The Olympic Games are coming to Tokyo in 2020 and there is an air of anticipation as the public awaits the arrival of the world’s greatest sporting event. But behind the games there is another competition taking place, as digital technology and marketing companies look to use the games as an opportunity to show off strengths of their own.
Last year tech giant Intel announced that it will partner with the International Olympic Committee to use its technology – including virtual reality, 360-degree video, artificial intelligence and drones – to enhance the Olympic Games. Intel joins local firm Panasonic that is looking to showcase its Hospi autonomous delivery robot, along with Toyota which is developing hydrogen fuel technology, fuel cells, cars and other vehicles with the Olympics in mind.
This excitement, however, is not restricted to companies that are directly involved in the games. Due to the swell of positivity that surrounds the games there is a whole raft of companies looking to take advantage, seeing the Olympics as a target for the completion of a number of systems and projects. This movement has ignited a demand for candidates in a variety of specialisms such as developers, data scientists, analysts, and IoT specialists in order to implement new systems before the games, most noticeably in the area of ecommerce.
Despite being relatively late in adoption, driven by big names in the market such as Rakuten and Amazon, Japan has risen to become one of the world’s fastest growing ecommerce markets, with annual growth in 2016 estimated at 8.7 per cent. As this trend is expected to continue, with there likely to be 88.92 million online shoppers by 2021 - a steady rise from 84.1 in 2018 - this represents a significant market opportunity.
Companies looking to take advantage of this growth therefore require a large headcount in order to compete, and there are a number of disciplines that they are seeking out, with mobile developers, web developers, digital transformation consultants, data scientists and data analysis all particularly sought after.
Elsewhere in the ecommerce sector there is a growing trend for the use of the ‘osaifu keitai’, Japan’s mobile wallet function that allows consumers to purchase goods and services through their smartphones. Again, Japan is somewhat behind the times with this system, with concerns over security a major hindrance to adoption, and cash very much remains king: a study by Boston Consulting Group noted that 65% of payments in Japan are settled with cash, double the average for developed nations, while the value of physical currency in circulation in 2016 was equivalent to 20 per cent of the economy.
However, with the improvement of the ‘osaifu keitai’ technology, this may be on the wane. In April of this year, major mobile phone provider NTT Docomo released an app that allows its subscribers to pay with a QR code, ubiquitous social network application Line has launched its own Line Pay, while the biggest move towards a cashless society comes in the form of Japan’s three largest banking firms working together to standardise smartphone payment systems, a move that is expected to be rolled out at the beginning of 2019’s fiscal year.
With the potential for growth in this market so large, and as banking institutions show a desire towards the streamlining of operations that cashless payments represent - related expenses including the management of ATMs and labour costs total an estimated ¥8 trillion - there is currently huge investment being made in blockchain and crypto-currency technologies, driving a requirement for a number of development positions in the digital tech industry.
However, as in almost all sectors of the industry, companies seeking out candidates in these high demand specialisms are finding that they are coming across a common skills-based stumbling block amongst applicants: English proficiency.
According to Michael Craven, Business Director at Hays Japan, “a second language is important due to the increasing globalisation of the Japanese economy and the need to be able to communicate with offices and clients in other countries.” However, despite this sentiment being almost universally agreed with, companies are finding a distinct lack of bilingual talent with which to fill developer, engineer and sales staff positions in the tech space.
As a result, organisations looking to hire those with English ability are turning their attentions overseas. Immediately preferred are perfectly-bilingual returning Japanese, as well as native English speakers from the likes of Australia, Europe and Silicon Valley in the U.S. These expatriates recruited by the major tech and ecommerce companies – in particular Rakuten, Amazon and Uniqlo - can expect to have visas sponsored and receive some assistance with relocation, although salaries remain at local level.
With limited candidates across all levels of the industry, it is important that over the next year companies look to grow the market. This is already being seen in the marketing sector with numerous seminars and events held in conjunction with recruitment companies, and there has been an increase in employee improvement, encouraging existing staff in the acquisition of certifications and new skills.
Companies must also be competitive in the locating of talent, and once it is identified move quickly. For overseas candidates, Japanese companies are increasingly attending recruitment fairs in Boston and LA, making their presence felt and improving their brand recognition. Meanwhile, in the hunt for domestic talent, the last few months has seen an innovative new recruitment tactic with numerous job seekers invited to one-day intensive hiring sessions. Upon the event’s conclusion successful candidates are offered positions that same day, negating the four or five levels of interviews that is traditional in Japan, thus minimising the possibility of preferred candidates receiving counter offers and being poached by rival firms.
Right across the digital technology industry there is a surge of recruitment activity in a wide range of disciplines, and demand is constantly increasing. As Japan’s economy is on the rise, this will only continue, and with the Olympics coming to Tokyo, competition for candidates will rival the ferocity that will be seen at the games itself.
If you would like to discuss this report in more depth or you wish to discuss your job search or recruitment needs, please email Victor Alesse, Senior Manager for Hays Japan at [email protected]