Human Resources Mexico S de RL is a specialized Employer of Record (EOR) provider that supports U.S. companies expanding into Mexico. The company was founded by Franklin Delano Frith II, a professional with 20 years of experience in the PEO industry in the USA. He recognized early on that U.S. businesses often struggle with cultural differences, operational challenges, and language barriers when hiring in Mexico. In 2008, as economic conditions in the USA began to shift, Frith used his many years of doing business in Mexico and his knowledge of the language and culture to create a service that removes those difficulties. HRM takes full responsibility for employment, allowing clients to focus completely on their business goals.

From the start, the company’s mission has been to provide expert guidance. Frith’s philosophy—“treat every client and employee the way he wants to be treated”—defines the company’s culture. With its commitment to honesty, accountability, and high-quality service, Human Resources Mexico S de RL continues to gain the trust of clients operating in Mexico. At Business Honor, we had the privilege of interviewing Franklin Delano Frith II, founder of Human Resources Mexico S de RL, to explore how his company helps U.S. businesses successfully manage and support their workforce in Mexico.

What are the core services that HRM provides, and how have those offerings evolved over time?

HRM provides Employer of Record services to foreign companies that do not have a legal entity in Mexico. Unlike global EOR companies that rely primarily on technology platforms, HRM focuses on offering public facing access to human resources services for all employees. HRM doesn’t just process payroll and handle compliance, we provide company cars, homes, laptops, cell phones, gas cards, toll road cards, and any other resources employees need to succeed in Mexico. We have been doing this since day one, 16+ years.

As our business model is to be the legal employer in Mexico and support employees with whatever they need to be successful, our services are not industry-specific and do not require customization for different sectors.

How does HRM manage payroll to ensure accuracy, transparency, and full compliance with complex tax and benefits regulations while maintaining an efficient and reliable experience for both clients and employees?

We conduct internal audits daily on payroll, invoicing, and cash flow, using a system where one employee generates an item and another verifies its accuracy. Data errors are addressed immediately and corrected. Additionally, we are subject to a “Dictamen Fiscal,” a tax opinion audit issued by a registered public accountant (CPI) regarding the compliance of a taxpayer's tax obligations. HRM is 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.

How does HRM help businesses mitigate legal and administrative risks, and what differentiates a high-quality PEO from standard HR outsourcing solutions?

The most costly compliance issue in Mexico is the 90 day severance payout when an employee is terminated. We strongly recommend that clients contact us immediately if they are experiencing a performance issue with an employee before taking any action. This allows us to educate the client on how the issue must be addressed, how to approach the employee, and how HRM can draft an administrative corrective act with specific improvement points and timelines.

If the employee agrees to the administrative act and does not meet the requirements, severance may be avoided or at least provides legal power to negotiate the 90-day severance payment downward, saving the client money. A high-quality EOR/PEO in Mexico not only handles payroll and tax compliance but also ensures compliance with NOMs—Normas Oficiales Mexicanas, or Official Mexican Standards. Most global EORs do not address NOM compliance.

In what ways does HRM ensure its services meet compliance requirements while supporting the strategic growth objectives of its clients?

The most important focus for HRM is staying ahead of new laws and regulations. We don’t wait for laws to take effect. We constantly monitor the Senate, Congress, and key agencies such as the STPS (Secretaría del Trabajo y Previsión Social), the Secretary of Economy, and the immigration department. As mentioned, we are the only EOR in Mexico subject to the annual “Dictamen Fiscal” tax opinion audit, placing HRM at a compliance level unmatched by any other provider.

How does HRM differentiate itself from other PEO/EOR providers, and what strategies does the company use to maintain its unique position in the market?

HRM is the only EOR in the world that treats both employees and companies as clients—without either, there is no business. HRM provides a red-carpet, first-class service experience to both client employees and client companies. Additionally, HRM is the only EOR to offer a clear, simple markup and transparent presentation of total costs to clients from the very beginning.

Looking ahead, what are HRM’s strategic priorities or upcoming initiatives for the next 2–3 years?

Our strategic priorities over the next few years are to continue with internal automation and constant improvement of internal processes. Removing as much internal “friction” as possible to increase efficiency. We are also focusing on using AI for internal tasks while maintaining 100% human support for our client employees and client companies. We do not plan to offer new services; instead, we aim to remain a “Boutique Service Firm” for clients who want employees hired in Mexico to receive top-notch service. After all, a happy, secure, and confident employee reflects positively on the clients of our clients.

Franklin Delano Frith II | Founder

Franklin Delano Frith II is an experienced business professional with over 40 years of experience in operations, specializing in compliant expansion in Mexico. Since 2008, Frith has focused on Mexican HR, payroll, finance, and compliance, leading Human Resources Mexico S de RL, a leading EOR/PEO provider. With more than 16 years of expertise, Franklin and his team guide clients through local labor and tax laws, allowing smooth and efficient business growth in Mexico

“HRM provides Employer of Record services to foreign companies that do not have a legal entity in Mexico.”