Competitiveness, Outsourcing, Mental Health: The Week in TalentBy Alejandro Enríquez | Thu, 06/17/2021 - 17:44
Mexico keeps losing spots in the Institute for Management Development’s (IMD) Competitiveness Index. The group said that the greatest opportunity areas include improving employees' social security. Meanwhile, companies in the country are coping with the new labor norms and the most recent outsourcing reform. Mary Kay won judicial concessions to delay the implementation of this norm and other companies are arguing that the law's applicability can lead to discrimination.
After more than a year outside the office, working from home has become the new normal. As companies are starting to return to workplaces, experts point out there could be major talent drains as employees will look for remote jobs rather than on-site positions. On the other hand, mental health continues to raise concerns about employees' well-being.
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The country lost 12 positions in competitiveness but there are other areas to address, including employment, inflation and tax policies. Overall, the country continued its downward trend. In 2016, Mexico ranked in 45th place. By 2019, it had fallen to 50th place and in 2021 it dropped again to 55th place.
Mexico's Labor Ministry (STPS) is responsible of overseeing that companies apply the most recent labor reforms. The Ministry will reduce its grace period to correct wrongdoings identified during inspection from 90 days to five.
A Nuevo Leon court conceded Mary Kay legal protection (amparo) from the Mexican labor reform that prohibits outsourcing practices. The company is among the few that have been granted protection against the reform.
Some companies claim that the application times of the new outsourcing law has been unequal, as the private sector has three months to implement changes while the government has up to a year.
At least four out 10 workers are looking forward to change jobs within the year. This high turnover rate is linked to the pursuit of more flexible jobs and better compensation benefits.
On international news, first-time filings for unemployment insurance in the US rose considerably from 375,000 to 412,000 during the week that ended on June 12. This is the highest number of filings since May 15.
Goldman Sachs' CEO claimed that if employees can go to a restaurant, "they can go back to the office." But the company's branch in the UK is now delaying its return to the office after the government extended coronavirus restrictions to July 19.