Japan Salary Benchmark 2020: Japan rings in a new decade with optimism and vibrancy

As we enter a new decade, we do so at a truly exciting moment for Japan. Despite certain economic clouds on the global horizon, Japan rightfully enters the new decade with renewed optimism over this dynamic nation, at a moment when its global profile is set to receive invaluable global attention.

The World Economic Forum (WEF) reminded us recently how strong the nation’s competitive base is. Japan is Asia’s most developed economy: its 10-year average annual GDP growth of 1.2% remains steady, particularly within a vibrant economy that contributes an impressive 4.14% to the global GDP. Rated the sixth most competitive nation in the world, Japan tops WEF’s 141-nation list in numerous important competitive factors, including research and development, patent applications, healthcare, inflation, homicide rates and, of course, super-efficient trains.

For business, efficiency and vibrancy are powerful indicators of possibility. Following an energising and successful dress rehearsal in the form of Rugby World Cup, next up for Japan comes the main event in terms of scale: the kick-off of 2020 Olympic Games in Tokyo on 24 July.

In a workforce sense, this remains a distinctly candidate-short market. Yet despite its shrinking and ageing population, Japan continues to add to its workforce, thanks to greater female and older worker employment. Japan has recently overtaken the US for female participation in the workforce, and retaining and promoting top female talent presents a huge opportunity for companies.

As with all markets, the drive to further modernise Japan’s business environment remains key to hiring opportunities in 2020 and beyond — with demand high for talent to help companies unlock their digital transformation path. Skill sets in Digital, Technology and Healthcare are in hot demands, as are roles in AI, data science and business development in particular.

In this candidate-short market, business leaders must pay close attention to retention and upskilling. Meanwhile, those competing for top-tier talent must continue to clearly articulate their leadership vision and employee value proposition and bring specific development plans to the discussion early on in the hiring process.