【Chapter 2】🔧 Challenges of In-House Recruitment

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【Chapter 2】🔧 Challenges of In-House Recruitment

Date: 2025.04.17

【Article Series on “Hidden Challenges” in Japanese Business Expansion to Vietnam】

🔸Chapter 2: 🔧 Challenges of In-House Recruitment

1. High Recruitment Costs

Hiring full-time employees comes with numerous fixed expenses, including salary, insurance, allowances, paid leave, social insurance, and severance pay.
Additionally, to ensure effective workforce utilization, companies must invest in post-recruitment training, creating resource allocation challenges.

2. Difficulty Adjusting Personnel to Workload

Scaling the workforce based on workload fluctuations is nearly impossible.
For full-time employees, making adjustments—such as termination or changes in work conditions—is highly challenging.

3. Inability to Guarantee Personnel Quality

If new hires fail to meet expectations, retraining or replacement requires significant time and costs.

4. Increased Management and Training Burden

Managing full-time employees demands substantial resources in terms of time, effort, and expenses.

5. Legal Compliance

Businesses must strictly adhere to labor laws that protect workers’ rights.
Failure to comply can lead to severe penalties, often more serious than anticipated.

6. Prolonged Recruitment Process

Internal hiring typically requires a lengthy process, with no guarantee of securing the right candidate.

In summary, in-house recruitment and personnel management come with significant constraints in terms of cost, time, and legal compliance—particularly in business environments like Vietnam. To mitigate risks and optimize resources, an increasing number of Japanese companies are turning to outsourcing as a more flexible and efficient solution for back-office management.

Outsourcing – An Ideal Solution to Personnel Challenges

To effectively address these challenges, an increasing number of businesses are opting to outsource back-office operations.
In Vietnam, partnering with a reliable outsourcing provider not only helps reduce costs but also offers greater flexibility in personnel management, access to specialized expertise, and improved legal compliance.