Expert Interview: Japan vs US Recruiting & Talent Acquisition Differences & Realities (Tom Furlong)
Guest: Tom Furlong, Managing Director, Harvard Group International.
Host: James Santagata, Publisher, FirstPoint Japan and Principal Consultant, SiliconEdge.
Host: James Santagata, Publisher, FirstPoint Japan and Principal Consultant, SiliconEdge.
Running Time: 42 minutes, 13 seconds
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High Quality Version (192 kbps @ 44 khz, stereo)
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Mobile Device Version (128 kbps @ 44 khz, mono)
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Tom Furlong Contact Information
Email: [email protected]
Phone: (678) 214-6065 Twitter: https://twitter.com/TerrellMillTom LinkedIn: http://www.linkedin.com/in/tomfurlong |
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Tom Furlong is the Managing Director of Harvard Group International and has extensive front-line experience in the life sciences industry including a 13-year career at Ciba Vision / Novartis in the US as well having deep recruiting experience (contingency and retained) in both the US and Japan where he focused his recruiting efforts on the life sciences industry.
In this episode we discuss the key differences, obstacles and opportunities of recruiting and talent acquisition in the US and Japan.
There are huge cultural and informational asymmetries in regards to recruiting and talent acquisition in Japan vs US and most other countries.
Client vs Candidate Focus
In the US, a heavy focus is on account development and developing business with clients to get searches to work on while in the Japanese market due to the limited talent pool, cultural risk aversion and other factors, a recruiter generally needs to be focused on the talent base, specifically looking to find that one factor that may motivate them to make a change.
Differences Between Candidates in US and Japan
Japanese tend to exhibit more loyalty and value that loyalty, often to the point whereby they won't even consider working for a direct competitor even when they are unemployed (there has been a massive shift in this mentality since the mid-2000's and again after 2008/2009 market crash).
Seniority Systems, Heirarchies, Gender Considerations
Japanese Outlooks on Risk vs Rewards
Japanese Lifespans and Workspans
Candidate Talent Pools & Fit Requirements
Recruiting Fees and Terms
(We discuss the movement and trends of fees from the immediate post-dot com crash through 2006 through 2008/2009 to today)
Factors Driving This Fee Structure Include:
Active vs Passive Candidates
Tapping into Alternative Labor Pools
In this episode we discuss the key differences, obstacles and opportunities of recruiting and talent acquisition in the US and Japan.
There are huge cultural and informational asymmetries in regards to recruiting and talent acquisition in Japan vs US and most other countries.
- Comparison of industry models.
- Differing client viewpoints.
- Japan vs USA candidate pools.
- Recruiting firms' business model.
Client vs Candidate Focus
- USA = client focused.
- Japan = candidate focused
In the US, a heavy focus is on account development and developing business with clients to get searches to work on while in the Japanese market due to the limited talent pool, cultural risk aversion and other factors, a recruiter generally needs to be focused on the talent base, specifically looking to find that one factor that may motivate them to make a change.
Differences Between Candidates in US and Japan
- US employees are often very active, always keeping one eye open for the next opportunity.
- There is no to at most a very low stigma in the US on changing jobs or "job hopping".
- The definition of stability has shifted in the US.
Japanese tend to exhibit more loyalty and value that loyalty, often to the point whereby they won't even consider working for a direct competitor even when they are unemployed (there has been a massive shift in this mentality since the mid-2000's and again after 2008/2009 market crash).
Seniority Systems, Heirarchies, Gender Considerations
- Age gaps between managers/management and direct reports/staff.
- Effects on prestige.
- Sempai-kouhai relationship.
- Hierarchical organizational structures.
- Male and female managers and subordinates.
Japanese Outlooks on Risk vs Rewards
- Japanese are risk averse.
- Acts of omission vs commission.
- Loss of face and its prevention.
Japanese Lifespans and Workspans
- Total career spans of the domestic workforce in Japan vs US.
- US out of school and into workforce from 18 to 23 years old, oten working until 70 years old.
Candidate Talent Pools & Fit Requirements
- US clients are willing to wait for "exact fit" candidates due to the fact that they have, feel or perceive there is an overflowing pool in many / most worker categories (with obvious exceptions for some industries or functional areas).
- In the Japan market, clients must be willing to accept "close fit" or lose out and never fill the position or at least contend with positions remaining open for 6 months to 1 year.
- In the Japan market clients must be willing to speed up the interview / hiring process as well as pull the trigger on desired or "close fit" candidate or miss out and contend with positions remaining open for 6 months to 1 year.
Recruiting Fees and Terms
(We discuss the movement and trends of fees from the immediate post-dot com crash through 2006 through 2008/2009 to today)
- US market has extreme pressure on fee reduction (contingency fees range from around 20%; retained fees around 30% to 35%) with some exception for top talent in particular industries or markets such as Silicon Valley.
- Japan market has limited concerns regarding fee structure (contingency fees range from a low now of 20% but most often hover around 25% to 35%; retained fee around 30% to 35%).
Factors Driving This Fee Structure Include:
- Velocity of transaction / transactional velocity.
- The effort required to find, develop and maintain the candidate relationship.
Active vs Passive Candidates
- Defining an active candidate
- Defining a passive candidate
- Differences in aggressiveness between US and Japan candidates
- Differences in number of active and passive candidates in US and Japan
Tapping into Alternative Labor Pools
- Women looking for and aggressively positions for career advancement
- Women looking for part time opportunities / job sharing
- Women looking to telecommute / work remotely
- Semi-retired and newly retired individuals
- Mid-hires from domestic firms
- English-limited, no-English ability candidates
