eve n b ullyin g ,”

than ever after the lockdowns and other

said Cardona.

measures that COVID-19 brought,” said to MBN Edilberto Peña de León, Director

“If companies make mental health services

General at CISNE México.

more accessible and inter vene in the workplace in ways that improve well-being,

The estimated office time of workdays

they will simultaneously make investments

in Mexico is 9 hours, 19 minutes, with an

that will provide real improvements in

active 7 hours, 12 minutes. Some actions

employee outcomes and consequently

that help to maintain a healthier workspace

in company performance,” according to

are: promoting dialogue, give people the

management consulting firm McKinsey.

control over their own work, promote training activities, respect workdays and

Although the considerable advances of

organize processes, said Cardona. “Clear

mental health treatments in the last years,

p ro c e s s e s a m o n g a l l c o m p a i e s h e l p

“therapeutic revolutions in psychiatry have

preventing work-related stress and anxiety

not yet been able to reduce stigma,” which

episodes.”

usually arises from lack of awareness, perception and the nature and complications

To end the stigma surrounding mental

of mental illness, such as odd behaviors

health, it is essential to break stereotypes

and violence.

about the work of psychologists and encourage people to ask for professional

“ M e n t a l h e a l t h c a r e c o n ti n u e s b e i n g

help, according to Cardona. Telemedicine

s t i g m a t i ze d . T h r e e o u t o f eve r y 1 0

has opened many doors in the healthcare

companies do not take measures to change

world and has particularly benefited mental

people’s perception, compromising health.

health professionals. While telemedicine

In addition, 76 percent of Mexicans do not

and telehealth have been around for many

know how to respond to mental crises. It

years, the adoption of these technologies

is crucial to know when and who to ask for

has increased significantly. “Mobile health

help,” said Cardona.

applications are completely secure and protect your information, providing data

While stigma is still present in Mexico,

protection, quality services, confidentiality

the pandemic changed some people’s

and security for patients,” said Cardona.


32

C o n f e r e n c e H ighlights

INCLUSION IN THE WORKPLACE: MAKING EVERYBODY COUNT Diversity and inclusion go beyond policies,

family to governments,” said Ana López

programs or headcounts. An equal working

Mestre, Executive Vice President and General

environment outpaces its competitors by

Director of American Chamber of Commerce

respecting the unique needs, perspectives

of Mexico. “However, we all have a chance to

and potential of all team members. As a

generate more inclusive spaces. It begins

result, diverse and inclusive workplaces earn

with individuals and escalates to corporate

deeper trust and more commitment from

and national acceptance.” Diversity at the

their employees, generating better social and

workplace guarantees more competitive and

professional outcomes.

resistant businesses, with enriched opinions, training, beliefs and different experiences that

Diversity and inclusion often stay as words

contribute to corporate growth, she added.

so the challenge for companies in Mexico is to transform the speech into everyday reality.

Diversity goes beyond gender. “It also regards

Companies have not realized that to move

socioeconomics, sexual orientation or gender

from words to action they should generate

identity,” said Courtney Devon, CEO &

different approaches, perspectives and

Founder of Runa. To guarantee the integration

responses. Workplaces need to encourage

of different groups at the workplace, Devon

an environment that redefines the way

recommends measuring inclusion by the

employees perform professionally and in

changes it generates for the company.

society, said Denisse Cazú, Regional HR Director LATAM of Mattel Latin America.

Mover, businesses must integrate diversity

“This environment needs to be based in

into leadership positions. “Most offices have

respect and foster a culture that follows

focused on gender equality but this is not

three core behaviors: curiosity, braveness and

enough. Leadership directories in Mexico

connection.” These three behaviors foment

only show a 7 percent of women in them,”

others to listen and learn from different ways

said Devon.

of thinking. Braveness is to “have the courage to feel uncomfortable, because it challenges

While many argue that diversity should be

us to grow,” said Cazú.

mandated by law, government mandates are not the ideal starting point. “The origin of our

Inclusion and diversity are not a logo, a

problems is not the government,” explained

banner or a trend. “Diversity is important.

Daniela Muñoz, Founder & CEO of ioio.

We should promote it starting from the

“Governments are often a reflection of society


33

C o n f e r e n c e H ighlights and we have seen that societal movements

Employees should be part of the discussion

have the power to change what they do not

on diversity. “One of the fundamental steps

like in their governments.” Regardless of

to begin breaking the ice on inclusion is being

having prohibitive laws or not, “if we, as

able to ask people what makes them more

society, do not change mentally, nothing

comfortable, simple things such as ´what are

changes,” said Muñoz. To promote diversity,

your pronouns?´” said Jorge Luis Garduño

humans should recognize that they are equal

Camarena, Ethics and Business Integrity

but not the same: “we are diverse but not

Manager of Sanofi México.

different in the core. Diversity is what makes a society rich and what really makes the word

Leadership plays a fundamental role too, the

more equal.”

change can be seen from top to bottom but if management is dominated by white men,

“One of the fundamental steps to begin breaking the ice on inclusion is being able to ask people what makes them more comfortable, simple things such as ´what are your pronouns?”

from there on the representation can be limited. Mexico ranks in second-to-last place in bridging the wage gap and participation of women in the workforce, said Devon. However, diversity can be essential to the growth of a business, which is what happened

Jorge Luis Garduño Camarena

to Runa in raising capital, said Devon. “We

Ethics and Business Integrity Manager of Sanofi México

drew more attention because we were different and had a diverse mindset and will for inclusion.”

The initiative to change requires an open-

Vulnerability in the workplace tends to

minded thinking and a willingness to learn,

be seen as negative but companies and

said Jorge Alejandro De Lara Novella, VP &

employees should not be afraid to be seen

GM Global Commercial Services LATAM of

as vulnerable, said Muñoz. “Vulnerability

American Express. “By doing this, we can

creates collectivities and they have the

communicate and create an environment in

power to change.” True change is not about

which we all feel comfortable being authentic.

equality, which is giving everyone the same

We must lead by example,” which means

and ignoring the historical gap of cultures, it

identifying if recruiters are hiring those

is about equity, which means giving everyone

similar to them. Recruiters must put those

what they need. For instance, Muñoz refers to

preferences aside and break those paradigms

the LGBTQ+ community, which when asked

to promote faster changes. However, “Mexico

when they will stop protesting answers: “We

does not have a formal leadership position

will be visible until the guarantee of our rights

in organizational structures that supports

become normalized. When our freedoms are

diversity and inclusion,” says De Lara Novella.

practiced and respected.”


www.mexicobusiness.mx


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