Introduction
The shortage of talent and the minimum wage have been the two key factors influencing aggressive salary adjustments for operational and professional positions, along with a greater emphasis on variable compensation schemes. This trend is highlighted in Mercer’s 2025 Total Remuneration Survey.
Minimum Wage Impact on Salary Adjustments
The persistence of wage recovery policies, albeit with more moderate increases, has led to adjustments in base salaries of up to double digits for operational levels. This pressure stems from the minimum wage catching up with base remuneration, making it difficult for companies to differentiate themselves.
Industries with Significant Salary Adjustments
The life sciences industry led the way with an average 11% salary adjustment for operational roles, followed by manufacturing at 9%. However, these adjustments have brought base compensation levels in both sectors closer together.
“In operational roles, there’s a strong strategy around the minimum wage. If companies don’t make higher increases—around 7% to 8%—the minimum wage will catch up, and base remuneration will become similar across companies. This results in a distinct compensation strategy driven by the pressure of the minimum wage,” explained Claudia Rodríguez, Head of Career Products at Mercer Mexico.
Talent Shortage Drives Professional Salary Adjustments
The talent shortage has primarily driven salary adjustments in professional roles. The logistics and transportation (+20%), manufacturing (+14%), and high-tech industries (+13%) reported the highest salary adjustments.
In these industries, the professional compensation strategy focuses more on talent retention and attraction. Sectors with greater talent shortages experience more aggressive adjustments,” Claudia Rodríguez pointed out.
Factors Contributing to Talent Shortage
The talent shortage isn’t solely due to difficulty finding individuals with required skills; in cases like manufacturing, the phenomenon is linked to work conditions or job location, according to Mercer’s findings.
“We see significant talent shortage in the operational sector, which is particularly challenging. This is because current work conditions offered by companies don’t meet the needs of today’s operatives; for example, childcare or caring for sick family members is in high demand, creating greater difficulty in attracting talent,” Claudia Rodríguez shared in an interview.
Minimum Wage Boosts Variable Compensation
An effect of recent minimum wage increases and its proximity to professional remuneration is a greater emphasis on variable compensation, such as productivity bonuses.
“While companies are adjusting salaries, they’ve also moved significantly towards variable compensation. Previously, productivity bonuses for operational staff were rare; now, almost all companies offer them as monthly bonuses to retain talent,” Claudia Rodríguez, Head of Career Products at Mercer Mexico, stated.
Variable Compensation Trends
According to Mercer’s survey, approximately 87% of companies in Mexico provide variable compensation for workers. By incorporating benefits and allowances into total remuneration, operational areas saw up to 11% increases this year, with manufacturing and logistics & transportation reporting the highest adjustments.
Key Questions and Answers
- What factors are driving aggressive salary adjustments? The shortage of talent and minimum wage pressure are the primary factors.
- Which industries experienced significant salary adjustments? The life sciences industry led with 11% adjustments, followed by manufacturing at 9%.
- How has the talent shortage impacted professional salary adjustments? Industries with greater talent shortages, like logistics and transportation, high-tech, have experienced more aggressive salary adjustments.
- What is the connection between minimum wage and variable compensation? As the minimum wage approaches professional remuneration, companies are increasingly relying on variable compensation, such as productivity bonuses, to retain talent.
