Pasona Recruitment (Thailand) Co., Ltd.
Managing Director
Nobuhide Magari
interview=Ken Mitsui | Text=Aya Rikitake | Photographs=Kohei Nishiyama
Supporting Proactive Management with One-Stop Services
Amid concerns about the declining presence of Japanese-affiliated companies, many human resources service companies are proposing wage and personnel system revisions to their clients. In this article, we interviewed Mr. Nobuhide Magari, Managing Director of Pasona Recruitment (Thailand), who not only proposes such revisions to hiring companies but is also advancing their own HR reforms to become a global company.
Providing One-Stop Support for All Human Resource-Related Challenges
―First, could you please tell us about your company’s business activities?
Pasona (Thailand) Group is a comprehensive human resource service company that provides support throughout the entire HR process from entrance to exit. We primarily assist in the recruitment of Thai and Japanese nationals, conduct aptitude tests, offer recruitment marketing process outsourcing, provide training, develop evaluation and wage systems.
Additionally, we conduct engagement surveys, 360-degree evaluations, and offer re-employment support. Our group company has acquired a license for introducing overseas personnel, and recently, we have been developing a business to introduce highly skilled Thai professionals to Japan.
―Next, could you please tell us about your career background?
I joined Pasona Inc. in 2004 and spent seven years in sales for a major manufacturing company, gaining experience in management positions. In 2014, I was assigned to establish the group’s Malaysia office and took on the role of the head. We started in a small rental office with two Malaysian employees.
After working in Malaysia for four years, I moved to Thailand in 2018. Currently, I am still affiliated with the Malaysia office, and since October 2023, I have been overseeing the recruitment departments in five ASEAN countries: Thailand, Malaysia, Singapore, Vietnam, and Indonesia.
―These 5 ASEAN countries are each independent organizations. What made you feel the need for coordination?
These ASEAN offices have significant differences in their establishment years and business strategies. Even though they were able to collaborate with each other, there were issues in terms of information sharing in areas such as systems and marketing. Each country’s top management directs business strategies in line with local culture, but since the business fundamentals are the same, we believed that actively sharing and standardizing systems and marketing would create more efficient synergies. Therefore, we started infrastructure development about two years ago and introduced systems like Porters. Recently, we have been creating business plans that visualize the quality and quantity of recruiting, ensuring constant coordination.
Moreover, for both hiring companies and recruitment agencies, the process doesn’t end with recruitment; after hiring, it’s essential to enhance the performance of each employee by conducting training, deciding on evaluation and wages according to each position or job title. All countries are broadly expanding their business in these HR areas. By offering these services comprehensively, we can minimize inconsistencies and inefficiencies in the workflow, enabling consistent operations. This approach is beneficial for our clients in terms of both cost and effort.
―Could you give examples of the benefits for companies that use your one-stop services?
For instance, one reason newly hired employees leave quickly is that the corporate culture or HR system doesn’t match with the recruited personnel. Other cases involve employees resigning because the job or environment is not what they expected. While we assist in reducing mismatches through the recruitment process, sometimes it’s necessary to transform the corporate culture or change the mindset of existing members. This requires changes to various systems and training. The ability to provide these services comprehensively can be said to be one of our Group’s strengths.
The job search keyword has shifted from "position" to "company name"
―Please tell us about the recent trends among recruiting companies and job seekers in Thailand.
Recent trends in Thailand’s job market show significant changes in how Thai job seekers approach their search. According to JobsDB data, the most common keyword used by Thai job seekers in job searches in 2021 was “company name” at 51%, up from 38% in 2020. On the other hand, 32% of people search for jobs in “positions” such as “Sales” or “Accounting/Accountant” down from 41% the previous year. This reflects a growing preference for ‘wanting to work for a good company’.
Their idea of a ‘good company’ includes strong employer branding, flexible work hours, work-from-home policies, systems that value human resources, a focus on career advancement and skill enhancement, competitive compensation packages, and a sense of fulfillment and pride in their work.
Major Thai corporations, in particular, are placing emphasis on employer branding through PR efforts. They are restructuring internal systems and frameworks to highlight the perspectives of employees and job seekers, emphasizing the numerous opportunities and benefits available to employees through PR efforts. This is generally referred to as EVP (Employee Value Proposition), which denotes “the value that a company provides to its employees in exchange for the value that employees bring to the organization.” It’s crucial to review whether this information meets the expectations of employees and job seekers, and whether it is being communicated effectively.
Due to these factors, there is a growing demand from companies for training aimed at improving individual employee performance and increasing their loyalty to the company. Consultations for group training sessions on sales skills, mindset development, and team building, as well as coaching for HR managers to strengthen HR functions, are also on the rise. In particular, there has been a significant increase in inquiries regarding wage system revisions recently. Additionally, there is a rising trend in engagement surveys aimed at improving workplace culture, and consultations on 360-degree evaluation systems.
Moreover, we have observed an uptick in inquiries from retail-related companies. There is a heightened need for recruitment marketing process outsourcing when hiring multiple people at once, such as store staff, resulting in an even greater focus on recruitment activities than ever before.
I believe it is crucial to review the employer branding and recruitment criteria in line with the company’s future mid- to long-term business plans. Many of these companies, primarily in the manufacturing industry, entered the market alongside key clients and have been defensive-oriented in their management, maintaining existing customers to increase loyalty, maintaining or expanding market share while reducing costs.
For this reason, many Japanese-affiliated firms have historically focused on hiring diligent, long-serving personnel. While such employees are still necessary for certain positions, recently, due to the influence of parent companies or clients, rising costs, market changes, and intensifying competition from foreign entries such as China, management is now required to focus on aggressive business strategies, including new market exploration, expanding sales channels, and investments. It becomes a significant challenge for the companies to shift to aggressive management as many of their previously hired employees may show reluctance towards organizational changes, particularly in embarking on aggressive business strategies like new market exploration and expanding sales channels.
Addressing these challenges requires revising hiring criteria to align with updated market demands and business strategies, hiring new talent profiles, reviewing HR systems such as evaluation and compensation, and expanding training programs. However, underlying all of this is the need to be “prepared for change.” We emphasize the importance of articulating a clear vision of where the company aims to go and what needs to be done now to achieve it. This requires a commitment to substantial transformation, not just temporary and superficial measures, encompassing corporate culture, habits, mindset, and internal systems.
Aiming for “Pasona” to be a global brand
―Recently, there has been a trend for managers of Japanese-affiliated companies to shift from expatriation to localization
This trend is evident when considering the decrease in the number of Japanese residents in ASEAN countries. According to statistics from the Japanese Ministry of Foreign Affairs, the number of Japanese nationals residing in Thailand in FY2023 decreased by about 6,000 compared to the previous year. After peaking at about 82,500 in FY2021, it dropped to around 72,300 in FY 2023. Vietnam and Malaysia have also seen a decline of more than 10% in the past year, and all the five ASEAN countries have seen a sharp decline.
The trend in management is to delegate local operations to local people. For instance, while I, as the representative, am Japanese, our vice president is Thai. While it is true that there are many advantages to having someone with local knowledge take the helm, there are also many Japanese-affiliated companies that are able to maintain and expand their overseas operations relying on the delicate Japanese-style of management and the trust relationship with the head office.
However, achieving successful localization requires a solid foundation of high engagement among local staff towards the company. Engagement entails trust in the company’s policies, business strategies, operations, various systems, and environment—it can also be described as loyalty. It is crucial to ensure that local management personnel, who share the company’s vision, are in place and engaged, so that strategic directions are aligned with local realities.
―Please provide examples of how your company’s support has led to the business expansion for Japanese-affiliated companies.
As an example, we have several achievements in supporting the recruitment of Thai candidates for the next president as a replacement for Japanese expatriates. In one company, market expansion occurred through fresh perspectives from external sources and growth from the implementation of new systems.
In another case, an engagement survey was conducted, it was revealed that despite efforts in communication, the company’s goals and objectives were not fully understood. Improvements in communication methods dramatically enhanced initiative within the organization.
―These are exactly the examples of the one-stop support that your company aims to provide.
Many overseas corporate leaders typically come from backgrounds in sales, finance, or technical fields, and not many of them have experience in human resources. Historically, stable and uniform HR practices were the mainstream, and there was an atmosphere in which recruitment and HR systems were left to local Thai HR personnel and not to be touched. Today, there is a growing need to consider HR strategies that are both technically adept and sensitive to human dynamics with shifts in global markets and evolving societal perspectives.
This trend has accelerated during the COVID-19 pandemic, making HR management more complex and challenging. Against this backdrop, we believe it is crucial not only to provide talent placement services but also to offer overarching support such as training, HR system development, compensation structures, and occasionally assistance with re-employment, tailored to comprehensively support our clients’ organizations.
―Lastly, please share your future prospects.
We aim to make Pasona a global brand that transcends the scope of Japanese-affiliated. To achieve this, we must continue to overcome the challenges we’ve discussed and become a globally competitive company.
The key is undoubtedly human resources and HR systems. While hiring excellent talent may temporarily boost revenue, for us to become a company that is indispensable globally in the medium to long term, we must nurture our people, improve the quality of our services, and become a company valued by both customers and employees. To this end, we will constantly share our company policy “Be Professional” and strive daily to embody this mindset and behavior rigorously.
Pasona Recruitment (Thailand) Co., Ltd.
26th Floor, Sathorn Square Office Tower, 98 North Sathorn Road, Silom, Bangrak, Bangkok 10500, Thailand
https://pasona.co.th/
Established in 2012 as the Thai base of the Pasona Group, a comprehensive human resource services company. It upholds the corporate philosophy of “Solutions to Society’s Problems” and engages in various businesses including expert services (temporary staffing), BPO services (outsourcing and contracting), HR consulting, education and training, global sourcing (international human resource services), and career solutions (recruitment and re-employment support).
Joined Pasona Inc. in 2004 as a new graduate. Worked as an exclusive sales representative for a major manufacturing company, providing staffing services and proposing BPO services. Promoted to team manager in 2011, handling major Japanese and foreign manufacturing clients.
In June 2014, appointed Managing Director to establish Pasona Malaysia, laying the foundation for staffing and consulting services. Since July 2018, concurrently Managing Director of Pasona Recruitment (Thailand) Co., Ltd. Presently overseeing the staffing division across five ASEAN countries, striving to provide a wide range of human resource services with the aim of becoming the only “Japanese-affiliated comprehensive human resource service provider” in ASEAN.
