Staffing Crisis in Japan
Japan is currently grappling with a pressing issue in sales recruitment – a severe staff shortage across various industries. As of 2022, the job-to-applicant ratio stood at 1.28, indicating 128 job openings for every 100 job seekers, according to the Ministry of Health, Labour and Welfare.
While this is an improvement, it has not yet reached the pre-pandemic level of 1.6 recorded in 2019. This shortage is particularly acute in the hospitality sector, which lost many part-time staff during the COVID-19 pandemic.
Sales professionals in Japan and globally often rely on trial and error rather than formal training, prompting a need for a fundamental shift in how businesses build and develop their sales teams.
In this blog, we will delve into the challenges faced by businesses in Japan, especially those related to sales recruitment of salespeople, and discuss the implications for HR professionals and hiring managers. We will explore the changing recruitment landscape and the need for a proactive approach to training and retaining talent.
Sales Staff Shortage in Japan: A Growing Predicament
The shortage of sales staff in Japan has significant ramifications for businesses, both large and small. While multinational corporations with substantial resources can offer competitive salaries to attract talent, smaller enterprises find themselves challenging. The demand for English-speaking sales professionals further narrows the talent pool, intensifying business competition.
Empowering Japanese Salespeople: A Shift in Dynamics
With the scarcity of sales talent, the locus of power has shifted to Japanese salespeople. They are acutely aware of their strong demand and have become discerning when choosing their employers. Moreover, the pool of available resumes is limited and fragile. As someone involved in hiring for many years, it’s clear that the range of choices has significantly diminished.
Over the past seven years, a concerning trend has emerged – salespeople are becoming more expensive, often without a commensurate increase in their skills. Many sales professionals in Japan and globally learn through trial and error, lacking formal training. This situation calls for a fundamental shift in how businesses hire and develop their sales teams.
Read More: Skills Needed in Japan
The Need for Training and Development
Organizations must invest in training and development to address the shortage of qualified salespeople. A critical area that requires attention is enhancing salespeople’s ability to ask questions that uncover buyers’ needs rather than relying solely on delivering a sales pitch. Additionally, handling client objections on pricing should be a skill that sales teams are equipped with.
In light of the challenges posed by talent scarcity, onboarding processes need a complete overhaul, becoming more comprehensive and intensive. Extending probation periods to six months instead of three can provide newcomers additional time to acclimate. Moreover, consistent coaching will be essential to bring them up to the required skill levels. Given the shallow entry funnels, the days of hiring and letting go if expectations aren’t met are over.
The Long Road Ahead
This improvement process is expected to be slow and resource-intensive, placing an additional burden on small businesses. However, there is a glimmer of hope on the horizon. Initiatives like the Council for the Creation of Future Education’s goal to send 500,000 Japanese students abroad by 2033 and the emergence of a mobile young workforce with international exposure and better English skills provide opportunities for businesses to target a fresh talent pool.
"Otsumami" - a bite size snack:
In the realm of sales recruitment in Japan, our future prospects appear challenging, leaving us with limited options and necessitating significant compromises. The solution lies in prioritizing the training and development of our sales team to ensure our survival.