To hire a Mexican national or US Expat? What are the plus and minuses

pslm40 · November 2003

We are opening a plant in Mexico and I need to figure out what the cost/benefits are to both alternatives of hiring locals or bringing in US expat employees for the management team, i.e , plant manager, controller, HR director, etc. If any body has had some experience with this and could point me in the right direction, I'd sure appreciate it.

ritamcguire · November 2003

I am not familiar with the complexities of opening a plant with numerous workers in an overseas location. However, our company does a lot of business in Mexico and Europe. We work with a lot of Mexican and European plants. From my experiences in dealing with overseas operations, it would seem to me that if you can find QUALIFIED managers within the local population you are much better off than sending in a foreigner, i.e., an American. There are NOT a lot of good (manufacturing) jobs in Mexico and the workers you get will be highly motivated to do a good job in order to keep their job. The problem in an overseas location centers more on communications (language and culture), not on operations. The communications problem is most significant when it comes to SAFETY. By hiring QUALIFIED local managers, you have most likely solved the language and cultural problems before they surface. This should provide you with a more efficient workplace environment and definitely a SAFER workplace environment. Also, by hiring local managers you provide an incentive for the other workers to work hard, work SAFELY, and stay with the company so as to hopefully rise to a managerial position. With Americans in the managerial positions, they will logically see their job as a dead end position.

Good luck!

Dasher · November 2003

I am impressed with the logic of the above response and applaud you. This forum is often awesome!

pslm40 · November 2003

[font size="1" color="#FF0000"]LAST EDITED ON 11-05-03 AT 11:19AM (CST)[/font][p]Thank you Rita: That is great insight.

Dasher-- Thankx for the "second" .

I appreciate the quick responses. This is an awesome tool.

Pork · November 2003

PSLM40: Just make sure you announce the plant opening far and wide within our country and just maybe, you'll be able to hire my 10 illegals and take them home with your first shipment of raw goods, I just know you will be exporting from the good ole USA. The hispanic loves PORK just make room for the many little piggies in their luggage. Mine are great workers, but they are illegal and most likely will not stay much longer, as the paper trail with the new INS (whatever it may be called) gets more difficult each day! Surely within the 1.6 million illegals there has got to be a few good managers/supervisors. We once had a worker with a PHD and spoke 6 languages. The INS evidently began to get a little to close and he just disappeared; he called several months ago and wanted to know if he could get his old job back. I told him know because we are now online with SSA and check SSNs.

POST your needs and maybe we might just have a person of quality.

PORK

ritamcguire · November 2003

PSLM40 & Dasher:

Thanks for your comments. I was having a less than great morning and your comments gave me a much needed boost. You're correct - the Forum is awesome!

Rita M

Tapatio · November 2003

I have had the opporunity of working both as HR Manager and as Plant Manager for two US companies in Mexico, so I can give you first hand insight in this area. First of all, your company will have to define what their personnel requirements will be in Mexico as it relates to their proposed operation. Having done that, they may have to send some of their key US managers to Mexico for some time, to set up the basic infrastructure of the organization. This could entail certain items, such as obtaining all the necessary permits, importing the machinery and equipment, doing the layout of the plant, the installations, importing the raw maerials, etc., all of which can be rather elaborate. Based upon the level of technical expertise the company will require from their proposed workforce, management can then make the determination as to the appropriateness of sending US expatriate employees to Mexico, or hiring Mexican nationals to run the plant. Usually, at least in the initial stages, you will probably require both types of employees. Keep in mind that the cost of having expatriates working in a foreign country can be rather high, since they will have to be provided with immigration assistance, their US based salary, usually separate benefit plans, possible relocation assistance, possible housing and/or car allowance, etc. Once you have a more definite picture as to what your company has in terms of available budget, proposed startup date, production requirements and timetables, technical support requirements, manpower requirements, etc., then one of your managers should talk to a good Consultant in this field. Depending on where you intend to establish your plant, I might be able to give you some assistance in this area.

To hire a Mexican national or US Expat? What are the plus and minuses

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