Glossary
We have compiled a glossary of keywords that characterize the management of JAC Group and topics that are often addressed in dialogue with investors.
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.
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.
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.
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.
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.
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 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.
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 organizational 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.
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.
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.
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 standardized 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.
