By Oscar Johnson
If you think the daily grind of looking for the ideal job or employee is taxing imagine doing it for a living. That’s why more and more people in Japan are turning to the pros to do the work. Whether hiring or seeking to be hired it’s big business these days. If the ubiquitous ads for recruiters, related research consultants and other so-called headhunters don’t convince you, chances are neither will I. So I thought it best to see what experts have to say about this industry - and what’s in store for its new recruits.
“The recruitment market is very up and up,” says our very own Richard Bysouth, CareerCross Japan CEO and former CEO of Robert Walters Japan K.K. “Gaishi, or foreign-capital companies, have gone from about 2,000 to 4,000 in recent years. The bilingual career market in Japan will continue to grow.” Kevin Gibson, Robert Walters’ managing director, agrees. “It’s growing very fast,” he says. “At the same time it’s maturing. We have a lot more people using recruiters – on the client side as well as (job) candidates. The market is becoming more sophisticated with more specialists and international players.”
The surge is due largely to the recovering economy and Japan’s shrinking professional workforce, the experts say. Add to that, the ever-present need for bilinguals and there’s virtually no end in sight for the growing demand. But there’s even more to it than that, according to David Price, director of Robert Half International Inc.’s Japan office. He says that while international companies in Japan have always competed over a dearth of qualified job candidates there are other changes afoot to compound that demand.
“Traditionally, Japanese companies didn’t have this problem because they promoted from within and did their own recruiting from universities but now because of internationalization they need to find mid-career and non-new graduate hires,” Price says. “One of the really big things with Japanese companies is that many are listed on New York Stock Exchange and by 2007 must comply with the Sarbanes-Oxley law (mandating stricter financial reporting rules). They need people to help them with this and foreign recruitment companies are very likely to have these professionals.”
Kimiko Suda, a senior manager at James Harvard International Asia K.K., describes today’s market as “very candidate focused.” She says many recruiting firms are desperate for qualified staff to meet growing market needs. “This is a bullish market and many organizations are expanding to accommodate,” she says. “Of course, this means more skilled professionals are required to support this growth.” But that doesn’t mean you need experience to get in on the game. Price says the high demand for jobs has flung the door wide open: “We have to be open to people with various skill sets as long as they share our professional values and ethics but they do have to be trained.”
Ready to answer that classified ad for a recruiter? Not so fast. Before you do consider the work – and the company, experts say. It’s a specialized form of sales, both to company clients and would-be candidates, which usually involves working the phones and endless schmoozing. Ambition and organization are essential for success.
“Recruiters are left to their own devices to meet mandates from clients,” explains Gibson. “How they manage their time determines how successful they are.” He says earnings can vary as much as from 3 million yen to 30 million yen annually. Some companies only pay a commission of client fees for successful hires, while others offer a base salary plus commission. Generally the lower the salary, Gibson says, the higher the commission: “The maximum is about 4.5 million yen for newcomers. After a couple of years, if they build a good reputation with clients they could make up to 40 to 50 million yen. The rule of thumb is the longer you’re in it the more you earn.” But there are risks to consider in the headhunting business. It’s an industry with a high turnover rate, especially among companies that pay on a commission-only basis.
“It depends,” Gibson says. “There’re a lot of commission jobs and people get thrown in to either sink or swim.” He adds that larger companies such as his or Michael Page have lower than average turnover rates partly because they offer a base salary. “The reality is it’s a much more difficult job than you might think if you don’t have support. There can be some major disappointments.” Price agrees: “To a degree, it’s like any sales job,” he says, adding his firm also has low turnover. “It’s challenging and you face a lot of rejection. But obviously if you’re with a company that offers support, training and rewards you have more opportunity to succeed. You do have to be able to handle business on your own but you need people to teach you and some learn faster than others.”
