5 Steps to Maximize Employee Retention When Manufacturing in Mexico


Regardless of industry, there’s one thing all companies can agree upon: the importance of retaining quality employees. While so much time, effort, and cost is invested in the hiring process, as it should be, there needs to be the same amount of energy, if not more, put into the employee retention process.


Mexico has an increasingly competitive workforce which makes it essential for manufacturers to understand and implement best practices when maintaining the best of the best. Implementing employee retention best practices helps to reduce costs caused by high employee turnover, creates a greater sense of company morale among employees, and leads to an overall increase in productivity and success.


By following and personalizing the following five steps to maximize employee retention, it will ensure that you maintain long-term, thriving working relationships for years to come.

#1: Identify Common Turnover Problems

Experiencing employee turnover is inevitable within most industries. However, identifying the specific challenges within your own company is what helps to provide solutions. Common reasons often include the lack of a quality work environment and room for advancement, non-competitive pay and benefits, and poor interpersonal relationships. When employees figure out they can make more and more favorable working conditions with another company, they are likely to leave.


The skilled labor force in Mexico is highly competitive and requires that manufacturers take a look at their salary and benefits packages to ensure they are aligned with what is standard and/or what makes them stand out from other companies. A Mexico shelter company like IVEMSA offers guidance through both the hiring and retention process. Switching a pay structure and implementing other changes are ultimately up to the company, but IVEMSA can provide recommendations, data, and insight based on the current trends of the market.

#2: Develop an Improvement Plan

Once your company has identified the main reasons why employees leave, it’s time to develop a specific improvement plan to increase or at least maintain retention on a regular basis. This starts with allowing current employees to share their dissatisfaction or lack of motivation in an anonymous way so employers may find patterns and areas to improve upon first. Employee feedback may be received through surveys, one-on-one meetings between supervisors and employees, or group discussion.


An improvement plan addresses areas like salary, benefits, worker safety, leadership attitudes, onboarding and training procedures, and how performance is measured. Although each person may rate what makes a job worthwhile for them on an individual basis, it will start to outline commonalities that can be addressed to improve the company as a whole.

#3: Demonstrate Changes and Keep Communication Open

Employee retention should be revisited constantly as industries, management, and responsibilities change. Identifying top problems and instituting a timeline for when solutions will be put into place puts faith in employees that improvements are on the way. Change can’t happen all at once, which is why it’s important to keep employees informed of the plan and show ways steps of that plan are being followed.


As these changes are rolled out, consistent communication within the company is important to maintain transparency. One of the main underlying reasons why employees leave a company is because of a lack of communication. Even if employers are working tirelessly behind the scenes to improve the situation, if not shared properly, then it doesn’t provide an incentive for an employee to stay.

#4: Institute Employee Recognition

Certain changes like implementing additional benefits or increasing wages may take more time than other areas of job satisfaction for employees. A quick and impactful way for employers to maximize their retention efforts is to offer sincere recognition of a job well done. Showing appreciation goes a long way. It lets people know they are valued and being taken into account as a vital part of the operation.


Employee recognition can be shown in multiple ways. A verbal thank you, a company-wide recognition for a production team, or a bonus for achieving a specific goal are all examples of how employees can feel connected and motivated by having their hard work acknowledged. For many, this can be just as impactful as any other change that’s included in an improvement plan.

#5: Make a Competitive Offer

When an employee expresses their desire to leave, manufacturers should be prepared to make a counteroffer. This may include an increased salary, bonus, and opportunities for career growth. These types of incentives should be implemented prior to the point of a person wanting to leave, but it can be the change necessary that makes someone stay. A Mexico shelter company can make recommendations based on industry and cultural expectations.


Employee retention is all about making workers feel like they are valued and well taken care of by the company. In return, people are likely to work harder and be more productive when there’s an effort from the relationship on both sides.

Creating an Ideal Environment to Retain Excellent Employees

Employees across all industries want a safe, secure environment where they feel their work is being appreciated. When they feel like employers are invested in their well-being, it results in higher levels of productivity, lower turnover rates, and increased competitiveness for new hires. This all results in fewer costs to the company and greater growth from motivated employees.


There are a number of ways manufacturers can create a place where employees enjoy their work and feel fulfilled in their positions. Identifying problems, providing solutions in a prioritized way, and maintaining constant, open communication are all vital to maximize employee retention.


Part of IVEMSA’s shelter services includes hiring and employee retention. To learn more about recruiting and retaining the best skilled workers, among other areas of operational setup in Mexico, contact us today.

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