The recruitment of employees in Japan has never been easy for foreign businessmen, and with unemployment now running at an all-time low of 2.2% it is not getting any easier.
A Dire Shortage of Skills
The pool of talent available to the foreign entrepreneur in Japan is restricted, as the number of English speaking Japanese is limited to 3% to 5% of the population. The government has been encouraging foreign investment, and this together with the opportunities offered by the upcoming Rugby World Cup scheduled for 2019 and the Tokyo Olympics and Paralympics in 2020, has resulted in a growing demand for employees. The outcome is a dire shortage of skills.
As in all employment environments salary is important, and the package that you offer must be competitive, but for the risk-averse Japanese people, large corporate players are their first choice of employment. Many of the more talented people in the workforce would be reluctant to join a business which has still to grow to global proportions.
The recruitment industry in Japan tends to be very different than in many other developed nations. Recruitment Agency fees are a lot higher than in most other countries, and you can expect to pay between 30% and 35% of annual earnings in recruitment fees.
for the risk-averse Japanese people, large corporate players are their first choice of employment.
Plan Ahead
Any business who plans to recruit employees in Japan must have a carefully considered recruitment strategy. Most Japanese plan their career paths carefully. There is a culture of lifelong employment in Japan and most people once they have completed their education would look for employment in a company from which they would hope to retire.
Few Japanese employees will work for more than one or two employers during the course of their careers. The Japanese correlate status with the size of the corporation for which they work. They are also intensely loyal to their employers and will not easily move on. You will, therefore, have to come up with a strategy to convince your chosen candidate that accepting employment in your business is a worthwhile career move.
It Starts with Understanding the Recruitment Environment
Attracting the best candidates for your business is vital to your success. It is therefore essential that you understand the recruitment environment and that you have a plan before you start the recruitment process.
The Best Recruitment Methods
- Networks – the Japanese value relationships highly, and business networks can offer you opportunities for referrals.
- Recruitment agencies – although they are expensive recruitment agencies do offer your business the best chance of hiring the talent that you require. This is because Japanese recruitment agencies understand the culture of the people and will know how to attract the best talent. They can ensure that the best-selling points of your business are showcased to would-be employees.
- In many countries, it is customary to recruit from the Internet. Not so in Japan. The Japanese are intensely private and typically will not share information on the Internet, so this is not a good source of recruitment in the Japanese ecosystem.
The Interview
When interviewing candidates in Japan, you need to take into consideration Japanese cultural characteristics. They are generally honest and modest and therefore will tend to undersell themselves. To fully understand the capabilities of the candidate you should use storytelling techniques such as asking how they have handled various workplace scenarios in their past employment history.
Any business who plans to recruit employees in Japan must have a carefully considered recruitment strategy.
