Mexico is one of the most important markets for WeWork globally and in Latin America it is number one, as indicated by Karen Scarpetta, CEO of the company for Latin America.
The most important operator of workspaces globally presented its global report called “Challenges and perspectives of work: revealing the keys to career evolution”.
One of the most relevant results is that Mexico is positioned as the fourth most important market for the company globally, only behind the United States, England and India. Our country even surpasses the Brazilian giant, the largest economy in the region with a population that is 1.58 times greater (approximately 203 million inhabitants) than that of Mexico.
According to the WeWork executive, the company's business in Mexico is represented by 260 thousand square meters, although it maintains its operation only in the three largest cities in the country: Mexico City, Monterrey and Guadalajara.
Portrait of working models in Mexico
Just like in the rest of the world, Mexican workers have modified their preferences for work models that allow them more freedom.
According to the report prepared in collaboration with Page Resourcing, 66 percent of those surveyed favored a hybrid work model, understanding this model not as 50/50, but as the freedom to work in different scenarios according to needs. Additionally, only 9 percent preferred to work completely in person, while 27 percent preferred completely remote work.
Now, the work model has a lot to do with distances and transportation costs. Around 42 percent of those surveyed in Mexico highlighted that they live at a distance of between 10 to 50 kilometers from their workplace.while 34 percent still use public transportation as a means of transportation to their workplace.
And yet, Mexican workers feel less satisfied than in other times, 54 percent said they feel some frustration with aspects of their work.
Without a doubt, the change in work models in Mexico and the world has brought positive aspects to the relationship between employees, companies and costs.
For example, among the positive factors of the hybrid model, the flexibility of work schedules stands out. In the remote model, saving time and travel costs is the great advantage for those who prefer it, while for the in-person model, direct communication with superiors and colleagues is the most visible advantage.
But without a doubt, work models changed forever, it is no longer a single modality but now it is a combination that survives.
Nearshoring, boosting business in Mexico
In Mexico, Nearshoring of services is a driving factor for the business, especially considering that WeWork operates in Monterrey, a bastion of Nearshoring due to its proximity to the United States, the final destination market; Although, Karen Scarpetta points out that Mexico City has also stood out in this area, since the demand for services is very broad and the country has benefited more and more.
Although she did not provide figures, the executive assured that Nearshoring of services is a factor that drives business in Mexico, especially because “WeWork no longer wants and will not return to the current model until 2019. Until that year we thought that it consisted of having more square meters, today we are focused on the development of services“Our goal is to integrate as many companies as possible, of all sizes, with these services, and to do so we are redesigning the service we provide,” he explained.
Also, NOM 37 was a factor that has boosted WeWork's business in our country. On June 8, 2023, the Official Mexican Standard NOM-037-STPS-2023 was published in the Official Gazette of the Federation (DOF), through the which the health and safety conditions that must be observed by employers with respect to collaborators who are under the teleworking modality were issued.
WeWork, being a workspace provider, registered an increase in demand for these same spaces or additional services; NOM 37 was a positive factor for the company.
WeWork in Latin America, practically a franchise
Although WeWork in the United States is a company that is in the process of bankruptcy, Karen Scarpetta highlighted that in Latin America the situation is different and that The company operates practically like a franchisewith financial health and in full growth.
Scarpetta recalled that in the region the Join Venture mechanism provided a practically majority partner that has allowed the business to operate without problems, on the contrary.
“In that sense, let us remember that WeWork's businesses in Latin America are part of a joint venture in which the SoftBank Latin American Fund has a majority stake, it is practically the main partner,” he explained.
Finally, WeWork's main executive in the region highlighted the role of the Mexican market, the advances it has made in every sense, from quantitative measures measured by growth with historical occupancies that have grown at rates of 70 percent after the pandemic; as well as qualitative, such as inclusion and benefits policies in human resources.
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