Companies are becoming polarized between those consistently generating profit and those that are not. Report reveals the key factors determining success.

Porters Corporation, a provider of matching systems for the talent business, conducted a 'Survey on Profit Margin Changes' targeting 157 professionals engaged in recruitment and temporary staffing.

Facing the challenge of a shrinking labor population, this survey clarified the reality of a 'polarization' between companies with increasing profit margins and those without, as well as the underlying factors.

[Survey Overview] Target: Managers and staff engaged in recruitment/staffing business Valid responses: 157 Period: November 20 to December 4, 2025 Method: Internet research

[Survey Highlights]

1. [Recruitment] Success depends on 'productivity'. The key is 'reducing non-core tasks'. In the recruitment business, there is a clear polarization between companies that reported increased profits year-over-year and those that reported decreases. - Factors for profit increase: While 'higher candidate unit price' (approx. 42%) was the top factor, 'productivity' is noteworthy. Furthermore, approx. 33% of companies that increased successful placements answered, 'We compressed non-core tasks using tools and increased time for interviews and business meetings.' - Factors for profit decrease: The main reason for lower productivity was being 'swamped by administrative work, reducing time to face candidates and companies' (approx. 35%). This shows that efficient handling of administrative tasks, enabling more time for the core business of 'dialogue with people,' determines the company's fate.

2. [Staffing] The key to margin improvement is 'price pass-through'. 90% succeeded in wage negotiations. - Factors for profit increase: The top factor was 'margin improvement' (approx. 55%). Approx. 90% of these companies cited 'unit price negotiations based on wage increases' as the reason for success. Companies that viewed staff wage increases not as a cost burden, but as an opportunity for price pass-through, generated profits. - Factors for profit decrease: The main reasons for stagnating total operation volume were 'could not increase or total volume decreased' (approx. 44%). Cited reasons included 'inferior hourly wage conditions' and 'frequent early turnover.' This highlights the need for a mechanism that consistently manages everything from recruitment to retention.

[Conclusion: Industry winning strategies for 2026] The survey highlighted that the key to surviving in the talent industry is maximizing productivity through 'business design (DX).' Rather than just increasing advertising or hiring numbers, building a structure that utilizes tools like CRM to compress administrative tasks and maximize time for dialogue with candidates and clients is essential for profit margin improvement.