The referral fee for a recruitment agency per hire is a big percentage of the annual salary
One of the major recruitment channels in Japan is job placement agencies, but compared to other countries, Japan tends to have higher referral fees.
The high fees of Japanese recruitment agencies can be attributed to the broad range of services they provide, such as counseling for job seekers. However, the biggest factor is the differing perspectives on job changes between Japan and overseas.
In other countries, direct recruiting methods, such as using social networks like LinkedIn, which incur little to no cost, are common. This results in competitive pricing, keeping referral fees for job placement agencies lower.
In Japan, the lifetime employment system has traditionally been the norm. Compared to countries where frequent job changes for career advancement are common, the average tenure in Japan has been longer, and high recruitment costs per hire were not seen as a major issue.
However, in recent years, Japan has seen an increase in turnover rates, particularly after the COVID-19 pandemic, with more people becoming open to job changes.
（出典）転職動向調査 2023年版 - 株式会社マイナビ 社長室 HRリサーチ統括部
Due to the progression of a shrinking, aging population, the decline in the workforce has become a serious issue in Japan. To secure the talent they need, companies will have to consider hiring not only Japanese workers but also international talent.
（出典）内閣府（2022）「令和4年版高齢社会白書」
While many Japanese companies rely on agencies to recruit international workers, differences in values around job changes and job-seeking behaviors between Japan and other countries mean that recruitment methods must adapt to the overseas job market.
In recent years, direct recruiting has been gaining attention in corporate recruitment activities.
Direct recruiting is characterized by its ability to discover and approach candidates who are a good fit for your company at a lower cost compared to traditional recruitment channels.
There are two main types of direct recruiting: "Scout-based recruitment", which involves directly approaching candidates through databases or referral hires, and "Internet advertising", which uses platforms like social media or search engines to broadcast your job openings and attract candidates.
Job media and database sites also run advertisements on social media to attract users. By directly distributing ads on social media, we can efficiently guide users to your job openings, enabling effective candidate pool formation.
Our company has over 100 successful job advertisement distribution records across various industries and job types.Leveraging our extensive operational expertise, we support your recruitment activities through web advertising.
We can handle most major digital media, both domestically and internationally. Based on your company's recruitment situation, our professional marketers will propose the most suitable media options.
