Turning Payroll Pain Points Into Scalable Solutions

Q: What market gaps led to the creation of Worky, and how does the company solve these problems?

A: After returning to Mexico from the United States, I was struck by the lack of digital infrastructure, particularly in HR operations. Payroll faced deep inefficiencies and faced a disconnection with HR. Conversations with founders of companies between 40 and 150 employees confirmed the same pain points. Payroll was broken. The anticipated outsourcing law reforms made it clear that there was a massive opportunity. HR was still managed in Excel, and existing systems could not support real-time tracking for weekly-paid operational roles. That gap became the foundation for Worky.

Q: What lessons did Worky learn in its early years about choosing the right market segment?

A: We initially targeted professional service SMEs, which seemed promising but lacked stability and HR infrastructure. Despite their large numbers, as there are over 4 million SMEs in Mexico, the churn rate was too high, and Excel remained "good enough" for many. The pandemic was a turning point, as larger companies began seeking features like time-tracking. We discovered that absenteeism on Sundays reached 40%, and 25% of weekday shifts were missed without notice. This led us to develop a time-tracking module, which accelerated growth. The lesson was clear: success lies in aligning with the right segment, company size, and core operational need.

Q: Why has the HR tech value proposition not consolidated in Latin America?

A: The market is highly fragmented. Vendors target different niches, and user needs vary widely. Operational employees need mobile-first tools and digital payslips, while office workers want performance tracking and learning modules. Worky focuses on operational companies, Mexico’s dominant segment according to INEGI, because they are large, underserved, and have complex needs. That strategic focus shapes our product roadmap.

Q: What makes payroll particularly complex in your target market?

A: Payroll in Latin America involves union rules, industry-specific tax schemes, and unique compensation models. Mistakes are extremely costly, financially and reputationally. We built a strong internal compliance team to ensure precision and adaptability. In this space, there is no margin for error.

Q: How did compliance and regulatory shifts, especially outsourcing reforms, shape Worky’s value proposition?

A: The 2021 outsourcing reform created a major inflection point. Companies had to internalize payroll operations, increasing costs by up to 30% and taking full responsibility for compliance. Many lacked the tools or expertise to manage this transition. We stepped in with a cloud-based payroll system and introduced a zero-fine guarantee: if IMSS audits and fines our client, we pay the fine. Our compliance team ensures every payroll component aligns with the law, providing peace of mind in a high-risk environment.

Q: How does Worky stay current with Mexico’s evolving labor regulations?

A: We maintain a team of tax and labor experts who monitor legislative developments in real time. With eight to 12 new regulations each year, many taking effect with minimal notice, we must adapt our platform quickly. For example, we were the first in Mexico to offer legally valid digital contracts. We also integrated features for NOM-035 and NOM-037, embedding compliance into the platform’s core.

Q: How are labor reforms like the 40-hour workweek driving digital transformation, and how realistic is the proposed implementation timeline?

A: Labor reforms are accelerating digital adoption, especially in operational sectors where managing compliance is complex. Worky helps companies adapt through Talent 4.0 tools that support workforce planning. Our analysis shows it may be less expensive to hire than pay overtime under the new rules. However, many policymakers lack practical experience in these industries, making private sector input essential to ensure reforms are workable.

Q: How does the integration of HR, attendance, compensation, and payroll in Worky enhance business productivity?

A: Companies that double in size can maintain the same HR headcount with Worky. Our platform automates processes, improves onboarding, and centralizes documentation. This reduces 90-day turnover by 30%. Since up to 60% of employees leave within a year — 100% in some industries — lowering early attrition saves significantly on severance and rehiring costs.

Q: How does Worky leverage workforce data to improve staffing and decision-making?

A: We analyze over 1.5 million time clock records monthly to identify attrition risks, optimize staffing, and highlight high-performing managers. With all data centralized, we provide real-time, actionable insights that help prevent disruptions and improve retention.

Q: How have you navigated gender bias and built confidence in the fundraising process?

A: Gender bias becomes more evident in later-stage fundraising, as few Mexican women have raised Series A rounds. Female partners are significantly more likely to back women-led startups. Both investors on our board had women leading the deal. 

Q: How is the role of HR evolving, and why has analytics adoption been slow?

A: HR is becoming a strategic, data-driven function—more aligned with how CEOs and CFOs operate. Historically, HR lacked the systems for robust analytics and relied on spreadsheets, limiting its influence. Digital platforms now provide the data needed for evidence-based decisions. When HR leaders present hard numbers, finance listens. Still, much of this evolution is informal, driven by peer learning, which is why we prioritize building strong professional communities.

The rise of HR analytics roles is a key trend in the market, along with efforts to formalize informal labor. Government reforms, like the social security push to register over more 250,000 workers, support this transition. But many of these workers are unfamiliar with digital tools, so onboarding processes must evolve.

Q: What added value does upskilling bring to operational roles?

A: Upskilling is most effective when paired with retention. Long-tenured employees — those with two to six years in the company — are more valuable to train. Most learning platforms target white-collar roles, but that model does not translate to frontline workers. To counter that, companies need clearer career paths and stronger compensation strategies.

Q: What are Worky’s growth plans, and what partnerships have you built to support them?

A: Our priority is to become Mexico’s leading payroll engine. With only 100,000 users out of 23 million formal workers, the opportunity is vast. We are integrating AI to enhance dashboards and decision-making, and regional expansion is on the horizon. Our success in Mexico, one of the most complex markets, gives us a strong foundation. To scale efficiently, we partner with tech providers and business associations, integrating complementary tools and offering events, training, and benefits that extend our ecosystem and reach.

Worky is an all-in-one HR and payroll platform built for Latin America’s midmarket companies. Companies using Worky can reduce turnover by 30% in just three months and increase average tenure by 12 months.