MEXICO CITY, February 22, 2022 (Newswire.com) - The growth of HR Tech in Mexico, as in most of the world, is being driven by factors associated with the pandemic, the demands of hybrid work, and the battle for talent. A recent study fielded by Worky, a Mexican HR Tech Platform, showed that stringent labor and fiscal regulations implemented in late 2020 may prove to be even more influential than the pandemic in accelerating adoption of HR process platforms in Mexico.
The Mexican HR Tech market is heating up as 2022 advances and regulatory surveillance in the form of inspections and audits becomes a reality. While tech adoption for HR was already on the rise before and throughout the pandemic, the current environment is definitely increasing pressure to adopt technology for HR processes. In fact, Worky estimates that among small and medium businesses of up to 200 employees, penetration of HR process management software is still below 30% but growing rapidly. Maya Dadoo, CEO and co-founder of Worky, states, "HR Executives are aware that they must attend to their strategic priorities. In order to do this, they must be freed up from paperwork, especially in the face of the complex new fiscal and labor regulations imposed by the Mexican Government."
HR Tech may not get much coverage, but the growth of sales is robust with HR Tech sales quadrupling since 2018. 2021 alone saw a 250% increase(1) versus the year prior. Multiple analysts and equity funds agree that this segment is likely to produce a sizable proportion of all new unicorns in the coming three to five years.
"The avalanche of investment flowing towards HR Tech in recent months is driven by the global reach and scale of workplace shockwaves brought about by the pandemic," states Dadoo. "One thing we know is for certain is that Venture Capital funds excel at spotting opportunity, so we're thrilled to have been backed by funds renowned for picking winning sectors and firms in Latam."
The battle for talent is growing in Mexico with foreign companies as well as locals vying for qualified talent. Today, employers need to understand that cost of not investing in technology is much higher in today's market than it was pre-COVID.
The perfect storm is brewing in Mexico today, with respect to HR Tech and HR professionals will be leading the charge for HR Tech adoption. Adds Dadoo, "My co-founders and I started this company over four years ago to provide affordable HR technology to help SMBs automate HR processes while improving conditions for workers, but in 2022 Worky is more relevant than ever."
Founded in 2017, Worky is the cloud-based, all-in-one software that allows Mexican SMBs to automate HR management processes.