No.2351
02/10/2020

RPO (Recruitment Process Outsourcing) Market in Japan: Key Research Findings 2019

Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic RPO market and has found out the major market categories, trends of market players, and future outlook.


Transition of Total RPO Market Size (Total Major 5 Categories)
Transition of Total RPO Market Size (Total Major 5 Categories)

Market Overview

The total RPO (Recruitment Process Outsourcing) market size (total of five market categories) for FY2018 was valued at 719,300 million yen, up by 8.6% from the previous fiscal year. In this research, the total RPO market refers to the total of the following five categories: 1) recruitment outsourcing, 2) recruitment management system, 3) personnel assessment for recruitment, 4) recruitment services (for white-collar jobs), and 5) job information services (online job information, and part-time job/temporary job information). Although the market size calculated is a reference range as some category sizes overlap, all the five categories exceeded the previous fiscal year.

Noteworthy Topics

Recruitment Support Business in Spotlight

Economic recovery since FY2012 has finally ended the long-lasted suspension or diminishing of recruitment at enterprises ever since the collapse of Lehman Brothers, and has driven more companies to show vigorous intention for employment. The ratio of job openings to job applicants has kept on being around 1.0 (according to MHLW data). On the other hand, falling birth rate and aging population led the total population in Japan to decrease after hitting the peak in 2008, and population of productive age (from age 15 to less than 65) in 1995, according to Statistic Bureau, Ministry of Internal Affairs and Communications. In particular, obvious shortage can be observed in young generation. While the companies suffer from securing young or excellent manpower together with more complicated and time-consuming recruitment processes than before, the outsourcing services for supporting recruitment have begun drawing attention among enterprises.

In addition, in the status difficult to secure workforce in the continuous seller’s market, the recruitment knowhow that have been accumulated for a long time at companies has become ineffective to acquire new personnel. This led more companies to outsource even the very basic part of recruitment which used to be determined within each company, such as strategic employment planning and definition of required personnel. More recruitment support service providers have become motivated and encouraged by the increasing number of companies making account of and showing generosity to invest in recruitment. The market has been well boosted by the expanding demand for RPO solutions which enable to solve problems and to optimize recruitment processes that differ by each client.

Meanwhile, when observing the environment surrounding the recruiting service providers, increase of the demand by the customers has encouraged some of the providers to shift from being mere recruitment agencies to recruitment consulting firms that provide value-added solutions and build a system to offer some services all at once. Furthermore, with their missions no longer limited to recruitment supports, organizing of a consolidated system to undertake HR tasks and provide the HR-related services across the multiple departments of an enterprise is in progress. Such a tendency has brought about many companies from different industries, not necessarily related with the human resources or recruitment, to enter the market, which has been accelerated by emerge of HRTech, allowing more recruitment services not to intervene with humans. This increases the needs to review the workflow at service providers, including reviewing of the boundary between those that need human intervention and those not, as well as the boundary of the services that must be provided by the humans.

Future Outlook

The total RPO (Recruitment Process Outsourcing) market size (total of five market categories) for FY2019 is projected to rise by 8.6% from the previous fiscal year to attain 781,500 million yen. All the five categories are expected to increase from the previous fiscal year, as follows: Recruitment outsourcing to grow by 17.5%, recruitment management system by 13.3%, personnel assessment for recruitment 1.8%, recruitment services 12.2%, job information services (online job information) 11.8%, and another job information services (part-time job/temporary job information) 2.6%.

Research Outline

1.Research Period: April to July, 2019
2.Research Object: Outsourcing companies providing mid-career recruitment services, etc.
3.Research Methogology: Face-to-face interviews, survey via telephone, questionnaire, and literature research

RPO (Recruitment process outsourcing) Market

Recruitment process outsourcing (RPO) in this research is defined as BPO (Business Process Outsourcing) in the category of recruitment processes at enterprises, which include the services for consulting, training, and other HR-related services, i.e., strategical recruitment planning in consideration of business growth. MSP (Managed Service Program), a highly effective way for employers to procure and manage their contingent workforces, is also included. The RPO market in this research refers to the total of the following five categories: 1) recruitment outsourcing, 2) recruitment management system, 3) personnel assessment for recruitment, 4) recruitment services (for white-collar jobs), and 5) job information services (online job information, part-time job/temporary job information). The total market size refers to the total value of the above-mentioned five categories.

HRTech, a coined word from Human Resources and Technologies, is a solution to improve tasks in the area of HR and labor, such as payroll calculation, attendance management, manpower training, recruitment activities, and personnel evaluation. The solution includes utilization of accumulated employee data to invigorate the organization (adequate allocation of human resources).

<Products and Services in the Market>

RPO, recruitment outsourcing, recruitment management system, personnel assessment for recruitment, recruitment service, job information service

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