Supply Change
One thing the pandemic laid bare was the fragility of supply chains. Companies are taking the lessons learned, but for Japanese companies, shifting gears can be difficult. How can they connect with the right leaders?
Recruiter Robert Half on the evolving landscape of supply chain management.
From left: Kazuko Oya and Taku Yamashita (Photo: Yuuki Ide)
One thing the pandemic laid bare was the fragility of supply chains. When borders closed and restrictions to contain the spread of the coronavirus put a crimp on the movement of people and parts, manufacturers had to quickly adjust their logistics. As a changed world moves forward, companies are taking the lessons learned and looking to improve their supply chain management.
For Japanese companies, shifting gears can be difficult. Entrenched and outdated enterprise resource planning (ERP) systems, and even manual processes centered on Microsoft Excel, scream for digital transformation. But to make the change requires knowledge, experience, and leadership.
Specialized recruitment agency Robert Half is helping connect companies with consultants who can lead the way. Its team of supply chain management recruitment consultants has unique insight into the Japanese market, with extensive knowledge and established networks nurtured over 18 years. Taku Yamashita and Kazuko Oya shared with The ACCJ Journal the situation and trends in the Japanese market and how they are able to adapt to client needs to deliver exceptional value and results.
“Our unique differentiation is that we have ironclad relationships with supply chain management gaishikei [foreign-capital companies] seeking bilingual candidates,” explained Yamashita, director of supply chain management and human resources. “We completely understand skill sets, experience, and value for our clients.”
Oya, the senior division director for supply chain and procurement, noted that their extensive experience allows them “to consult with clients and collaborate to find candidates who offer the highest value and return on investment.”
Elusive Talent
Finding candidates is one of the biggest challenges that Japan faces as its domestic industries attempt to transform how they plan and manage supply chains that Oya and Yamashita said are “late to the party” and behind global standards. One big reason is education. Japanese university degrees are concentrated in areas such as finance, economics, sales, and marketing. An MBA is mandatory for supply chain management, but there are no MBA programs in Japan that focus on it. Consequently, there are few knowledgeable, educated candidates to lead the supply chain transformation.
“For a company starting or going through the transformation, it’s not just about the experience or skill set, but more about the leadership and mind-set.”
One situation that can create challenges for companies that are trying to take a step forward can come during a merger or acquisition. Domestic branches of a company may use outdated ERP systems, while the international branches run on more modern platforms and adhere to best practices. Getting the two systems to talk to one another is not possible. Changing the ERP system is the largest hurdle to overcome, and a consultant is usually brought in to get a new system in place, a process that can take a year or two.
What kind of candidate is needed to carry out such a transition?
“For a company starting or going through the transformation, it’s not just about the experience or skill set, but more about the leadership and mind-set,” said Oya. “There will be a lot of changes—not just to the system, but to the people, culture, and operational processes. So, somebody who is resilient is needed, somebody who is not afraid of making changes and can have an immediate impact from a planning perspective.”
Because of their knowledge of the industry, spanning almost two decades, Oya and Yamashita are able to consult with Robert Half’s clients, both domestic and international, on the challenges, needs, and hurdles they must overcome. They can go beyond recruitment and offer advice on who is the right candidate to fill this role, whether that be a domestic person or somebody from abroad with good Japanese language skills. They may even find the elusive, but highly sought-after, unicorn: someone half in Japan and half out.
“There are young Japanese workers who start in a Japanese company and then want to move to an international company,” explained Yamashita. “These workers may then come back to Japanese companies in their mid-forties or fifties.”
One path to this which Robert Half has noticed is for university graduates to join a consulting company, learn the supply chain methods for five years, and then return.
“They want to contribute to the development of their own country, so they come back to traditional Japanese companies,” Yamashita added.
Why It Matters
One reason that Oya and Yamashita feel that supply chain logistics in Japan lags far behind that found in the United States or other countries is that it isn’t viewed as equally important within traditional companies.
“There are various functions in a company—sales, marketing, finance, human resources—and supply chain is one of these. But in general, in Japan, I feel that it doesn’t get the same respect or visibility as the others, because supply chain is often seen as blue collar,” explained Oya.
But supply chain management is critical to the success of any business, whether a company is manufacturing a car or delivering fast-moving consumer goods to a customer’s doorstep.
““We’ve started seeing more Japanese companies trying to hire people coming from a global background and mind-set.””
One of the most important areas of supply chain management is sales and operations (S&OP), which is in charge of production and demand planning one month, one year, or two years out. Making S&OP more adept and resilient is growing in importance not only in Japan but the whole Asia–Pacific region as many international companies focus on APAC business.
A client that has been growing its overseas business and has its headquarters in Japan realized that, to win the global market, it needed to change its approach to supply chain management and bring S&OP up to speed. A specialty of Robert Half is helping Japanese companies bring international culture and methods from the United States and other countries into Japan, so the partnership is a perfect fit.
“We’ve started seeing more Japanese companies trying to hire people coming from a global background and mind-set,” noted Oya. “Mid-career hiring is something that traditionally hasn’t happened in Japan, but is becoming increasingly common. We’re seeing more people with 30 years of experience at American or multinational companies moving to big Japanese manufacturers with a very long history of hiring new grads and training them in their way, not hiring from outside.”
One of those seasoned veterans could be the missing talent to lead a transformation of your supply chain, and the Robert Half team are ready to partner with you to build resilience for today and the future.
Register now to learn, connect, and get inspired by Robert Half Japan networking events: roberthalf.jp
Workforce Matters
Japan has long been seen as an attractive destination for companies expanding operations globally. This trend is more obvious today. But what causes foreign capitalists to succeed or fail in Japan?
What causes foreign capitalists to succeed or fail in Japan?
Japan has long been seen as an attractive destination for companies expanding operations globally. This trend is more obvious today. Japan boasts a robust infrastructure—from transportation to energy to telecommunications—and is considered an ideal hedge against the political instability, or “country risk,” that is prevalent in other Asian countries. Expected cost reductions fueled by the weakened yen have led many companies to believe that now is the time to enter the Japanese market.
Common Traits of Failure
Despite the promising situation, some businesses have not achieved the expected results. A survey conducted by the Ministry of Economy, Trade and Industry revealed that struggles with talent acquisition and Japan’s unique nature, such as the preference for homogeneity, caused them to fail. These reasons may seem plausible, but what really happened?
Unsuccessful businesses did not do well because they brought their own cultures and practices to Japan without attempting to adapt. Japanese people have a hard time accepting foreign capitalists who expect them to adapt to their methods, and this often leads to a sense of discomfort among local talent. Integrating into Japanese culture is essential.
Key to Success
Since 2019, there have been numerous changes to Japanese labor law, with more revisions planned for the coming years. Workforce management has become more complex, with legislation impacting work time management, payroll processing, and social security-related filings.
For example, Article 36 of the Revised Labour Standards Act (Overtime Work and Working on Holidays) requires companies to submit a dedicated form to the Labour Standards Bureau for each employee who is expected to work on a holiday or longer than the prescribed hours.
The maximum working hours per day, month, and year must be agreed upon by the employee and employer. The so-called “36 agreement,” which specifies the agreed conditions, is one of the most important documents in workforce management. Yet, it is often treated as a piece of routine paperwork, filed without a thorough review. In fact, we have seen many cases where this paperwork has not even been submitted.
Regulatory authorities place considerable emphasis on proper filing. Failure to comply may result in disclosure of the company’s name. Penalties may also be levied, including up to six months in prison or a maximum fine of ¥300,000.
To succeed, foreign-invested companies must understand how the Japanese labor system functions and how to ensure workforce management compliance. Successful companies comply with the applicable laws and regulations in Japan and have implemented an effective talent strategy that is flexible and rooted in the region.
Given the complexity, it is best to outsource workforce management entirely to a group of specialists. While this may not seem like a distinguishable advantage over competitors, compliance is crucial for running a successful business. Securing reliable resources to handle these needs with confidence is the first step toward successful entry into the Japanese market.
Dayforce provides payroll and labor outsourcing services through Workcloud, which offers:
- One platform: supports payroll, attendance, social insurance, year-end adjustment, and onboarding management.
- Excellent user interface and system scalability: intuitive user interface (UI) does not require manuals and allows for additional development.
- Bilingual support: all pages have the same UI in English and Japanese.
- Timely response to legislation: enhancing features and ensuring compliance with newly enacted laws.
Article supported by Actus HR Solutions, KK
For more information and to learn how Dayforce Workcloud can help your business, visit https://dayforce.co.jp/contact.
Japan Unlocked
Looking to enter the Japan market? Want to improve your existing operations? As part of Kreston Global, the world’s 13th-biggest accounting network and 10th-biggest in Japan, Kreston ProWorks helps companies establish a foothold in Japan.
Kreston ProWorks opens doors with local expertise and global reach.
Kreston Global, the world’s 13th-biggest accounting network in terms of revenue according to UK-based trade magazine International Accounting Bulletin (IAB), is now the 10th-biggest in Japan per the IAB, up one spot from the year before.
With 160 independent member firms and 25,000 experts across 750 offices in 115 countries, Kreston Global provides unparalleled access to a wealth of international resources and expertise.
There are three member companies in Japan. Two provide audit services and the third, Kreston ProWorks, offers a full slate of inbound accounting, payroll, tax, and corporate services.
Established in 2007 by Marek Lehocky, the firm has built a strong reputation as an indispensable partner for companies looking to enter the Japanese market. “Our mission is to make setting up and operating businesses—including immigration, accounting, payroll, labor, and tax compliance—as easy as possible in Japan, so our clients can focus on building their business,” Lehocky told The ACCJ Journal.
Full Slate of Services
Kreston ProWorks delivers a nimble team of bilingual experts with intimate knowledge of how processes in Japan differ from those in other countries. Specialists in inbound accounting, tax, payroll, and human resources, Kreston ProWorks offers a much wider range of services than other companies:
- Company formation and corporate services
- Employer of record (EOR)
- Immigration and business license support
- Legal and transactional support
- Nominee representative
- Virtual office services
- Market entry and business consulting
EOR, for example, is especially helpful, as it allows companies to come in for a short time and deploy resources quickly to complete a specific project. It is also a way to test the waters when considering Japan market entry without investing in a full move.
“With all the requirements and steps involved, it can take at least seven or eight months before people can come into the country,” Lehocky said. “We can cut that to just three or four months with foreign employees and a few weeks with local hires.”
Local Knowledge Matters
Just as understanding the local market is key to a business’s success, so are local operations. While many companies provide services offshore, Kreston ProWorks does everything in Japan.
“Clients want to have closer proximity to Japan, because Japan is a black box of sorts, and they want to make sure that the people who are handling their operations actually understand the intricacies and nothing is being lost in translation,” Lehocky explained. “We act as our clients’ internal team of experts and ‘goalkeepers’ for each of the service areas that we provide. We stay on our client matters and drive the parts that we are in charge of so our clients can focus on other parts of their business. Communication and getting things done is a key to success.”
If you are interested in exploring market entry or are already here and wondering if you are doing everything the right way, Lehocky invites you to get in touch.
“Reach out,” he says. “We would be happy to arrange a time to introduce ourselves and get to know you and your needs. You always have alternatives.”
Get in touch today for a free consultation:
Carla Willmes, business growth and communications lead
cwillmes@krestonproworks.com
03-4520-5530 • www.krestonproworks.com
The Hunt for DX Champions
Despite being a nation renowned for assimilating advanced machinery and technology into everyday life, the reality of Japan’s IT workforce paints a very different picture. But Robert Half Japan is supporting clients undergoing digital transformation and is seeing promising progress.
Japan faces an uphill climb when it comes to digital transformation.
From left: Marcus Aakerholm and Lyndsey Hughes (Photo: Shelley Mae Photography)
Despite being a nation renowned for assimilating advanced machinery and technology into everyday life, the reality of Japan’s IT workforce paints a very different picture.
According to a survey of companies conducted by the Ministry of Internal Affairs and Communication, Japan’s information and communication technology (ICT) sector is falling short when it comes to digital transformation (DX). This is largely due to a lack of qualified technology talent. In 2018, there was a shortage of about 220,000 ICT workers, and the shortfall is expected to reach 450,000 by 2030.
At the same time, Japan’s economic landscape is experiencing a generational shift, influenced by new government policies and changing regulations designed to elevate the country to the global DX standard.
Slow Road to DX
Robert Half Japan supports clients undergoing digital transformation and is seeing promising progress.
“In many Japan-headquartered global companies, the pace of change has tended to be slow and incremental,” said Managing Director Lyndsey Hughes. “But this has started to shift over the past few years and momentum is building.”
“Even prior to Covid-19, we had started to see signs of large Japanese corporations incorporating their DX agenda into their corporate vision and hiring ‘disruptive’ senior executives from outside the organization—even from outside Japan—to expedite transformation,” he said. “It seems now there really is an appetite and a glimmer of commitment from corporate Japan to transform their global businesses.”
The 2022 IMD World Digital Competitiveness Ranking ranks Japan 29th out of 64 countries examined in terms of know-how, development of digital technologies, and preparedness to exploit digital transformation. Asian countries finishing ahead of Japan include South Korea (8th), Taiwan (11th), and China (17th).
Hughes noted that many companies have been stalling in their DX initiatives, often because they lack real commitment from the top, face resistance from middle management, or are short of know-how on how to manage global functions. They may also struggle to attract, and appropriately compensate, ‘new’ skill sets to implement the change.
DX touches every area of an organization, he explained, and while every company faces its own unique set of challenges, there are consistent themes that Robert Half is hearing from its customers. These include overhauls to human resources policies to adopt pay-for-performance compensation to attract specialized talent.
Robert Half is seeing companies start to take diversity, equity, and inclusion initiatives seriously, and many are ready to pay higher agency fees to prioritize the scouting of female talent as well as hiring, and even importing, more foreign talent. And while there is still a long way to go to embrace all types of diversity, at least the conversations have started, Hughes said.
In addition, large Japanese companies are beginning to move away from in-market IT to globally distributed IT functions that allow them to benefit from scale, respond more quickly to market changes, and mitigate cybersecurity risks.
There has also been a surge in the hiring of chief data officers to centralize data and analytics expertise, as well as breaking down data silos and harnessing the power of data across an organization.
Too many companies are entering uncharted DX territory, Hughes pointed out, and often lack the skills and expertise to deliver on such projects. This is where Robert Half and its business consultancy subsidiary, Protiviti, come in.
Helping Hand
“At Robert Half Japan, we have a strong focus on placing bilingual technology talent with foreign affiliates in Japan to bridge with their HQ, or to global Japanese firms looking to bridge their overseas subsidiaries,” explained Marcus Aakerholm, division director of business transformation. “As an enterprise, we have a unique capability to support DX initiatives in different ways, whether by placing permanent employees across various functions, specialist contractors to jump into different projects, or through Protiviti.
“In many cases, we offer a tailored and blended solution of outsourced consulting assignments combined with project contractors and permanent resources,” he added. “This allows us to respond flexibly to the fluid and diverse needs of our customers, across their global operations.”
Aakerholm has witnessed firsthand the unique market conditions affecting DX in Japan.
“A typical scenario for our team is assisting foreign-affiliated organizations that need to undergo a corporate-wide system update,” he said. “In these cases, the US office will send an internal team to implement the changes but, due to the unique market requirements here, their efforts are rarely implemented or understood by domestic teams. Our bilingual project managers and functional experts bridge that gap.”
Robert Half supports many Japan-headquartered clients that require bilingual talent with subject matter or technology expertise to interact with overseas subsidiaries.
In one example, Aakerholm’s team helped a global media company by bringing in a specialist consultant with the required language abilities, project management skills, and knowledge of system implementation to complete the introduction of finance modules of the Workday system.
Look Within
“When a company needs to evolve, it’s not just about bringing in new people,” said Hughes. “Organizations also need to create a culture of internal evolution so they can continue to adapt to changes in the market, customer needs, and so on.
“Generally, organizations think in functional silos, and those silos are often lacking a specific skill set,” he said. “But those skill sets may exist elsewhere in the organization. There are all sorts of capabilities floating around in every company, perhaps in a different function or a different market, so there isn’t necessarily a need to rush out and hire quickly.”
Smart leaders are adept at unearthing the hidden potential in an organization, he added, and creating an environment of empowerment to enable the enablers.
One Robert Half client innovated by introducing a “chief future officer” role and invited a relatively new hire to join the company’s transformation steering committee, alongside senior leaders from across the business, to bring a fresh perspective and add a new voice.
“People new to the organization often have the clearest minds to and come up with innovative solutions,” Hughes said. “Younger generations want their voices to be heard, to feel they are contributing, so tapping into their passion and capabilities is very important and can be a key catalyst for successful DX.
“Often, a manager thinks the candidate they need is a reflection of who they are and their own skills,” he said. “But they need to identify where they and their organization are coming up short and then find the person to fill that gap.”
The deficiency might be a hard skill set, such as expertise in a new technology stack or building global enterprise architecture standards, but it might also be the ability to champion new ways of doing things, exposure to different industries, or diversity in hiring to bring in better creative problem-solvers.
“I believe leaders need to be deliberate in understanding the current skill, personality, and knowledge gaps,” Hughes said. “And then ask themselves what their team members can do to help drive the transformation, what unique talents can they bring to the table.”
Register now to learn, connect, and get inspired by Robert Half Japan networking events: roberthalf.jp
Equal Partners
In September 2018, the ACCJ released a viewpoint supporting marriage equality in collaboration with the Lawyers for LGBT & Allies Network (LLAN) and five other chambers of commerce. Here is where we stand today.
Five years in, the ACCJ’s campaign for marriage equality gains speed.
In September 2018, the American Chamber of Commerce in Japan (ACCJ) released a viewpoint entitled Support the Recruitment and Retention of Talent by Instituting Marriage Equality in Japan in collaboration with the Lawyers for LGBT & Allies Network (LLAN) and five other chambers of commerce. Five years later, the viewpoint has been endorsed by 139 domestic and international entities.
Across Japan, support for marriage equality is gaining momentum among the population, with 278 municipalities and prefectures now offering same-sex partnership registration. This includes the Tokyo Metropolis as well as major cities such as Sapporo, Osaka, Kyoto, and Fukuoka.
Traction can also be seen in the general population, with surveys indicating support for marriage equality of 44 to 82 percent, with stronger support among younger people and women.
Yet calls for marriage equality continue to fall on deaf ears in the Diet.
“This year, we did have the very first LGBT legislation, the ‘awareness bill,’ so that domino has fallen,” said LLAN co-founder and co-chair Alexander Dmitrenko. He noted that the watered-down language does little more than say, “Please be aware there are gay people out there.”
But there are ways to influence the national government, he said.
“One way is to really work with local governments to ensure that, to the extent they can support recognizing equality, they do it.”
Some prefectural governments, he said, have made strong efforts to afford greater rights to same-sex partners.
Dmitrenko said the LGBT community is very grateful for this, but warned that, when talking about this progress, “we need to be very careful not to dilute focus on the actual goal, which is equality. These move us a small step closer, but they’re not equality.”
A second way, he explained, is through the courts.
The impact of the ACCJ viewpoint can be seen in litigation efforts. In 2021, Sapporo District Court Judge Tomoko Takebe referenced the ACCJ position in a case brought against the government by three same-sex couples. Takebe ruled that prohibition of same-sex marriage is unconstitutional, but denied demands for compensation.
There have also been favorable outcomes in Tokyo, Nagoya, and Fukuoka. The message from the first-level courts was that there’s definitely discrimination. And, like Sapporo, these cases also referenced the ACCJ viewpoint.
“But ultimately, court cases, unlike in the US, can’t change the law. Only the Diet can,” Dmitrenko explained. “Yet, those cases create important pressure points.”
Growing support from Japanese corporations is also helping move the needle. The Business for Marriage Equality campaign had the support of 458 companies and organizations as of December 8.
The ACCJ issued an open letter to the government on April 21 stating the business case for marriage equality and protection of LGBTQ+ rights, and will soon release an updated viewpoint. Both can be viewed on the ACCJ website. Any company can endorse the viewpoint by contacting info@llanjapan.org.
Dmitrenko is confident that Japan will eventually join its G7 partners in recognizing same-sex marriages.
“It’s a very slow, local train to equality, making all the stops, getting everyone on,” he said. “Which is fine. Just a little faster, please.”
Future Ready
If Japan is to remain globally competitive and secure its future economy, overcoming the digital talent gap is a must. To find out where Japan is on the road to readiness, _The ACCJ Journal_ spoke with corporate leaders about the current state of talent acquisition and retention.
What must Japan do to ensure that its workforce can compete in a digital world?
We’ve been living in a digital world for quite some time. More than three decades have passed since the World Wide Web began connecting us through zeros and ones. For most of that time, it’s been possible to straddle the line between digital and analog. But if the first quarter of 2023 has made anything clear, it’s that we’re at an inflection point when it comes to technology.
If Japan is to remain globally competitive and secure its future economy, it must embrace digital transformation (DX).
Despite increased efforts to push DX, Japan dropped to 29th place in the 2022 IMD World Digital Competitiveness Ranking, an annual report published by the Switzerland-based International Institute for Management Development that assesses and compares the digital competitiveness of countries based on their ability to adopt and explore digital technologies.
More concerning is that Japan ranked 41st in the talent subcategory and 54th in future readiness.
Overcoming this digital talent gap is a must. For companies, the required skill sets are shifting, impacting not only talent acquisition and retention, but also the country’s education system and overall workplace culture.
To find out where Japan is on the road to readiness, The ACCJ Journal spoke with corporate leaders making DX possible, as well as those helping companies and talent come together for success in today’s digital-driven world.
Widening Gap
Talent acquisition has become a pressing issue for companies across Japan. In a 2022 survey conducted by the Ministry of Internal Affairs and Communications (MIC), 67 percent of Japanese respondents cited a shortage of information and communications technology (ICT) personnel as a roadblock to their DX efforts.
Surveys conducted by recruitment site Doda show a sharp rise in the monthly number of job openings per candidate for engineers and other tech professionals—from 3.44 in March 2019 to 9.54 in March 2022. The Ministry of Economy, Trade and Industry (METI) projects a shortage of 450,000 ICT workers by 2030.
“We have a big problem. It’s a serious talent crisis that is going to get much worse,” said Daniel Bamford, associate director of technology for Asia–Pacific at specialized recruitment agency Robert Half Japan.
Changing Workplace
Faced with a dwindling talent pool and fierce competition, the Japanese labor system must change within a few years if Japanese companies are to acquire good talent, Megumi Tsukamoto, senior adviser at global consultancy J.S. Held Japan LLC, told The ACCJ Journal. The country’s traditional human resources model, according to which compensation is based on age and seniority, has exacerbated the digital talent shortage.
A 2016 comparative survey by METI found that the average annual salary of ICT personnel in Japan was roughly half that of their US counterparts. Workers in their twenties in the United States earned an average of $77,990 per year, while their Japanese counterparts took home just $31,300.
“Workers in their twenties in the United States earned an average of $77,990 per year, while their Japanese counterparts took home just $31,300.”
Tsukamoto noted that, in a bid to obtain and retain talent, some Japanese companies are beginning to offer salaries two to three times higher than previous packages. Some are offering much more than that. This is the result of ICT professionals either moving abroad, or choosing to work for such foreign companies in Japan as Google.
However, higher salaries are just one piece of the puzzle, said Victoria Ryo, associate director at Robert Half. In-demand ICT tech workers expect more.
“A company that provides workplace flexibility, along with benefits, interesting projects, and an international environment, is going to be more attractive,” she explained.
Ryo pointed to innovative initiatives that catch the attention of potential ICT workers. As an example, she mentioned the financial services organization Money Forward’s Culture Hero campaign, which awards employees who epitomize the company’s inclusive culture. But Bamford warns that a good diversity, equity, and inclusion (DEI) policy is not enough to attract these in-demand talents.
“For them, it’s a base expectation, not something that will win them over,” he said. “But if you’re not providing a diverse and inclusive environment, you will lose people.”
Looking Abroad
To address the domestic talent shortage, companies such as Fujitsu Japan Limited have accelerated plans to hire non-Japanese engineering researchers in the wake of recent mass layoffs in the US tech sector.
While skepticism remains that ICT workers from abroad can thrive in Japanese workplaces, where language—and sometimes insufficient DEI culture—remains a barrier, Tsukamoto cites Mercari, Inc. as a domestic player that has found success hiring international talent.
The thriving e-commerce company began its full-scale efforts to recruit overseas talent in 2018. Today, more than 50 foreign nationals are working at Mercari’s Tokyo office, according to their FY2022 sustainability report.
Last year, the company opened a subsidiary in Bengaluru, a hub for IT companies in southern India, with the goal of recruiting IT workers. As of last July, it had attracted 45 new graduates from the Indian Institute of Technology.
The school has been a popular source of tech talent for Japanese companies such as Rakuten Group, Inc., whose Bengaluru base grew from six engineers in 2014 to more than 1,000 in 2020.
The Japanese government has responded to this trend by launching two new visa schemes in April that target highly skilled foreign workers, such as researchers and engineers, as well as graduates of highly ranked universities.
The Japan System for Special Highly Skilled Professionals, or J-Skip, visa allows researchers, engineers, and business managers to bypass the points-based system used to award visas to skilled professionals.
Meanwhile, the Japan System for Future Creation Individual, or J-Find, visa allows graduates from highly ranked universities to live in the country for up to two years while they find employment.
Evolving Workforce
The Japanese government also pledged last October to spend ¥1 trillion over the next five years on reskilling workers to address the shrinking pool of tech talent.
In January, Japanese Prime Minister Fumio Kishida said that guidelines will be drawn up in June to increase labor market flexibility to encourage workers to move to high-growth sectors.
Major companies are also contributing. Amazon Web Services Japan G.K. (AWS) has invested more than ¥1.3 trillion to help its Japanese customers modernize their IT systems and to overcome their digital skills gap through education programs, training, and certification.
“Cloud and cybersecurity skills will be the two most sought-after digital skills by Japanese employers by 2025,” said James Miller, the company’s head of public policy. “AWS has trained over 400,000 individuals in Japan with cloud skills since 2017, providing them with in-demand skills and best practices to help learners and organizations innovate in the cloud.”
Miller—an American Chamber of Commerce in Japan (ACCJ) governor who also serves as co-chair of the chamber’s Digital Transformation Committee and vice-chair of the Secure Digital Infrastructure Committee—shared an example of how AWS extended a 21st-century hand to a 19th-century company.
In 2021, the company helped Toppan Printing Co., Ltd., the 122-year-old Japanese global juggernaut, embark on a full-scale digital transformation. More than 1,600 of its employees received AWS training over three months and 1,050 pursued AWS certifications in a single year.
Room for Movement
As businesses make DX a point of emphasis, having a range of skill sets has become more important. In terms of hard skills, such as cloud and DevOps, Bamford noted that recruitment has gone from a T-shaped model, where someone has broad awareness and one deep specialization, to a V-shaped one, where the candidate’s deep specialization is complemented by medium-depth knowledge in other areas.
“The other side is that the soft skills aspect is really focused on being able to bridge global and local, while also bringing technical and people skills,” he added.
While senior managers who can lead a company’s DX efforts are in demand, companies should look inward for potential employees who they can elevate, according to Bamford. He pointed to a client that was looking for a certified ScrumMaster and, rather than hiring someone already at that level, found success in ambitious young candidates who the company could train to be certified.
“Since there will be that much more demand, and that much more shortage, the secret is to unlock the skill sets of the people you currently have. Experience is nice, but learning mindsets are even better.”
“Since there will be that much more demand, and that much more shortage, the secret is to unlock the skill sets of the people you currently have. Experience is nice, but learning mindsets are even better,” he added.
Ryo noted that this can help companies retain their technical talent. “I think the number one reason people leave an organization is because they don’t feel they have the opportunity to grow.”
Preparing Future Generations
While reskilling offers companies a path to overcoming current DX issues, Japan’s new ¥10 trillion national endowment fund to boost research at universities in strategic priorities such as artificial intelligence (AI), biotech, and quantum technology is expected to help train the next generation.
However, Matthew Wilson, dean and president of Temple University, Japan Campus, believes that changing student mindsets is arguably more important to reversing the tech talent drain.
He contrasted students in the United States, who define their future goals by jobs they want to pursue, with Japanese students, who aspire to work for specific companies.
“If your goal is to work at a company, your pathway is going to be a lot different,” he said, noting that the practice of job rotations at Japanese companies, in which employees are transferred from department to department every few years, provides fewer incentives to focus on specific fields.
Wilson also noted that Japan’s public education system is “very conservative, which is difficult to change,” but is optimistic that the government’s push for DX and the advent of new AI technologies, such as ChatGPT, the conversational large language model developed by OpenAI, will accelerate change.
“It’s going to force people to educate differently and to assess differently,” Wilson said. “The point isn’t catching somebody who just did their essay with ChatGPT. Rather, it’s how to educate somebody so they have the skills and the knowledge they’re going to need for a job five years down the road.”
Unified Response
Steps have been taken to reshape the country’s education system with last year’s release of the Roadmap on the Utilization of Data in Education. A joint statement issued by the Digital Agency, MIC, METI, and the Ministry of Education, Culture, Sports, Science and Technology states that, by 2030, the government aims to create “a society where anyone can learn in their own way, anytime, anywhere, with anyone.”
While Wilson recalls similar government ambitions, such as former Japanese Prime Minister Yoshiro Mori’s “one student, one computer” initiative more than two decades ago, which had little success, he is optimistic about the Digital Agency and Minister Taro Kono, whom he praises for being “energetic and constantly finding ways to challenge processes and procedures.”
But he also noted that, while things are starting to move, “it’s going to take a while to get Japan to the digital utopia that they’ve been talking about for 25 years.”
Cracking the Code
As digital transformation touches every aspect of how we work and communicate, businesses face ever more complex challenges. The evolution of cybersecurity means that companies must rethink how they hire for this critical task. Robert Half shares how to secure the best cybersecurity talent.
Recruiter Robert Half shares how to find the best cybersecurity talent.
From left: Robert Half cybersecurity team members Fabrizio Fumagalli, Steven Li, Kani Taeng, and Naoto Hamada
As digital transformation (DX) touches every aspect of how we work and communicate, businesses face ever more complex challenges when it comes to protecting data—whether it is their own or that of customers. The evolution of cybersecurity means that companies must rethink how they hire for this critical task.
Steven Li, senior division director for cybersecurity at recruitment company Robert Half, told The ACCJ Journal that they see a lot of companies going through digital or IT transformations to shared service models, including for security.
“One of the challenges with security is that it’s all about data, and it’s all about being able to see your entire ecosystem or environment using a single source of truth or a single tool,” he said. “And a problem you may face is how to bring different business units that you’ve acquired onto a common platform for security operations and vulnerability management, so that when someone asks, ‘Are we impacted by this incident?’ you can answer with a degree of confidence.”
Robert Half advises clients on how to do just that and helps them find the right people to lead that transformation.
Expertise Matters
From a people perspective, previously siloed teams are being consolidated on a group level to create a centralized point of contact for cybersecurity that then provides support to each business unit, Li explained. Instead of outsourcing technical tasks to consultants, companies are now looking to hire specialists for their internal teams. But with much of this talent coming from outside Japan, domestic salaries are an obstacle.
“Employees here in Japan are typically rewarded based on tenure and age instead of merit and skill,” he noted. “To get around this, some companies have started to offer contracting solutions. They’ll say, let’s do a fixed-term contract. And with this fixed-term contract, we can step outside the bounds of our salary structure and give the specialist what the [global] market is paying, and a little bit more.”
This is important as there is an estimated shortfall of 190,000 cybersecurity professionals in Japan.
“Our clients are sharing that they need people who are application security engineers and can dynamically test the code.”
“Japanese companies are not used to hiring mid-career security professionals. They are used to hiring graduates, so to bring in someone mid-career, they don’t know how to do it, where to find them,” Li explained.
“Good cybersecurity engineers don’t typically fit the traditional model of an IT person. They may not have finished university, but they are adept at problem-solving and seeing patterns that other people might miss. We’ve placed people like this, and our clients have been absolutely happy with them,” he added.
Recruiting Manager for Cybersecurity Naoto Hamada shared an example of how Robert Half successfully placed a candidate who made a big difference for their client. But to do so, they had to overcome a challenge common in Japan: hesitation to change jobs.
“It was for a key project, and closing the role was a high priority. However, it’s challenging to find this talent in Japan,” Hamada explained. “We were able to find a match, and he received a competitive offer. But just one day before the deadline, on a weekend, he messaged me and said, ‘I can’t take this.’”
The problem wasn’t the offer but that he felt sympathetic towards his current manager should he leave.
“After receiving the message, he asked me to come meet at his station in person. I outlined the benefits of joining this international company and how it would provide him the career growth opportunities in line with his goals,” Hamada explained. “In the end, the key element was that we helped him visualize his priorities, then compare them to his current company. Based on this exchange, he decided to sign the offer and is now a key member in the newly created incident response team at his new company.”
Working hands-on in this way is at the core of Robert Half’s approach to recruitment. An important part of that are cyber risk meetups, which they host to bring together security professionals to share information and experiences which can help bridge the gap in cyber skills. A recent senior leaders’ meetup at Deloitte focused on ransomware resilience, and a public security meetup at Microsoft focused on software supply chain security.
“If we all share best ideas, best practices, and experiences, and implement those, perhaps we can improve cybersecurity maturity in Japan,” Li said.
Changing Regulations
Another thing to consider is the impact of changing regulations. Fabrizio Fumagalli, Robert Half’s recruiting associate director for cybersecurity, pointed out changes to ISO 27001, an international standard for information security management systems.
“This was updated in 2022, and companies have three years to comply,” Fumagalli said. “There are a few notable requirements on code security and the code supply chain. Companies need to be extremely careful about what’s in their code and conduct appropriate audits to assess where vulnerabilities may be.”
On average, about 80 percent of the code in a typical application is open source, Fumagalli noted, so it can be difficult to know what vulnerabilities may be hiding there. As a result, companies will need people in security who are proficient in software development.
“Instead of relying on documents from an external vendor, companies need a specialist who can check the code to ensure it is secure. Teaching security is easier than teaching the development side, so that is where companies’ priorities should be,” he added.
Specific to Japan, he said, is the need for mid-career cybersecurity talent. “You cannot randomly reassign, or do rotations, as most Japanese companies do. Due to the specific set of skills needed for the role, there is an urgent need for individuals who are experts in cybersecurity.”
Li added: “Our clients are sharing that they need people who are application security engineers and can dynamically test the code, play around with it, see if they can break it. Or do static analysis by reading the code itself and figuring out where the logic problems are. These skills are in extremely high demand.”
Partner for Success and Security
In closing, Li said that Robert Half is working to change the perception of recruitment in Japan and to help clients look beyond the numbers and the next quarter. If you are reassessing your cybersecurity, Li, Fumagalli, Hamada, Taeng, and the Robert Half team are ready to expand upon this approach and partner with you to build the best teams for today and the future.
Register now to learn, connect, and get inspired by Robert Half Japan networking events: roberthalf.jp
The Great Resignation
The pandemic has brought tumultuous change to the workplace worldwide, and in the United States millions of employees have decided to quit or change jobs in what has been dubbed The Great Resignation. Could we see a similar upheaval in Japan?
Could the change Covid-19 sparked in the United States occur in Japan?
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The pandemic has brought tumultuous change to the workplace worldwide, and in the United States millions of employees have decided to quit or change jobs in what has been dubbed The Great Resignation. Could we see a similar upheaval in Japan?
In several ways, we already are—although the changes may not be as dramatic or visible, for social, financial, and cultural reasons. Japanese workers aren’t quitting and changing their jobs en masse, but we are seeing more willingness to jump ship—particularly among the younger generation—as well as shifting priorities and expectations about one’s job, career, and employer that will probably transform Japan’s labor market, recruiters and experts have told The ACCJ Journal.
The Great Reflection
Suddenly finding themselves working from home, with extra time on their hands, many workers have had the mental space to think about their careers and broader purpose in life—something they often had been too busy to do previously. Some realized they weren’t satisfied with their jobs and work–life balance, and they began to explore new paths, such as volunteering, picking up side gigs, or changing jobs entirely. That’s a big step in Japan.
“Everybody is reassessing their values,” said Jeremy Sampson, managing director at recruiting company Robert Walters Japan K.K., which connects English-speaking candidates with foreign-affiliated or Japanese companies. “They’re reassessing their lives, their careers, and really wondering if they’re happy with what they’re doing.”
“It’s like stepping off the treadmill,” offered Simon Jelfs, managing director at FocusCore Group KK, which specializes in bilingual recruitment for US and European companies. “People have had a chance to step back, think, and reassess.”
Covid-19 has changed people’s priorities in evaluating a job. In a survey conducted by Robert Walters earlier this year, candidates said their top value was doing challenging and interesting work, followed by inspiring colleagues, corporate culture, and flexible working. Job security and excellent compensation were ranked sixth and seventh—well below where they had been in previous surveys.
“We’re seeing people wanting to change jobs for reasons around looking for something more fulfilling,” Sampson said. “Or because they realize life is short, and that they want to be doing something that makes them happy.”
Jumping off Kiyomizu
But changing jobs is hard in Japan. If you have special skills, such as English ability, as is the case with jobseekers being placed through FocusCore and Robert Walters, there is strong demand. But for most Japanese, switching jobs can be very risky—particularly for those in their forties, fifties, or sixties who have stable jobs and good salaries at major companies, and families who depend on them.
“Japan is less flexible in terms of your trajectory; you don’t have a lot of options to make mistakes and then pick it up and fix it,” explained Robin O’Day, a professor of anthropology at the University of North Georgia who has studied Japan’s youth culture. “If it doesn’t work out, it’s on you because you took a gamble.” In a business culture that values loyalty and is only gradually recognizing merit as a key hiring factor, there’s also not much professional incentive for mid-career employees to change jobs. In the United States and Europe, many who switch jobs can obtain higher salaries or promotions, but that’s usually not the case in Japan, according to Akie Nakamura, chief researcher at Rengo-RIALS. Some even see their salaries drop.
Surveys by the Recruit Works Institute show that, compared with workers in the United States, China, France, and Denmark, those in Japan express greater overall dissatisfaction with their jobs. But the lack of mobility discourages many from doing anything about it. “Changing jobs requires a lot of courage in Japan,” she remarked. “Sometimes it’s likened to jumping off Kiyomizu Temple’s high platform.”
The number of workers who change jobs has been rising in recent years, but fell over the past two years. During the pandemic, the figure fell to 2.9 million in 2021 from 3.5 million in 2019, government data shows. Still, those saying they would like to change jobs has continued to rise steadily, having reached 8.9 million in 2021, according to the government’s labor data, with those aged between 25 and 34 accounting for the biggest group, at 2.3 million. And a survey by Robert Walters of 800 employees across various industries registered with the recruiter shows that 60 percent of respondents were looking to change jobs over the next 12 months.
Generation Gap
Changing jobs is less risky—and a bit more common—among Japanese in their twenties and thirties. For these people, there is less to lose potentially in terms of salary, and more options from which to choose. Companies are also more likely to hire them. And increasingly, if young people are unhappy with their jobs or feel they don’t have much of a future there, they will look elsewhere.
Many in the younger generation have seen the often-grueling jobs their fathers (in most cases) held and aren’t necessarily enthused by the idea of devoting their entire career to a company, Professor O’Day said. They are thinking more in terms of how the company can benefit their career objectives, not the other way around, he and other experts agreed.
Some companies are shifting from the traditional organizational model, in which workers function as members contributing to the company’s overarching mission, to a self-directed model that gives employees more freedom to pursue their ideas and offers choices within the company, experts explained.
Over the past few years, we’ve been seeing some twenty-somethings at big brand-name companies switch jobs, which was virtually unheard of before, Nakamura noted. The top two reasons are:
- Fear that they won’t be able to do interesting work if they remain where they are
- A desire to work at companies with more growth opportunities
And research conducted by online recruiting agency en Japan Inc. shows that a growing portion of these young job-changers at big companies are going to startups, the ratio having risen to more than 20 percent last year.
Sampson sees that among his clients as well. “Younger people want to take control of their lives more,” he said. “They have more of an appetite for startup-type businesses, where people can take the initiative, are more responsible for their own actions and output, and are not just taking orders from above.”
Flexibility Assumed
Jobseekers’ demands and expectations surrounding job flexibility are also changing. The first question that candidates ask when considering a new opportunity is not about salary but work arrangements, Sampson shared. “Pre-pandemic, flexibility around work was a benefit that companies sold to attract talent, whereas now it’s a must-have,” he said. “And if you’re not [offering it], you’re basically deterring talent.”
While many companies still place value on employees coming into the office, partly to build corporate culture and network with colleagues, jobseekers are gravitating to businesses that offer a hybrid work style that allows them to work from home at least some of the time. After tasting work from home, some will accept only jobs that are 100-percent remote, FocusCore Group’s Jelfs noted.
Teleworking has been especially welcomed by working mothers, who say they are much better able to juggle their family duties. One single mother, whom Jelfs knows, loves working from home so much that, if her company required her to start coming back into the office, she would find another job that allows fully remote work.
These changing dynamics have driven another change: decentralization. Some people who live and work in Tokyo are moving to outlying areas—sometimes quite a distance away—either maintaining two homes or completely uprooting themselves from the city. One of Jelfs’s candidates moved from central Tokyo to Tsukuba, Ibaraki Prefecture, and once there switched to a local job. Others have moved to the beach town of Hayama, south of Yokohama, or Karuizawa, in the mountains of Nagano Prefecture, he said.
Covid-19 prompted Tokyo’s population to decline to just under 14 million last year, the first drop since 1996. If the trend continues, this could contribute to the spreading out of Japan’s population from urban centers, a long-time government goal.
“This is a shock to the system that Japan really needed to initiate this sort of change,” Sampson stated. “Even us as a company, we talked about more flexibility for years, but actually doing it was painful to think about. But when we ripped off the Band-Aid and did it, it actually became quite simple. Everyone adapted quite easily, and I think it’s benefited many people.”
More Stratification
However, this greater freedom and flexibility has not extended to Japan’s entire labor market. It is concentrated in white-collar workers with regular, full-time jobs—a steadily declining breed in Japan. Workers in blue-collar, delivery, and factory jobs that cannot be done from home, or at their convenience, have not seen this same sort of flexibility as a result of Covid-19, O’Day pointed out.
In fact, for some of them, work and life have become harder. Freelancers in Japan—mostly self-employed people with specific skills, such as photography, editing, or teaching music—have seen their work and income decline during the pandemic. And when the government offered financial aid to workers who had lost income, freelancers received less help than full-time employees. “To freelancers, that looked like a value judgment,” said O’Day.
The job market is also not very friendly toward them. When freelancers apply for full-time jobs, “many companies will discriminate against them—they think you’re somehow tainted or there’s something wrong with you,” O’Day added.
So, in some ways, Covid-19 has widened gaps in Japan’s labor market, where big businesses are increasingly relying on contract or part-time workers to cut costs. That’s given greater flexibility to companies, but not to contract workers, who have fewer benefits and less job security than those in the upper echelons of the labor market.
Shared Values
Covid-19 has also enhanced the desire among younger workers, including some college students, to join a company that shares their values and is doing something to contribute to society, recruiters said.
“Younger candidates are asking of companies, ‘What are they doing in terms of sustainability? What are they doing for the local community?’” explained Jelfs, who has been working in Japan for 24 years. “Ten years ago, it would have been more about salary and if it’s a prestigious company.”
Jobseekers in their twenties and thirties also place a higher priority on diversity and inclusion, and want to know how committed companies are to that, Sampson remarked. Likewise, they also are more concerned about whether companies are proactively adopting environment, sustainability, and governance standards, he added.
Businesses that aren’t able to offer more flexible work style policies or give clear answers to questions about their values, diversity goals, and contributions to society, may get shunned, recruiters warned. A Robert Walters survey shows that half the respondents would reject a job offer if the company’s values didn’t align with their own.
With more people working remotely, the entire job search process has become easier, recruiters said. They can search for openings online in the privacy of their homes and handle multiple job interviews in a single afternoon. They don’t necessarily need to commit a big chunk of time to visiting various companies’ downtown offices over several days for interviews, although some employers still want to meet candidates in person, which recruiters say is a good idea.
Talent War
All these changing dynamics are coming amid perhaps one of the tightest job markets ever in Japan, as the pool of workers contracts amid an aging and shrinking population. Companies are scrambling to get the best talent.
Even before the pandemic, capable candidates—from good schools, or with a few years’ experience in a desired field—who were looking to change jobs would receive many offers, Nakamura explained. “In the past, major companies could easily get graduates from top universities, but that’s no longer a given.”
Also, Japan’s tight immigration rules make it difficult for foreign workers to enter—a flow that has virtually ground to a halt during the pandemic.
“Japan is facing the greatest talent shortage, really, in its history, and it’s not going away with the shrinking population,” Sampson added. “There really needs to be a more streamlined process to accept and welcome foreign talent.”
Intense competition has emerged for workers with specific, highly sought-after skills, such as English ability or computer programming skills, recruiters said. Tech startups are appearing left and right, and established companies also need engineers to help them digitally transform their operations, so for them it’s a candidates’ market.
“Companies are looking for Japanese candidates who are bilingual, who have a stable background, a solid record of achievements in Japan, and are not a job-hopper. Once you factor all that in, supply is tight,” Jelfs explained. “Those kinds of candidates have three to five offers they can choose from.”
Businesses have become much more aggressive in trying to retain employees by making counteroffers in the form of promotions, transfers, or pay increases, according to Sampson. “Companies are aware that it’s far more difficult and expensive to replace somebody than it is to entice them to stay.”
Japan tends to change most dramatically in response to external shocks, and Covid-19 has proved to be a powerful catalyst, setting in motion changes that will probably permanently alter employee behavior, corporate practices, and even Japan’s business culture. “This is the beginning of what will be a long-term, big change in Japan for sure,” Sampson said.
Stepping Up for Change
The global employment landscape has shifted dramatically during the past two years, with the coronavirus pandemic encouraging employers to be more flexible than ever in their arrangements with staff. Working from home, for example—virtually unthinkable for many companies not long ago—has quickly become perfectly acceptable and, often, expected. While Japan has, in the past, been criticized for failing to keep up with changes in the job market, there are plenty of organizations here that have embraced different approaches to work.
Companies move quickly as talent expectations evolve
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The global employment landscape has shifted dramatically during the past two years, with the coronavirus pandemic encouraging employers to be more flexible than ever in their arrangements with staff. Working from home, for example—virtually unthinkable for many companies not long ago—has quickly become perfectly acceptable and, often, expected.
Employees, for the large part, have seized upon these opportunities to improve their work–life balance, escape the drudgery of the commute, and spend more time with their families. And now that the genie is out of the bottle, it will be very difficult for many people to return to previously accepted ways of working—at least on an all-day-every-day basis.
Change Not Optional
While Japan has, in the past, been criticized for failing to keep up with changes in the job market, there are plenty of organizations here that have embraced different approaches to work. Human resources (HR) companies say they must if they want to continue to attract the best and brightest talent, with a dire shortage of candidates in many sectors giving skilled workers the luxury of choosing where they might go next.
Well before the pandemic, Japan already had been experiencing a worsening labor shortage, pointed out Bryce Conlan, president of Nagoya-based H&R Consultants K.K., which specializes in foreign staffing solutions. This shortage could be seen in a broad range of placements, from convenience store jobs to blue-collar positions to highly skilled artificial intelligence or information technology (IT) experts. The situation had been compounded by salaries significantly lower than those in the United States and even elsewhere in Asia.
“Another serious issue was the lack of innovation and flexibility in HR policies,” said Conlan. “Or, rather, a lack of willingness to change old habits and cultures, where long hours were the norm and the evaluation system was built around time spent rather than results achieved. The need to be seen to be working, rather than the need to achieve results.”
Accelerated Adaptation
There were signs of change before the pandemic. More companies had been introducing cultural and language training, and there was a new willingness to hire talent from abroad. But things have changed rapidly since the first cases of Covid-19 were reported in Japan in early 2020.
“One positive thing that has come out of the pandemic for Japan is an acceptance of the concept of remote work or working from home,” Conlan told The ACCJ Journal. “There has been more change in the way companies operate and people work over the past 24 months than over the past 10 years here in Japan. So many processes and old ways have been transformed, with things such as digital signatures now being more commonly accepted—reducing the need for faxes—and a greater reliance on email and document-sharing tools.
“This has allowed a totally new way of working and, I believe, has brought a huge increase in efficiency,” he said. “We have one client who has well over 60 IT engineers working from India, purely because they have not been able to get visas to enter Japan to come and work. They are now working full time remotely from India, something that would have been unheard of five years ago.”
Nancy Ngou, an associate partner with EY Strategy and Consulting Co., Ltd., shared that the pandemic has hastened changes that already had been taking place at some companies. These include:
- Changes to develop and retain younger employees who prioritize flexibility
- Removal of barriers to women’s advancement in the workplace
- Evolving workplace cultures to embrace change (e.g., inclusion, digitalization, global mindset)
And while some previously had been hesitant to take advantage of those changes, such as flexibility—managers because they didn’t believe it was feasible and employees out of fear such changes would negatively impact their careers—these perceptions began to erode when people were forced to work remotely, she said.
“Businesses are stepping up implementation of their globalization and digitalization strategies, and employees’ expectations of their work have changed,” she explained. “Employees have had time to reflect on their personal priorities and reevaluate expectations. They feel more emboldened to leave what they viewed as simply a job they did, for a more purposeful career or a job they want to do. Employees—and not just the younger generation or working parents—are seeking sustained flexibility, purpose, and balance.
“Both the business and employee factors are forcing an acceleration of many changes HR leaders sought before, but with the added focus on employee retention and recruiting,” she added.
Embrace Empowerment
The pandemic has, nevertheless, compounded what was already a candidate-short market, according to Charles Breen, associate director of recruitment company SThree K.K., which specializes in science, technology, engineering, and mathematics—or STEM—fields.
“Employees have always wanted interesting and challenging work with growth opportunities, but that’s something I see people focusing on more nowadays,” he explained. “With innovation happening faster across all forms of technology—whether that is engineering, IT, or biotechnology—leaders in their field want to work on cutting-edge projects.
“Work–life balance has shifted in definition for progressive companies, including my own,” he added. “With employees having more autonomy when it comes to scheduling their work, they can better engage more fully in all aspects of their lives. Companies that embrace this empowerment will attract the top talent in their field.”
Pay is as important as before and has not lost its relevance in the hiring process, Breen said. “But for the best employees, the company’s offering must go much further than just money. Top talent looks at potential growth, for the individual as well as the company, and whether their own values are aligned with those of that employer.”
Once in a company, every employee has a “different set of needs and values,” Breen added, noting that it us up to the employer to support those goals. But, he cautions, gimmicks such as beanbags and free food in the office are not very high on a potential new hire’s list of priorities.
Hire and Retain
Sean Lindley, business operations manager for Titan Consulting K.K., said the job market globally has become even tighter, as many of the best workers in their fields are already employed, are happy in their positions, and are not looking for a new job. The challenge for managers, therefore, is making sure that the person remains with the company.
“It is very clear from our experience that any company in Japan, when presented with a strong candidate, really should grab him or her, because the shortage of talent is so acute that any hesitation means that person will be gone,” he shared. “An employer needs to be agile and recognize the best people. That is where a trusted human resources partner is critical.”
Once aboard, an employee who feels valued, who knows that the company is growing and moving in the right direction, and who has “regular, meaningful conversations” with managers “about where his or her career is going,” is less likely to be looking to move, he added.
“The little things about a company’s culture and values make a big difference,” Lindley remarked. “People leave for reasons that we call the two Cs: compensation and culture. Compensation is easy to deal with, but it’s very important that a company work hard to ensure a good workplace culture.”
Driving D&I
There is also an increasing emphasis on diversity and inclusion (D&I) in hiring, said Sophia Plessier, business development manager for the company. In focus are concerns such as ensuring gender equality in the workplace, paternity leave, time off for people caring for elderly relatives, support for families or dependents, and identical opportunities for staff, regardless of race, religion, cultural background, or sexual orientation.
Titan Consulting recently launched a new service—its Spotlight Package—designed specifically to meet the growing demand for more women in senior management positions. New legislation in the United States mandates that 30 percent of a board be made up of women. Companies that have let diversity slide are now desperately seeking capable candidates, Plessier noted.
“The Japanese government did set a target of 30 percent of managers being female by 2020, but even now it is only 8 percent,” she explained. “That is disappointing, but we do see a changing mindset and expect demand for high-quality female candidates to rise.”
H&R Consultants’ Conlan agrees that a company’s requirements can often align very closely with those of potential candidates, and this must be emphasized to attract the best talent.
“Companies want innovation and efficiency,” he said. “To compete in the global market, not just in sales but in the ability to attract and secure the right talent, companies are realizing that they need to change. This means that what they expect from their employees is changing.
“Companies are also looking for diversity in their staff: different cultures, education, and languages bring a much wider variety of innovation, ideas, and thinking.” But, he added, they will also need experts in this area to manage a new, diverse workforce.
“And employees—especially the younger generation and those with an international mindset or foreign language ability, with experience studying or working abroad—have seen how other cultures work,” he added. “They have seen the opportunities and the diversity that exists.”
No Going Back
Asked what employees expect of their company today, Conlan counted off their priorities. As well as work–life balance and development opportunities, they do not want to see a rollback of the workplace flexibility that has been a byproduct of the pandemic. They also want their employer to commit to a strong environmental, social, and governance presence, and they want talent mobility as well as flexibility, and evidence of innovation.
With all those promises in place, he said, why would a valued and valuable member of staff look for opportunities elsewhere?
Motivate Remotely
When the pandemic began, a sudden shift to remote work brought challenges to companies accustomed to having everyone in the office. Two years later, remote work is here to stay. So, how do you keep people motivated in a world where some portion of your team will always be outside the office? The ACCJ Journal talked to three experts in training and team-building to learn which techniques are working for them and how we can all make remote and hybrid work models effective for the long term.
Tips for keeping your team engaged in a world where hybrid workstyles are the norm
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When the pandemic began, a sudden shift to remote work brought challenges to companies accustomed to having everyone in the office. Many leaders had to learn on the go how to hold their teams together and keep them engaged and productive.
Two years later, things are running more smoothly for most. But what at first seemed a temporary solution to a temporary problem has become an expected norm. Remote work is here to stay.
So, how do you keep people motivated in a world where some portion of your team will always be outside the office? The ACCJ Journal talked to three experts in training and team-building to learn which techniques are working for them and how we can all make remote and hybrid work models effective for the long term.
Overcoming Isolation
“We are social animals, and the group—particularly in Japan—is a very important aspect of work life,” said Dr. Greg Story, president of Dale Carnegie Training Japan and a certified Dale Carnegie master trainer. “How to maintain that group identity and keep good levels of teamwork will remain a difficulty during remote work. The office provides an avenue for socializing which remote work tends to take away. This can lead to people feeling isolated and lonely.”
During the start of the pandemic, he noted, all of this was new. There was the idea that this, too, would pass. “But now it is becoming more mainstream, and this is the new calibration. Not everyone is going to thrive in this remote environment.”
Michael Glazer, senior consultant at Tokyo-based People Focus Consulting, offered several recommendations for avoiding a feeling of isolation.
“Start or continue regular one-to-one meetings,” he said. “Most managers have felt some difficulty leading remotely, because they can’t physically see what’s going on. Some hesitate to get directly involved, because they don’t want to be misperceived as micromanaging. Others hesitate to give more autonomy, because they don’t want to be misperceived as not caring if their approach is too hands-off.”
Holding weekly one-to-one meetings is nothing new, he admits, but this can go a long way toward improving communication, as well as increasing engagement and motivation. Usually 20–30 minutes is enough time for these meetings.
“If managers aren’t talking, connecting, and getting information and feedback regularly, how are they ever going to lead and manage effectively?”
Story pointed out that remote work requires a lot more communication than when everyone is in the office. “We have trouble getting hold of people, and keeping people up-to-date with what is happening becomes more difficult,” he explained. “We need to overcommunicate, in fact. More sharing of information becomes crucial, be that through voice or text.”
Glazer also suggests making work more visible to managers and other stakeholders.
“Doing this makes it easier for others to support, recognize, and possibly redirect your effort,” he explained. “It can also spark collaboration and innovation. This can be done through group chat or other collaboration tools. I’ve also seen some people schedule their individual work in Outlook to keep their team members in the loop of what they’re working on.”
Katheryn Gronauer, founder of cross-cultural training and coaching company Thrive Tokyo and vice-chair of the American Chamber of Commerce in Japan Sales Development Committee, recommends virtual co-working.
“You can ask one to four people to join a virtual call with you for a fixed length of time in which you spend the first few minutes sharing what you plan to work on during that time,” she explained. “Then, you can go off video, on mute, and work knowing that there are other people there holding you accountable.”
She uses the technique herself. “It’s incredibly effective in helping you get work started that you might have been procrastinating on. Plus, you can tell people at home that you’re in a meeting, and that helps you avoid getting distracted.”
Building Team Spirit
Gronauer’s virtual co-working technique is one approach that can help build and maintain cohesive teams when members are scattered and working from their homes. It recreates, to some extent, an office environment in which the presence of others helps you stay on track.
Another key element of the workplace that was disrupted by the pandemic and has undergone significant change is the morning meeting. Story believes this must be maintained even in virtual settings, and there must be some ground rules for how it is conducted.
“The morning meeting is held in person in many organizations, and it is a good practice to recreate this as much as possible online,” he said. “Cameras must be turned on so that we can all see each other. Going through the why of what we are doing is a good daily connector to our joint purpose. Sharing information with each other is also a good practice, as it makes for a stronger team spirit when we know what everyone is doing, even if we don’t meet so often in person.”
Meetings such as this are only check-in points for the group, however, and managers need to ensure that communication continues throughout the day and week to strengthen the foundation of the team. It is also important to show your remote employees that you care about their well-being, ideas, opinions, and goals. How can you best do that when you have limited in-person interaction with them?
Gronauer believes that it is important for organizations to have a top-down approach to initiating conversations about well-being. “I have worked with employees who have shared that they hesitate to raise work–life balance challenges to their managers, either due to hierarchy or not knowing a new manager’s style due to remote work,” she said. “Scheduling quick catch-ups to talk not just about work but about work–life balance is helpful.”
Another recommendation she offered is engaging an external coach.
“As a coach, I feel that employees value being able to talk to a third party about work goals, personal life goals, and how to better manage themselves,” Gronauer explained. “It helps employees with their self-management without taking time away from a manager’s day.”
Show You Care
Expanding on well-being, Glazer said that “there’s a broad spectrum of actions we can take, from making small adjustments to how we interact with our team members to integrating the principles of well-being into corporate culture and systems.”
He offered three practical actions:
- Pay careful attention to language and behavior
- Express interest and concern directly
- Match the support you offer to what’s needed
“We might notice when a colleague, who has a reputation for managing time well, starts showing up to meetings a few minutes late, or starts asking for work deadline extensions. This could be a sign of stress or an early-warning sign of burnout,” he said. “Other subtle signs include a shift in mood or outlook, increased irritability, forgetfulness, or even just not using their webcam as often as usual.”
Glazer noted that research from Google’s Project Oxygen a few years ago found that “showing concern for success and well-being” is one of 10 behaviors that make managers great at Google. “Just as we would do in person, use empathy and active listening skills to share changes you have observed,” he suggested. “If you have a concern that someone is struggling with an assignment, is stressed out, or is starting to withdraw, check it out.”
And matching support to what’s needed can make a big difference in keeping a team member on board. “While offering heartfelt encouragement to take time off might seem like the supportive thing to do, researchers have found that people who are grappling with difficult feelings really need compassion and acceptance most,” Glazer explained. “Similarly, when the issue someone is wrestling with is a practical problem they’ve never solved, the underlying need is for tools, advice, direction, and assistance.”
Equipped for Success
By following the advice shared by Gronauer, Glazer, and Story, and exploring other ways of bridging the gap between the office and remote locations, leaders may find that the outcome of change forced by the pandemic is greater productivity and success for the company, as well as satisfaction with work and life for employees. While the shift we have been going through has been difficult, it represents digitalization in action and may well be one of the most positive legacies of Covid-19.