Everything You Need to Know Before Hiring in Mexico

Mexico’s been on a hiring hot streak, and it’s no accident. For companies across North America, it’s quickly become a go-to market for building distributed teams. Whether you're eyeing your first international hire or scaling a remote workforce, Mexico checks a lot of boxes: solid talent pool, time zone compatibility, strong English skills, and major cost savings.

You can view the full interview from the webinar, featuring experts from Near and Omnipresent. Or, if you're short on time, scroll down for a detailed breakdown of everything we covered—legal tips, talent insights, salary benchmarks, and more.

‍You'll learn

• What's driving global companies to hire remotely in Mexico
• Who’s hiring in Mexico and what roles are most in demand
• Key factors influencing talent attraction—cost, flexibility, time zone, and culture
• How to hire, onboard, and pay talent in Mexico without setting up a local entity

Whether you’re in people ops, legal, finance, or strategy, this session will help you understand how to scale into Mexico with confidence.

Why More Companies Are Hiring in Mexico

More Than Just Lower Costs

There’s a common perception that hiring in Mexico is mostly about saving money. That’s not wrong, but it’s only part of the story.

Franco Fagioli, co-founder of Near, pointed out that while salary savings of 50–60% compared to U.S. roles are typical, the real value lies in the range and quality of talent. Think accountants, software engineers, sales reps, and even department heads.

“People think nearshore hiring means junior data entry roles. But companies are building serious teams here, VPs, directors, heads of finance,” Franco said.

Familiar Business Culture, Real-Time Collaboration

Mexico isn’t just geographically close to the U.S., it’s culturally and professionally close too. Shared work norms, English fluency, and experience with U.S.-based systems make onboarding smooth. Add in the benefit of time zone alignment, and collaboration with Mexico-based employees often feels just like working with someone in another U.S. city.

Common Misconceptions That Deserve a Reality Check

Selene Zúñiga, Head of International Employment at Omnipresent, flagged a few myths that come up regularly:

• “Hiring in Mexico means compromising on quality.” Not true. Many professionals have experience with Big Four firms or international companies and are well-trained in U.S. standards.
• “Language and time zones will get in the way.” In practice, English proficiency is strong, and real-time collaboration is often easier than working with teams overseas.
• “It’s legally risky.” It can be, if you freelance without a plan. But an EOR (Employer of Record) eliminates that risk by managing compliance from end to end.

This is why more companies are moving away from contractor setups and turning to EOR partners to do it right from day one.

The Employer of Record (EOR) Model Explained

If you want to hire in Mexico without launching a legal entity, an Employer of Record (EOR) makes that possible. An EOR acts as the legal employer on paper, handling contracts, payroll, benefits, and compliance, while you manage the employee’s day-to-day work.

Selene put it clearly: “In Mexico, setting up an entity is time-consuming and bureaucratic. With an EOR, you're skipping all of that and going straight to compliant employment.”

What an EOR Actually Does

Here’s what gets taken off your plate:

• Drafting and issuing legally sound employment contracts
• Running compliant payroll and benefits
• Managing paid time off, sick leave, and statutory holidays
• Handling terminations within Mexican labor law

And perhaps most importantly: it drastically reduces your risk of misclassification, something that could cost you heavily if you hire contractors without fully understanding Mexican employment rules.

Explore Omnipresent’s EOR services in Mexico

What to Watch for on the Compliance Side

Hiring in Mexico isn’t plug-and-play. There are important legal details you’ll want to have covered, especially if you’re used to more flexible employment systems like in the U.S.

Local Labor Laws Are Structured Differently

A few standout rules:

• Mexico doesn’t have at-will employment. If you want to terminate an employee, you’ll need documented cause or a mutually agreed exit.
• Employers are required to provide statutory benefits, including profit sharing, healthcare, and social security contributions.
• Paid vacation, national holidays, and sick leave aren’t optional, they’re regulated.

“Termination can get tricky,” Selene noted. “You can’t just give notice and walk away. Often, the best route is a mutual separation with a negotiated package.”

Misclassification and Social Security Can Get Messy

Another big issue: assuming your EOR can onboard any type of role. That’s not always true. If you’re hiring for jobs with a physical or onsite component, your provider must have the right occupational hazard insurance classifications in place. Not all do.

This is one of the biggest gaps companies miss when hiring in Mexico, especially those used to more flexible markets. Ask your EOR how they handle social security obligations tied to the role type.

Failing to get this right can lead to fines or liabilities that make the EOR model pointless. So vet carefully.

Salary Benchmarks and In-Demand Roles

Let’s talk numbers. Companies aren’t just hiring assistants and admins, they’re recruiting mid to senior-level professionals with global experience.

Franco shared some real-world benchmarks:

• Accountants (3+ years of experience): $2,000–$3,000/month (gross)
• Sales Development Reps (SDRs/BDRs): ~$2,000/month base + variable pay
• Engineers: 50–60% lower compensation than U.S. equivalents, often with similar skill levels

There’s also a surge in demand for roles like tax managers, finance directors, and sales execs. And it’s not just talk, Franco’s team just hired an Account Executive in Mexico City to sell directly to the U.S. market.

One reason this works? Many professionals in Mexico are already familiar with U.S. customers and tools. From writing crisp emails to handling U.S. GAAP and tax frameworks, they come ready to contribute.

The smart companies aren’t just dipping their toes, they’re building full teams.

Building a Strong Team Culture, Remotely

Hiring internationally is one thing. Keeping your team engaged and aligned is another. Here’s the good news: building a real company culture with remote teams in Mexico isn’t just possible, it’s happening.

Franco’s advice? Don’t overcomplicate it. Start with the basics:

• Schedule regular one-on-ones.
• Include Mexico-based teammates in team meetings and company-wide all-hands.
• Give them ownership and visibility.

“If you’re remote-first, treat people in Mexico the same way you’d treat someone working remotely from Denver or Austin,” he said.

Selene added that most employees want to feel part of something meaningful. That means more than just logging hours. Whether it’s providing growth opportunities, establishing clear communication, or offering annual offsites, the goal is to make global hires feel like core team members, not second-class contributors.

And it pays off. Remote professionals in Mexico tend to be highly autonomous, growth-oriented, and motivated to prove their value, not just check boxes.

Ready to Hire? Here’s What to Expect

Getting started with an EOR isn’t complex, but there are a few key steps you’ll go through:

1. Pick your EOR partner. Choose one with a strong track record and deep local experience.
2. Review and sign the MSA. This sets the foundation for the working relationship.
3. Collaborate on the employment contract. You’ll want to make sure it reflects both legal standards and your internal policies.
4. Define the offer. This includes salary, PTO, benefits, and any perks.
5. Launch onboarding. Once the contract is signed, the EOR will handle everything from registration to payroll setup.
6. Manage through the platform. Most EORs offer a dashboard to keep things running smoothly as you scale.

Mexico isn’t just a place to save on salaries, it’s where smart companies are finding skilled professionals who work well with global teams. With the right support, it’s one of the most straightforward markets to expand into. You get speed, compliance, and talent, all without having to open a legal entity.

“If you're not looking at Mexico right now, you're probably behind. It's not just a cost play, it’s a talent play.” - Franco, Near