CIO Bulletin
Hiring talent in a foreign country sounds simple until companies confront the reality: unfamiliar labor laws, strict compliance rules, payroll obligations, mandated benefits, and the pressure of getting everything right the first time. That’s why the role of an Employer of Record (EOR) has become so critical. What companies truly need is a partner deeply rooted in the local market, someone who understands every detail of hiring in Mexico and treats both the employer and the employee with equal importance.
This is where Human Resources Mexico, S de RL (HRM) stands out. Human Resources Mexico stands out as the recipient of the "Best Mexico EOR of the Year" award. This recognition highlights their firm commitment to excellence in Employer of Record (EOR) and Professional Employer Organization (PEO) services, tailored exclusively for Mexico.
Human Resources Mexico, S de RL, has earned the trust of over 200 founders and companies worldwide for more than 16 years. As the only provider focused solely on Mexico's EOR and PEO needs, they handle payroll, compliance, and HR essentials, freeing businesses to focus on growth. With 200+ companies served globally, 700+ employees hired and managed, and third-party audited 100% compliance, their expertise shines through transparent pricing, no setup fees or deposits, and unique perks like paying the 10% mandated profit sharing without passing costs to clients. Their "Red Carpet" service delivers expert, human-led support—no AI bots—for both employers and employees. Whether a company is hiring software engineers, sales representatives, designers, or account managers, Human Resources Mexico delivers a great and reliable experience across any role and industry.
We at CIO Bulletin had the privilege of interviewing Franklin Delano Frith II, Principal and General Manager of Human Resources Mexico, S de RL. He shared valuable insights into how his company simplifies international hiring while ensuring full compliance and truly human support, setting a new standard for reliability in an industry often crowded with generic solutions.
Interview Highlights
Human Resources Mexico, S de RL has built an impressive reputation as the most trusted EOR/PEO in Mexico. Could you share the story behind its inception and what inspired you to specialize exclusively in Mexico?
I was in the PEO business in the USA for 20 years. In 2008, I saw the economic situation in the USA worsen just before the 2008 crash. Since I had been doing business in Mexico on and off for many years and knew the language, I decided to diversify and try something completely new. I knew that there were cultural and business differences between the USA and Mexico, not to mention the language barrier. I felt that I had a good chance of success by establishing an EOR in Mexico for USA companies, taking on full responsibility for employment in Mexico so the client would only need to focus on their business goals.
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 exclusively on Mexico and be the leading expert in the country. 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 employees.
Over 16 years of success and counting, that’s a remarkable journey. What were some of the key milestones or lessons that have shaped HRM into the country’s Best EOR/PEO provider today?
The EOR/PEO business in Mexico has definitely evolved. I was the first PEO (everyone referred to the business as PEO, not EOR, at the time) in Mexico. I was the only real option for a foreign company to hire a white-collar employee in Mexico. Around the 2014–2015 time period, global PEOs started forming. Many of them used HRM as their local partner until the 2016–2017 period, as some started to form fiscal entities / shell companies to avoid using a third party (local partner). They started selling global software platforms and basically took the human resources out of the employment process through automation. This, in my opinion, has really hurt the PEO/EOR business because the service became more technology-driven and not human-driven.
HRM has been able to compete against the global players in Mexico because we offer a red carpet service. We are the only EOR in the world that treats both companies and employees as our clients. We spend a lot of energy providing first-class service to the client companies and the client employees. My philosophy from the beginning has been that without a client company, we have no business, and without the client employee, we have no business. So we take care of both of them exceptionally well. We even provide tax-deductible, interest-FREE loans for our employees.
Could you briefly walk us through your flagship services and the core offerings that set Human Resources Mexico apart from other EOR/PEO providers?
HRM provides employer of record services to foreign companies that do not have a legal entity in Mexico. HRM is completely different than the global EOR companies that sell technology and their platform as the basis of their service. HRM focuses on providing public facing access to human resources services to all of the employees. What sets HRM apart from the other EOR/PEO providers is the human service. We act as a real employer. There is a lot more to employment than a platform and paying the employees. The employees need training, travel arrangements, may have family medical emergencies, may need assistance due to a traumatic situation. A tech platform can’t address these needs directly with the employees.
You describe your service as a “Red Carpet Mexico EOR/PEO experience.” What does that mean in practice for the companies and employees you serve?
HRM doesn’t just process payroll and handle compliance; we also provide company cars, homes, laptops, cell phones, gas cards, toll road cards, and whatever work resources an employee needs to be successful in Mexico. We also prepay all travel arrangements for the employees so they don’t need to use their personal credit cards. We handle and pay the expense reimbursements promptly, even before the client pays, so that the employee isn’t out of pocket. All of this benefits both the client companies and the client employees. We have been doing this since day one, for 16+ years.
Human connection seems to be a cornerstone of your philosophy, especially your “No AI responses” policy. Why do you believe keeping the human touch is so important in today’s increasingly automated world?
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 the real human resource support and personal attention that employees need, especially employees who are working in Mexico through HRM for clients abroad.
We have the best five-star ratings from our client companies and client employees in the industry because we deliver expert human support and attention.
Compliance and transparency are major concerns when hiring globally. How does Human Resources Mexico ensure 100% legal compliance and peace of mind for its international clients?
The most important focus for HRM is to stay on top of new laws and regulations. We don’t wait for a new law or regulation to take effect. We constantly monitor the Senate, Congress, and Secretaries of the STPS (Secretaría del Trabajo y Previsión Social), the Secretary of Economy, and the immigration department.
Additionally, we conduct internal audits daily on payroll, invoicing, and cash flow. We have a system of double-checking all items before they are sent to client employees, client companies, and government agencies. An employee will generate an item, and another employee will double-check the validity of the information. Data errors are addressed immediately and corrected.
We are also subject to a “Dictamen Fiscal.” The tax opinion audit is the opinion issued by a registered public accountant (CPI) regarding the compliance of a taxpayer's tax obligations. We are the only EOR/PEO in Mexico that is subject to this annual audit. The auditors audit our company monthly and submit the audit to SAT (Mexico’s tax authority) after our annual tax return is filed.
As remote and hybrid work models continue to evolve, how is HRM innovating to help international companies adapt and succeed in Mexico’s changing employment landscape?
This is a great question. When we started in Mexico over 16 years ago, HRM was the only EOR/PEO offering services to foreign companies that wanted to hire in Mexico. The landscape has changed immensely. Competitors are entering the market constantly. Global EORs sell technology and their platforms. That may be fine for a large company entering many different countries at the same time. However, if a company wants to hire sales managers, software engineers, and other mission-critical positions, they need more personalized, on-the-ground, local services so that the employees have access to public-facing human resource services.
I personally don’t see a big change in the future regarding remote work or hybrid work models. One reason for this is that over 16 years, we have rarely met a client company or a client employee in person. Everything was and is handled remotely.
Looking to the future, what’s next for Human Resources Mexico? Are there any exciting developments or initiatives on the horizon that your clients and our readers should look forward to?
I see HRM evolving over the next few years through internal automation and the 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 hired in Mexico to receive top-notch services. Remember, a happy, secure, and confident employee will put a positive face forward for the clients of our clients.
The Visionary Leader Upfront
Franklin Delano Frith II, with 40+ years of cross-border business expertise, is a seasoned professional, whose career spans over four decades of diverse business operations, culminating in a singular focus on compliant business expansion in Mexico. Raised in Michigan, his working life began in 1985 selling motorhomes in El Paso, Texas, and was quickly followed by a pivotal 1988 role in Detroit as a material control specialist—a position that directly involved a major Mexican manufacturing group. This early exposure to cross-border logistics set his trajectory.
Since 1991, Franklin has been deeply entrenched in the staffing and PEO industry. After successfully launching and running a parallel business development and web design firm from 2000 to 2005, he pivoted his focus entirely to Mexico in 2008.
With 16+ years of specialized experience in Mexican HR, payroll, finance, and compliance, Franklin leads the most trusted EOR/PEO in Mexico.
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