Franklin Delano Frith II, Human Resources Mexico Founder and CEO: “We have the best 5 star ratings from our client companies and client employees in the industry because we deliver expert human support and attention.”

Human Resources Mexico started in 2009, but the real story begins a year earlier. Franklin Delano Frith II had already spent two decades in the PEO world in the United States when he began sensing the economic slide that would soon become the 2008 crash. He’d worked in and around Mexico for years, spoke the language, and understood the gap between how business operated north and south of the border. Instead of waiting for the storm to pass, he made a bet on something new. What he saw was simple. American companies wanted to build teams in Mexico, but the cultural differences, the legal maze, and the language barrier kept getting in the way. Setting up a legal entity was expensive and slow. Compliance was complicated. And remote, tech-driven EOR providers weren’t built for what companies actually needed on the ground. So he created an alternative. Human Resources Mexico was built to carry the full weight of employment in Mexico so its clients never had to. The idea was straightforward. Let the client stay focused on infrastructure, electronics, IT, software, or network operations while HRM handled everything related to employment. Not just payroll and compliance, but the real-life details that let employees do their jobs well.

Since day one, HRM has operated as a public-facing, people-first partner. Instead of hiding HR behind a platform, the company makes its team accessible to every employee it supports. And the service goes far beyond paperwork. If someone needs a company car, a home, a laptop, a phone, a gas card, or toll access to get their work done, HRM arranges it. Sixteen years later, that full-service mindset hasn’t changed. From its base in Tecate, Baja California, HRM has become a trusted bridge for US companies that want a serious presence in Mexico without building a legal entity. That’s why names like Embedded Designs (KIC), Next Level Partners, and Senko Advanced Components rely on the company. What HRM really offers is a clean path into a complex market. The client sets the goals. HRM takes on the responsibility. And the result is a Mexico operation that feels stable, compliant, and fully supported from day one.

In conversation with Franklin Delano Frith II, Founder and CEO of Human Resources Mexico

“Human Resources Mexico” emphasizes being a specialist focused “ONLY” on Mexico, unlike global EOR/PEO competitors. What distinct advantage does this deep, single-country focus provide to your clients in terms of compliance, speed, and cultural understanding?

Mexico is a very unique market when it comes to employment. Compliance is difficult to navigate. The labor law and accounting practices are extremely unique. I made a decision early on that I wanted our company to focus and be the best expert for Mexico. This is why I named our company Human Resources Mexico. There is no global EOR that can match our on the ground expertise and public facing human resources services for the employees.

Your “Red Carpet” service promises “No AI responses” and “Expert human support.” In an industry trending towards automation, why is this human-centric, high-touch approach the core of your value proposition, and how does it directly impact client success and employee satisfaction?

I always remind our team that the existence of our company is to be an employer. The most important human aspects and tasks of an employer revolve around creating a fair, safe, and productive environment where employees feel valued and supported. These responsibilities go beyond just legal compliance and form the foundation of a successful, engaged workforce. I personally believe that apps and AI responses can’t adequately deliver real human resource support and personal attention that employees need. Especially employees that are working in Mexico through HRM for clients abroad.

We have the best 5 star ratings from our client companies and client employees in the industry because we deliver expert human support and attention.

With over 16 years of experience, you’ve navigated significant changes in Mexican labor law. Can you share a pivotal moment where your deep expertise and third-party audited compliance framework protected a client from a significant risk, solidifying your reputation as the most trusted PEO/EOR in the region?

Most definitely. The most costly compliance issue in Mexico is the 90 day severance payout when an employee is terminated. For example, we strongly recommend our clients to contact us immediately if they are having a performance issue with an employee prior to taking any action. This way, we can educate the client on how the issue has to be addressed, how to approach the employee, and how to let HRM draft an administrative corrective act with specific improvement points and timelines. If the employee agrees with the administrative act and does not live up to the administrative act, severance may be averted or at least provides us with legal leverage to negotiate the 90 day severance payment downward. Thus, saving the client money.

A key differentiator is that you pay the mandatory 10% profit sharing to employees without billing it back to the client. How does this policy, which seems counterintuitive to pure profit, actually build long-term trust and create a more stable and motivated workforce for the companies you serve?

When I first started HRM in Mexico and learned that 10% of our annual declared profits must be paid to the employees, I thought to myself, “Great! If I have to pay 10% profit to the employees, that means that I am profitable!” We have been profitable since day 1 for 16 plus years. It has been a positive experience hearing the gratitude from all of the employees when they receive their profit sharing.

Because I don’t know of one global EOR that actually pays profit sharing because their shell company in Mexico doesn’t declare profits.

Our paying of profit sharing gives the employees a sense of respect and trust in our company. It is motivating to them because they receive all mandated benefits plus additional perks like interest free tax deductible loans for all of the employees.

You uniquely state that you consider both the companies and the employees as your clients. How does this dual-loyalty philosophy shape your daily operations and resolve potential conflicts, ensuring fairness and building a positive employer brand for your client companies in Mexico?

That is actually a great question. It is not as complicated as one would think about “dual-loyalty.” Here in Mexico, as the employer, we have a legal obligation to protect all of the rights of the employees in accordance with the Mexican constitution and the federal labor law. On the other hand, we have a contractual obligation to provide the best service possible to the client company. We save the client company money by leveraging our expertise in Mexico so the client company doesn’t incur unnecessary expenses or risk. As stated before, without the employees, we don’t have a business, and without companies, we don’t have a business. They are both equally important.

Trust is built on transparency. Your marketing highlights “Transparent Pricing” and being “Third-Party Audited for full compliance.” What specific steps have you taken to institutionalize this transparency throughout your organization, and why is it a non-negotiable part of your company culture?

Early on, the majority of our success in Mexico was due to the “fear factor” that foreign companies had when thinking about doing business in Mexico. You had the language barrier, a business culture barrier and a lack of trust. I focused from the beginning on a one simple clear pricing model based on a total cost markup factor. This way, if a client company wanted to pay an employee a $1,000 USD bonus, the client would automatically know what their cost would be without the need to contact us.

It was always my belief that trust had to be the most important thing that our company earns from our clients. Without trust, they will leave. This is why we have very little client company and client employee turnover. We are trusted. We are always transparent with our clients. Our team is constantly reminded to protect our client companies and client employees at all costs. Otherwise, one day, we won’t be here. It is that simple.

What does the future hold for your company and its customers? Are exciting things on the way?

I see “HRM” evolving over the next few years via internal automation and constant improvement of internal processes. Removing as much internal “friction” as possible to be more efficient. We do not plan on providing new services; we plan on continuing to be the “Boutique Service Firm” for clients that want the employees that are hired in Mexico to receive top notch services. Remember, a happy, secure, and confident employee will put a positive face for the clients of our clients.

Franklin Delano Frith II, Founder & CEO

“The most important human aspects and tasks of an employer revolve around creating a fair, safe, and productive environment where employees feel valued and supported.”