Hiring in Japan: Finding and Bringing on the Right Talent
Introduction
Expanding into Japan can be an exciting step for any company. After gaining conviction in entering the market, hiring may be the next step. Having local hires will help gain the trust of the local market, showing that your company is invested in Japan for the long-run. In a highly relationship based culture, tapping into the Japanese workforce may be challenging. Navigating the hiring process in Japan requires a good understanding of the local culture, recruitment practices, and legal considerations. Coming across bilgingual talent may pose an even larger challenge, as only companies that are looking for bilingual talent, as only 2% and 8% of Japanese people speak English at a business level or fluently. There are ways to navigate hiring in Japan both to bring on the right talent for your Japan expansion initiatives.
Bringing on Talent
Given the limited English-speaking bilingual talent, having a wide funnel of candidates is important.
Working with Recruitment Agencies
Recruitment agencies can be a valuable partner in the hiring process, particularly for specialized or senior roles. Agencies in Japan often provide access to passive candidates who may not actively be looking for jobs but are open to the right opportunity. Recruitment agencies also have access to the bilingual population in Japan.
Key benefits of using recruitment agencies in Japan include:
1. Market Expertise: Agencies have deep insights into industry trends and salary expectations.
2. Candidate Screening: They handle the initial vetting process, saving you time.
3. Cultural Guidance: Many agencies provide advice on how to position your company to attract Japanese talent.
Notable agencies include Robert Walters Japan, Michael Page Japan, and JAC Recruitment. The fees can be quite expensive, but these agencies may have access to the right talent pool.
Technical Job Boards
For companies looking to hire technical talent, specialized job boards can be highly effective:
1. TokyoDev: A platform dedicated to helping international developers find opportunities in Japan.
2. Japan Dev: Curates tech jobs at top-tier companies in Japan, especially for English-speaking developers.
These job boards are targeted to people that are looking to relocate or move to Japan. In many cases the required Japanese level reduced. Given their interest in Japan, many of the applicants will have been or are open to studying Japanese.
Loosening up on the English Requirements
One way to increase the pool of applicants is to reduce the required English level. It may be hard to find native level Japanese and English. The goal of hiring in Japan is to increase activity in Japan. Native-level Japanese is a must but the loosening the English requirements can open the doors to access candidates that are highly connected in Japan.
It’s likely that the English will be used for only internal conversations. As long as internal conversations can be held, their effectiveness in Japan should be prioritized. These candidates will also learn and increase their English capabilities on the job. Expecting native-level bilingual candidates can reduce the candidate pool and may prolong the hiring process.
Using an EOR (Employer of Record)
Now on to the operational aspect of hiring. For companies without a legal entity in Japan, an Employer of Record (EOR) can simplify the hiring process. An EOR acts as the official employer for your Japanese hires, handling compliance, payroll, taxes, and benefits on your behalf. This allows you to focus on building your team without navigating the complexities of Japanese labor laws.
Advantages of Using an EOR
1. Compliance Assurance: The EOR ensures all local labor laws are followed, reducing legal risks.
2. Streamlined Operations: They manage administrative tasks like tax filing and social security contributions.
3. Speed to Hire: You can onboard employees faster without setting up a local entity.
Popular EOR providers in Japan include Deel and Remote. These services are particularly useful for companies looking to test the market or hire remote employees in Japan.
Before Making Your First Hire
Hiring does come at a high cost. If there is no market traction, the hire will not have much to do. Hiring too early can have impactful consequences and validating the market will provide the hires with clear actionable items. Having a certain amount of traction, leads, and/or pipeline will help mitigate the risk of slow progress.
Conclusion
Hiring in Japan offers a wealth of opportunities but requires careful planning. Validating the market will make sure the hire has plenty to work on day one. Whether you’re using job boards, collaborating with recruitment agencies, or leveraging an EOR, tailoring your approach to your specific situation is key. If you’re considering expanding in to Japan and would like feedback, book a free consultation here.
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