Key Employee Benefits Include Telecommuting, Insurance: Adecco

Mexican workplaces are beginning to normalize telecommuting, with many companies adopting hybrid work models that allow employees to work from home for two days a week, reports Adecco in a recent survey. In its Mexico's Salary Guide 2024, Adecco offers an in-depth look at the state of employee benefits across the country. 

The range of benefits is important as different generations with diverse expectations work together in today’s labor market. “There is not a singular benefit preferred by the majority of the workforce. Individuals aged 25 to 35 may prioritize benefits pertaining to groceries, fuel, or fitness memberships. Meanwhile, employees nearing retirement may prioritize health insurance,” says Ignacio Travesí, Co-Founder and CSO, Cobee. 

The guide details both legal and additional benefits commonly provided by employers. On average, employees in Mexico receive 28 days of aguinaldo (Christmas bonus) and 14 days of vacation annually. The vacation premium is set at 55% of the base salary, while the savings fund typically matches 12% of the base salary. Employees also benefit from grocery vouchers and productivity bonuses, which average 12% and 10% of the base salary, respectively. 

In addition to these standard benefits, many companies offer enhanced perks, including life insurance covering 24 months' salary for natural death and 48 months for accidental death. Major medical expense coverage usually involves a deductible of 2 UMAS (Minimum Wage Units) and a 10% co-insurance. Employees often receive additional benefits such as meal stipends, transportation allowances, and personal days, along with bonuses for significant life events like marriage or childbirth.

Mexico has remarkably high employee turnover rates, averaging 16.75% across industries over the past decade, according to the Mexican Human Resources Association. This trend underscores the urgent need for organizations to strategically restructure their benefits packages to retain talent, as reported by MBN.

“If we address their desire for purpose, flexibility, personal development, and supportive cultures, organizations can foster an engaged and productive workforce,” writes Pato Bichara, Founder and CEO, Collective Academy, in MBN.