New Year’s Reflection
I would like to extend my warmest greetings to all our stakeholders on the New Year and the very best wishes that you may enjoy 2019 in good health and success.
Our company was established in 1997 specializing in manufacturing outsourcing business, and 2019 marks our 23rd year since founding. At that time, worker dispatch was still prohibited at manufacturing worksites, and manufacturing outsourcing business was carried out under the form of outsourced contracts, but in most cases, the reality was effectively worker dispatch. This business carrying such legal risks made it quite difficult to become true partners for client, and it was an industry with a complete lack of differentiation among competitors.
Not limited to manufacturing outsourcing business, the majority of HR services business is recurring stock business, where the number of dispatched workers is linked to earnings growth; in other words, increasing the number of people hired is indispensable for growth in HR services business.
In an era when it was difficult to differentiate from competitors at the time of our founding, recruitment was conducted in a crowded field using the same recruiting details, and it was like luck that job seekers would apply to us. As a result, during strong economies, hiring competition with no differentiation became even more intensified as demand for workers rose, making it difficult to secure the required number of people or resulting in recruitment cost overruns, ultimately resulting in not achieving expected growth.
As the laws governing the HR services industry have been tightened over time leading up to present day, we have absolutely no interest in past schemes aimed at increasing hires among the crowded field of competitors to meet demand for production hikes, rather focusing on areas where competitors have not entered such as PEO and AI development staff, US military facilities and BPO for government agencies etc., developing business proposals and strategies to become true partners with clients, thereby making progress on our Medium-Term Management Plan and Long-Term Corporate Vision.
Through these initiatives, our recruitments were significantly differentiated from competitors, and as a result, our hiring record in terms of both the number of people as well as recruitment cost reduction has consistently come in ahead of plan, and there are no instances where agenda items citing problems with hiring difficulties come up during various internal meetings.
Today, the annual number of hires for the OUTSOURCING Group ranks among the top firms in all of Japan, undoubtedly reflecting a change in perception among job seekers of the appeal of the business description of the OUTSOURCING Group, and I feel our biggest progression since founding is our advantageous position in recruitment.
Looking ahead to the next 23 years, I feel a profound sense of excitement just thinking about the size of expectations and potential on how the OUTSOURCING Group will evolve going forward.
We ask for your continuing support in 2019.
Sincerely,
Haruhiko Doi
Chairman and CEO
January 1, 2019