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Nearshoring has emerged as a significant driver of economic growth and productivity in Mexico. A recent study conducted by MetLife Mexico suggests that the practice could increase labor productivity in the country by 15 to 30 percent by 2030. This article explores the potential impacts of nearshoring on the Mexican economy, the challenges businesses will face, and the changes needed to fully capitalize on this opportunity.

The Impact of Nearshoring on Productivity

Nearshoring refers to relocating business processes or production to a nearby country, allowing companies to benefit from geographical proximity, lower costs, and improved logistical efficiency. In Mexico, this trend is expected to bring substantial gains. According to MetLife Mexico’s study, based on surveys with 360 employers and 720 workers in manufacturing industries, 75 percent of current companies operating in Mexico are already leveraging nearshoring, and more than 400 companies have announced plans to enter the market in the coming years.

Boosting Business and Employee Productivity

Mario Valdés, CEO of MetLife Mexico, highlighted the broad opportunities nearshoring brings to businesses and clients alike. As more companies shift their operations to Mexico, there is significant potential for enhancing workforce productivity. However, the report also emphasizes that businesses will face several hurdles, including a shortage of qualified talent and the need for improved workplace environments.

Challenges Facing Mexican Businesses

Talent Shortage and Leadership Issues

One of the key challenges identified in the study is the shortage of skilled labor. The report reveals that 54 percent of operational employees and 56 percent of administrative staff are considering leaving their jobs due to poor leadership. This highlights the importance of improving leadership and organizational culture to foster higher employee retention and satisfaction.

Organizational Culture and Employee Retention

Company culture plays a pivotal role in retaining talent, with four out of ten employers identifying it as one of their primary challenges. Building a positive and inclusive workplace culture is essential for ensuring employee loyalty and long-term business success.

Diversity and Inclusion: A Critical Area for Improvement

While nearshoring is driving business growth, the report also points out that diversity and inclusion practices remain underdeveloped in many Mexican companies. Employers generally view their efforts in this area as intermediate, while employees perceive them as basic, creating a significant disconnect. Closing this gap will require companies to implement more robust and inclusive strategies to create a fairer work environment.

Employee Benefits and Expectations

Life Insurance and Bonuses: Key Priorities for Employees

The report also sheds light on employee preferences regarding benefits. Life insurance and bonuses exceeding 15 days of pay are among the most highly valued by workers. However, despite these offerings, 52 percent of operational employees and 41 percent of administrative staff believe that their current insurance coverage is inadequate to meet their needs. Companies must therefore reevaluate their benefits packages to align with employee expectations and ensure a satisfied workforce.

Conclusion

Nearshoring presents an unprecedented opportunity for Mexico to boost its productivity and economic growth. However, to fully realize this potential, businesses must address the challenges of talent shortages, improve leadership, foster a stronger organizational culture, and enhance diversity and inclusion practices. By doing so, companies can attract and retain top talent, ensuring sustained success in the long term.

Source: el financiero