The Elephant in the Room: The Mistrust Between Talent Acquisition Leaders Inside and Outside Japan
- Date:
- 19 January 2015
As a company dealing specifically in international HR search, ChapmanCG and its consultants are very well accustomed to complex global assignments. We have often found in these searches that expectations of stakeholders ‘on the ground’ in a market can differ from those overseas at corporate or regional headquarters. But perhaps the single most controversial area that we cover is in hiring Talent Acquisition Leaders in Japan. For anyone who has experience in this realm, this may come as no surprise; but for those who don’t, this might seem like a strangely exaggerated claim. So let’s break it down in this quick article.
1) Costs
The first peculiarity about staffing in Japan is that it has historically been a very expensive market for using agency recruitment to hire internationally-minded talent. The key reason behind this is because Japan has been, and in some cases still is, a high-risk/high-reward market for international companies. Get it right, and a multinational can make huge profits in the lucrative domestic market. But if a company’s entry or subsequent management is badly handled, it can prove to be a very costly mistake. In this market, reputation is important and memories are long, so there isn’t always the luxury of a second chance.
In addition to these high expectations, the market for international multilingual talent in Japan is comparatively scarce, because the large majority of workers are still employed at Japanese companies where only Japanese is spoken, and only Japan-specific working practices are learned. Therefore, high demand coupled with a tight market for the right kind of talent has led to this anomaly in agency recruitment costs. With this background, the pressure to reduce costs by improving direct sourcing has increased massively in recent years, which leads us to the next point.
2) Privacy and Social Media
If the world was split into developed markets and emerging markets, Japan would be found at the top of the list of countries described as ‘developed’. However, it is quite unique among other developed markets in its attitude towards openness, and its willingness to embrace social media, with only neighbouring Korea providing a close comparison. In most developed markets, people are used to being contacted directly by competitor companies, and even if they are not looking to change jobs, they are at least flattered to have been approached and to be a ‘known quantity’ in their field. Japan is slowly getting accustomed to this approach too, but it is a big cultural change for a market that traditionally takes pride in privacy and in loyalty to employers. Many people are still offended to receive this kind of direct approach, and many Talent Acquisition professionals are subsequently wary of initiating this type of contact.
Parallel to this has been the historical unwillingness of Japanese employees to upload their details onto online social media platforms, and in particular websites liked LinkedIn. The uptake has been steadily growing in recent times, particularly among people employed by international companies, and especially in the technology industry. So it would be wildly inaccurate to say that these practices are shunned overall in Japan. But the percentage of the general population who are active is still extremely small compared to other markets, which in turn hampers the ability to create a direct sourcing model in Japan.



