hr startup, emi labs, finds potential in mexico’s employee turnover rates
Contxto – We last saw Argentine HR startup Emi Labs close an investment for US$2 million in a round led by Kholsa Ventures in August of 2019. Back then, it intended to use a part of the round to solidify its operations in Mexico.
And apparently, the market it found was a rock-solid solution given its artificial intelligence (AI) chatbot.
As a result, it’s in this Latin American country that the startup intends to grow the most throughout 2020, according to a recent statement from the startup’s Co-founder, Mateo Cavasotto.
Related article: Argentine HR chatbot Emi Labs nabs US$2 million from Khosla Ventures
Artificial Intelligence for HR in Mexico
As you may recall, Emi Labs developed an AI chatbot that does a lot of the heavy-lifting for HR’s recruitment staff. The algorithm initiates contact with potential candidates and screens them, based on the company’s desired profile. Then, potential candidates are channeled towards the next phase in the recruitment process whether it’s an in-person interview, an aptitude test, etc.
However, the startup found that due to Mexico’s high employee turnover rates, that’s where it would find companies in greater need of its AI solution.
“The size and number of hirings in Mexico is twenty times greater than in Argentina,” explained Cavasotto. “That’s why we’ve opened offices over here and I moved to Mexico. Because that’s the most important operation we have and where we plan to grow the most in 2020.”
Related article: Mexico’s HR startup Runa unleashes more features for its platform
High turnover rates
Mexico does deal with a lot of employee turnover. According to a report by Sistemas Humanos—an HR firm—in this Latin American country there is a 16.75 percent rate. And the cost of replacing an employee is around 35 percent of their yearly salary.
But that number depends on the role the person plays within a business.
If it’s a more managerial or C-suite position, it can be even higher. That’s usually when specialized headhunters are called in.
In any case, all companies—whether they be startups or huge corporations—should find strategies to keep their all-star team engaged. But they should also be just as understanding if they choose to leave.
Related articles: Tech and startups in Mexico!
-ML
