What is a recruitment agency? How it works, fees, and the hiring process

If you’re hiring in Japan and struggling to find the right talent, working with a recruitment agency might be the solution you need. Recruitment agencies connect companies with job seekers, especially those with specialized skills or experience. They can also help keep your hiring confidential and take a lot of the heavy lifting off your plate.

In this article, we’ll explain how recruitment agencies work, the typical fees involved, the hiring process, and what to watch out for. Whether you’re getting few applications or don’t have a dedicated HR team, a recruitment agency could make your hiring process smoother and more effective.

What exactly is a recruitment agency?

A recruitment agency acts as a matchmaker between companies and candidates. They find, screen, and recommend people who fit your job requirements. On top of that, they often handle interview scheduling and help you manage communication, saving you time and effort.

This makes it easier to hire skilled professionals quickly, especially for roles that require specific expertise.

Types of recruitment agencies

There are three main types you should know about:

Database-based agencies These agencies have a pool of registered candidates. They match your job requirements with candidates from their database and introduce you to suitable people. You can choose to post jobs publicly or keep them confidential.

Search-based agencies (headhunting/executive search) These agencies actively search for candidates, including those not currently looking for a job. They reach out directly to potential fits. This method is especially useful when hiring executives or highly specialized professionals.

Outplacement agencies Sometimes companies need to support employees leaving due to layoffs or restructuring. Outplacement agencies help those individuals find new jobs, usually funded by the employer.

The most common for everyday hiring is the database-based agency. Many agencies carefully vet their candidates, making them a great resource for finding highly skilled talent. Typically, you only pay a fee after you hire someone, which reduces your risk.

If you want to learn more about headhunting, we have a separate article explaining how it works.

Recruitment agencies vs. job boards — what’s the difference?

Recruitment agencies actively search and recommend candidates, manage coordination, and help negotiate terms. You pay only when you hire, which minimizes wasted effort.

Job boards allow you to post jobs publicly and collect applications, but you handle all screening and interviews yourself. This works well if you want many applicants but can require more time and risk mismatches.

When should you consider using a recruitment agency?

Recruitment agencies are especially helpful if:

You’re not getting enough applications Smaller or lesser-known companies often struggle to attract candidates through job postings alone. Agencies can reach passive candidates who aren’t actively applying but might be open to the right opportunity.

You lack recruitment expertise in-house If your team isn’t experienced with setting hiring criteria or organizing interviews, agencies provide valuable advice and market insights.

You need specialists or managers Agencies often register vetted professionals, including passive candidates. This makes it easier to find those hard-to-fill roles.

Benefits of using a recruitment agency

Save time and reduce workload Agencies handle job posting, screening, and interview scheduling — letting your team focus on deciding who’s the best fit.

Get expert advice Recruiters know the market and can help improve your job descriptions and hiring process.

Access top talent They have access to candidates with specific skills who might not respond to public ads.

Keep hiring confidential If you want to keep openings private, agencies can help manage that.

Smooth negotiations Agencies mediate salary and contract discussions, helping both sides reach agreement without awkwardness.

What should you watch out for?

Recruitment agencies bring many benefits, helping you find the right talent efficiently and effectively. To get the most out of the partnership, it’s helpful to be aware of a few key points before you start.

Understanding recruitment agency fees Recruitment agencies charge referral fees, which vary depending on the agency and the level of service. Because agencies focus on high-quality candidate matches, the investment can add up when hiring multiple people. For larger-scale recruitment, combining agency support with job boards or other channels can be a smart approach.

Building your internal recruitment expertise Working with a recruitment agency can streamline hiring, but it’s also a great opportunity to strengthen your company’s own recruitment know-how. By actively engaging with consultants, documenting advice, and applying best practices, your internal team can grow its skills and be even more effective over time.

What do recruitment agency fees look like?

The cost of using a recruitment agency varies depending on the job type and level of the position. Before choosing an agency, it’s important to get quotes from multiple firms and carefully compare their fees and contract terms.

There are two main fee structures for recruitment agencies: contingency-based and retainer-based. Each differs in payment timing and contract nature, so you should select the one that best fits the type of talent you want to hire and your internal resources.

Contingency-Based Fees With a contingency fee model, you pay the agency only when a candidate is successfully hired. This is the most common structure for registered candidate agencies and has the advantage of no upfront costs. If you don’t hire anyone, you won’t incur any fees, which minimizes your hiring risk.

Retainer-Based Fees Retainer fees are paid upfront when you sign a contract with the agency. This model is common for search or headhunting services and sometimes includes an additional success fee after hiring. The benefit is that agencies are highly motivated to actively find top talent and provide high-quality service since they are paid in advance. However, companies take on more risk because fees must be paid even if no hire results.

What does the process look like?

Understanding the general flow when working with a recruitment agency helps make your hiring process smoother. Here are the typical steps:

Initial inquiry and consultation Start by contacting recruitment agencies. Review their track record and reputation through their websites or referrals to find those that suit your company’s needs. During the inquiry, the agency will ask about your hiring requirements and provide an estimate for their services and fees. It’s recommended to compare several agencies.

Contract signing Once you’re satisfied with the service details, duration, and fees, you sign a contract. The agreement should clearly outline the fee structure, scope of services, confidentiality, and other important terms. Make sure to clarify any uncertainties before signing to avoid misunderstandings.

Defining candidate requirements After signing, work closely with the agency to finalize the detailed candidate requirements. Experienced recruiters can provide market insights and objective feedback on your company’s strengths. Once confirmed, the job description is prepared, which can be either publicly posted or kept confidential.

Candidate matching The agency searches its database to find candidates that match your criteria. When you approve, the agency reaches out to those candidates directly with the job opportunity. Consultants may also explain your company’s appeal to attract applicants. Interested candidates submit their resumes and supporting documents through the agency.

Screening and interviews Review candidates’ resumes and conduct document screening. If you have questions or concerns, you can communicate with the agency to get clarifications. Decide which candidates to interview, and the agency will coordinate interview schedules. Feedback after interviews is shared through the agency.

Offer and onboarding If you decide to hire, you make a job offer through the agency, which conveys the offer to the candidate. Should the candidate have any questions about the terms, the agency will negotiate on their behalf. Once the offer is accepted, onboarding preparations begin. Many agencies provide support until the candidate’s start date and sometimes offer post-hire follow-up.

Tips to get the most out of your recruitment agency

Clearly define your ideal candidate Be specific about the skills, experience, qualifications, and personality traits you want for each role and employment type. For example, you might be looking for full-time sales professionals with over three years of B2B client negotiation experience, engineers with five or more years of Java or Python development, candidates with a TOEIC score above 700 who can conduct business in English, or project managers with at least three years of leadership experience. Clear requirements help agencies efficiently screen candidates. Vague or broad criteria may result in many unsuitable recommendations, wasting time and effort.

Highlight your company’s strengths To attract top talent, actively communicate what makes your company a great place to work beyond salary and benefits. Share details about work environment, company culture, career advancement opportunities, and unique perks. Agencies can also suggest attractive points you might overlook.

Provide detailed feedback to the agency Give thorough feedback about candidates after each step. For example: “Candidate has strong experience but lacks communication skills” or “Skills are a good match but culture fit is questionable.” This helps agencies refine their search and improve future candidate quality.

Maintain close communication with the agency Keep regular contact throughout the hiring process. Sharing updates promptly can prevent losing good candidates to competitors. It also helps build your company’s recruitment knowledge over time. Use email, phone calls, or online collaboration tools to keep communication smooth.

How to choose the right recruitment agency in Japan

Hiring top talent in Japan—especially in competitive sectors—can be challenging. Partnering with a trustworthy recruitment agency can make the process faster and more effective. However, not all agencies are the same. Here’s what to look for when choosing a recruitment partner in Japan.

Industry and role-specific experience Check whether the agency has a strong track record of placements in your industry or for the roles you’re hiring. Agencies with relevant experience will have deeper insights into market trends, candidate expectations, and hiring challenges specific to your sector. You can verify their experience through client testimonials, online reviews, or an initial consultation.

Specialized knowledge and hiring expertise Agencies with specialized consultants are often better at matching candidates to niche roles—especially technical, managerial, or bilingual positions. For roles that require very specific skills or experience, choosing a recruitment partner with domain expertise significantly increases your chances of a successful hire.

Strong matching capabilities An agency’s ability to understand your hiring needs and introduce qualified, well-matched candidates is critical. Evaluate their past success rates, candidate quality, and responsiveness. A good recruitment partner should feel like an extension of your internal team—understanding not just the job description but also your company culture.

Why choose Robert Half

Robert Half has extensive experience supporting both foreign-affiliated and Japanese global companies in Japan. Here’s what sets our recruitment services apart:

Fast, targeted introductions of skilled professionals Our consultants specialize in areas such as IT, finance, accounting, HR, and more—allowing us to quickly introduce candidates with the right technical and language skills.

Experienced consultants with deep market knowledge Our team combines strong industry knowledge with hands-on hiring experience. We focus not only on technical fit, but also on ensuring candidates align with your company’s values and work environment—helping to boost retention after hire.

Proven track record with global companies With an international network and a focus on bilingual talent, we are well-positioned to support hiring needs across multinational companies and Japanese firms expanding globally. We specialize in candidates who thrive in cross-cultural, fast-paced environments.

Flexible hiring solutions Whether you're hiring permanent staff, contract professionals, or need help with executive search, Robert Half offers flexible hiring solutions to fit your business needs. We also provide support for project-based or interim hiring during peak workloads.

Success stories from Robert Half Japan

Here are a few examples of how Robert Half Japan has supported employers in overcoming hiring challenges through tailored recruitment solutions.

Successful legal and compliance hiring through strategic consultation The challenge:
A global investment bank preparing to enter the Japanese market needed a professional with a Japanese legal license to handle regulatory filings. However, after clarifying the scope of work, we discovered that post-licensing legal tasks would be limited—making it difficult to attract and retain top legal talent for the role. Our solution:
We proposed hiring a compliance officer with strong regulatory experience instead, as it better aligned with the actual responsibilities. To further streamline operations and reduce costs, we also recommended hiring a contract manager to coordinate with external legal counsel for broader legal matters. The result:

The client adopted our dual-role strategy, separating legal and compliance responsibilities.
They entered the Japanese market smoothly, without overspending on unnecessary in-house legal resources.

Filling urgent project needs with interim professionals The challenge:
A major player in the mobility and smart city space faced urgent staffing needs for critical projects but was constrained by budget and time. The permanent hiring process was taking longer than expected, delaying project timelines. Our solution:
We proposed a hybrid staffing model combining contract hires and interim professionals. Leveraging our specialized recruitment channels and a rigorous screening process, we quickly introduced qualified candidates while keeping costs and risk under control. The result:

Successfully placed 31 professionals, including software engineers, tech leads, UI/UX designers, and QA specialists.
Formed 4 fully functional teams to drive key project milestones forward.
Earned high satisfaction scores from 17 hiring managers and tech leads.

Executive search success: hiring a global security operations leader The challenge:
A Japanese manufacturing company had suffered repeated cyberattacks and urgently needed a Global Security Operations Leader. The search had stalled for over a year due to a limited talent pool and a budget below market standards. Our solution:
We initiated a retained executive search engagement and conducted an in-depth talent market analysis. By providing real-time compensation data, we helped the client adjust their offer to match market expectations—making the opportunity more competitive. The result:

Candidate interviews and hiring were completed within just 3 weeks of engagement.
The new leader led the integration of security vendors and improved global visibility, transforming the company’s cybersecurity posture.
Shortly after joining, the new hire played a key role in responding to a global cyberattack, earning praise from the CIO.

FAQs

How long does it take to hire through a recruitment agency? It depends on the role, but for permanent hires, 1–2 months is typical. If you need to fill a position urgently, we can work with you to find a faster solution.

Do you support different types of employment? Yes, we offer support for permanent, contract, and project-based hires. Whether you need someone short-term or are planning for long-term growth, we can introduce the right professionals.

Can you support urgent or short-term hiring needs? Absolutely. We have a pool of pre-screened professionals ready to start immediately—ideal for urgent or temporary roles.

How can I hire bilingual professionals? Robert Half specializes in placing bilingual talent in Japan. We listen carefully to your needs and introduce candidates with the right mix of language skills and professional expertise.

Hire talent

Recruitment agencies can save you time and help you find the right talent more efficiently — especially for specialist, management, or bilingual roles.

Partner with a trusted agency like Robert Half, clearly define what you’re looking for, and communicate openly for the best results.

If you’re facing hiring challenges in Japan, feel free to get in touch.

Ricky Anzai｜Business Relationship Manager Ricky Anzai is an experienced Business Relationship Manager at Robert Half with over seven years in recruitment. He began his career in investment banking, spending nearly five years before transitioning into recruitment, specializing in the financial services sector. In his current role within Robert Half’s Strategic Accounts team, he serves as a trusted partner—connecting clients with internal teams to deliver tailored, end-to-end talent solutions. Having spent half of his life in California and the other half in Japan, Ricky offers a bicultural perspective that enables him to understand and support the unique needs of both Japanese and international clients. Please feel free to reach out to Ricky in Japanese or English—whichever you’re most comfortable with.

	Recruitment agency	Job board
Fees	Pay only if you hire (contingency-based model)	Advertising fee
Who selects candidates	Agency	Employer
Interview coordination	Agency or employer	Employer
Job posting visibility	Public or confidential	Public only
Best for	Specialized or immediate hires	Large applicant volume