Glossary
We have compiled a glossary of keywords that characterise the management of JAC Group and topics that are often addressed in dialogue with investors.
Account Management
Account Management is a sales approach focused on building long-term relationships with clients, supporting their challenges and goals, and driving sustained sales growth. At JAC Group, account management involves continuous relationship-building with corporate clients and strategic, group-wide support for their recruitment needs. Specialised teams organised by industry and job function collaborate to propose optimal talent solutions. Since 2024, JAC has also promoted global account management under the “One JAC” framework, strengthening information sharing across domestic and international offices.
Activity
Activity refers to the records of daily tasks performed by consultants, serving as metrics to quantitatively visualise progress in areas such as interviews, job proposals, document recommendations, and placements. These are used as quantitative KPIs for performance analysis and productivity improvement at the individual, team, and organisational levels.
Average Placement Annual Salary
Average Placement Annual Salary is an indicator showing the average annual salary of candidates placed by the JAC.
Board of Independent Directors
The Board of Independent Directors is a voluntary committee of the company composed entirely of independent directors and Audit & Supervisory Board Members as stipulated by the Tokyo Stock Exchange. The nomination and remuneration of Executive Directors who are not Audit and Supervisory Committee members of the company are determined after consultation with this Board of Independent Directors.
Candidate
A candidate refers to a job seeker introduced to a client company as a potential match. Candidates are selected based on their expertise, experience, and desired conditions, and are introduced as talent suitable for the client’s hiring needs.
Consultant
In general, a consultant is an expert who identifies issues obstructing companies and individuals and uses expertise to propose and support solutions to achieve their targets. JAC Group refers to the personnel in charge of front-office operations in the recruitment business as ‘consultant’. They are responsible for both companies and job seekers, and propose the best candidates and job offers while grasping the needs of both parties.
Consultant Monthly Productivity
Consultant Monthly Productivity is a key performance indicator used by JAC Group to assess the average monthly sales generated per consultant. It is calculated by dividing the monthly average sales (on a placement-based accounting basis) by the average number of consultants during the period. This metric shows how much revenue each consultant generates in a given month and is an important indicator for evaluating the profitability and growth momentum of JAC Group’s recruitment business.For financial reporting and external disclosure purposes, revenue is recognised based on the candidate’s actual start date. While placement-based calculations may be used internally to assess performance, they do not reflect the official revenue recognition methodology applied in audited financial statements or public disclosures. However, by calculating productivity based on the placement date, it is possible to achieve a more accurate and timely assessment of business performance.
Contingency
Contingency refers to a business model of recruitment business in which a recruitment agency does not charge commissions to the client companies until the applicants join them. This is a scheme that has become popular worldwide in the job-seeker registration-type of recruitment business, and in recent years it has been increasingly applied to job offer advertising business.
Core Values
Core Values are the foundational values of JAC Group, forming the basis of its business strategy. They include: “Unrivalled support for overseas expansion (UK-founded strength)”, “Consulting-style services by high-level professionals”, “Focus on specialists and mid-to-high salary ranges”, “Specialised teams by segment”, and “Teamwork”. These values underpin JAC’s sustainable growth and trust.
Cost of sales
Cost of sales is the cost of purchases and manufacturing used directly in the sale of services and merchandise during the year. In the temporary staffing business, the salaries and benefits for staff dispatched to customer companies are also included here. JAC Group’s cost of sales includes contingent type of fees paid for outside human resource scout services and personnel expenses in recruitment process outsourcing (RPO) business.
Division-of-Labour Style Recruitment
Division-of-Labour style recruitment is a model in which recruiting advisors handle the client side and career advisors handle the candidate side, with information being shared internally to facilitate matching. This approach enables the efficient processing of large volumes of job openings and candidates, making it particularly suitable for junior or entry-level positions, or roles open to those with little or no experience.
Employment Security Act
The Employment Security Act is a Japanese law that ensures freedom of occupational choice, employment stability, and the proper operation of recruitment businesses. It sets rules for job postings and recruitment, including requirements for clear working conditions, prohibition of candidate fees, and licensing of recruitment agencies.
Executive Search
Executive search refers to recruitment services for executive and senior management positions. JAC Group strategically proposes top talent, such as C-suite executives and external directors, often under retainer model contracts, focusing on roles with annual salaries of 20 million yen or more.
Fixed-term employment
In Japan, "fixed-term employment" refers to "employment with a fixed term" as set forth in the Civil Code (Article 623) which is a classification that contrasts with ‘permanent employment’ with no fixed term. ‘Non-regular employment’ including the states of treatment does not necessarily correspond to ‘fixed-term employment’ in Japan. In 2013, Japanese Labor Contract Law was amended to establish the conversion rule to permanent employment in which a fixed-term labour contract which is renewed with the same company can be converted into a permanent labour contract when their contract exceeds five years in total. In Japan, even for fixed-term employment such as part-time workers, when an outside job seeker is introduced to the job offer, it is necessary to obtain the permission of the Minister of Health, Labour and Welfare as a certified recruitment agency.
HRBP (Human Resource Business Partner)
HRBP refers to HR professionals who plan and drive talent strategies in collaboration with business divisions. HRBPs support human capital initiatives such as recruitment, development, and retention, contributing to business growth. At JAC Group, strengthening the HRBP function is a key initiative for advancing human capital management.
Human Capital ROI
Human Capital ROI is an indicator showing the value created by a company’s investment in human resources. At JAC Group, it is calculated in accordance with ISO 30414 as ((Net Sales – Expenses excluding personnel costs) ÷ Personnel costs) – 1. It visualises how HR initiatives such as recruitment, development, and placement contribute to corporate value, and is used for strategic planning towards sustainable growth.
International labor standards
International Labor Standards are minimum standards that the International Labour Organisation (ILO) continues to establish in treaty style with the aim of improving worldwide the standard of living and working conditions of workers. Because a treaty is binding, its member countries are subject to an international obligation to apply the ratified content to their domestic law.
Introduction Fee Rate
The introduction fee rate refers to the success-based fee charged for recruitment services, which is typically incurred when a placement is confirmed. In Japan, the standard rate is around 30–35% of the candidate’s theoretical annual salary (including base salary, bonuses, and allowances). For highly specialised or executive positions, the fee rate may be higher.
JAC Career
JAC Career is a recruitment service for young managers and IT/digital specialists, supporting next-generation leaders and offering a wide range of opportunities from start-ups to major corporations.
JAC Digital
JAC Digital is a recruitment service specialising in IT and digital talent, supporting hiring for DX, AI engineers, and data scientists, and promoting corporate digital transformation.
JAC Executive
JAC Executive is a specialised recruitment service for executives and senior management, introducing top talent such as C-suite executives and external directors, leveraging cross-industry networks and expert consultants.
JAC International
JAC International is a recruitment service for foreign-affiliated and global companies, with bilingual consultants supporting the hiring of specialists and managers with language skills and international experience.
JAC Moringa Forest
JAC Moringa Forest was a project which launched in 2024 with the aim of mitigating climate change through the planting CO2-absorbent Moringa trees. We plan to plant more than 10,000 trees per year, starting with Miyakojima City in Okinawa Prefecture and expanding the planting area to Thailand, Malaysia, and other countries.
JAC Recruitment
JAC Recruitment is the core service brand of JAC Group, focusing on mid-to-high level managers, specialists, and global talent. It provides optimal consulting for diverse industry and job needs, with consultants who are experts in their respective fields.
JAC Standard
JAC Standard is a set of norms that define the level that JAC Group consultants should reach to, regarding the ideal approach to proposing to client companies, the sourcing method, and the KPIs to be achieved, in addition to the mindset and code of conduct of the consultants. The content is compiled into a handbook and used for employee training. It is also checked at meetings within each division, and plays a key role as a benchmark for keeping the performance of the entire JAC Group at an appropriate level as a professional.
Job offer advertising business
Job Offer Advertising Business is a business that recruits job seekers by posting job information in media (such as websites and job information magazines). Generally, companies pay fees in the form of listing fees or contingent fees, and job seekers apply for job offers by looking at the information for free. In recent years, in addition to job offer advertisements, they have also provided various services for the direct recruiting of their client companies.
Mid-to-High Class Talent
Mid-to-high class talent refers to the mid-to-senior professional segment targeted by JAC Group, including managers, directors, executives, and C-suite executives. These individuals possess specialised expertise and management experience, and are considered immediately effective talent.
Mission & Duty
Mission & Duty is a Code of Conduct that defines the roles to be played by managers in JAC Group according to their rank. Its objective is to aim for stable organisational growth while keeping the skills of each consultant above a defined level. It is top-priority content for JAC Group management-level training.
One Hundred Plus Club (100+ Club)
One Hundred Plus Club (100+ Club) is a club where only consultants who succeeded in placements for more than 100 applicants can join. Having the title of a 100+ Club member is a testament to professional consultants with expertise and experience that can be called first class. Each of these members leads the performance of the Group with their high productivity. In Japan, They also contribute to improving the quality of services for the entire company through their voluntary support activities for recruitment business.
One Team, One JAC
‘One Team, One JAC’ is an organisational ethos and culture that expresses JAC Group's commitment to providing optimal support to customers' needs as whole JAC Group, like a team (One Team), like a company (One JAC), collaborating across divisions, companies, and borders. This is a kind of ‘pass’ culture in which the entire group actively takes over job openings and candidates to the most appropriate divisions and consultants, and a key factor in supporting the competitiveness of JAC Group.
On-Target Earnings (OTE)
On-Target Earnings (OTE) refers to the total remuneration achievable upon meeting targets, including base salary, incentives, and performance-based variable pay. JAC Group uses OTE as a basis for fair and performance-linked compensation.
Optimal Allocation of Human Resources
Optimal allocation of human resources means ensuring that every worker is placed in a role where their abilities, experience, and skills are maximised. Through its recruitment services, JAC Group aims to accurately match corporate hiring needs with the expertise and aspirations of candidates, supporting both organisational growth and individual career development. By proposing talent solutions aligned with management challenges, JAC also contributes to improving organisational productivity and addressing social issues.
Performance-based stock remuneration system
The performance-based stock remuneration system is a term used in general for remuneration system in which the company's stocks are granted based on the achievement of predetermined performance targets. We have introduced it in fiscal 2025, using a framework of performance-share units and segregates roles from our Restricted Stock (RS)-based remuneration system. Based on the number of fundamental stock units set in advance according to the position of directors other than directors serving as members of the Audit and Supervisory Committee and external directors, the company will deliver shares of its common stock based on the number of stock units calculated according to the achievement level of targets after the end of the performance evaluation period (three fiscal years). Those targets include an evaluation using the total shareholder return (TSR) and environmental, social, and governance (ESG) indicators and other non-financial indicators.
Permanent employment
In Japan, permanent employment is ‘employment with no fixed term’ in the ‘employment’ stipulated in the Civil Code (Article 623). This classification contrasts with fixed-term employment, which has a defined period of employment, and does not necessarily correspond to regular employment which is a classification that includes the states of treatment. When a job seeker is referred from outside to a permanent or fixed-term job offering in Japan, it is necessary to obtain the permission of the Minister of Health, Labour and Welfare as a certified recruitment agency.
Philosophy & Policy
Philosophy & Policy is not only a company philosophy of JAC Group, but also a corporate culture. It is also an ethical standard. Consisting of two Philosophy (Freedom & Discipline, Fairness) and three Policy (Speed, Sincerity, Attitude), each has been the cornerstone of JAC Group's business activities and has supported continuous growth and development. For more information, please refer to Philosophy & Policy, Our Mission.
Placement-based Accounting
Placement-based accounting is a purely internal sales recognition method used by JAC Group, where revenue is recognised based on the date of placement (i.e., the date when the placement is confirmed and the deal is deemed recognisable as revenue), rather than the candidate’s actual start date. This approach enables each business division to promptly recognise the progress of individual assignments as sales once they reach a recognisable state, allowing for more timely and accurate tracking of business performance and outcomes. However, for financial reporting and external disclosure purposes, revenue is recognised based on the candidate’s actual start date. While placement-based calculations may be used internally to assess performance, they do not reflect the official revenue recognition methodology applied in audited financial statements or public disclosures.
Placement Productivity
Placement Productivity is a key performance indicator that measures the average number of placements per consultant per month. It is an important KPI for assessing both sales and organisational productivity within the JAC Group.
PPP Project
PPP Project is a project launched in 2008 with the aim of fostering forests, protecting the ecosystem, and contributing to global warming countermeasures, while at the same time seeking the continued development of client companies and the active participation of those changing jobs through JAC Group by planting one seedling for each placement. PPP represents ‘one Placement creates one Plant to save the Planet’ and this project has planted more than 150,000 indigenous tree species on the islands of Bali in Indonesia and Borneo in Malaysia. For more information, please refer to ‘Reforestation activities’.
Recruitment business
In Japan, recruitment business is required to obtain the license of the Minister of Health, Labour and Welfare, and prescribed as "to receive job offerings and job applications, and to arrange the establishment of employment relationships between job offerors and job seekers" in the Employment Security Act (Article 4). Private recruitment business that collects fee is classified as "fee-charging recruitment business" and they are obligated to renew their licences every five years to meet legal requirements.
Recruitment platform
A recruitment platform is an online service that enables companies and recruitment agencies to directly approach registered job seekers.
Refund system
In recruitment business, refund system is a guaranteed system in which recruitment agencies refund placement fees to client companies at the percentage based on the stipulation of a contract signed in advance when the applicants who join the client company had resigned early with their own will. This system is applied worldwide, and it is also set as a standard contract clause in JAC Group's recruitment business.
Restricted Stock (RS) remuneration system
Restricted Stock (RS) remuneration system is a remuneration system that grants restricted stock subject to continued service for a pre-agreed period and generally applied for executives in Europe and USA. In 2022, we introduced this system for executive directors who are not Audit & Supervisory Committee members, and external directors, to provide incentives for the continuous improvement of our corporate value and further share value with shareholders.
Retainer
In recruitment business, retainer is a business model that charges up-front fees that are stipulated in a prior contract at the time the service is launched. This compensation scheme is globally standardised in executive search service. While the content of contracts varies depending on individual projects, in contrast to contingent model, those contracts are subject to the provision of services which are worthy of those up-front fees.
Revenue-based Accounting
Revenue-based accounting, in the context of JAC Group’s recruitment services, refers to the method of recognising sales at the point when the candidate actually joins the client company. In a success fee-based service, the introduction fee is paid by the client company only after the candidate’s employment commences, and therefore, revenue is confirmed and recognised on the candidate’s start date. This method ensures that sales are recorded only upon the successful completion of the placement, in line with the actual flow of funds and contractual obligations.
RPO (Recruitment Process Outsourcing)
RPO refers to services where companies outsource recruitment operations to external specialists, supporting the entire process from strategy to candidate management and onboarding. It is particularly effective for large-scale hiring.
SHREK Firms (Top 5 Executive Search Firms)
SHREK Firms refers to the five globally recognised executive search firms: Spencer Stuart, Heidrick & Struggles, Russell Reynolds Associates, Egon Zehnder, and Korn Ferry. “SHREK” is an acronym of their initials, and these firms are renowned for their track record and reliability in supporting executive and board-level recruitment for global companies.
Sustainability Talent
Sustainability talent refers to professionals with expertise in supporting sustainable management and addressing social issues. JAC Group introduces talent suitable for roles related to sustainability, including ESG (environmental, social, and governance) fields, helping clients achieve both value creation and social responsibility.
