As foreign startups expand their business in the Japanese market, many look to strengthen their hiring efforts. Without a solid hiring foundation in place before posting job openings, however, common issues tend to arise: applications come in but selection does not move forward, or candidates decline offers after receiving them. Before ramping up hiring, building this foundation first is the fastest path to success.
- Job openings are posted, but applications are slow to come in
- Candidates make it through the selection process but often decline at the final stage
- Salary ranges and grades for the positions to be hired have not been defined
- Employment contracts and work rules are still based on headquarters' home-country templates
This article explains what foreign startups should have in place before strengthening hiring in Japan.
Why It Pays to Pause Before Strengthening Hiring
Japan's labor market has its own rules and expectations around employment contracts, compensation structures, and hiring practices. Bringing an overseas hiring process into Japan without adjustment often undermines candidates' trust or causes problems during offer negotiations.
Before posting to recruitment channels or engaging a recruiting agency, putting the receiving organization's foundation in place can improve the speed and success rate of the entire hiring effort.
Hiring Foundations to Put in Place
The following areas are worth reviewing in particular before starting hiring activities.
| Area | What to Prepare |
|---|---|
| Employment contracts and work rules | Whether they comply with Japanese labor law (be careful about reusing headquarters' home-country templates) |
| Salary ranges and grading | Whether salary ranges, grades, and evaluation systems reflect benchmarks in the Japanese market |
| Recruitment channels | Whether the channels selected (agencies, job boards, referrals, etc.) fit the target position and candidate pool |
| Interview and onboarding process | Whether the selection flow, decision-making speed, and post-hire onboarding are clearly defined |
| Employer branding (EVP) | Whether the company has clearly defined how it communicates its appeal to candidates |
What to Watch for in Japan's Hiring Market
In Japan, slow selection speed can easily lead to candidates declining offers, while candidates are also notably cautious about mismatches in terms or company culture. Differences from overseas practices, such as reference-check conventions and how carefully candidates are followed up with between the offer and their start date, can also significantly affect hiring success.
Designing a hiring process with an understanding of these Japan-specific business practices is an important factor for foreign companies seeking to secure top talent.
Summary
- Before posting to recruitment channels, put in place the receiving foundation: employment contracts, salary ranges, and the hiring process
- Review employment contracts and work rules so they comply with Japanese labor law, rather than reusing headquarters' home-country versions as is
- Select recruitment channels suited to the target position and clarify the company's employer branding (EVP)
- Design a hiring process that accounts for Japan-specific practices such as selection speed and post-offer follow-up
Contact
JBN provides one-stop support, from preparing employment contracts to designing hiring strategy and recruiting specialized talent.
To discuss building a hiring foundation before strengthening recruitment, please contact us.