Hiring a Manager in Japan: Criteria and Procedures

Published on October 31, 2025 and written by Cyril Jarnias

Hiring a manager in Japan, a country with such a distinct professional culture, presents a unique set of challenges and opportunities. In this article, we will explore the essential criteria to consider when finding the ideal candidate, such as mastery of Japanese cultural norms, deep knowledge of the local market, and effective communication in both Japanese and English. Understanding recruitment procedures in Japan, often influenced by a more rigid and formal approach, is crucial for successfully navigating a complex business environment. Through an analysis of cultural differences and specific legal requirements, we will guide you through the selection process to ensure your company benefits from leadership that is competent and well-suited to the country’s particularities.

Essential Criteria for Hiring a Manager in Japan

In the fields of management and business, academic background, professional experience, skills, and the following evaluation criteria are considered important.

Academic Background and Qualifications

• While there is no specific degree required to become an executive, a university level education is generally recommended most of the time. In particular, qualifications such as an MBA, which provide advanced management knowledge, are useful.
• Qualifications that prove skills in financial planning and management, such as those of a small and medium enterprise management consultant or a certified public accountant, are also beneficial.

Professional Experience

• Practical experience is valued as an immediate asset. For example, hands-on experience in various sectors such as sales, production management, or finance is valuable.
• Management experience, where one leads a team as an executive, is also recommended. Concrete examples include restructuring unprofitable operations or taking charge as the head of an overseas subsidiary.

Understanding of Laws, Regulations, and Culture

A thorough understanding of local laws and regulations is indispensable. Furthermore, it is necessary to be well-acquainted with Japan’s unique systems, such as the lifetime employment system and the seniority-based culture.

Communication Skills and Japanese Proficiency

Excellent command of the Japanese language is required for effective communication. Simultaneously, flexibility to adapt to the customs and implicit communication specific to Japanese companies is necessary.

Leadership and Adaptability

Leadership that motivates teams and the ability to adapt easily to a changing environment are indispensable conditions.

Evaluation Methods and Review Examples

1. Competency-Based Interview: This involves verifying the candidate’s skills, knowledge, and attitude. Questions are asked about actions taken in specific situations, and conclusions are drawn from the results.
2. Case Study: Strategic thinking ability is assessed by asking the candidate to propose solutions to business problems.
3. Assessment Center: A method where cooperation and problem-solving ability are evaluated by having several people participate in group discussions or presentations.

By combining all these methods, candidates are assessed to select individuals with high expertise and suitable qualities.

Specific Recruitment Procedures in Japan

The recruitment process for manager positions in Japan reflects a specific cultural context and business practices. Here are the general steps and characteristics of the recruitment process in Japan.

1. Before Starting Recruitment Activities – Defining Recruitment Policy: Clarifying the recruitment target (necessary experience, skills, qualifications, etc.), number of people, and budget. This allows for selecting appropriate media and developing a strategy. – Job Posting: Publishing on the company website, using online platforms like Indeed, utilizing placement agencies or headhunters is common. Paid advertisements are effective for increasing the number of applications.
2. Receiving Applications and Preselection – Resume and Career History: In Japan, resumes with photos are common, but some companies accept formats closer to international standards. – Recommendations and References: Personal recommendations are valued due to the importance of trust relationships in Japan.
3. Document Screening – During document screening, emphasis is placed on the candidates’ educational level (particularly the university name) and years of professional experience (including as a manager). For a managerial candidate, concrete results in “team management” and “ability to achieve objectives” are required.
4. Interview Process – Generally conducted in multiple stages. – First, an interview with the human resources manager to verify basic information. – Next, interviews with the direct supervisor and a senior executive. – For a manager position, a case study or presentation skills assessment may also be conducted.
5. Evaluation Criteria and Cultural Elements – Japanese companies tend to value teamwork ability and the prospect of long-term employment. Therefore, “fit with the organizational culture” is sometimes required in addition to the ability to provide “immediate value.” – During interviews, a polite attitude (punctuality, bowing, etc.) and modest yet present confidence are expected.
6. Final Offer and Final Adjustments After the final offer, it is common for Japanese companies to obtain an “informal agreement” before proposing detailed conditions. Additionally, some large companies require the presentation of medical examination results.
7. Onboarding Preparation and Orientation After hiring, a new employee orientation program is established to support their adaptation to the company culture. This process also helps improve employee satisfaction.

Under the influence of practices specific to Japan, such as the “membership” type employment, the culture of mass recruitment of new graduates, or the orientation towards long-term employment is pronounced. Conversely, the headhunting job market shows an expansion trend, especially for highly specialized professionals.

Key Responsibilities of an Executive Hired in the Japanese Context

Strategic Decision-Making and Consideration of Corporate Culture

In Japanese companies, consensus-based decision-making is common, favoring caution and universal agreement. This process maintains harmony within the organization but poses challenges in a modern business environment requiring quick decisions. Executives must understand this characteristic and, if necessary, streamline the decision-making process. It is also important to develop strategies based on values such as Japan’s unique manufacturing spirit and respect for the collective, and to disseminate them to all employees.

Team Management: Balancing Hierarchical Structure and Flexibility

In Japan, hierarchical relationships and seniority are deeply rooted and contribute to orderly management. However, in a context promoting diversity and globalization, this fixed structure may lack flexibility. Executives must respect the traditional hierarchy while encouraging innovation through the adoption of new management styles (such as empowerment) and strengthening diversity management capabilities.

Alignment with Local Culture and Ethical Standards

In Japanese society, maintaining good relationships with the local community and ethical awareness are very important. This applies not only to clients and business partners but also to employees. Executives therefore have an obligation to behave with transparency, fairness, and high moral standards. They must also ensure that the Japanese spirit of altruism (orientation towards contributing to society as a whole) aligns with the company’s objectives.

Involvement in Managing Local Partnerships

Building good relationships with local partners is linked to the Japanese transaction culture focused on the long term. Building trust requires time and the pursuit of mutual interests, but even more so, forming personal trust is key. This requires frequent and sincere communication, as well as an ability to propose solutions beneficial to both parties, requiring deep insight.

Financial Performance vs. Sustainable Development Policy

Recently, SDGs (Sustainable Development Goals) have gained attention, and market pressure has strongly increased in Japan and abroad. In a context of criticism for prioritizing short-term results over economic rationality, and growing expectations to simultaneously achieve social and environmental balance, the evaluation of non-financial indicators such as improving the work environment (ES) is becoming increasingly important.

Elements of a Management Contract for a Manager in Japan

Essential Contractual Provisions for Manager Contracts in Japan and Related Issues

1. Legal Obligations – In Japan, it is important to determine whether a manager is considered a supervisor under the Labor Standards Act. If considered as such, they are exempt from regulations regarding working hours, breaks, and rest days. However, this assessment is based on reality and not the job title. – In the case of concluding a subcontracting agreement, a delegation contract is generally used, but even in this form, there is a risk that it may be considered a de facto employment contract.
2. Compensation Conditions – Performance-based compensation (pay-for-performance) is recommended. Incentives for achieving short, medium, and long-term goals are often integrated. – Compensation should be designed with various elements, such as stock options and bonuses, and not just a salary. Furthermore, a cap should be set to avoid excessive risk-taking.
3. Management Objectives – Managers are required to set objectives for the entire company or by department and manage progress. In this context, alignment with the company’s strategy and vision is essential. – Flexible adaptability is expected, including promoting the individual growth of subordinates.
4. Responsibilities and Roles – Responsibilities are varied, ranging from personnel assignment to performance evaluation and team environment building. It is also typical in Japan for involvement in on-site operations to be more significant. – Problem-solving skills and coordination among members are also highly valued.
5. Notice Period and Contract Termination Conditions – It is necessary to specify the notice period and reasons for contract termination. For example, it is recommended to precisely manage automatic renewal clauses and renewal deadlines via logs or other means.
6. Non-Monetary Benefits – Non-monetary benefits include offering training opportunities and supporting career development, which also helps maintain motivation.
7. Confidentiality Clause (NDA) – To protect company information, it is common to include a comprehensive confidentiality obligation applicable for a certain period after departure. This scope can include measures to prevent violations of intellectual property rights.
8. Intellectual Property Rights Provision – Results arising from the manager’s activities or position during employment must have clarified intellectual property rights, stipulating that all belong to the company.
9. Consideration of Japanese Culture – The following aspects specific to Japan should be taken into account: a) Prioritizing the organization over the individual in a culture that favors the team as a whole.