Establishing Shared Services Center:
HR Department Setup, Recruitment
& EOR Services
The case study demonstrates the ability to deliver comprehensive HR solutions for companies expanding their operations internationally. By providing expert guidance in labor market analysis, HR setup, recruitment, and ongoing management, PRODENSA enabled the client to establish a compliant and efficient shared services center in Mexico.
Overview
A U.S.‑based corporation in the IT/Services/Retail industry decided to transfer its shared services operations to Mexico, with the primary goal of providing support to their stores across the United States. To facilitate this transition, the CLIENT engaged PRODENSA to set up a new HR department, manage recruitment, and provide Employer of Record (EOR) services across the border. The project spanned 15 months and was crucial in establishing a compliant and efficient operation in Mexico.
Project Stages
Labor Market Study
PRODENSA began by conducting a comprehensive Labor Market Study focused on IT, Tech, and Services positions in Mexico. This study provided insights into the availability of talent, compensation benchmarks, and the competitive landscape, which informed the CLIENT’s strategy for setting up operations in the new location.
Establishing a Timeline & Operational Scope
Working closely with the CLIENT, PRODENSA helped establish a clear timeline for the launch of the new operation in Mexico. This stage involved understanding the specific needs and requirements of the shared service center, including the scope of services it would provide to the U.S. stores.
HR Department Setup
PRODENSA took full responsibility for setting up the HR department from scratch. This included developing an employee handbook, creating guidelines, regionalizing job descriptions, and defining competitive compensation packages that aligned with Mexican labor laws and the CLIENT’s corporate standards.
Key Leadership Hiring
To ensure strong leadership at the new facility, PRODENSA successfully recruited and hired a Site Director and HR Director. These key positions were critical to the effective management and growth of the shared services center.
Operational Support & Ongoing Management
PRODENSA continued to manage the HR operations for another nine months ensuring seamless integration of the new hires and ongoing compliance with local regulations. Our onsite team, including a Project Manager and On‑site Coordinator, was dedicated to maintaining effective communication and collaboration with the CLIENT’s corporate team.
Challenges & Solutions
- Talent Availability: Identifying the availability of talent with the required IT skills in Mexico posed a certain challenge.
- Solution: PRODENSA’s Market Intelligence team conducted a thorough search and mapping of talent and companies in the region, providing a competitive proposal that attracted the right candidates.
- Policy Adaptation & Cultural Integration: Adapting corporate policies to align with Mexican regulations and ensuring cultural integration for foreign leadership presented significant challenges.
- Solution: PRODENSA tailored the policies to meet local requirements and facilitated cultural adaptation for the foreign prospects, ensuring smooth transitions and effective management.
Project Outcome
PRODENSA successfully set up the CLIENT’s HR department within a period of six months, achieving 100% compliance with Mexican labor regulations. Nearly 30 employees were hired within three months, with a Time to Fill of four weeks per position. The project maintained a retention rate of 70%, demonstrating the effectiveness of the recruitment and onboarding processes. The CLIENT’s new shared services center in Mexico was fully operational, providing the necessary support to their U.S. operations.
