Comparison of Japan and USA Business Models in the Recruitment Industry (Slide Show to Accompany Presentation)

1. Recruiting Industry
United States vs Japan
Tom Furlong, CPC
Executive Recruiter
Life Science Industry

2. Overview
 Comparison of:
 Country Industry Models
 Client Viewpoint
 Candidate Pools
 Search Firm Models

3. Country Industry Comparison
United States Japan
 Client Focused  Candidate Focused
 Large Candidate Pool  Small Candidate Pool
 Client Willing to Wait for  Client will Accept
“Exact Fit” “Close Fit” Candidate
 Extreme Pressure on  Limited Concern on
Fee Reduction Fee Structure

4. Recruitment Industry- U.S. Model
 Emphasis on Client Network Development
 2nd Priority: Candidate Network
 Candidate Must Be 100% Match
 Meet all Client Requirements
 Higher Standards of Selectivity

5. Recruitment Industry- Japan Model
 Emphasis: Candidate Procurement
 Pressure to Develop Candidate Networks
 Must Tailor Job Search to Meet Available
Client Pool

6. Country Comparison- Client Viewpoint
United States Japan
 Best Hire Available at  Main Concern: Filling
Best Fee Structure Open Position
 Acceptance of Less  Partner with “High
Service for Lower Fee Credibility” Firms
 Limited Value in Long  Looks for Expertise
Term Relationships  Competing Firms =
 Competing Firms = Increased Candidate
Lower Service Fee Pool

7. Client Pool- Japan Model
 Employer Main Concern: Filling Position
 Willing to Handle Full Service Search Fee
 Limits Search to 2-3 Firms
 Emphasis on High-Credibility Search Firms
 Suspicious of low cost & start-up firms
 Looks for expertise in employer’s field
 Always Open to Meet Qualified Candidates
 Minor Concern: Fee Structure

8. Client Pool- U.S. Model
 Many Search Firm Options
 Fee Competition
 Willing to Utilize Established & New Firms
 Selective With Executive Search Openings
 High Number of Active & Passive Candidates
 Greater Opportunity to Find Ideal Candidate

9. Candidate Pool- U.S. Model
 Low Employee Loyalty Level
 Willing to Switch Positions for a Variety
of Financial or Emotional Reasons
 Open to Consider New Career Positions
 Employed Candidates Looking for
Next Career Opportunity
 Many Qualified Unemployed Candidates
 Minimal Stigma if Non-Performance Related

10. Candidate Pool- Japan Model
 Long Term Employment (Shushin Koyō)
 Pay Increases & Duties Decrease with Tenure
 Fear of Prestige Loss in New Hierarchy
 High Loyalty Level to Employer
 Dishonorable to Consider New Opportunity
 Risk Averse Culture
 Mandatory Retirement at Age 60

11. Search Firms (Established)- U.S. Model
 Commitment to Search Industry
 Long-term Track Record of Results
 Mentoring Process for New Recruiters
 Expert in Client Industry Channel
 Relationship Development Experience with
both Client and Candidate Networks

12. Search Firms (Upstart)- U.S. Model
 Current/Last Career Choice
 Lack of Search Process Sophistication
 Reliance on Social Network “Data Mining”
 Quick Placement, not Best Placement
 Sells Fee, not Service, to Client
 Hard Sell to Close Client & Candidate

13. Native Search Firms- Japan Model
 Lack of Search Process Sophistication
 Large Candidate Base
 Mainly from Acquired Databases
 Limited Candidate Contact
 Limited Candidate Screening
 Client Base: Japanese Corporations

14. Multinational/Boutique Search Firms-
Japan Model
 High Understanding of Search Process
 Limited Candidate Base
 Bi-lingual Candidates
 Sourced by Search Efforts
 Present 3-5 Pre-screened Candidates
 Client base: Foreign National Corporations

15. About Tom 富(とむ)
 23-Year Life Science Industry Professional
 C- Level Consultant to Life Science Firms
 Multiple National & Regional Awards
 Success in U.S., Canada, & Japan Markets
 e-mail: tafurlong99@yahoo.com
 Twitter: TerrellMillTom
 LinkedIn: http://www.linkedin.com/in/tomfurlong