Connecting Talent and Opportunities Across Japan

As the world’s oldest country, with a declining population driven by low birth rates, Japan faces mounting pressure—particularly in areas like recruitment and the shrinking domestic market. How have these demographic changes impacted your company, and to what extent do you believe Japanese companies need to internationalize in order to mitigate these challenges?

Japan’s demographic crisis presents a unique paradox for us. On one hand, the shrinking population and talent shortages make our job more difficult; on the other hand, these same issues increase the demand for our services. In a way, we rely on these challenges to drive our business—but at the same time, we’re focused on solving problems our clients simply don’t have the time or resources to address themselves. Ultimately, this is an existential issue for many businesses in Japan.

A study published last year highlighted a record number of corporate bankruptcies in Japan during 2024. While many of these were attributed to rising costs, a closer look revealed an 80% increase in bankruptcies specifically tied to talent shortages and lack of succession planning—clear evidence that businesses are shutting down because they can’t secure the human capital they need.

As an international recruitment company, we often advocate for tapping into overseas talent pools, but this is only one piece of the puzzle. Japan has historically been cautious about foreign hiring, largely due to longstanding cultural perceptions of immigration, as well as language barriers. The government has taken steps to ease visa processes for skilled workers, which helps, but the deeper challenges lie within the companies themselves.

Our latest salary guide survey revealed that Japan still struggles to compete with markets like China and Hong Kong SAR, particularly when it comes to executive and technology roles. For example, we found that Chief Technology Officers (CTOs) in China earn, on average, 200% more than their counterparts in Japan. So while it’s important to open the door to foreign talent, there also needs to be a compelling value proposition—especially financial—for top talent to choose Japan over other destinations. That’s where we can help our clients, not just by providing talent, but by shaping the frameworks that make recruitment more competitive.

At the same time, it’s critical to consider alternatives to simply hiring more people. Automation is a more sustainable and strategic solution in many cases. The Japanese government has introduced initiatives to incentivize investment in automation, but adoption remains slow. COVID-19 did accelerate some aspects of digitalization and automation, but the reality is that many companies remain hesitant to make large-scale investments unless they’re confident about the return.

Japan’s strict and complex labor laws are another challenge when it comes to promoting investment in automation and AI. In other countries where regulations are more flexible, companies have more confidence in deploying automation and restructuring workforces. In late 2024 when there was a change in Prime Minister, there were some candidates who were campaigning to be chosen as the next leader who did suggest there was a link between tough dismissal laws and productivity growth, and that  labor law reforms aimed at unlocking human capital and encouraging innovation by shifting excess labor into startups and emerging sectors could be beneficial. However those conversations were short soundbites that didn’t progress further.

Another area we emphasize is the need to tap into underutilized talent pools within Japan—particularly parents and caregivers, the majority of whom are women. Right now, only 53% of the population participates in the workforce. One of the main barriers is the lack of flexibility—many roles still demand long hours and weekend availability, making them impractical for parents with school-age children. Among the women who are working, 45% are only in part-time positions due to the rigid schedules offered by many employers.

What’s often overlooked is that this is a population that already lives in Japan, speaks the language, understands the culture, and has the necessary skills. Companies don’t have to deal with visas or cross-border hiring complexities. These are people who want to work and are ready to contribute, but it requires companies to rethink their internal structures. Offering flexible start and finish times, especially for school pick-ups and drop-offs, and investing in workplace childcare facilities are two clear ways to make a difference. Before turning abroad, businesses should first ask themselves: what can we do to create more inclusive, flexible environments that empower the talent already here? It’s not just about filling roles—it’s about rethinking work to make it sustainable and inclusive in the long term.

Hays Japan Tokyo Office

In fast-moving sectors like technology and life sciences, the pace of innovation demands increasingly agile recruitment strategies and access to cross-disciplinary talent pools. With the rise of AI, we’re not just seeing roles being replaced—we’re also witnessing the emergence of entirely new job categories. From your perspective, how are these evolving job requirements influencing your approach to talent acquisition, and how are you helping clients adapt to and prepare for these new roles?

The challenge is particularly pronounced in rapidly evolving sectors like life sciences and engineering. AI and machine learning are not only transforming how these industries operate, but also how they’re regulated—especially in the pharmaceutical space. These are areas where skills are in extremely high demand, but the requirements are shifting so quickly that traditional recruitment approaches often fall short.

Today, we’re seeing the emergence of AI tools that can help us go beyond simply scanning resumes for current skill sets. Instead, we’re using technology to identify individuals with adjacent or foundational skills that could be developed into what’s needed for emerging roles. For example, when clients come to us looking for cutting-edge talent, there are times when the specific skills they’re asking for may be unique to their product or still so new that we’re just beginning to understand them ourselves. In those cases, our role is to take a broader view—identifying transferable capabilities and helping clients think about the kinds of skills that can be upskilled or reskilled to meet their evolving needs.

Right now, a big part of what we do is help clients define those technical skills and understand what’s realistic in terms of talent development. From there, we work to ensure there’s a proper talent pipeline strategy in place so we can begin building a network that supports future hiring needs.

To support this effort, we’ve partnered with Go1, an online learning platform, and launched a program called Hays Learning. It offers thousands of courses designed to support skill development and career progression, with modules ranging from 3 minutes to 5 hours in length. The format varies—from video-based learning to more traditional course structures—and while much of the content is in English, there are also Japanese-language courses available.

This platform empowers individuals to take charge of their own learning, especially when it comes to staying up to date with emerging technologies. We also provide a similar service called Hays Thrive. It provides our clients with a tool to assign specific training and track progress, which is a powerful way to align workforce development with business needs. It's not just about filling roles—it’s about helping both individuals and organizations stay adaptable in a constantly shifting landscape.

Looking ahead, is Hays Learning a platform you’re looking to further develop? And do you envision introducing a membership fee for access in the future?

We originally launched the platform during the COVID-19 pandemic as a way to stay engaged with our customers at a time when demand for talent was temporarily reduced. From the outset, it has always been a free service, and that remains our position today.

The course content is curated by our partner, Go1, and there are currently no discussions about implementing a fee. We view it as an added-value service layered on top of our core offerings—something that many other companies might monetize, but we see as a way to deepen our relationships with candidates and clients and position ourselves as a leader in thought and talent development. To be honest, I don’t ever envision it sitting behind a paywall.

Given the vast amount of content available on the platform, we do take steps to ensure it's well-curated. We produce playlists to help users navigate the platform effectively. When customers create a profile, they’re able to access content that’s most relevant to their professional needs. In addition to those personalized tracks, we also offer more general playlists that cater to a broader audience.

Japan is seeing record numbers of foreign workers employed in the workforce—1.8 million in 2024. For many of these individuals, adjusting to a new job is only part of the challenge—they also need to navigate Japanese culture and business practices, which can be very different from what they’re used to. From the perspective of these foreign workers, what kind of support does your company offer to help them successfully integrate into working life in Japan?

There are some staggering projections when it comes to Japan’s labor market. By 2040, the country is expected to face a shortage of 11 million workers, with technology and IT roles particularly hard-hit. In 2025, the demand in these sectors is estimated at around 800,000 workers, but that number is projected to grow to 4 million by 2040.

One of our advantages, especially compared to some domestic recruitment firms, is the diversity of our team. We have native Japanese-speaking consultants with deep experience in the domestic market, which is essential for working with the majority of our Japanese client base. At the same time, we also have bilingual consultants who speak both English and Japanese fluently. This balance is critical. While native speakers are necessary for engaging with Japanese businesses, many large companies are now actively hiring talent from overseas—often without requiring Japanese-language skills.

There’s often a disconnect when it comes to convincing foreign candidates that relocating to Japan can be straightforward. For someone who has never had to adapt to another culture, it’s hard to empathize with that experience. But our international consultants have often been through it themselves, which puts them in a better position to offer credible, practical advice. That’s the kind of support we provide.

When foreign candidates come to us looking for opportunities in Japan, we don’t treat it as a transaction. We offer one-on-one consultations, walking them through the job search process, including how to structure a CV, what to expect in interviews, and general workplace etiquette. Around 40% of our Tokyo business is related to foreign talent, and in some cases, the relationships we build with candidates evolve into long-term friendships—or even lead to them working with us.

We’re also active participants in a number of industry associations, and through these networks, we gather insights we can pass along to our candidates—such as clubs or organizations they might want to join to build community. Additionally, we guide them toward Hays Learning, where they can find courses on Japanese culture, business etiquette, and more.

Ultimately, for us, this work is not about simply placing candidates. It’s about preparing them for a successful transition and supporting long-term retention. Many of our clients have told us that the biggest challenge isn’t bringing foreign talent into Japan—it’s getting them to stay. That’s why personal, culturally sensitive support is at the core of what we do.

Hays Japan has been operating since 2001, but you stepped into the leadership role in 2021. Since then, the company has expanded beyond its Tokyo base to establish offices in both Yokohama and Osaka—an impressive growth trajectory, especially in a highly competitive market dominated by large domestic players, alongside numerous specialized firms. What do you believe has been the key to this success? What has Hays brought to the Japanese recruitment market that was previously missing?

The business began in 2001 with a focus on technology and support services, and while the Japanese market has its own nuances, our core methodology remains largely consistent across the globe. In a way, we’re like the McDonald’s of recruitment—relying on a tried-and-tested recipe that’s been refined over decades. Hays as a company actually traces its roots back to the 1800s, with Hays Wharf in the 1860s operating in logistics and warehouse management.

It wasn’t until around 2003—coinciding with the establishment of Hays Japan—that the company decided to divest from logistics and focus exclusively on recruitment. At that time, about 65% of our business was based in the UK, with the remaining 35% international. Fast forward to 2025, and that balance has completely flipped: today, 80% of our business is international, and only 20% remains UK-focused.

We’ve had strong success launching from scratch in new markets—Malaysia, for example, is perhaps one of our most successful startup globally. But the core approach remains the same: we enter a market, build close relationships with clients and candidates, and strengthen our brand through thoughtful, targeted marketing. We typically begin with our areas of expertise—technology and support functions like accountancy and finance—and build trust through high-quality service. From there, we earn the right to expand into more strategic or core roles within our clients’ organizations.

To give an example, if we provide strong recruitment support for a pharmaceutical company’s accounting and tech needs, that often leads to opportunities to recruit for their R&D operations—the areas where we really want to be involved. After 24 years in Japan, we’ve evolved our offering to partner with clients on their core business functions. Our engineering division is now especially strong, providing talent for manufacturing firms across sectors such as chemicals, automotive, defense, and life sciences.

In short, our success comes from leveraging our international brand, technology, and methodology while localizing everything for the market we’re in. We build each office around local talent—consultants who know the language, the market, and the culture. More than 50% of our senior management team in Japan is Japanese, and that balance is deliberate.

As I mentioned earlier, we don’t take a transactional approach to recruitment. That model simply doesn’t align with how business is done in Japan. Our formula is best described as a blend of international methodology with local specialization—an approach that has allowed us to grow sustainably, even in a highly competitive market.

Japan is known for its strength in fields like robotics, material sciences, and nanomaterials—areas where your firm clearly has a strong tech specialization. Given how nuanced and complex the hiring needs can be in these sectors, it can often be challenging to fully grasp exactly what a client is looking for. With a workforce of around 230 people, how do you ensure you’re able to respond effectively to such highly specialized recruitment needs?

Specialization is absolutely central to how we operate. Our teams are structured along two primary axes: industry and function. If you're on an industry-focused team—say, life sciences, which covers pharmaceuticals and medical devices—then your role is further broken down by function. Within that life sciences team, for example, one consultant might specialize in R&D, another in medical affairs, and so on.

Conversely, on a function-focused team—like accountancy or finance—you might have someone who focuses specifically on recruiting for the banking sector. This layered approach allows us to develop deep expertise and ensure that each consultant truly understands the nuances of the roles they’re working on.

That said, specialization on its own isn’t enough. The real differentiator is our commitment to relationship management. Face-to-face engagement with both clients and candidates remains one of our most important practices. I’ve spent the last two weeks meeting with top-level talent across our 20 biggest clients, ranging from luxury goods and food and beverage to banking. From the top of the organization to our most junior consultants, we prioritize staying close to our clients.

We often remind our team that while clients know everything about their own businesses, they may not have a clear view of what's happening in the broader talent market. That’s where we come in. Because we spend most of our time speaking with candidates, we can offer insights into hiring trends, emerging skill sets, and shifts in market expectations. These in-person interactions are crucial—not just for building trust, but for fully understanding what a client needs beyond what's written in a job description.

Honestly, we see far less success when the relationship is limited to a job description or an email. You need to physically see the environment where a candidate will work, understand the culture, and pick up on the subtleties of the role. It’s often the case that the last third of a job description is just a copy-and-paste from a template—so unless you're highly specialized, you're unlikely to grasp the core of what’s being asked.

That’s precisely why we’ve invested in opening two additional offices in Japan—making us, as far as I know, one of the few international recruitment firms with three locations in the country. This structure allows us to be specialized not only by function and industry, but also by level and location. We call it the FILL model: Function, Industry, Level, and Location. It’s this strategic depth that allows us to serve even the most specialized sectors with consistency and precision.

Hays Asia Salary Guide

Hays has formed alliances with companies like LinkedIn and Microsoft. How do partnerships like these support your business? And specifically in Japan, are there any new or upcoming partnerships you're currently targeting?

We’ve built strong partnerships globally—not just from a client engagement perspective, but also by integrating some of their technologies into our own operations. Google is just one example, where over the years we’ve integratedelements of their tech to enhance our candidate search capabilities. LinkedIn is another long-standing partner. We're one of the most followed recruitment firm on the platform, with over 8.5 million followers. That said, LinkedIn doesn’t yet have the same level of  market reach in Japan as it does globally, though they’re working to change that. At our salary guide launch event in February 2025, the country manager for LinkedIn was one of our guest speakers and shared their plans to expand more deeply into the Japanese market.

We also use LinkedIn’s tools as part of our own search and recruitment process. Since our infrastructure is web-based, we have the flexibility to bolt on compatible technologies that help improve the way we connect with talent.

As I mentioned earlier, Go1 is another important partner—through them, we offer free upskilling content via our Hays Learning platform. Globally, we maintain a wide network of partnerships, each contributing value from different angles—whether it’s technology, education, or brand collaboration.

Here in Japan, while we don’t currently have any new partnerships in the pipeline, we’re in a phase of significant expansion. Over the past few years, we’ve made major strides in deepening our presence in the domestic market and elevating the level of service we offer our clients. As our footprint continues to grow, we’re absolutely open to exploring new partnerships—whether that’s with individuals from a marketing standpoint, or companies whose technology can be integrated into our platforms. Collaborations that leverage the strength of two respected brands are definitely something we’re interested in pursuing moving forward.

You mentioned your recently released Hays Asia Salary Guide, which is a significant undertaking—we saw that the Asia edition involved surveying over 3,600 hiring managers. What are some of the key advantages of publishing insights like the salary guide, both for your clients and for your business?

Even when you compare us to our competitors, at the end of the day, we’re all offering the same core service—talent. That’s why differentiation is so important. We constantly remind our clients that they’re competing for the same talent as everyone else, so one of the best ways to stand out is through a strong, clearly articulated employee value proposition (EVP). Similarly, for us, producing thought leadership content like the salary guide is part of how we differentiate ourselves and add value beyond recruitment alone.

Since I first joined Hays, we’ve always had a strong track record of publishing white papers and insights—and we’ve continued to raise the bar over time. With the volume of data we collect globally, we’re in a unique position to identify meaningful trends in how talent flows between companies and industries. Recruitment is our bread and butter, and we’ve made a conscious effort to use our data to help clients better understand the market.

The salary guide, for example, isn’t just a recycled report we put out each year. It’s a massive undertaking that starts from scratch every August and takes around eight months to complete. For this year’s Asia edition, we gathered close to 9,000 responses. Of those, around 1,400 responses were from Japan alone, and over 3,600 hiring managers across the region. Once the responses come in, the data is raw—we rely on business analysts to sift through it, identify key trends, and shape it into meaningful insights.

What really brings it all to life, though, are the physical events. We recently hosted one in Tokyo and one in Osaka that drew 250 attendees, including hiring managers and HR professionals. These gatherings allow us to engage directly with clients and candidates, offering a deeper understanding of the insights in the report. Yes, these events drive business—but just as importantly, they reinforce our brand positioning and thought leadership.

These reports also serve as vital conversation starters for our consultants. When they go out to visit clients, having a data-driven piece of content in hand helps elevate the conversation and build credibility.

Right now, we’re working on our next major piece—The Future of Work—which pulls insights from our tech-sector clients and explores topics like AI and machine learning. We’re in the final stages of translation, and it will be launched in the Asia market very soon. Honestly, the work around thought leadership never really stops—but it’s become a core part of how we add value and stay ahead in an increasingly competitive industry.

Is there a particular objective or long-term goal you hope to achieve during your tenure as the leader of Hays Japan?

I think most managing directors would say they want to leave the company in a better position than when they took over, and I’m no different. That said, in my case, it might be a bit more straightforward—I took on the role during the depths of COVID-19, so there was a clear need for strong leadership and strategic direction.

From the outset, we had two key objectives. The first was to grow the business into an industry leader, and the second was to enhance our overall reputation in the market. On the reputation side, I think we’ve made meaningful strides. For example, we moved into a new office just a year ago for Tokyo, and two years ago for Yokohama office, which doubled our operational capacity.

Looking at the bigger picture, one of my goals was to build a business that could effectively support both domestic and international clients—something we’ve made real progress on. We now have a strong recruitment foundation in Japan, and I take great pride in the team and structure we’ve built.

Ultimately, my ambition is for Hays Japan to become the number one recruitment company—both in terms of being the best place to work, and the best firm to partner with. That’s the legacy I’m working toward.

For more information, please visit: https://www.hays.co.jp/en/home