I referred in an earlier entry to the difficulties of hiring in Japan. In this multi-part entry, I’ll share some experience from hiring in Japan over the past 15 years and from running a recruitment agency in Tokyo. In the first part, we look at some of the challenges.                                                                          

            Ask any hiring manager: finding good people is tough. Finding good people at a senior level is even tougher. And finding them in Japan can define frustration. There are several reasons. Here are two. First, with the steady economic recovery over the past few years, the employment market has tightened. Now, while the headline Japanese unemployment rate doesn’t reflect underemployment, the quality end of the market is indeed very tight. A declining population doesn’t help. The second reason is that Japan’s best and brightest almost inevitably make their way into large Japanese companies or the ministries. Certainly there are some who want to work for a foreign company, but they will look first at the IBMs and Morgan Stanleys. Unless you are a global brand, you’ll find that foreign companies don’t rank very high on the list of potential employers.

            Adding to the headaches, the hiring process is very costly and the options are generally poor. Many recruitment agencies charge fees of 30%, principally because they have the same problem finding staff you do, and so work with other agents to widen the search and split the fees. Hiring staff with a 30% commission quickly becomes extremely burdensome, one reason why I set up my own agency. And don’t be surprised if your agency doesn’t put forward any candidates at all.

            There are recruitment websites, but if you are used to the $150 or so to advertise on the Australian ones, you’ll be in for a shock. In Japan, the major recruitment sites ask you to sign up for a month, allowing you to place either a limited or unlimited number of ads, and charge between $2500 and $6000 for the privilege. Responses will vary, and they can be good for junior or certain specialist positions, but they are weak with sales and senior slots and forget about IT. One good feature these sites offer is the ability to sift through the online resumes and send “scout” messages to the candidates. At times, this can help you find the person you want.

            In the old days, the classifieds in the Monday morning edition of The Japan Times, one of Japan’s leading English-language dailies, was a popular way for foreign companies to advertise. You would get a good response from expatriates and bilingual Japanese, some fairly senior. Rates were reasonable. Alas, in the Internet age the response now seems much poorer. The paper has its online version, but it is struggling to compete with the major recruitment sites and we haven’t had a good response from it. You could also advertise in one of the still huge local language dailies, paying thousands of dollars for a microscopic ad, but be prepared for a very poor response.

            All this means that to build a team without breaking the bank or losing your mind, you’ll need a little planning. The next two entries offer some ideas.