Employee Turnover and Retention in Mexico and Latin America

Abstract

In this chapter, the authors examine the turnover of employees in Latin America, with a particular focus on Mexico. Employee turnover is important in Latin America and in Mexico, as it is in many other places, because the cost of labor typically accounts for 70% of a firm’s operating cost. When employees leave, it requires that the employer replaces the workers through human resource management processes that include recruiting, selection, orientation, and training. These costs are a significant expense to firms that they could avoid if turnover was lower. The authors identify cultural, economic, legal, and other factors that could influence employee turnover. The authors also summarize many managerial practices that can help employers to effectively manage employee turnover. Finally, the authors provide insights for future research on employee turnover in this important region of the world.

Citation

Posthuma, R.A., Brambila, C.N.G., Smith, E.D. and Zhang, Y. (2021), "Employee Turnover and Retention in Mexico and Latin America", Allen, D.G. and Vardaman, J.M. (Ed.) Global Talent Retention: Understanding Employee Turnover Around the World (Talent Management), Emerald Publishing Limited, Leeds, pp. 133-147. https://doi.org/10.1108/978-1-83909-293-020211007