How to Create a Human Resources Department From Scratch in Mexico (2026 Guide)
Building a Human Resources (HR) department from the ground up is one of the most important steps for any organization that wants to grow, stay legally compliant, and retain top talent. In Mexico, HR plays a particularly strategic role due to evolving labor reforms, digital transformation, NOMs (Mexican Official Standards), and an increasingly competitive talent market.
This 2025 guide walks you through every step—from legal requirements to infrastructure, processes, hiring, and technology—so you can confidently establish a fully functional, compliant, and modern HR department.
1. Define the Purpose and Scope of the HR Department
Before creating an HR team, you must clearly define what the department will manage. In Mexico, HR typically oversees:
Core HR Responsibilities
- Recruitment and talent acquisition
- Payroll administration
- Compliance with the Federal Labor Law (LFT)
- Onboarding and offboarding
- Employee file management
- Time & attendance control
- Training and development
- Compensation and benefits
- Workplace safety and NOM compliance
- Employee relations
- Performance evaluations
- Culture building and internal communication
Strategic HR Responsibilities
- Workforce planning
- Organizational development
- Employer branding
- HR analytics and KPIs
- Succession planning
Clearly documenting this scope will guide all future decisions, including staffing and budget.
2. Understand the Legal Framework in Mexico
Setting up HR in Mexico requires strict adherence to national labor laws.
Key Regulations to Comply With
- Ley Federal del Trabajo (LFT) – the core labor law
- IMSS – social security registration and employer contributions
- INFONAVIT – housing fund contributions
- ISR (SAT) – tax compliance for payroll
- NOM Standards, especially:
- NOM-035 (psychosocial risk prevention)
- NOM-037 (remote work health & safety)
- NOM-030 (safety and health services)
- Profit-sharing (PTU) obligations
- Maternity/paternity leave requirements
- Digital CFDI payroll receipts
You must ensure the company is registered correctly with IMSS, INFONAVIT, and SAT before running payroll.
3. Design the Organizational Structure of the HR Department
Structure depends on company size. Below is a recommended setup:
Small Companies (1–50 employees)
- 1 HR Generalist handling everything
- Outsource payroll or legal compliance if needed
Medium Companies (51–300 employees)
- HR Manager
- Recruiter / Talent Acquisition Specialist
- Payroll & Compensation Analyst
- Training & Development Coordinator
- Health & Safety (NOM compliance) Officer
Large Companies (+300 employees)
- HR Director
- HR Business Partners
- Talent Acquisition Team
- Learning & Development Team
- Organizational Development Team
- Compensation & Benefits Team
- Payroll & HRIS Team
- Compliance & Labor Relations Department
4. Establish Core HR Processes
You must standardize and document all core HR workflows.
Essential Processes to Implement
- Recruiting funnel
- Job descriptions
- Approvals
- Hiring process steps
- Interview scripts
- Selection process
- Assessments
- Background checks
- Reference checks
- Onboarding program
- IMSS registration
- Equipment assignments
- Training plan
- 30-60-90 day integration
- Payroll process
- CFDI generation
- Overtime rules
- Bonuses & commissions
- Tax withholdings
- IMSS movements (alta, baja, modificaciones salariales)
- Time and attendance
- Schedules
- Absence policies
- Vacation tracking
- NOM-037 tracking for remote employees
- Employee file management
- Digital files
- Contracts
- Confidentiality agreements
- Evaluations
- Performance evaluations
- Annual or quarterly reviews
- KPI tracking
- Development plans
- Training & development
- Annual training plan
- Mandatory safety courses
- Skills matrix
- Exit process
- Resignation/termination procedure
- Settlement (finiquito) calculation
- IMSS baja
- Exit interview
5. Implement HR Policies and Employee Handbook
Draft a comprehensive Employee Handbook that includes:
- Company values and culture
- Code of conduct
- Harassment policies
- Attendance and punctuality
- Dress code
- Vacation and time-off rules
- Remote work rules (required under NOM-037)
- Disciplinary process
- Health & safety obligations
- Compensation and benefits
- Data privacy and confidentiality
- Use of company equipment
Ensure all policies align with LFT, NOMs, and IMSS regulations.
6. Choose and Implement HR Technology
HR tech is essential to operate efficiently.
Recommended HR Systems for Mexico
- HRIS (Human Resource Information System)
- ATS (Applicant Tracking System)
- Payroll software compatible with CFDI
- Time & attendance software
- LMS (Learning Management System)
- Employee self-service portal
Popular HR Tools Used in Mexico
- Runa
- Buk
- Workday
- SAP SuccessFactors
- Factorial
- Rimud
- SOS
- Meta4
7. Budget for the HR Department
A realistic HR budget should include:
Operational Costs
- HR salaries
- HR software subscriptions
- Training programs
- Legal advisory
- Recruitment platforms (OCC, LinkedIn, Indeed, Computrabajo, etc.)
- Health & safety equipment
- Employee engagement initiatives
Compliance Costs
- IMSS employer contributions
- INFONAVIT
- Payroll taxes
- PTU
- Mandatory training
8. Build the Talent Strategy
Your HR department should support long-term business goals.
Key Strategies to Develop
- Workforce planning
- Internal career paths
- Employee value proposition (EVP)
- Retention strategies
- Leadership development programs
- Employer branding campaigns
9. Implement Culture, Engagement, and Communication Programs
Modern HR includes people experience, not just administration.
Programs to Establish
- Recognition programs
- Feedback culture
- Town halls and communication channels
- Well-being initiatives
- NOM-035 compliance programs
- DEI (Diversity, Equity & Inclusion) programs
10. Measure Success With HR KPIs
Track performance with clear metrics:
Recruitment
- Time-to-fill
- Cost-per-hire
- Quality of hire
Retention
- Turnover rate
- New hire survival rate
- Employee engagement scores
Payroll & Compliance
- Payroll error rate
- IMSS audit findings
- NOM-035/NOM-037 compliance completion
Training
- Training hours per employee
- Certification completion rate
Final Recommendations
- Start small and scale your HR team as the company grows.
- Invest early in legal compliance—Mexico’s labor environment is strict and evolving.
- Automate as much as possible to reduce errors and administrative load.
- Focus not only on operations but on creating a strong company culture.
- Review policies yearly as laws and NOM standards continue to update.
