interview=Ken Mitsui | Text=Aya Rikitake | Photographs=Kohei Nishiyama
Personnel Consultant Manpower (Thailand) will celebrate its 30th anniversary in 2024 as a recruitment agency in Thailand. We had its CEO, Mr. Yasushi Odahara, share insights on the current situation in Thailand and key points of hiring, in the hope that it will be helpful for Japanese companies considering expanding into Thailand or recruitment of Thai employees.
30 years since the establishment with the motto "Supporting people who work hard in Thailand"
Awarded as the best recruitment agency by the Ministry of Labor of Thailand.
―Please describe your business activities.
We are a recruitment agency founded in 1994 with the motto of “Supporting people who work hard in Thailand” Our business includes the intermediary of Thai and Japanese staff to Japanese-affiliated companies, short-term temporary staffing of interpreters and accounting clerks, translation between Thai-Japanese-English, rental office management, holding seminars for Japanese and Thai people, and business consulting. In 2008 and 2011, we were awarded as the best recruitment agency by the Employment Agency of Thai Ministry of Labor, and our total number of accumulated registered job applicants has exceeded 150,000 as of 2019.
―What led you to focus on the recruitment business in Thailand 30 years ago?
After graduating from a university in the United States, I was looking for a job in Southeast Asia, which is close to Japan, and first sought a foothold in Malaysia, where English is relatively common. However, I could not find a job as I had hoped, so I was forced to take the train north to Thailand. There I came across a job opening at a real estate company in Bangkok. This is where my relationship with Thailand began.
At the real estate company I worked, I was introducing Thai properties to expatriates of Japanese companies who had been assigned to work in Thailand. When I was showing properties, I spent many hours with clients, so we naturally talked about things other than properties. We talked about everything from hobbies and shopping to work and management.
The most common concern and consultation were regarding recruitment. Thirty years ago, Thailand did not yet have a system or specialized agencies to handle recruitment. Manufacturers and other companies hired their own staff, and there was no consistency in the hiring process, which was based on personal connections and nepotism. There was a discrepancy between the job descriptions and the skills/desires of the job seekers. The turnover rate was high, and the reality was that only simple tasks could be entrusted to the workers.
Our customers were struggling, so it is only natural that I listen to them. This is how I started helping them with their recruitment needs and laid the foundation of our company. I became independent and founded our company in 1994 with the belief that “If there is a recruitment agency in Thailand, we can support the advancement of Japanese-affiliated companies.
Yasushi Odahara"To create a comfortable working environment"
―How has the competitiveness for recruitment of Japanese-affiliated companies in Thailand changed?
At the time of our company’s founding, Japanese companies had a good image, so much so that when people talked about good companies, they were referring to Japanese-affiliate companies. Salaries were more generous than those of Thai companies, and benefits were also better. Under these circumstances, we strived to intermediate the right person for the job, taking into consideration the skills and wishes of the candidate, and gradually gained their trust.
However, these days, it is much less likely that an excellent company will simply mean a Japanese-affiliated company. Thailand continues to experience remarkable growth, and excellent Thai companies with local capital are appearing one after another. In some cases, local businesspeople nurtured by Japanese companies in the 1990s have started their own businesses and even become competitors of Japanese-affiliated companies.
Among these companies, there are many that excel in terms of salaries and future prospects, surpassing Japanese companies, and the market has diversified to the point where Japanese-affiliated companies are just a part of the numerous excellent companies. With the changing times, the perception that excellent companies are synonymous with Japanese-affiliated companies has become less common for both the companies themselves and job seekers.
―Are there any changes in the industry trends?
At the end of the 20th century, the Thai market was driven by the manufacturing industry, particularly the automotive industry. However, in the past decade, corporate activities in the retail and service industries have been flourishing. Among these, there are moves to expand the scale of stores, and there are many new industries that are experiencing rapid growth. Workers have also come to see these industries as new and attractive working opportunities. The diversification of the labor market has become pronounced.
On the other hand, our fundamental understanding is that there are some traditional values that Thai job seekers hold in common that have remained consistent. The key is “whether it feels comfortable,” which can be expressed in Thai as “Sabai.” One might say that this is the unique keyword that prevents people from leaving their jobs.
For example, after a company has been in business for 10 years, its corporate culture becomes stable and its human resources are established. People who join a company that has entered a stable phase can determine what kind of company it is and whether it is comfortable to work there from the start of their employment. Naturally, the turnover rate is low, and employees become even more established. Companies that are committed to improving the internal work environment will continue to see increased employee retention.
In other words, “to create a comfortable working environment” for employees as quickly as possible is the key to preventing employee turnover. In fact, companies that are aware of this point tend to have lower turnover rates.
―What specifically defines a comfortable environment?
Environment for opinions/information within the company. Thai people value heart-to-heart connections and hold interpersonal communication in high regard. They engage in discussions by looking into each other’s eyes and work together to find solutions, both in professional and personal settings. Companies that have established such an environment and structure tend to retain employees for a long time.
Some of you are concerned that if there is less turnover, there will be less opportunity for the recruiting business, but this is slightly different. What we are seeking is the growth of our client companies. If excellent human resources are retained, it will lead to the company’s further growth. In the process of corporate growth, new jobs will surely be created. We would be grateful if they would use us again when that happens.
When a company reaches its 20th or 30th year, there are cases where people who started their careers utilizing our service long ago are now in management positions or have reached retirement age. It is a deeply moving moment when we come into contact with these people again. It is also a moment when we realize that the most important thing is creating an environment in which they can work for a long time.
"It’s time for reviewing the salary system."
―What kind of labor measures are required for Japanese-affiliated companies to survive in Thailand?
It’s a difficult topic to answer in a simple way, but one aspect might be the salary system. In general, Japanese companies, including those in Thailand, tend to have a conservative approach to salaries. They often rely on average and median values for various matters. Starting salaries are kept quite low compared to Japanese employees, and raises are small steps at 2-3% per year.
Thai and foreign companies that are growing rapidly do not adopt such as a system. They treat people with high ability and good performance with generous compensation and pay raises of 20-30%. Japanese companies cannot compete in the current situation. Of course, there is a risk that if results are not achieved, employment may be terminated, but it is also true fact that talented young people in Thailand are increasingly choosing to work with rapidly growing Thai or foreign companies.
―It is difficult to go into the modification of the salary system because it would require an overall review.
The reality is that it is difficult for Japanese-affiliated companies to immediately switch to a system in which compensation is based on work performance, due to existing customs and personnel systems. Nevertheless, as they compete on the global stage, a review of the salary system may have been emerged as a pressing issue that cannot be avoided. The need to shift towards a system that individuals who have demonstrated abilities and achievements can receive salaries that are in line with international standards should be considered.
To achieve this, it may require a complete review the company’s recruitment system. Data shows that companies that are able to attract top talent spend 30-40% more per hire than those that are not able to. Companies need to implement a solid recruiting system in place and salary structures that meet international standards to acquire talents. The moves of start-up companies that are making bold hirings can be very instructive.
Continue to be a company that supports "People who work hard in Thailand" and "Thai people who want to work in Japan”
―As we enter the post-COVID era, will the recruitment business continue to be the core in the future?
Our rental office and translation/interpretation business have evolved from the recruitment agency business, and the core of our business activities will remain the same. In Thailand, licenses are required for each type of business, which is why we have established separate companies for each type of business.
Recruitment agency business is basically conducted face-to-face. During the pandemic, we initially faced significant challenges in carrying out our operations. However, as our younger staff members took the lead in adopting online methods, we began to see the benefits that were not apparent before. The use of online interviews improved our schedule management, and we also saw an increase in job applicants who were previously unable to attend interviews due to distance or other reasons.
―What are your resolutions for the future?
Although the competitiveness of Japanese-affiliated companies has declined, there are still a large number of Japanese-affiliated companies in Thailand, and they have a long history. The number of Thai people who wish to work for Japanese-affiliated companies is not rapidly decreasing. Japanese recruitment agencies are highly regarded for their strong support before and after recruitment service, and we believe this is one of our strengths.
Since our founding, our company has upheld the motto of “Supporting people who work hard in Thailand,” and we plan to continue this commitment in the future. In recent years, there has been a growing number of young Thai individuals who wish to work in Japan, and we also want to focus on activities that “Support Thai people who want to work in Japan.” We aim to leverage the expertise and knowledge we have accumulated over the past 30 years to the fullest and contribute to the development of Japanese-affiliated companies, Thai people, and the Kingdom of Thailand.
PERSONNEL CONSULTANT MANPOWER (THAILAND) CO., LTD
L, UL FLOOR Interchange 21 Bldg, 399 SUKHUMVIT ROAD, KLONTOEY NUA, WATTANA, BANGKOK 10110 THAILAND
https://www.personnelconsultant.co.th
Established in 1994. Provides Japanese-affiliated companies with recruitment agency services of Thai and Japanese staff, short-term temporary staffing of interpreters and accounting clerks, translation between Thai-Japanese-English, rental office management, holding seminars for Japanese and Thai people, business consulting.
Born in 1969 in Fukuoka City, Fukuoka Prefecture. After moving to the United States at the age of 19 and graduating from the college in Oregon. Moved to Thailand in 1993. Established the current Personnel Consultant in 1994. The total number of registered users exceeded 150,000, and in 2008 and 2011, he was awarded the Best Achievement Award by the Employment Brokerage Department of the Ministry of Labor of Thailand. Chairman of the Bangkok Surivong Rotary Club for the 110th and 112th terms. Served as the representative director of WAOJE, a gathering of Japanese entrepreneurs who are active around the world, for two years (2020-2022). Director of the Japanese Association of Thailand.
