Tips for recruiting in Japan

Hiring in Japan is unlike anywhere else in the world. Despite a highly skilled and educated workforce, the country is consistently ranked among the most difficult places to recruit.

According to the latest ManpowerGroup Talent Shortage Survey, 77% of employers in Japan report difficulty filling roles, placing it among the highest levels globally. At the same time, Japan continues to grapple with a shrinking and aging population, which means that the demand for skilled workers far outstrips supply.

For companies looking to grow in this market, the key is not simply to post a job advertisement and wait for applicants, but to rethink recruitment strategies and adapt them to the realities of Japan’s hiring landscape.

Related: When to use a recruitment agency instead of hiring in-house

Why employers should broaden their candidate shortlist

One of the first adjustments companies must make is around expectations of candidate volume. In many other markets, hiring managers are accustomed to reviewing dozens of resumes and narrowing them down to a tidy shortlist.

In Japan, however, this simply isn’t the norm. With roughly 160 job openings for every 100 job seekers, employers are often faced with very limited pools of applicants – one reason why many partner with recruitment agencies in Japan to expand their reach and identify hidden talent. For niche or highly specialised roles, it can take weeks or even months to identify suitable candidates.

This scarcity means that dismissing applicants too quickly can be a critical mistake. Rather than expecting the perfect resume, employers should be willing to meet candidates whose backgrounds are not an exact match but who show potential. Interviews in Japan are as much about building trust and understanding cultural fit as they are about checking skills off a list.

By expanding your shortlist, you not only increase the likelihood of finding the right hire but also gain valuable insights into how the Japanese market perceives your brand and what motivates candidates.

How to manage English language requirements

Language ability is another area where employers may need to recalibrate expectations. While English is taught in Japanese schools, fluency – particularly conversational fluency – remains relatively low compared to other developed nations.

Many capable professionals may underperform in English-language interviews simply because of nerves or limited practice, not because they lack the skills needed to excel in the role.

Instead of using English as a rigid filter, employers can adopt more flexible approaches. For instance, building teams where a few bilingual members handle communication with global headquarters allows you to hire excellent local talent who may have limited English proficiency.

When interviewing, interpreters can ensure nothing is lost in translation. Importantly, employers should remember that English proficiency often improves rapidly when employees are immersed in a workplace where it is used regularly. The more crucial consideration is whether the candidate has the professional and technical skills to succeed – language can often follow.

Related: 9 common mistakes hiring managers should avoid in job interviews

Employer branding in Japan: How foreign companies can attract talent

A further challenge is that foreign companies are at a disadvantage when it comes to brand recognition. Japan is home to thousands of companies with deep roots, including more than 21,000 businesses that have been operating for over a century.

These legacy organisations carry immense prestige and stability, which makes them attractive to job seekers. In surveys of top employers for new graduates, foreign firms rarely make the top 100.

To compete, international companies must actively promote themselves throughout the recruitment process. This means going beyond the basics of handing out brochures or directing applicants to your website. Employers should weave their brand story – values, mission, culture, and benefits – into every interaction.

Interviews should shift from the traditional “Why should we hire you?” posture to “What can we offer you to succeed here?” Demonstrating long-term stability, career development opportunities, and cultural respect will help foreign employers stand out in a market where local competitors are deeply trusted.

Job loyalty and counter-offers: Key challenges when hiring in Japan

Even when you find the right candidate, closing the deal in Japan can be complicated by cultural expectations around loyalty. Changing jobs too frequently can still carry a stigma, and many candidates worry about being seen as job hoppers.

At the same time, strong candidates almost always receive counter-offers from their current employer. In fact, loyalty to one’s existing company is often viewed as a virtue, which can make resignations emotionally complex.

Employers can overcome this hesitation by offering more than just a competitive salary – although pay remains a powerful lever. Recruitment experts commonly advise offering a salary bump – often around 10% – above a candidate's current compensation to overcome cultural norms of loyalty and counteroffers in Japan. Equally important is articulating a clear and compelling long-term career path. Japanese professionals want reassurance that joining your company is not a short-term risk but a step towards lasting stability and growth.

Speed is also a critical differentiator. The hiring process in Japan often involves multiple rounds of interviews over several weeks, which can test a candidate’s patience and open the door for competitors. If you can shorten the process, you signal decisiveness and respect for the candidate’s time. Since many Japanese professionals dislike aggressive negotiation, presenting your strongest offer upfront is usually the best way to secure acceptance.

Related: Workplace ageism: A top concern despite lower incidence rates in Japan

Japan’s labour market trends: What recruiters need to know

Finally, employers must remain aware of the broader labour market pressures. In 2024, labour-related bankruptcies in Japan rose by 32%, a stark reminder of how worker shortages are straining businesses.

At the same time, leading companies such as Daiwa Securities have announced wage hikes of at least 5% for the coming year, significantly above the national average, in an effort to attract and retain mid-career talent. These trends show how competitive the market is becoming, and why companies must not only pay fairly but also create compelling, holistic employee value propositions that balance salary with career development, flexibility, and wellbeing.

Recruitment in Japan: Strategies for employers to succeed

Recruiting in Japan requires patience, flexibility, and cultural awareness. Employers that broaden their shortlists, adjust language requirements, actively promote their brand, anticipate loyalty challenges, and stay ahead of wage trends will be best positioned to succeed. The process may be demanding, but with the right strategy, Japan offers access to some of the world’s most dedicated and skilled professionals.

Get more workforce insights

Discover the latest workforce trends shaping Japan’s hiring landscape in the Michael Page Japan Talent Trends 2025 Report: Compete on Clarity.

This report explores what today’s job seekers and employees truly want – and where employer perceptions may not align. It offers practical insights for talent leaders and hiring professionals looking to attract, engage, and retain top talent in a rapidly evolving market. Download the full report or explore our interactive online tool to access deeper, real-time insights tailored to your hiring needs.

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