Though the Olympic Games will not come to Tokyo until 2020, there are plenty of signs that the build-up is well and truly underway. One such signal is in how companies looking to demonstrate their capabilities, increase marketability and update ecommerce systems are turning to digital tech companies to take advantage of the lucrative opportunities inherent in the arrival of the world’s biggest event.
“Japan’s economy is constantly improving, and this is likely to continue with the coming of the Olympics in 2020”, says Marc Burrage, Managing Director at Hays Japan. “There are a lot of companies looking to exploit this, particularly in the ecommerce sphere”.
“Although the Japanese public has been somewhat hesitant in its adoption of online commerce, the last year has seen a shift in consumer behaviour, meaning that major companies are switching focus away from the department store and towards online. As a result, the marketing sector is seeing demand for mobile and web developers, while on the tech side companies are looking for developers, data scientists, analysist and IoT specialists”.
Connected to this behavioural change, Japanese consumers – for whom cash has traditionally been king – are also becoming more comfortable with non-cash payments, something that is bleeding out into the high street.
“This year will see major developments in mobile wallet technology, allowing consumers to purchase goods and services through their smartphone,” says Marc. “Japan is quite some way behind other countries in this, but here again there is a transformation in consumer behaviour. This means that companies are investing heavily in blockchain and cryptocurrency technologies and need candidates with experience in these areas”.
Another aspect of growth in the tech industry is digitalisation, as Japan finally starts moving away from paper-based recordkeeping, implementing new systems in order to do so.
“Japan is home to a lot of high technology, however many old-fashioned practices remain, with the retention of paper-based recordkeeping being one”, notes Marc. “However, companies are now beginning to digitalise, moving into the cloud, so we are seeing increased demand for digital transformation consultants with a strong understanding of new technologies such as AI, cloud computing and IoT”.
When it comes to the recruitment of tech candidates, no matter the industry, companies are coming up against a common skill set scarcity: English proficiency.
Part inspired by the Olympics, and part thanks to larger brands wanting to utilise the global reach that English affords, bilingualism is a necessity for organisations in all areas.
“Global companies are looking for bilingual developers, engineers and sales staff, and there are not enough candidates with the required ability. This has led to companies extending their searches overseas”, Victor explains.
“In these instances, perfectly bilingual returning Japanese are ideal, but in their absence, companies are seeking out native English speakers from Europe, Australia and the U.S., particularly Silicon Valley. To locate these talents there has been an increase in activity at recruitment fairs in Boston and Los Angeles, and successful candidates can expect to have visas sponsored as well as receive relocation assistance, although salaries remain at the local rate”.
The last year has been one of dramatic growth and disruptive technology, meaning that the necessity for individuals in these areas has been high, and it is a situation that is not likely to abate any time soon.
“The demand is constantly increasing, and I expect to see it continue to do so. With Japan’s strong economy, now is a really good time for job seekers, and with the Olympics on its way, the next two years will only see more activity. After that point, it is hard to tell, so if you are looking to improve your position or your conditions, right now is a great time to do so, to strike while the iron is hot.”
An overview of what other trends have been observed in Japan’s Digital Technology sector can be viewed below.
- Particular aspects companies look for in senior-level candidates include sizes of teams managed and levels of budget handled.
- For marketing positions companies increasingly look to the prestige of previous employers for a guide as to the attractiveness of candidates.
- Standard salary increases in the industry remain at five to ten per cent. Candidates who appear too covetous of high incomes are distrusted as companies feel that the organisation’s prestige and the status of the project involved should supersede fiscal gain in candidates’ eyes.
- The last few months have seen companies dramatically shortening interview processes by inviting job seekers to intensive recruitment days, with successful candidates being offered positions at its conclusion. This tactic is seeing the danger of rival companies poaching talent minimised and is likely to become common in the coming year.
To read the full Inside Story of Digital Technology report in Japan, please click here.
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About Hays
Hays plc (the "Group") is a leading global professional recruiting group and is celebrating its 50th anniversary this year. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2017 the Group employed 10,000 staff operating from 250 offices in 33 markets across 20 specialisms. For the year ended 30 June 2017:
– the Group reported net fees of £954.6 million and operating profit (pre-exceptional items) of £211.5 million; – the Group placed around 70,000 candidates into permanent jobs and around 240,000 people into temporary assignments;
– 24% of Group net fees were generated in Asia Pacific, 49% in Continental Europe & RoW (CERoW) and 27% in the United Kingdom & Ireland; – the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;