Acapulco, Mexico

Why hire a sales executive for your expansion in Mexico?

Investors seeking to hire a sales executive in Mexico should make sure to be compliant with local legislation. In this sense, there are organizations that make the hiring process smooth so entrepreneurs can focus on the vast opportunities available in Mexico.

There is a diverse array of opportunities for business expansion in Mexico: from real estate to manufacturing, to energy and export and import of goods in the country. In fact, due to the affluence of investment opportunities, foreign direct investment (FDI) increased by 7.8% during the first 9 months of 2019. All of these industries require skilled professionals who can help you achieve commercial success in this thriving market.

Learn how to locate skilled executives in Mexico and start your business on the right track.

The importance of a local sales executive when expanding abroad

Hiring a sales executive in Mexico is a smart, cost-effective way to enter the market and take advantage of these commercial opportunities. Sales executives implement expert strategies to boost sales and are important at the early stage of your international venture.

Meeting with a sales executive in Mexico
Hire a sales executive in Mexico: These individuals are in charge of assessing customer satisfaction and make sure that customers’ expectations and deadlines are met.

Essentially, having a local sales executive on your team during an expansion will enable you to better connect with clients in Mexico. They will help increase awareness of and familiarity with your products, so you can better connect with consumers in the Mexican market. 

When looking to hire a sales executive in Mexico, it is important to make sure they have the right skills and cultural know-how to negotiate local business deals successfully. Local sales representatives have a public-facing role and should have the experience to understand what a customer is looking for in your service or products. Additionally, they are in charge of assessing customer satisfaction and make sure that customers’ expectations and deadlines are met. 

The responsibilities of a sales executive include setting sales goals, developing strategies, contacting and managing customers, meeting targets, and researching strategies to increase sales.

Hiring a qualified sales executive doesn’t have to be costly. Often, when expanding abroad, cost-effectiveness is a priority. Opening an office could take time and can be an expensive investment with an uncertain turnout. In this sense, when looking to hire a sales executive in Mexico consider using a professional employer organization (PEO). These organizations will allow business owners to begin offering products without the necessity of a local office, or even being present in the country.

What is a professional employer organization?

A professional employer organization (PEO) helps business of all sizes tap into a skilled workforce through a co-employment model, providing benefits for the employee and the overseas employer, these organizations are also known as ’employer of record’.

PEOs offer benefits in terms of cost-efficiency, compliance and skilled workforce access. 

Cost efficiency

Statistics showing reduced expenses
Employers of record reduce cost by managing all non-revenue generating paperwork regarding human resources.

All non-revenue generating paperwork regarding human resources can be managed by PEOs. These organizations handle expenses regarding payroll processing and accounting costs, employees’ health insurance, compensation, unemployment insurance, and other expenditures.

PEOs are able to cover these costs as they work on an economy of scales system – in other words, they can obtain certain cost advantages due to their scale of operation.

Aside from human resource costs, PEOs allow business owners to begin operating in Mexico before they establish a physical footprint in the country, such as an office. Establishing a legal entity can be a lengthy, costly process. Through PEOs, entrepreneurs are able to offer their products in their desired market before having to make large-scale investments. If the business isn’t as profitable as anticipated, exiting the market is quicker, and easier than disestablishing a local office and team of employees.

Compliance with labor legislation

Complying with local legislation and employment standards is of the utmost importance to mitigate risk when looking to hire a sales executive in Mexico. Employment activities must obey the Federal labor law. Some of the key points explained in this law relate to:

  • Working conditions
  • Rights and obligations of workers and the employer
  • Employment rights for women
  • Category of special work
  • Collective labor relations – Unions
  • Strikes
  • Work risks
  • Work authorities and social services. 

Avoid sanctions and other compliance issues with local authorities by mitigating risks through PEOs. Employment laws can be complex and enforce many requisites to comply with. As a new business, other issues such as growing your business have priority over stressing to comply with labor legislation.

In this regard, PEOs will assure your business meets statutory employment standards and give you time to focus on with your business expansion. They’ll ensure your sales representative(s) in Mexico have what they need to work with your business, and their labor rights and requirements are appropriately met.

Hire a skilled sales executive and reduce employee turnover

Through PEOs, business owners are able to tap into a skilled workforce and reduce employee turnover. Due to economies of scale, PEOs are able to offer employees attractive benefits that are often hard to provide as a small business; these benefits are important drawcards to access talented individuals.

If hired through a professional employer organization, your sales executive can benefit from health plans, dental, life, and other kinds of insurance. As a consequence, employee satisfaction can increase and turnover rates can fall.

On top of that, due to PEOs’ expertise as recruiters and their extensive reach in the labor market, they are able to conduct the recruitment process swiftly and with top quality-standards that meet your business needs.

Doing business in Mexico

Many factors make investing in Mexico profitable and interesting. Mexico is an attractive investment option due to its strategic location, 12 free trade agreements (FTAs), tax benefits and incentives, and a competitively priced workforce. 

Given the above-mentioned factors, foreign investment has continuously increased in the country. Mexico has the second-highest foreign direct investment (FDI) rate in the region, after Brazil. According to data from the Ministry of Economy, during the first nine months of 2019, Mexico attracted approximately USS$26 billion in FDI, which represented a growth of 7.8% as compared to the same period last year. The main investors in the Mexican economy were the United States, Spain, Canada, Germany, and Italy.  

Doing Business in Mexico

On top of that, Mexico has ranked 60 out of 190 countries on the Ease of Doing Business Index, which is the second-best ranking in the South American region. Mexico has competitive efficiency when it comes to establishing a small and medium enterprise (SME) and offering quality and transparency in federal and local regulations. Foreign company formation also has positive governmental support.

A growing middle class, diverse trade agreements, and government incentives make Mexico an appealing destination for foreign investment.

Engage with an employer of record to hire your sales executive in Mexico

Expanding to Mexico doesn’t have to be costly; start your operations abroad by hiring a sales executive with the help of a trusted provider of hiring & PEO services. Thanks to these organizations, your business can connect with skilled sales staff that act as a bridge between your products and your new consumer market. 

A trustworthy PEO will offer you fair terms of agreements, ensure compliance with local labor legislation, reduce expansion costs and give you the time to focus on growing your business. At Biz Latin Hub, we help entrepreneurs from all over the world access the Mexican market. Our team of lawyers, accountants, and sector experts make sure your business is compliant through every step of the hiring and employment process.  Contact us now and get your business off the ground. 

Learn more about our team of expert authors.

Watch our short video about the benefits of working with a professional employer organization:

YouTube video

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Legal Team Mexico
Legal Team Mexico

Legal Team Mexico is the Biz Latin Hub leading experts on doing business in Mexico The Team writes on the news, doing business, law, and changing regulations. The team are experts in corporate law, Administrative law, Employment law, Immigration law and legal advisory services. Read more about them here. You can contact Legal Team Mexico via our "contact us page".

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