Hiring Staff in Japan: A Practical Guide

Published on and written by Cyril Jarnias

Japan, the world’s third-largest economy, offers numerous opportunities for foreign companies. However, recruiting personnel in this country with unique traditions can be complex. This article will guide you through the specifics of recruiting in Japan, from candidate search methods to legal aspects to consider.

The Japanese employment market: A unique context

The Japanese labor market presents unique characteristics that are essential to understand before embarking on a recruitment process:

An aging population and labor shortage: With the second oldest population in the world after Monaco, Japan faces a decline in its working-age population. In 2024, the country had over 2.3 million foreign workers, three times more than in 2014, illustrating government efforts to address this shortage[7].

A changing traditional corporate culture: Although the concept of lifetime employment and seniority-based promotion systems remain present, many companies, particularly multinationals and startups, are adopting more flexible and skills-focused practices.

A low unemployment rate: Japan traditionally maintains a low unemployment rate, which can make the search for qualified candidates more competitive for employers.

Good to know:

The aging Japanese population and labor shortage create opportunities for foreign companies but require a recruitment approach adapted to the local context.

Winning strategies to attract Japanese talent

To succeed in your recruitment in Japan, it’s crucial to adopt methods that resonate with the local culture while standing out in a competitive job market.

Leverage professional networks

In Japan, personal and professional relationships play a crucial role in the recruitment process. Here are some effective strategies:

  • Participate in job fairs and networking events
  • Use online professional platforms like LinkedIn, which is gaining popularity in Japan
  • Collaborate with universities for internships or new graduate recruitment programs

Optimize your online presence

A strong digital presence is essential to attract Japanese candidates:

  • Create a Japanese version of your corporate website
  • Use social media platforms popular in Japan like Line for Business
  • Post job openings on specialized sites like Daijob or CareerCross

Collaborate with local recruitment agencies

Recruitment agencies can be invaluable, especially for foreign companies unfamiliar with the Japanese market. They can help you:

  • Understand salary expectations and common benefits
  • Identify qualified candidates, including those not actively looking
  • Navigate the cultural subtleties of the recruitment process

Good to know:

A multichannel approach combining professional networks, online presence, and partnerships with local agencies will maximize your chances of finding the best talent in Japan.

The legal framework of recruitment: What you need to know

Understanding the legal framework for recruitment in Japan is essential to avoid legal issues and ensure successful integration of your new employees.

Main types of employment contracts

Japanese labor law recognizes several types of contracts:

  • Indefinite-term contract: The most common, offering high job security
  • Fixed-term contract: Limited to maximum 3 years, with strict renewal rules
  • Part-time contract: For employees working fewer hours than regular employees
  • Temporary contract: For temporary workers through staffing agencies

Fundamental workers’ rights

Japanese law guarantees several rights to workers, including:

  • A guaranteed minimum wage, which varies by region
  • Paid annual leave (minimum 10 days for the first year)
  • Protection against discrimination and harassment
  • The right to collective bargaining and union membership

Specifics for foreign workers

To hire foreign workers, employers must:

  • Ensure the employee has an appropriate work visa
  • Respect quotas and restrictions related to certain business sectors
  • Provide mandatory social insurance coverage

Good to know:

Strict compliance with Japan’s labor legal framework is crucial. It’s recommended to consult with a local legal expert to ensure your recruitment practices are compliant.

The step-by-step recruitment procedure

The recruitment process in Japan generally follows these steps, with some cultural particularities to consider:

1. Position definition and job posting creation

  • Be specific about required skills and position responsibilities
  • Highlight corporate culture and offered benefits
  • Ensure the posting is professionally translated into Japanese

2. Candidate screening

  • Carefully review resumes and cover letters
  • Consider the importance given to education and experience in Japanese culture
  • Conduct initial phone screening if necessary

3. Job interviews

  • Plan multiple interview rounds, a common practice in Japan
  • Be attentive to non-verbal communication and respect for social conventions
  • Use skills tests or situational exercises if relevant

4. Reference and background checks

  • Obtain candidate consent before contacting previous employers
  • Verify degrees and certifications, highly valued in Japan

5. Job offer and negotiation

  • Present a detailed offer including salary, benefits, and working conditions
  • Be prepared to negotiate, but keep in mind that Japanese culture often favors consensus

6. Administrative formalities

  • Prepare the employment contract in Japanese and English if necessary
  • Ensure you have all necessary documents for employee registration with authorities
  • Organize an orientation program adapted to Japanese corporate culture

Good to know:

The recruitment process in Japan can be longer than in other countries. Allow sufficient time and be patient throughout the procedure.

Essential documents for recruitment

To successfully complete your recruitment process in Japan, make sure you have prepared the following documents:

  • Employment contract: Detailing employment conditions, salary, hours, and benefits
  • Work rules: Mandatory for companies with more than 10 employees
  • Social insurance registration forms: Including health insurance and pension
  • Income tax declaration form: For tax withholding
  • Copy of work visa: For foreign employees
  • Residence certificate: For registration with local authorities

Good to know:

Careful preparation of these documents in advance will greatly facilitate your new employee’s onboarding process and ensure your compliance with Japanese legislation.

Key recruitment players in Japan

To optimize your recruitment strategy, it’s wise to collaborate with key players in the Japanese employment market:

Specialized recruitment agencies

  • Robert Walters Japan: Specialized in recruiting bilingual professionals
  • Michael Page Japan: Offers recruitment services across various sectors
  • Hays Japan: Expertise in executive and specialist placement

Online job search platforms

  • Daijob: Popular among bilingual professionals
  • CareerCross: Targeted at jobs for foreigners and bilingual Japanese
  • GaijinPot Jobs: Specialized in job offers for foreigners in Japan

Professional associations

  • French Chamber of Commerce and Industry in Japan: Offers networking and resources for French companies
  • American Chamber of Commerce in Japan: Provides information and support for American companies

Good to know:

Collaborating with these players can give you access to a pool of qualified talent and help you navigate the subtleties of the Japanese employment market.

Conclusion: Keys to successful recruitment in Japan

Recruiting in Japan requires a thorough understanding of local culture, legal framework, and country-specific recruitment practices. By adopting an approach that respects traditions while remaining open to labor market developments, your company can attract and retain the best talent.

  • Adapt your recruitment strategy to the Japanese demographic and cultural context
  • Use a combination of traditional and modern methods to reach candidates
  • Strictly respect Japan’s labor legal framework
  • Be patient and thorough throughout the recruitment process
  • Collaborate with local experts to navigate the subtleties of the employment market

By following these recommendations, you’ll maximize your chances of building a high-performing team well-integrated in Japan, thus contributing to your company’s success in this dynamic and demanding market.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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