Only 12% of companies in Mexico have plans to hire more staff in 2021

The aftermath of the economic crisis caused that 4 out of 10 companies could not give raises or promotions this year, according to the OCCMundial Labor Thermometer.

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January 20, 2021 5 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Opinions expressed by Entrepreneur contributors are their own.

  • Employee productivity drops 11 percentage points.
  • Technology vacancies in CDMX increase by 500%; 66% of manufacturing in Edomex; 59% of logistics in NL; 37% accounting in Jalisco.

Like people, companies made their planning for 2021, including the theme of attracting and retaining human talent . Related to this through our Labor Thermometer , we inquired about their vision and expectations of hiring personnel during the coming months, to which only 12% mentioned that they will be able to hire more personnel .

For 39%, the activity they will have is still an unknown, so they cannot make a prediction; Another 33% foresee a panorama similar to that of 2020, with a similar rate of hiring; and 15% said they are likely to need to hire fewer employees than last year.

“We know that many companies are facing budget reductions and, therefore, the reduction of their hiring plans. Carrying out the same activities with a smaller number of people implies a great challenge that organizations will have to face with a very effective talent management strategy that keeps employees away from situations of exhaustion, high levels of stress or job desertion, “said Sergio Porragas, Director of Operations (COO) of OCCMundial.

When inquiring about the possibility of companies to recognize their employees with incentives, the survey revealed that four out of 10 companies mentioned not being able to offer salary increases or job promotions. Another 34% will have the opportunity to carry out promotions to a few elements; 13% believe that it is possible that they can grant these incentives and 12% will put all their focus to avoid staff cuts.

Although at a slower pace in 2021, the second week of January takes on the natural dynamism of the beginning of the year, that is why during week 38 (from January 8 to 14) of the Labor Thermometer 60,600 job vacancies are published on the site from OCCMundial, 3,900 more compared to the previous week. The decrease in jobs due to the end of the year break seems to be recovering, although in some sectors there is still a lag due to the red light in some states of the country.

Thus, in the last seven days, the labor sectors that showed the greatest increase in available jobs were: Manufacturing (39%), Logistics (36%) and Accounting (28%). Those that offered the least vacancies were Veterinary (11%), Customer Service (10%) and Tourism (1%) .

Regarding the behavior of hiring by companies this week, five out of 10 are hiring in critical positions , 16% keep their hiring on pause; 13% of organizations are hiring much more than before and 19% are hiring normally.

Image: OCCMundial

Regarding the economic recovery of companies, 57% believe that they will achieve it by the end of 2021, while 38% say they believe they can do it by May of this year and the remaining 5% say that they will achieve it in the next month February.

The Labor Thermometer highlights the following data:

  • The productivity of employees has decreased in this second week of the year, 40% of companies consider it low , 11 percentage points compared to the previous week; 37% consider it normal and 23% high or very high.
  • Hiring in temporary positions went down , with only 35% of companies doing so.
  • Salaries of $ 5,000 to $ 10,000 (28%) continue to be the most widely offered , followed by those of $ 10,000 to $ 15,000 (23%).
  • The states with the fewest vacancies created are: Baja California Sur, CDMX, Chiapas, the State of Mexico, Nuevo León, Puebla, Querétaro, Quintana Roo, Sonora and Yucatán.
  • The categories with fewer vacancies created are: Administrative, Art and Design, Social Sciences and Humanities, Communication, Sports, Law, Education, Marketing, Human Resources and Tourism.
  • Regarding the national radar of the labor situation, it can be noted that due to the timing of the closing and beginning of the year:
    • CDMX registered a 502% increase in Technology vacancies.
    • Nuevo León, 59% more in Logistics job offers.
    • Jalisco had a 37% growth in Accounting vacancies.
    • State of Mexico registered a 66% increase in Manufacturing offers.

The beginning of the year allows companies to make decisions to emerge stronger from the four crises to be resolved in 2021 with the aim of achieving an economic, health, leadership and public safety recovery, according to Juan Alanis, CEO and founder of Azimuth Group.

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