How to recruit effectively in Japan?

Japan, the world’s third largest economy, represents a strategic opportunity for companies wishing to establish themselves in an advanced and solvent market with a stable business environment.

But whether you are looking to recruit your first employee or just a VIE to enter the Japanese market, and even more so if you want to expand your team and operations, it is crucial to understand that finding the right talent in Japan goes far beyond LinkedIn and simply posting job offers.

Thanks to a highly skilled workforce in technology, engineering and life sciences, Japan offers a pool of talent renowned for its precision and mastery of industrial standards. In addition, the international mobility of certain Japanese professionals and the arrival of Asian workers are boosting key sectors such as IT and manufacturing.

But Japan remains too often a poorly understood black box.

What are the characteristics of the Japanese labour market?

Mass recruitment of new graduates

The Japanese market is structured around the mass, synchronised recruitment of young graduates (shinsotsu saiyō), who join companies in April, immediately after completing their studies. This process is highly codified, involving written tests, multiple interviews and a strong emphasis on development potential rather than immediately transferable skills.

Low unemployment rate in Japan

The unemployment rate in Japan is around 2.5%. This very low rate places Japan among the OECD countries with the strongest employment performance, with a youth unemployment rate (15-24 years old) of less than 4.0%.

Low turnover in Japanese companies

Japan remains marked by the model of lifetime employment, especially in large companies. The Japanese value job stability, loyalty to the company and salary increases linked to seniority and age. However, this model is changing, particularly under pressure from demographic ageing and economic and cultural changes brought about by the younger generations.

How to successfully recruit in Japan?

Attracting talent to foreign companies that do not always enjoy a strong reputation is becoming increasingly difficult, recruitment is slow – even with higher salaries – and employee retention can ultimately prove disappointing.

To successfully recruit in Japan, you first need to find candidates who are suited to the company’s needs. You also need to understand the specific characteristics of the market and integrate the cultural nuances specific to the country. It is also recommended to build on a strong corporate culture and establish solid relationships. Finally, it is advisable to establish an effective and appropriate recruitment process in advance.

A strategic and tailored approach to recruitment is essential to attract the best talent and build a strong team.

The challenges facing the Japanese labour market – Some keys to growth

There are specific challenges in Japan that international companies must address in order to attract the best talent and ensure the effectiveness of their recruitment process in Japan.

Strong competition for talent

• Competitive market with highly sought-after candidates: the best profiles receive multiple offers and are selective. That is why it is important to establish good relationships with candidates, understand their needs and the key factors in their decision-making process.
• An attractive salary is not enough: a strong employer brand, clear career paths and flexible working conditions are also required.
• Keys to success: Build relationships from the outset and highlight the company’s commitment to its employees.

Limitations of international platforms

• LinkedIn is less effective in Japan than in other markets: few Japanese professionals actively use it to look for jobs, and unsolicited applications are rare on this platform. It is therefore necessary to rely on local networks, recommendations, Japanese platforms, or work with specialised agencies.
• A proactive and relationship-based approach is necessary.

Language and cultural barriers

• Few high-level talents are proficient in English: communication and integration can be complicated. It is often the case that a relationship of trust with the candidate can only be established by speaking fluent Japanese.
• Foreign companies, apart from the big names, often lack appeal for Japanese workers, who often perceive the foreign world as unsettling. For this reason, it is essential to build a relationship of trust and ensure a good understanding of the company’s culture and values.

A compromise between speed, confidence and investment

• The recruitment process in Japan is slower and more collective, methodical and costly: the overall assessment of candidates is not limited to their skills alone. A good knowledge of Japan and the Japanese people helps to optimise this process.
• Japanese workers prioritise stability and long-term relationships.
• When considering recruitment in Japan, it is important to strike a balance between efficiency, patience and budget in order to attract committed talent and avoid costly recruitment mistakes.

Recruiting in Japan: the added value of PMC Talent Acquisition

For over 50 years, PMC has been acting as a kick-off partner, supporting international companies in their establishment, development and management in Japan. PMC Talent Acquisition is uniquely positioned to define the profiles to be recruited, then identify and recruit the professionals that foreign companies need.

Business-focused recruitment: the PMC team is made up of former business executives and consultants with real operational experience, bringing a pragmatic and business-oriented vision, as well as practical experience in recruitment in Japan.

Proven operational expertise and a solid network in the following sectors: Life sciences, Health, Cosmetics, Foodtech, Food supplements, Engineering

References – a few case studies:

LUXURY GOODS – CEO, CFO, Sales Director

• Challenge: Build a new, cohesive management team
• Result: Successful recruitment of the entire management team within four months.

ROBOTICS – Senior sales manager, 10 engineers

• Challenge: Develop operations in a specialised technical environment
• Result: Successful recruitment of a team of engineers and a sales manager in record time for the launch of operations in Japan with a very short deadline.

LIFE SCIENCES – Account Executives, Customer Service and Implementation Specialists.

• Challenge: Build a complete team to support market entry.
• Result: Successful recruitment of eight talented individuals to fill key roles.

UI/UX – Business Developer, Digital Adoption Specialist

• Challenge: Launch operations in Japan
• Result: Successful recruitment of the entire sales team

[1] Unemployment rate, OECD – Updated: February 2025