Your Trusted Partner for Recruitment in Japan

To better fulfill your recruitment needs, we at Remote People are here to help you find top talent in Japan more effectively than recruiting on your own. Our team understands the local language, customs, and the intricacies of the Japanese talent market, giving you a significant advantage in securing the right candidates.

We know where to advertise your job openings to ensure maximum exposure and attract the best talent. Additionally, we assist in designing competitive, locally-appropriate compensation packages that not only appeal to top candidates but also help you optimize costs. 

Get in touch with us to navigate Japan’s recruitment landscape with confidence and ease.

Japan’s Economic Landscape

Japan has a highly developed and advanced economy and is the 4th largest in the world while it’s well-educated and skilled workforce and strategic location make the country an excellent base for certain types of business activities. 

The country is one of the world’s largest manufacturers of automobiles and a key manufacturer of consumer electronics, semiconductors, and many other types of high-tech products. It’s also home to some of the world’s largest corporations (especially financial services firms and trading or export-focused firms) and is one of the world’s largest financial markets. 

Although Japan is an aging society facing demographic and economic problems, these challenges present opportunities for businesses to provide unique products and services as the average Japanese remains relatively affluent. 

However, recruiting in Japan can be extremely challenging as the pool of employees looking for new jobs in Japan is relatively small – meaning Japanese recruitment agencies can charge high fees above international norms.

Overview of the Japanese Recruitment Industry

The Japanese recruitment industry dates back to the Edo Period with public employment agencies and stricter requirements for private recruitment agencies introduced roughly 100 years ago. 

Today, Japan’s recruitment industry is one of the largest in the world. On the public side, Employment Security Offices (known as Hello Work centers) are spread throughout Japan to administer unemployment benefits and where job seekers can find job vacancy information. 

On the private side, some of the world’s largest recruitment firms are either based in Japan or have a presence there. In contrast to most foreign employment markets, these recruitment agencies play a substantial role in Japan – especially for mid-career hiring. 

Japan is a passive job-hunting or changing market as the Japanese are generally risk-averse and do not like to share personal details online or contact potential employers directly.   

Expats and Japanese working for foreign or multinational companies are more likely to use LinkedIn than other Japanese professionals who prefer to discreetly cooperate with recruitment agencies that manage the whole recruitment process. In addition, traditional print media, trade magazines, and local job portals or websites are popular places for employers or recruitment agencies to advertise job vacancies. 

Recruit in Japan

Japan offers world-class engineering and manufacturing talent, with expertise in robotics, automotive, electronics, and a highly disciplined workforce known for precision and innovation.

We source pre-vetted candidates across industries, handling local employment screening and Japanese labor requirements.

No local entity needed. Your team can start in days.

FIND TALENT

Benefits of Recruiting in Japan

Full-time Japanese workers are known for their exceptionally strong work ethic as they typically work longer hours than their counterparts in the USA or Europe. The Japanese are also known to value cooperation and loyalty more than competitiveness or aggression and strive for consistent improvement – meaning Japan is an excellent place for doing R&D-related work. 

Japan has the second-highest number of patent applications per one million people as an estimated 10 out of every 1,000 employees is involved in R&D. To encourage more R&D, municipal governments offer various incentive packages to help foreign companies hire skilled local labor. 

In addition, Japan’s education levels are the second-highest in the world, and those who do not attend university often receive excellent vocational training. 

Legal Considerations When Recruiting in Japan

Japan’s labor law is complex and primarily governed by the Japanese Civil Code, the Labor Standards Act of 1947, and the “Work Style Reform Law” passed in 2018.

There are three types of Japanese employment contracts:

  • Permanent Employee (Sei-sha-in)
  • Contract Employee (Keiyaku sha-in)
  • Outsourced or Temporary Employee (Haken sha-in) 

Employment contracts must be translated into a language the employee understands and clearly state key employment aspects such as duration, the workplace, job duties, work hours (beginning and end time), salaries, allowances, bonuses, days off, overtime, and dismissal procedures.  Where you need support with contracts and onboarding, as well as talent acquisition a Japan Employer of Record company can be of assistance. 

However, businesses employing ten or more employees must establish “Work Rules” outlining working conditions (such as working hours, salaries, holidays, and other key employment aspects). These rules are submitted to the local Labor Standards Inspection Office (failure to do so or not following a specific process can lead to penalties) and can be included with employee contracts.  

Non-compete clauses are allowed in Japan, but their validity is not always guaranteed when challenged due to the potential conflict with the freedom of career choice for employees.  

Japanese employers also have unique employment practices: 

  • Graduate Recruitment: Many Japanese employers conduct mass hiring of new graduates in April as they prioritize individual potential over skills and experience. These recruits train together and form a close-knit bond often maintained throughout their career.
  • Job Rotation: Japanese employers regularly transfer employees to different departments every two to three years. Although this makes it difficult for employees to gain deep expertise, Japanese employers believe it decreases employee turnover.
  • Seniority vs. Merit: At traditional Japanese employers, seniority determines employee positions and salaries. However, some Japanese employers (including start-ups) have switched to a merit-based system.
  • Lifetime Employment: Japanese employers have traditionally practiced lifetime employment where an employee retires at 60 or 65 years old. However, this practice is becoming less common.

Given the above employment practices and complex labor laws, the recruitment process in Japan is rigorous with multiple stages. Employers may require written exams, interviews, and assessment centers to assess candidate skills, qualifications, personality, and compatibility with the company culture. 

Choosing a Recruitment Agency in Japan

Under Japan’s Employment Security Act, private recruitment agencies, search firms, and headhunters are legally required to obtain licenses from the Ministry of Health, Labour and Welfare. Operating without the appropriate license carries serious penalties, including the possibility of imprisonment.

Two main types of licenses are issued to private individuals or legal entities. The fee-charging employment license, known as Jinzai Shokai, allows local or overseas recruiters to recruit, advertise, and place employees with Japanese client companies. This covers both fee-charging and free employment placement, the latter being intended primarily for NGOs and non-profit organizations. The staffing agency or outsourcing license, known as Jinzai Hakken, permits the recruitment of workers for temporary employment with the possibility of transitioning to permanent roles, though it excludes certain specialized professions and skilled trades.

Obtaining either license comes with strict requirements, including minimum net asset and bank deposit thresholds for each office, as well as the appointment of a qualified manager and representative manager. Jinzai Shokai licenses are valid for three years, while Jinzai Hakken licenses are valid for five. Agencies are also encouraged to hold membership in recognized industry associations such as the Japan Staffing Services Association (JASSA) or a relevant foreign chamber of commerce.

Given the complexity of recruiting in Japan, agency fees tend to be substantial. For full-time permanent placements, fees typically range from 30% to 40% of the candidate’s first-year salary, and can be higher for executive or highly specialized roles. Fees are generally lower for temporary positions filled through dispatch or staffing agencies. Many agencies also offer replacement guarantees if a candidate leaves or is terminated within a defined period, usually between three and six months from the start date.

Recruit Top Talent Across Asia-Pacific with Our Recruitment Expertise

Navigating the complexities of hiring and workforce management across different countries can be challenging. Partnering with a global recruitment agency ensures you stay compliant with local labor laws, streamline the hiring process, and secure top talent. Learn how Remote People can help you recruit in the following countries:

Recruitment coverage in Asia-Pacific
ArmeniaAustraliaBali
BangladeshBhutanBrunei
CambodiaChinaFiji
GeorgiaGrenadaGuam
Hong KongIndiaIndonesia
JapanKazakhstanKiribati
KyrgyzstanLaosMacau
MalaysiaMaldivesMarshall Islands
MicronesiaMongoliaMyanmar
NauruNepalNew Zealand
PakistanPalauPapua New Guinea
PhilippinesPitcairn IslandSaint Kitts and Nevis
Saint LuciaSaint Vincent and the GrenadinesSamoa
SingaporeSolomon IslandsSouth Korea
Sri LankaTajikistanTaiwan
ThailandTimor-LesteTonga
Trinidad and TobagoTurkmenistanTuvalu
UzbekistanVanuatuVietnam

Ready to recruit top talent from Japan? Remote People can help. Contact us today to discuss your recruitment needs and discover how we can assist you in achieving your business objectives.