"The HR market, including outsourcing and dispatch, still has significant growth potential. We will become a game changer that innovates this field through technology and processes."
Kim Ok-jin, CEO of Manpower Korea, noted in a recent interview with ChosunBiz, "For corporations to succeed, it is efficient to focus on core competencies and outsource other tasks to specialized companies," and emphasized, "Outsourcing and subcontracting are not just about reducing labor costs but are strategies to enhance competitiveness through technology and systems."
Manpower Korea is a comprehensive HR service corporation providing worker dispatch and outplacement support, and it is one of the top three companies in the industry. It recorded consolidated sales of approximately 441 billion won and an operating profit of about 8.9 billion won last year.
Kim, who took office in January this year, gained accounting and consulting experience at KPMG's New York headquarters, then held key positions at Standard Chartered Bank Korea, Sam Pyo, and Seoul Mirae Company (the operator of Grand Hyatt Seoul). Having experienced various industries, he is attentive to the potential changes in the HR market.
"We must move beyond simply sending people. Many worksites still check attendance manually. By utilizing AI and automation technologies, we can achieve higher outcomes with the same workforce."
Kim aims for HR services equipped with strategies and processes, moving away from low-cost competition. He believes that a supply structure below cost is not sustainable.
"By changing work structures and optimizing personnel through AI, robotics, and automation technologies, we can enable tailored workforce management for each industry. We can also monitor workers' health status in real-time to respond on-site. Ultimately, protecting the resource of people is key."
Recent changes in employment policies, such as the 4.5-day workweek and the Yellow Envelope Law, could redefine the role of the outsourcing and dispatch market. Amid economic slowdown, recruitment is decreasing, and corporations are clearly tending to manage their workforce around core tasks.
"As employment flexibility decreases with the enforcement of the Yellow Envelope Law, the demand to outsource non-core tasks to external specialized partners will increase. Consequently, the strategic role of the HR industry will inevitably grow."
He views the dispatch of senior workers as a future growth engine. Specialized human resource services for nursing facilities or silver towns, akin to Japan, present significant opportunities in fast-aging Korea.
"According to our branch in Japan, there are many requests for personnel in facilities like nursing homes. The labor shortage is so severe that there is a saying, 'as long as you are healthy, you can get hired.' The 50-year-olds currently working will become the clients of nursing facilities in 15 to 20 years. Supplying and managing personnel in silver towns that are evolving like hotels will be our role."
Finally, Kim advised job seekers, "When you see yourself as a 'product,' you can be recognized for your value regardless of the form of employment. Do not be conscious of others; just faithfully do what you do well. You must make yourself a weapon to succeed in the job market."