Responsible Talent Sourcing to Grow the Industry

Q: Grupo PAE is celebrating its 25th anniversary. What factors have permitted the company’s expansion over the years?

A: Grupo PAE is among the founders of the staffing industry in Mexico and part of our philosophy has always been not to limit ourselves, which has made us the only Mexican human resources company with presence in so many countries. In addition to being a pioneer in the Mexican staffing industry, as a result of the changes in Mexican law and the appearance of new players in the sector, Grupo PAE became one of the founders of the Mexican Association of Human Capital (AMECH) in 2001.
One of Mexico's realities is that the informal economy continues to grow at a rapid pace. In Mexico, most outsourcing companies do not comply with the law, offering lower costs at the expense of social security payments for workers. Part of AMECH’s mission has been to structure and formalize outsourcing companies and to limit the appearance of informal outsourcing companies. In this context, PAE has played a relevant role in the development of the outsourcing industry in Mexico, which is something we are very proud of.

Q: How does the Mexican business compare with other Grupo PAE locations?

A: The difference can be found in local laws and in the strength of unions. In 1985, in Mexico you could not find any outsourcing company outside of Mexico City. The signing of NAFTA, as well as the growing need for companies to have flexible staff, allowed the outsourcing industry to develop and, as there was no regulation, models began to appear wherein the worker was not protected. At that time, we saw the opportunity to do things right, to approach companies with a flexible scheme and with talent mobility options. 
The industry needs employees in all countries; for this reason, the sector grows at an average rate of 5 percent each year. It is expected that in 2018 it will grow 6 percent to a value of US$450 billion. The industry has expanded heavily and is a strong component of any country’s workforce. In the US, for instance, 2.1 percent of the country’s workforce is provided by staffing services. In Mexico there are no official metrics but we estimate that the figure is above 2 percent. 

Q: There has been an effort to eradicate so-called bad outsourcing. What actions can be taken to reduce the number of these companies ?

A: AMECH was created to differentiate the companies that do things right and those that operate outside the law. All members are audited to certify that they comply with the law, an initiative that has been operating for 18 years. Eradicating bad practices, however, is a shared responsibility between the industry, the law and companies, which makes this a social responsibility issue. Companies need to be coherent and not hire outsourcing companies that offer much lower prices by operating outside the law.  

Q: How does Grupo PAE implement technology and innovation in the services it offers?

A: We have changed the way we communicate with our candidates. We have also developed technological platforms for both talent attraction and payroll processing. This gives our users and clients more accessibility. Although technology improves processes, the benefit also depends on how this technology can be applied in each country. There are many countries, like Mexico, where it is necessary to provide signed physical documents because digital applications are not valid. The more we can implement new technologies, the more we will be able to innovate the services we provide. 
Q: When it comes to talent, what are the most important needs of companies?

A: Companies look for agility, speed and access to talent, although the historical moment we are living in is preventing many people from being employed. It is a phenomenon we see a lot in Latin America. If someone does not know how to handle a computer, that person’s employment opportunities are reduced. This represents a huge problem because we have a critical mass of talent that unfortunately has not been developed due to a lack of opportunities.