Today I want to talk to you about various topics related to Human Resources, Recruitment and Selection, Payroll, Payroll Taxes, Legal and Labor Regulations, etc., in a more practical way and focusing on what is happening in the market in Mexico.
December is in, so what can we expect in December that we have seen every year and that still sometimes surprises us? Of course, at the employment or labor level and especially with our more operational type employees.
The first important point is the Christmas bonus (Aguinaldo). The Christmas bonus is a benefit that the Mexican government "asks" us to include in the salary of all our employees, and it is described in the Federal Labor Law in its article 87, chapter V on wages. What happens? Sometimes this affects us business owners in our cash flows, especially when we are dealing with collections and year-end closings, while our employees will have extra money that they can use for Christmas or any other expense and/or savings. It's always the same, and everything, or almost everything, always turns out fine.
Another interesting topic is the holidays and days off, which are determined by our Federal Labor Law in its article 74. For December, we have December 25 and very close to it January 1, both official holidays that are not moved to the previous Monday. We also have the festivities of December 12, for our dear Virgin of Guadalupe. Additionally, we have pilgrimages, posadas, gift exchanges, savings groups, and countless celebrations around Christmas. This is where, as employers, we must use our discretion to give our employees certain freedoms and physical and/or economic support to celebrate. It is very important to take this into account as it greatly helps to retain talent, as our people will be happy with us.
And let's not forget that, at the operational and logistical level of our businesses, December is a month of a lot of personnel movement, mainly operational staff. Why does our operational staff start to rotate?
Approximately 20% of our staff is from other cities or towns, or has their main family outside the city where they work, and will want to try to visit their main place. Approximately half will seek their vacations or special permits with the company, and the other half will simply leave. Of course, all this depends on the employee's seniority, the type of position, the employer's flexibility, etc. Another rotation factor is that many businesses require more staff in December to support their activities that increase due to Christmas. This is where another 10% of our people may decide to change jobs because, although they are temporary positions, they usually pay more than the normal or standard job market. And other people who are no longer happy with us are simply waiting for the Christmas bonus to resign. This is a small percentage, but everything adds up.
Manuel González
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