Reduction of the working day in Mexico – How to measure productivity

The business response to the reduction of working hours.
4 MIN. READING
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Thomas Khachadourian
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The proposal to reduce the workweek from 48 to 40 hours has ignited a crucial debate between the government, employers, and unions. The government maintains that 40 hours is the average in the world's 20 largest economies, while the private sector faces a reality that has already begun to change, even without the formal approval of the reform.

The proposal aims to incorporate informal workers, reduce public health costs, and, above all, increase productivity. This last point should be the focus of our response as a corporate environment. 

In the business sector, we can still strengthen our response around the only factor we do control: productivity. At the working groups, each industry explained its needs—extended hours, continuous production, 24/7 services—but they all shared the same problem: a lack of visibility into the actual use of working time.

It's not about how many hours we work, but what we do with them. How many are lost to downtime, rework, unplanned stoppages, or unnecessary travel? How many crews operate with incomplete crews due to desertions, accidents, absenteeism, or excessive workloads?

“Horizontal bar chart comparing legally permitted weekly working hours in major economies and Latin American countries from 1991-2016. It shows that France limits the workday to 35 hours, while Australia, Russia, Japan, Italy, and the United States are around 38-40 hours. Latin American countries like Brazil and Uruguay allow 44 hours per week, and Argentina, India, and Mexico record the longest workdays at 48 hours.”

In 2023, economist Dani Rodrik warned about declining productivity in Mexico. This not only affects our international competitiveness, but also exacerbates the challenge of adapting to shorter workdays without losing efficiency. 

Although many organizations believe they already have automated processes, in practice they still rely on hundreds of Excel files and manual workflows that limit efficiency. This lack of order and visibility generates a hidden cost that few companies have quantified. Most don't know how working hours are distributed: how much is dedicated to productive tasks, how much is lost to downtime or poorly allocated overtime. It's like trying to cut costs without cost centers.

To meet this challenge, InfoBlock has developed a technological ecosystem that begins with certified employee registration—using technology validated by NOM-048—and allows for the configuration of automatic rules based on operations, collective bargaining agreements, and the specific characteristics of each sector. This ensures that daily events are recorded with traceability, legality, and accuracy. This solution has supported the operational transformation of companies such as Cemex, Farmacias del Ahorro, Siemens, AB InBev, Grupo Bachoco, Grupo México, Mobility ADO, Liverpool, Sanfer, and Cinemex.

This database streamlines the process of obtaining clear diagnoses: identifying excessive triple-shift hours, detecting operational overloads, pinpointing critical positions, and correcting assignments. When triple-shift hours predominate over double-shift hours, imbalances often arise that lead to unnecessary costs.

By measuring where work takes place, the true cost per process is revealed, integrating labor and operational metrics. This enables informed and sustainable decisions to improve productivity.

Spain resolved this debate at its root: all companies are required to have a time management system that is auditable by the authorities. Colombia, for its part, has already reduced the workweek from 48 to 46 hours, achieving positive results thanks to advanced management systems and process redesign.

“Bubble chart relating productivity growth and changes in employment share between 2000 and 2012 in ten sectors of the Mexican economy. It shows that service sectors —such as trade, financial services, restaurants, and hotels— experienced the largest increase in employment share, but recorded the worst productivity performance. In contrast, sectors like manufacturing and agriculture show lower employment growth and higher productivity.”

Implementing these systems, in addition to improving operations, guarantees correct payment, which is key to retaining talent in a more competitive market.
Every hour worked must be recorded, valued, and compensated transparently. This reduces discrepancies, improves trust, and makes it clear to employees that their work time counts. 

When data replaces intuition, decisions become strategic. If employees know their time will be measured and paid accurately, their commitment and productivity increase. Cost savings come as a natural consequence, not as an initial goal.

“Infographic titled ‘From Operational Chaos to Intelligent Time Management.’ It shows the transformation process offered by InfoBlock: on the left, interconnected icons represent the operational context and challenges in labor management; in the center, the InfoBlock logo symbolizes reliable record-keeping and time management software; on the right, results are illustrated with real-time operational data that drive productivity and enable savings and transparent payments.”

The old business adage remains: what isn't measured can't be improved. Reducing working hours isn't a threat; rather, it represents an opportunity to rethink how we manage human capital.

With reliable procedures, companies can measure better, act accurately, and adapt faster. Authorities will also be able to audit objectively.

The future is already here. Organizations that adopt these systems will not only comply with the new regulations, but will also discover efficiencies that will transform their competitiveness. The question is not whether we should adapt to the 40-hour workweek, but how to turn this change into our greatest advantage. 

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