How a Leading IT Consulting Firm Saved $250,000 Monthly in Salary Costs

30 May, 2024
Codifin Growth Team

Case Study: How a Leading IT Consulting Firm Saved $250,000 Monthly in Salary Costs

A US-based IT consulting firm aimed to utilize Mexican talent to support its growing tech operations. Despite the opportunity, the firm faced significant hurdles: In recruiting, the question was how to find the best talent; in legal compliance, the challenge was how to ensure compliance with payroll and taxes; and in productivity management, the concerns were how to monitor productivity and how to keep employees engaged.

The firm encountered several critical issues:

  • Lack of Strong Recruiting Processes: The firm had no established mechanisms to recruit and evaluate tech talent in Mexico. Even with the best administrative practices, the absence of top-quality talent or the right fit for the company can undermine the entire operation.
  • Legal and Compliance Uncertainties: Absence of local legal expertise and no licenses for hiring in Mexico, with entity establishment estimated to take up to 10 months.
  • Remote Work Concerns: There was considerable apprehension about maintaining productivity levels among remotely hired employees, particularly regarding the visibility of their day-to-day activities and overall output.
  • Employee Engagement Challenges: The firm also faced significant challenges in ensuring that remotely hired employees felt engaged and connected to the company culture, which is crucial for long-term retention and job satisfaction.

Codifin provided a comprehensive EOR (Employee of Record) solution tailored to address each of these challenges effectively:

  1. Recruitment and Selection: Leveraging our AI-driven recruitment platform, Codifin quickly identified, vetted, and presented a selection of top bilingual tech candidates. This process ensured a perfect match not only in terms of technical skills but also in alignment with the firm’s corporate culture, emphasizing the recruitment of top talent who can drive the company forward.
  2. Legal and Compliance Expertise: Codifin managed all aspects of legal compliance and payroll processing under Mexican law. Our local expertise in labor laws and regulations streamlined the hiring process without the need for the client to establish a legal entity in Mexico.
  3. Productivity Management Tools: Codifin implemented a suite of productivity tracking tools, including our advanced Compass system and comprehensive CRM, to provide the client with complete visibility and reassurance of high productivity and engagement levels. These tools offer transparent, real-time insights into the work activities of remote employees, ensuring that management can effectively oversee and optimize team performance from afar.
  4. Employee Engagement Solutions: Codifin addresses employee engagement challenges by integrating personalized engagement programs with our advanced CRM system. These initiatives, designed to foster connection and belonging, include interactive sessions and recognition programs, ensuring remote employees feel valued and connected to company culture.

Enhanced Results:

  • Rapid Deployment: The firm started operations in Mexico less than a week after signing the contract with Codifin, significantly faster than the 10 months required to establish their own entity.
  • Significant Cost Savings: Over 50 employees were hired and administered through Codifin, saving the company approximately $250,000 USD monthly in salary costs.
  • Expanded Team Size: Initial team size projections grew by 7x, thanks to efficient scaling capabilities.
  • Improved Retention: Employee retention rates doubled compared to the industry benchmark, highlighting effective management and engagement strategies.
  • High Satisfaction: Received a 96 Net Promoter Score (NPS) in bi-yearly evaluations, with clients particularly praising the CRM, service productivity visibility, and engagement programs.

Codifin’s tailored EOR services enabled the US-based IT consulting firm to seamlessly expand their operations into Mexico, harnessing the potential of bilingual tech talent while ensuring compliance and operational efficiency. The firm not only met its immediate staffing needs but also established a scalable model for future international expansion.