40-Hour Workweek: What It Means for HR and Nearshoring in Mexico

In a previous reflection, I addressed how Mexico has consolidated itself as a strategic hub within the global remote staffing revolution, driven by the quality of its talent, its geographic proximity, and its cultural alignment with key markets like the United States. Today, that conversation is evolving. We are no longer only discussing remote work as a structural shift, but also how broader macro trends, particularly nearshoring, the strategic role of human resources, and new labor regulations, are redefining the competitive landscape.

A recent development brings this into sharper focus: the approval and official publication of Mexico’s transition to a 40-hour workweek. This is not a minor adjustment. It represents a turning point in how the country balances competitiveness, workforce well-being, and productivity.

The key question is not whether this reform is a risk or an advantage, but how it will reshape Mexico’s value proposition in an increasingly demanding global talent market.

Nearshoring: Momentum With Growing Complexity

Over the last three years, nearshoring has grown at an unprecedented pace. Companies in the United States are actively redesigning their supply chains and operational models to reduce geopolitical risk, increase agility, and improve collaboration. This shift has been largely driven by the pandemic, ongoing US-China trade tensions, and the need to build more resilient supply chains. In this context, Mexico has emerged as one of the primary beneficiaries: according to data from the US Census Bureau, the country became the United States’ largest trading partner in 2023, reflecting the strengthening of its integration into North American value chains.

The reasons are clear: proximity, trade agreements, cost efficiency, and most importantly, access to qualified talent. However, nearshoring today is no longer just about manufacturing. It has expanded into knowledge-based services: technology, finance, customer experience, engineering, and shared services.

This shift elevates the importance of human capital. Infrastructure can be built, and supply chains can be adjusted, but talent remains the true differentiator.

And this is where the conversation becomes more complex.

The Evolution of Human Resources

In this new environment, human resources can no longer be perceived as a purely administrative or operational function. The traditional focus on payroll, compliance, and hiring logistics is no longer sufficient. HR is a strategic lever.

The organizations that successfully capitalize on nearshoring are those that understand workforce design, talent availability, productivity, and cultural integration as core business drivers. HR leaders are now expected to: 

• Anticipate talent shortages in specialized fields
• Align talent strategies with business expansion plans 
• Ensure regulatory compliance without slowing down operations
• Build resilient, scalable, and engaged teams

This transformation is particularly relevant for international companies entering Mexico. The success of their nearshoring strategy depends not only on where they operate, but on how they build and manage their teams.

At its core, HR must evolve from execution to decision-making, shaping outcomes that directly impact business performance.

The 40-Hour Workweek: Risk or Catalyst?

Within this context, reducing the workweek from 48 to 40 hours introduces a new variable. From an external perspective, especially for US-based companies, this reform may initially be perceived as a constraint. Fewer working hours could be interpreted as lower productivity, higher costs, or operational inefficiencies. 

However, this interpretation, while understandable, is incomplete. The real impact of the 40-hour workweek will depend on how organizations adapt.

International evidence suggests that longer working hours do not necessarily translate into greater economic output. In fact, the OCDE has highlighted that reducing working hours can improve employee well-being and, in turn, increase productivity by reducing fatigue and improving efficiency.

For Mexico, this reform represents both a challenge and an opportunity.

The Real Pressure Point

If there is a segment where the effects will be most visible, it is specialized talent, particularly in areas such as technology, data, engineering, and bilingual operations.

Demand for these profiles already exceeds supply. Nearshoring has intensified competition, not only among companies operating in Mexico, but also with global remote opportunities that allow talent to work for foreign companies without leaving the country.

Reducing working hours without increasing the talent supply could create short-term pressure on capacity and costs.

But this is precisely where strategic workforce planning becomes critical.

The combination of labor reform and nearshoring is pushing organizations toward an inevitable shift: moving away from time-based models and toward results-driven performance. Companies that rely solely on increasing headcount will face greater challenges. Those that invest in productivity, process optimization, and talent development will be better positioned to compete.

Toward Productivity-Driven Models

The 40-hour workweek may accelerate a necessary transition: moving from time-based models to results-based models.

Organizations will need to rethink:

• How they structure and prioritize work 
• How they measure performance
• How they leverage technology to automate tasks  
• How teams collaborate in distributed manner

Furthermore, it brings Mexico closer to global labor standards, which may strengthen its appeal as a long-term strategic partner, beyond simply being a cost-saving option. 

For international investors, the 40-hour workweek may initially appear to be a risk factor. But from a strategic standpoint, it can become a differentiator.

A country that balances competitiveness with labor well-being sends a clear signal of sustainability. It reflects a labor market that evolves not only to attract investment but to develop and retain talent in the long term. And in an environment where talent is the scarcest resource, this is decisive.

Mexico is at an inflection point. The convergence of nearshoring, the evolution of human resources, and labor reform is redefining its role in the global economy.

The question is not whether these changes will create pressure; they will. The real question is how organizations respond.

Those that view the 40-hour workweek as a constraint will struggle. Those that see it as an opportunity to rethink productivity, strengthen their talent strategy, and elevate the role of HR will gain a competitive advantage.

Mexico’s value proposition has never been solely about cost. It is rooted in its capabilities, its strategic proximity, and increasingly, its alignment with the future of work. According to Mexico’s Ministry of Economy, the country reached its highest-ever level of FDI in 2025, reinforcing its position as a strategic destination for global productive capital.

Companies that understand this will not only succeed in Mexico, they will help shape what comes next.