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Employer of Record EOR International Expansion Nearshoring

Employer of Record Services:
Nearshoring Success
for U.S. Transportation & Logistics

The case study demonstrates the ability to facilitate effective nearshoring strategies through comprehensive Employer of Record services. By providing compliant and efficient recruitment and further payroll management, legal oversight, and ongoing consultation, PRODENSA enabled the client to build a robust remote team in Mexico.

Table of contents

Overview

A U.S.‑based corporation in the Transportation, Logistics, and Supply Chain industry faced challenges with their global business center in North Africa due to time zone differences and holiday misalignments. Seeking to improve efficiency and operational alignment, the CLIENT decided to nearshore their business center operations to Mexico. To achieve this, they engaged PRODENSA to provide comprehensive Employer of Record (EOR) services, ensuring seamless hiring, payroll management, and legal compliance. The project has been ongoing for three years and continues to support the CLIENT’s nearshoring strategy.

Project Stages

Analysis

PRODENSA began with an in‑depth analysis of the CLIENT’s needs, focusing on the specific requirements for nearshoring their business center to Mexico. This stage involved understanding the CLIENT’s operational goals, assessing the labor market, and identifying the best strategies for building a remote team that could effectively support their U.S. operations.

Candidate Search

Based on the analysis, PRODENSA conducted a targeted search for candidates who possessed the necessary skills and qualifications to meet the CLIENT’s needs. The recruitment process was tailored to find professionals who could seamlessly integrate into the CLIENT’s decentralized and remote team structure.

Hiring in EOR Mode

Once the candidates were identified, PRODENSA managed the hiring process under the EOR model. This included handling all aspects of employment, from contracts to onboarding, ensuring compliance with Mexican labor laws and foreign trade regulations on both sides of the U.S.‑Mexico border.

Running Project: Payroll & Legal Compliance

PRODENSA took responsibility for payroll administration, legal compliance, and addressing any issues that arose during the project. Continuous consultation with the CLIENT helped in uniting the remote team and minimizing turnover, ensuring that the nearshored operations ran smoothly and efficiently.

Challenges & Solutions

  • Transfer of Knowledge to a Decentralized Remote Team: The CLIENT needed to ensure that their U.S. operations were supported effectively by the new team in Mexico, despite the challenges of decentralization and remote work.
    • Solution: PRODENSA provided ongoing consultation to the CLIENT, offering strategies to unite the team and maintain low turnover. This included fostering strong communication channels and ensuring that the team in Mexico was fully integrated into the CLIENT’s operational framework.

Project Outcome

The nearshoring strategy, supported by PRODENSA’s EOR services, resulted in the successful establishment of a remote team in Mexico. Under PRODENSA’s payroll administration, the project achieved 100% compliance with Mexican labor laws and foreign trade regulations. The CLIENT experienced no payroll issues and maintained an annual turnover rate of less than 10% among their Mexican team, ensuring consistent support for their U.S. operations.