More than 80% of domestic workers carry out their work under an informal contract scheme, an indicator that tells us about the enormous opportunity for disruption that exists within this sector.
Mexico is one of the countries that has made the best progress on this issue, making available the option of formalizing the employment relationship with those who provide these services, but the reality is that their processes are not only tedious, but also time consuming, which is why these relationships are not formalized.
Additionally, ignorance is widespread, both about the different market alternatives that facilitate the processes for virtual formalization, as well as about the rates, percentages, and amounts to accrue for the type of existing contracting. There is not enough information for both employers and employees.
Current situation of domestic workers
This is an extremely worrying issue, especially if we consider that this situation mainly affects women, who occupy 94% of these jobs that, in most cases, do not have the legal benefits provided by formal hiring.
For example, there are about 800,000 women in Colombia who offer these services, compared to more than a million women in Mexico who are between the ages of 16 and 46.
This vast majority of domestic workers is affected by the lack of benefits that may include transportation bonuses or savings for layoffs, as well as additional benefits to the payment of wages that improve their quality of life and that of their families.
Although in Mexico the outlook appears to be better than that of the Colombian market, the challenge that remains is still broad, so it is important that employers bet on formalizing their domestic workers.
Technology is precisely an ally on this journey, since, through innovation, it is promoting business models that seek to facilitate labor formalization processes in Latin America, seeking to adapt to the different needs and regulations in force in each country.
a new proposal
Changing a model of informality so deeply rooted in Latin American society is not guaranteed success, however, it is still pertinent to work to do so.
Faced with this panorama, actions such as those carried out by the National Union of Domestic Workers (SINACTRAHO) become guides for a sector in full construction of formality.
Likewise, businesses supported by Wayra such as Hogarú are relevant in the current context, since they have fully identified the solutions that benefit all those involved and assume the obstacles with a technological base.
The benefits
What benefits can a platform of this nature bring? There are for employers and employees.
- Employs, trains, trains, accompanies and insures the domestic employee. At the same time, it offers guarantees to its clients about the profile of who will be the person they let into their spaces.
- If the client already has a domestic worker and requires advice, support and even completion of the hiring process, they are assisted by experts who keep them up to date with their rights and obligations as an employer.
- Those interested can specify their main need and the profile they require for their home or office, and thus select the ideal candidate.
That said, today employees and their employers can benefit from a business model designed for both with the best conditions involved.
Domestic workers fulfill a vital role on a day-to-day basis, so moving from informality to the guarantees and rights necessary for the development of an optimal employment relationship will improve the outlook for the entire value chain that is generated by through these services, directly impacting the lives of thousands of families in Mexico and Latin America.
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Wayra Hispam It is the most global, technological and connected Telefónica Movistar open innovation hub. In addition to its operations in Latin America (Mexico, Argentina, Chile, Colombia and Peru), Wayra also operates in Brazil, Germany, Spain and the United Kingdom. More than 500 startups participating in Telefónica’s Open Innovation program are still active, and more than 100 startups are doing business with Grupo Telefónica.