There are several reasons to think about growing your company in Japan and recruiting local staff due to countless opportunities. Before starting the hiring, process or doing interviews, it is crucial to comprehend business etiquette and workplace culture in Japan if you want to flourish there.
With that said, we shall examine the specifics of recruiting, cost, etc. in Japan in this article in a hassle-free manner.
Things you must know before hiring in Japan
With an educated and talented workforce, the Japanese economy prospers. However, given Japan's specific demographics and cultural environment, the recruiting process might provide a few unique challenges.
● Labor Shortage
Nearly 30% of Japan's population is above the age of 60. The nation is experiencing a severe labor shortage as a result of an aging population and dropping birth rates. Since the majority of Japanese workers have excellent job security, recruiting is particularly competitive in Japan. Every candidate for a job receives offers from several businesses at once, which is difficult for any company.
● Terms and conditions of employment
Written documentation of all job terms and conditions, such as pay, holidays, and working hours, is recommended.
● Working hours and minimum pay
According to Japanese labor legislation, a 40-hour workweek must include. The companies are required to give employees overtime compensation, which is often a 25% to 50% premium above the employee's regular salary.
● Social security
Social Security is paid for in part by an employee's wage. Health insurance, workers' compensation, and unemployment insurance are all covered under social security in Japan.
● Company Branding
Japanese people are renowned for being brand enthusiasts. It could be harder to draw in job searchers if your organization is new to Japan and does not have a strong local brand.
● Language ability
Less than 10% of Japanese people are thought to be proficient in English. If a business wants to hire multilingual applicants, it makes it more difficult to fill unfilled positions.
Hiring in Japan
The availability of numerous potential candidates is one benefit of hiring through a job website, social media postings, or adverts in Japan. However, firms may have to endure a time-consuming process of sorting through numerous applications and choosing potential applicants who are best suited for the open position. It will be more favorable to collaborate with an Employer of Record in Japan than with a hiring company in Japan.
How can EOR in Japan benefits you?
Japan offers a platform for development and innovation for global firms because of its highly trained workforce and worldwide ambitions. Although entering Japan is a promising move, the rules and regulations might be confusing and conflict with your company's plans.
By using the EOR service, you may begin carrying out your plans in Japan in a matter of days without having to establish your own local business. When a business uses employer of record in Japan services, they can be sure that we have taken care of all legal requirements and use employment contracts that are lawful.
Cost of hiring in Japan
You must take into account charges besides recruiting fees when employing workers in Japan.
● Research
The first step in recruiting in a foreign country is research. Because the market is different, you must make sure it is appropriate for your company before recruiting personnel in Japan.
● Legal assistance
To make sure that the legal requirements are followed during your hiring procedure in Japan. You can stay away from fines in the future by doing this.
● Employers' agencies
In a foreign country, hiring is challenging. As a result, the majority of overseas employers like using recruiting firms. However, compared to other countries, Japan's recruiting expenses are greater due to the limited size of the talent pool in the country.
● Selective committee
The expense of this committee will be included in the overall cost of recruiting an employee. The committee's travel expenses would be included in your hiring costs if they must travel across the nation to find new personnel.
● Job vacancies
Recruitment costs will also include the cost of posting job adverts online or in print publications.
● Personnel screening
Criminal history checks are not permitted in Japan. But there are additional inspections you need to make in Japan before recruiting personnel. Among other things, their educational and professional backgrounds, immigration status, etc.
Conclusion
Your company's core is made up of its employees. They keep the system running, thus it's crucial to have a solid contract that both the employer and the employee are happy with. The EOR is legally accountable for maintaining your workers' satisfaction with the work agreement.
