Whether delivering actionable Talent Intelligence or working with companies to hire exceptional talent, talent.ai are frequently engaged by clients in a number of repeat global locations which are often seen as the hardest to crack without a specialist approach. 

None get tougher than Japan.

Hiring talent in Japan, particularly for International technology companies, is a challenge that requires careful navigation of the country’s unique cultural, linguistic, and business landscapes.

Despite Japan’s reputation as a global tech powerhouse, foreign organisations often encounter significant hurdles when trying to recruit top talent in Japan.

From the complexities of Japan’s traditional employment practices to the scarcity of candidates with the necessary English proficiency, these obstacles can make hiring for roles such as a Country Manager, Sales Director or even an Account Executive / individual contributor in Cyber Security, SAAS or the general technology landscape a daunting task.

Understanding these challenges is crucial for any international company looking to establish or expand its operations in Japan and should help your Japanese talent acquisition strategy –

1. Language Barriers and Low English Proficiency

Although Japan is a global leader in technology, the level of English proficiency remains relatively low compared to other countries. This limitation makes it difficult for international companies to find local candidates who can effectively communicate and collaborate in English, which is often a requirement for tech and SaaS roles in global organisations. Additionally, the preference for Japanese over English in professional settings further narrows the pool of eligible candidates.

2. Cultural and Business Practices

Japan’s conservative business culture, which includes lifetime employment expectations and a seniority-based hierarchy, can be at odds with the dynamic, fast-paced work environment typical of international tech companies. The traditional “Shinsotsu” recruitment system, which focuses on hiring fresh graduates for lifelong employment, poses a significant challenge when looking for experienced talent with specialized skills in areas like Cyber Security SAAS or Technology sales.

3. Talent Scarcity and Competition

The demographic challenges in Japan, such as an aging population and low birth rates, exacerbate the scarcity of qualified talent, especially in emerging tech fields. International companies often find themselves competing intensely with each other, as well as with domestic companies, for the same limited pool of candidates who possess the requisite experience and skills for high-demand roles like Country Managers or tech sales professionals.

4. Passive Job Market

Unlike in other countries where active job-seeking is common, many qualified professionals in Japan are passive job seekers. They are typically more reserved about changing jobs, especially for opportunities with foreign companies. This passivity means that international companies must invest significant time and effort into building relationships and trust before successfully recruiting top talent.

5. Slow Decision-Making Process

The consensus-driven decision-making culture in Japan can lead to extended hiring timelines. Candidates expect to build a relationship with potential employers before making any commitments, and a rushed hiring process might be perceived negatively. For international firms accustomed to faster recruitment cycles, this can be a frustrating hurdle, leading to potential delays in hiring critical positions.

According to a survey conducted by the Japanese Government, 54% of workers never changed jobs in their career. Yes, you read that right!

Additionally, three out of four workers who have decided to change their jobs are below the age of 35! This means that workers over the age of 35 rarely change jobs, making it difficult for companies to hire experienced talent.

The cost of making a hiring mistake can also be more costly than elsewhere with most local Japanese Recruiters charging a much higher rate than in other countries. (it’s 30 – 40% of total earnings if you wondered) There are also compacted difficulties when conducting redundancies too if the person you hire turns out not to be a fit.

This makes taking a hiring decision for companies even more challenging in a market which is already the toughest to get talent engagement in.

Thanks for reading, comments welcome!

In Japan talent.ai boast a unique talent pool of 350+ Account Executives, Account Managers, Sales Leaders and Country Managers who have direct experience of working within the Cyber Security or SAAS technology landscape selling successfully for International technology companies

We show you how to engage and elevate your Talent Brand to this talent pool – reducing your time to hire in Japan by on average 85%.

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If you are an International technology company facing difficulties in hiring experienced high-performing talent in Japan, please get in touch and we can discuss your unique needs.