Interview Process Simplification
Companies have been forced to simplify their interview processes largely due to WFH requirements. A hard transition in a nation where F2F is critical to establishing any kind of meaningful relationship. One major Japanese auto firm was forced to hire over 300 students online this year, according to their Global Head of TA. Though many say the initial curve has been painful, any kind of increased flexibility related to recruiting in this market will be a long-term win for those of us trying to close roles.
Easier Candidate Outreach
As candidates and clients get comfortable connecting virtually, candidate (and client) meeting activity has increased 2X to 3X. With a more flexible WFH schedule, candidates have more time to speak openly with agents and company TAs. For recruitment professionals, this has been one of the few welcome changes ushered in by COVID.
“One can do a lot more candidate interviews in a day – and don’t have to always do these interviews in the evening after people have finished work.” Simon Cropper, Regional HR Director, Domo
Increased Client Flexibility
Though quality candidates will still be hard to find and engage with, the better companies are developing awareness of what is needed to attract the best — and are trying to accommodate it. A big part of this is work/life balance and a demand to support more hybrid work styles, even in demanding customer-facing roles. Added flexibility in this area will go a long way to expanding candidate pools demographically and geographically.
“Japan has always been comparatively slow to modernize but this has been a catalyst: it provides an opportunity to offer more enlightened work styles, more health benefits, more retention benefits.” Jeremy Sanderson, Founder, Icon Partners
Although Japan is still a hugely conservative labor market, Japanese candidates are becoming savvier when it comes to building their careers. Lifetime employment is giving way to a mindset that leverages skills and experience now rather than waiting for promotions and money later. This along with greater work/life balance and hybrid work opportunities will increase the relative number of people considering career changes at any given time. These changes will lead to greater economic growth as companies see the lag between headcount planning and onboarding reduced.
“Japanese candidates have become more sophisticated about developing their skills and careers in order to advance their career opportunities. This will further increase both candidate supply and demand.” Lawrence Kiefler, COO, Fidel Consulting
Even if the boost is not economically as big as we were expecting for 2020, the mere fact that it occurs could have a significant psychological impact — and goose spending and hiring numbers along with it.
Many of the changes forced into place by Covid will redefine to some extent the kind of people companies need. This will drive hiring as companies try to find the right kinds of people to move forward in a changed working environment.
“COVID has changed the paradigm of what “work” means, which will redefine what “talent” looks like for an organization. This will require a significant retooling of workforces around the world and open the door for an increased volume of hiring as companies transition.” Victor Nwakanma, EVP, Boyd & Moore Executive Search
Passive Candidate Markets are Hard to Disintermediate
Japan is and will continue to be the world`s most passive market and it`s unlikely any technology will change this. A lot of hard work will always be required to unearth qualified candidates through proactive outreach (phone!) … who else is going to do this except for recruitment professionals? And while many enterprises will move toward relying on their own internal TA functions, they will still need external expertise to guide and help execute their hiring strategy and talent engagement.
“The job is all about relationships and those who have spent time developing them. This is the time to show your clients and candidates your strengths and build on those relationships. Those that do that, will be fine.” Simon Chambers, RGF
Japan is seen as a global safe haven both in terms of its currency and its economic stability. In a macroeconomic downturn, Japan recruitment will be less disadvantaged than other markets as global firms look for markets on which to focus. Japan — and Asia in general — is seen as an economic region that has so far weathered the current pandemic better than most. The fact that Japan is still the world`s 3rd biggest market increases the odds that companies will put more focus here. This emphasis will have positive short and longer-term benefits to the economic health of the region, and recruitment opportunities within it.
“Japan has been less impacted by Covid 19 than most G7 economies. Many Japanese subsidiaries of US and European listed corporations are performing comparatively well in 2020. This will mean many US and European companies will continue to see Japan as a good place to invest in.” Simon Jelfs, FocusCore, F&A Recruitment Leader
None of this changes Japan demographics – it`s still (and always will be) a pain in the ass to find the qualified candidates needed to fill roles, even despite the dip in hiring over the past 8-10 months. This dip will not last forever and as hiring rebounds, there should be significant pent up demand for talented recruitment professionals from both enterprises and the agencies servicing them. And delivering outstanding service to a handful of core clients now will ensure you are in pole position to take advantage when the market does turn the corner.
Better Treatments & Vaccines
Though the trip might get bumpy, with continued social distancing, improved treatments, and effective vaccines, we`ll work our way through. Bottom line is Covid won`t be with us forever.
KEY TAKEAWAYS:
- JAPAN WILL REMAIN A HIGHLY DESIRABLE MARKET FOR COMPANIES LOOKING FOR A RELATIVELY SAFE REGION WITH SIGNIFICANT UPSIDE TO INVEST IN
- AS COVID EASES, DEMAND FOR CANDIDATES WILL SNAP BACK– EVEN AS RECRUITING PROCESSES HERE BECOME EASIER, MORE EFFICIENT, AND CLIENT ATTITUDES BECOME MORE FLEXIBLE
- DESPITE THESE IMPROVEMENTS, DEMOGRAPHICS WILL ENSURE THIS REMAINS A CANDIDATE-DRIVEN MARKET WITH CANDIDATE AVAILABILITY LAGGING HIRING DEMAND
- SERIOUS RECRUITMENT PROFESSIONALS CAN LOOK FORWARD TO A VIBRANT MARKET TO PLAY IN AS COVID EVENTUALLY RECEDES
Sometimes its hard to feel where things like this will lead in this business. But those of us who have been around awhile have seen things like the implosion of the NASDAQ and tech during the Dot Com bust, Lehman Shock, and a trifecta of disasters in 2011. Each of these were very serious; and yet somehow the recruitment market just kept getting bigger and more vibrant. The `Rona will be no different.
Very big thanks to the many leaders and recruitment veterans who took the time to speak with us about this article. If you enjoyed it and haven`t read Part 1 of this series, click into Japan Recruitment Leaders Speak On Market Challenges. Or go onto Part 3, Japan Recruitment Leaders Unfiltered, where we have longer excerpts from several of the people we interviewed.
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Finding the Recruitment Agency that Fits YOUApril 27, 2021
