interview=Ken Mitsui | Text=Aya Rikitake | Photographs=Shinsuke Inoue(FUTURE STAGE PTE LTD)
Developing the Singaporean Recruitment Market with the New Work Visa System
In September 2023, Singapore implemented its Complementarity Assessment Framework (COMPASS) to assess Employment Pass (EP) applications for non-local employees. This rule change is expected to have a huge impact on the ratio of Japanese to local employees in Singapore. We spoke to Youhei Watanabe, Singapore Country Manager for RGF HR Agent and who is also overseeing Recruit Group's HR business in Singapore.
We discussed about RGF HR Agent’s hiring landscape and the associated initiatives in the country. We also explored the topic of recruitment in Thailand, where Mr. Watanabe had previously been stationed.
Recruitment Philosophy: 51% of the Job is Satisfying clients and Jobseekers, 49% of the Job is Sales
―Can you tell us about your company’s work?
RGF stands for Recruit Global Family and RGF HR Agent is the overseas business arm of Recruit Group. It primarily functions as a comprehensive HR service, providing support for both employer recruitment activities and candidate job-seeking endeavors. Many companies utilize their Singapore branch office to manage operations in Southeast Asia. Our focus is on supporting individuals’ careers across various fields, rather than being restricted to a specific industry.
―Did you join the company straight after graduating university?
My first job was at a trading company and RGF HR Agent is my third job. I have always wanted to work outside of Japan since my university days when I spent a year studying in San Diego, USA. When I was looking for my first job, I only applied to companies that could provide me opportunities for international assignments. I joined a Mitsubishi Corporation trading company that specialized in trading military weapons.
The company was responsible for selling missiles, tanks, and helicopters between nations. It was there that I first learned the term “G to G”, meaning government to government. Although the work was meaningful, I left the company after nine months due to the challenges associated with working across multiple time zones and the unique dynamics of interpersonal relationships within the organization.
Embarking on a new chapter in my career, I secured my second job at Recruit. I was placed with Riku Navi NEXT, a media business that specializes in supporting mid-career recruitment. I was happy to have an opportunity for a fresh start. I was very passionate about my work and also received recognition through several awards, including the business division MVP. However, as my skills continue to develop, I found myself wanting to work overseas again. That was when I found RGF HR Agent, who was one of my clients at the time. Speaking to the president of the company about recruitment support eventually resulted in my hiring as a local employee in Thailand.
Following a six-month training period in Bangkok catering to corporate clients’ recruitment needs, I relocated to Chonburi in January 2019. Subsequently in May 2022, I made the move to Singapore. Initially serving as the Deputy Country Manager for Singapore, I was promoted to Country Manager in May 2023 after the previous one retired.
Youhei Watanabe"51% focus on the customers and 49% focus on sales is something that we reinforce"
―Tell us about your move from Bangkok to Chonburi.
The previous Branch Manager had left, so it was not a choice I made deliberately. But the change instilled greater confidence in me. Although my first job did not work out as expected, I secured a second chance with Recruit. Progressing steadily, I ventured overseas, and eventually began building up a new customer base in Chonburi, leading to the achievement of another MVP Award. It was in Chonburi where I truly felt that I had the opportunity to make a real contribution to an overseas business.
―Chonburi is more of a local industrial area. I would imagine that the language is likely to be predominately Thai than English. Could you share at which juncture did you learn to speak the Thai language?
Most of my business was with Japanese companies, so there was no immediate need to be proficient in the Thai language. My local colleagues gave me a crash course in the essential phrases required for establishing new business partnerships. As for the conversational Thai required at a restaurants or during taxi rides, I just picked that up as I lived there.
―How would you describe the position of the Chonburi office within the company’s Thai business?
The human resources market in Thailand is highly saturated, and the Chonburi office was just another new entrant. As a late entrant into the market, the most important thing was how quickly we could meet our clients’ needs. This was also how we differentiated ourselves from our competitors. To achieve this, we established strict targets, including the introduction of qualified candidates to companies within three days of receiving an enquiry. We also implemented a standardized system across the team to streamline and formalize our processes.
―What led you to determine that having a rapid response capability was the best way to stand out in the market?
My experience at Riku Navi NEXT taught me it would work. Even if companies spend a lot of money on recruiting advertisements, it does not necessarily mean that they will be able to recruit candidates. If you want companies to continue using your service over the long term, you need to provide customer satisfaction through fast recruitment.
When I worked at Recruit, my supervisor told me that “51% of the job is satisfying the clients and job seekers; 49% is sales.” I took that philosophy to heart. You must always prioritize your clients and candidate satisfaction over your sales. I remain true to that philosophy.
Moving from 360° Headhunting to 180° Recruiter Agent – Candidate Agent (RACA) style Recruitment
―Why were you selected as the Country Manager for Singapore?
I think this can be attributed to my accomplishments of two teams under my supervision during my tenure as the Deputy Country Manager. Specifically, the two teams were the Consumer Goods team and the other was the Business Model feasibility team. I also initiated a feasibility study for transitioning from the previous 360° headhunting style, where one individual acts as both the Recruiting Advisor (RA) in charge of clients and the Career Advisor (CA) who is responsible for candidates, to the more specialized 180°RACA, where each role is performed by a separate individual.
―Why did you start employing a 180° approach?
Headhunting for executive positions declined considerably during the pandemic. We started seeking ways to rebound and to hedge against future risks by widening our scope to stabilize our performance. But if we were going to support regular job candidates as well as management/executive position candidates, we realized that separating the recruiter agent from the candidate agent would be a better way of approaching the business.
―RGF has two separate brands – Professional Recruitment and HR Agent.
That’s right. The Professional Recruitment team is responsible for 360° recruitment of executive roles for foreign-owned firms in Singapore. HR Agent uses a hybrid of 360° and 180° recruitment models to facilitate the placement of candidates with Japanese firms. When our client companies are seeking for candidates in non-executive roles, our system allows us to either take on the task directly or outsource it, and we have an in-house team that is dedicated to sourcing candidates.
Candidate agents are currently assessed based on qualitative key performance indicators (KPIs) that include the number of positions for which they actively seek candidates, the number of candidates they recommend, and their performance at each stage of the process from recommendation to the interview phase. Presently, a single candidate agent is tasked with handling responsibilities across all fields and positions. We are looking to improve the specialization of our agents and move towards a more segmented approach.
―Where do you think your company’s strengths lie with regard to your candidate services?
I believe it is our consistent commitment to a customer-first approach. As most of Recruit Group’s overseas HR offices, including our company, are late market entrants, our approach of 51% focus on the customers and 49% focus on sales is something that we reinforce at all levels of our company. This approach has enabled us to formulate strategies that prioritize a customer-centric focus.
COMPASS will Change Singapore’s Recruitment Environment
―What can you tell us about recent recruitment and candidate trends in Southeast Asia?
Approximately 25% of Japanese companies have downsized their overseas staff during the pandemic. We expect that between 40% to 50% of Japanese companies will either maintain current staffing levels or will further reduce their workforce outside Japan. This is particularly true in Singapore, where the COMPASS framework launched in September 2023 now requires stricter visa screening criteria, which results in greater recruitment costs.
We foresee a growing number of companies choosing to reduce their number of Japanese employees, downsize office spaces, or expand local recruitment efforts. Even for those companies choosing to retain their Japanese employees, the challenge lies in managing high personnel expenses and ensure profitability. This is an area where our company can deliver solutions. We are already receiving an increasing number of inquiries from companies that are grappling with this crisis and we are providing them with customized marketing and consulting services to address salaries, HR evaluations, and employee benefits.
―One issue Japanese companies around the world are facing is a decrease in their competitive strength. How do you view this issue?
I think that Japanese and non-Japanese companies have very different perspectives on the appropriate allocation for employee salaries and benefits. This is particularly true of long-standing Japanese companies that have traditionally stressed the importance of “membership” in the company. The compensation packages they offer to candidates tend to be less favorable compared to those offered by non-Japanese companies. The traditional Japanese approach has been to employ someone without experience and train them as a generalist who will dedicate their life to the company.
However, non-Japanese companies tend to hire people for specific jobs, this aligns with the preference of Singaporean job seekers who want to develop their careers as specialists. Beyond Japan, it is extremely difficult to hire people who are willing to go along with Japan’s generalist employment system, which prioritizes company affiliation over specialized roles. Start-up companies are more likely to have received advice from management consultants than established companies. They are relatively more prepared to invest in their people, and their compensation packages tend to be similar to non-Japanese companies.
There are also significant differences in the holiday allowances provided by Japanese and non-Japanese companies. Many long-standing Japanese companies only offer 10 days of paid annual leave whereas at a foreign-owned company, there is a clear expectation of 20 days leave. At the very least, there would be 14 days of annual leave provided.
―What can you tell us about the differences between the Thai and Singaporean markets?
People have different priorities when choosing jobs. People in Singapore are more concerned with work-life balance than on gross salary alone. They also emphasize career progression. In Thailand, people tend to focus more on the gross salary and employee benefits as primary factors in their job choices.
―Finally, could you tell us what you intend to focus on in your business in the future?
Singapore, housing numerous financial companies is significantly influenced by global trends. According to Singapore’s Ministry of Trade and Industry, growth this year is expected to be between 0.5% and 1.5%, which is lower than other Southeast Asian countries. Achieving equilibrium with the economic performance of neighboring Southeast Asian countries is a current challenge for Singapore.
Another pressing concern is the upcoming renewal of the COMPASS employment pass in 2024 which is expected to accelerate localization of jobs within the Singaporean market. To address this, we will provide consulting services to assist our clients in making informed decisions on whether to increase local employment, reduce the scale of their operations, or increase the number of Japanese employees.
RGF Talent Solutions Singapore Pte. Ltd.
120 Robinson Road #14-01 Singapore 068913
https://www.rgf-hragent.asia/singapore/
RGF Talent Solutions (which provides services under the brand name RGF HR Agent) is an overseas subsidiary of The Recruit Group, one of the largest Japanese providers of comprehensive human resources related services and information. The company provides comprehensive human resources services to support the recruiting activities of companies and the job-seeking activities of candidates, harnessing the knowledge and network they have built over the six decades since its foundation, and to uncover new employment possibilities worldwide.
Started his career at a specialist trading company upon graduation from university. Joined Recruit Career Co., Ltd.(Currently Recruit Co., Ltd.) in 2015, where he worked in sales for the Riku Navi Next service. Frequent winner of MVP awards within his business division, with notable achievements such as being selected as a finalist in Recruit’s internal competition for innovative business proposals. (Ring). In 2018, following three years of working in Tokyo, he was recruited by RGF Thailand to work in Chonburi as a Branch Manager. He is currently the Country Manager for RGF Singapore.
