‘They’re just numbers,’ in fact the owner’s CEO says of the record gains

(Bloomberg) – Hisayuki “Deco” Idekoba is not really impressed with the results of his first year as CEO of Japan’s Recruit Holdings Co., the world’s top job seeker.

Most read from Bloomberg

“These are just numbers,” Idekoba said in an interview after the company reported a record profit of 512 billion yen ($ 4 billion) and a 27% increase in revenue for the fiscal year ended March. “It bothers me that we have not yet come close to the goal of making recruitment easier.”

Although relatively unknown outside its home market, Recruit is Indeed.com, as well as Glassdoor, the company behind the pay and employer-review website. It’s like putting Japan’s ninth largest company, online travel booking, real-estate listings, payments and other consumer sites across a wide empire – Booking.com, Zillow, Square and LinkedIn under one umbrella.

Now its biggest goal is to shake up how companies around the world recruit.

Edecoba, who persuaded his bosses to buy him as a startup a decade ago and then spent most of the year in Austin, Texas, as the business thrives, is confident that online recruitment could evolve to a stage where job seekers can find jobs under pressure. A single button. It eventually comes down to getting more data.

“We still need to improve the product,” said Idekoba, who described the development of online recruitment as a decade behind the web-travel market and said that resourcing should be eliminated altogether for even more advanced tools. Match employers and workers. “We need to get to know our users better,” he said.

Read more: Actually behind the boss, Glasdor says job hunting is ‘completely broken’

The epidemic has caused unprecedented turmoil in the global labor market, with U.S. employers raising wages, providing more flexibility and increasing job opportunities. Idekoba has previously called on companies to modernize their hiring processes, offering questions and assessment tests – the results of which can be saved and used by job seekers for future applications – as a good measure of whether one can navigate the requirements.

As a blessing in disguise for The Great Regency Company, Recruit’s high-margin job-portal business revenue has nearly doubled in recent years to $ 7.7 billion, with a 38% margin for consistent income before interest, taxes, deductions and deductions. By comparison, the other two categories of recruits, staffing and online consumer services, have margins below 20%, although they make up about 80% of sales.

Despite the increase in profits, Recruit’s embrace of human-resource technology has made it much more of a technology company and has faced sector-related volatility in stock prices. After growing 61% in 2021, the recruit has lost nearly a third of its value this year.

Asked if it would be more understandable to split up recruitment by engraving consumer businesses, Idekoba declined to comment. Instead, he spoke of the need to offer more sophisticated matching tools, which are applicable to travelers, home buyers and online shoppers alike, as they do for job search.

The founder of Recruit, one of Japan’s most infamous companies, was at the center of a share-for-favor scandal that toppled a prime minister more than three decades ago. A few years after rebuilding the business, Edecobar’s predecessor took the company to the public in 2014 to raise cash and issue public stocks that could be used for large acquisitions.

But in addition to the lass 1.2 billion purchase of Glassdoor in 2018, the recruit did not make any major deals despite having এবং 5.5 billion in cash and equivalent at the end of March. With goals in mind, Idekoba says it’s always better to start with a partnership to get a better idea of ​​whether the merger or acquisition will be mutually beneficial. He has made his mark so far by launching and growing new ventures within the company.

“The perfect priority is whether it’s good for the user, good for the client and good for the community,” Edecoba said.

Most read from Bloomberg Business Week

© 2022 Bloomberg LP

Leave a Reply

Your email address will not be published.