Transcript Company Size Insights

Study of International Employee
Benefits Trends
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
11085729(exp1009)MLIC-LD
Mexico
Mexico - Profile
MARKET PROFILE

12rd largest global economy21

GDP of $1.2 trillion22

Annual national income per capita: $7,87023

Rapidly growing economy, the “informal” economy has a sizeable presence

Mix of modern and outmoded industries; GDP: 70% services, 26% industry,
4% agriculture24

Working age population (ages 15-64) expected to jump from 66.1 million in
2005 to 86.4 billion in 203025

Median age: 25.6 years26

Life expectancy at birth: 75.4 years27
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)
Mexico - Profile
BENEFITS AT A GLANCE

A mandatory retirement savings system is paid for by employers,
at 2% of wages, and managed in individual investment accounts
by registered organizations known as AFORES.28

To help restore its public employee pension system to solvency,
Congress voted to raise, by 2028, the retirement age for civil
servants to an average of 59 years from 49.5 years and workers’
pension contributions to 6.125% from 3.5% by 2012—echoing
reforms of private-sector pensions approved a decade ago.29

Mexico has a decentralized national health system, but
employees who can afford private care tend to use it and buy
insurance for it.30
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)
Mexico – Employer Perspective
Mexican employers view benefits plans more as tools for increasing employee productivity
and job satisfaction than for attracting and retaining workers.
82% of Mexican
employers say
they are having
difficulty finding
suitable talent
to fill jobs despite
the abundance of
general labor.34
TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES
MEXICO: MOST IMPORTANT BENEFITS OBJECTIVES CITED BY
EMPLOYERS THAT OFFER BENEEFITS
INCREASING EMPLOYEE
PRODUCTIVITY
99%
INCREASING EMPLOYEE JOB
SATISFACTION
91%
CONTROLLING HEALTH AND
WELFARE BENEFITS COSTS
85%
ATTRACTING EMPLOYEES
83%
REDUCING HUMAN
RESOURCES
ADMINISTRATIVE COSTS
83%
ADDRESSING DIVERSE
NEEDS OF EMPLOYEES
79%
HELPING EMPLOYEES MAKE
BETTER BENEFITS
DECISIONS
RETAINING EMPLOYEES
HELPING EMPLOYEES MAKE
BETTER FINANCIAL
DECISIONS
75%
70%
70%
Percentages have been rounded to the nearest whole number
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)
Mexico – Employee Perspective
TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES
MEXICO: EMPLOYEES’ TOP CONCERNS ABOUT FINANCIAL SECURITY
The top three
concerns of
Mexican
employees
surveyed about
financial security
are job security,
having enough
money to pay
bills during
sudden income
loss and having
appropriate
health insurance
JOB SECURITY
79%
ENOUGH MONEY TO PAY BILLS
DURING A SUDDEN INCOME LOSS
77%
APPROPRIATE HEALTH
INSURANCE
75%
ENOUGH MONEY FOR
CHILDREN’S EDUCATION
74%
72%
ENOUGH MONEY TO LIVE ON
MORE TIME TO SPEND WITH
FAMILY
71%
ENOUGH MONEY TO BUY A
HOME
69%
ENOUGH MONEY SO ONE
PARENT CAN STAY HOME WITH
CHILDREN
65%
RESOURCES AND TIME TO
CARE FOR AGING PARENTS OR
RELATIVES
BEING ABLE TO AFFORD
QUALITY CHILD CARE
61%
52%
Percentages have been rounded to the nearest whole number
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)
Mexico - Conclusions
Benefits Strategies for Tomorrow, Today
Mexico has long opened its borders to multinational investment, and is one of the leading nations in
facilitating trade agreements worldwide. But these developments, while boosting domestic economic
growth at an enviable rate, can reshape the workplace environment. Mexican employees increasingly
exposed to multinational influences will doubtless be drawn into the very human game of drawing
comparisons. And in such an increasingly competitive landscape, Mexican employers looking to
maintain top-quality workforces will increasingly feel compelled to reassess their own benefits practices:



Offer a greater range of benefits such as health insurance and an employer sponsored
savings fund than is standard practice.
Educating employees on the importance of financial planning, insurance and retirement
savings can deliver significant benefits to both companies and workers for a minimal
investment on the part of Mexican employers.
Voluntary benefits represent a valuable and cost-effective tool for employers.
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)