Recruiting channels of foreign subsidiaries in Japan

Despite increasing interest in recruitment and selection, surprisingly little is known regarding recruiting practices and channels in foreign subsidiaries. This study focuses on the utilization and success of recruiting channels of foreign subsidiaries in Japan. Interviews with 40 company managers show that recruitment strategies in foreign subsidiaries progress through different stages. Lacking social networks but possessing substantial financial resources, small and newly established subsidiaries rely primarily on headhunters. However, larger subsidiaries with longer presence in Japan tend to diversify and localize their recruitment channels. Owing partly to a reduction in ethnocentric attitudes, foreign subsidiaries in certain industries are capable of attracting high-quality job candidates. Overall, the interviews revealed that referrals are the best recruiting channel for the production of high-quality candidates who fit in well, exhibit high company loyalty, and perform well on the job.