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Market insights: Empowering your talent strategy.

Japan's talent market in 2024 has shown remarkable resilience, maintaining a steady demand for skilled professionals despite persistent global economic uncertainties. Japan remains a labour-short economy, a longstanding characteristic that continues to shape its workforce dynamics.

 

of hiring managers plan to recruit over the next 6 months.

 

of professionals actively plan to seek a new job in the next 6 months.

 

of employers have lost out on hiring new talent in the last 6 months as they can’t compete on salary and benefits.

There has also been a rising demand for contract roles in Japan, highlighting a shift toward greater organisational agility and the need for flexible staffing solutions.

- Lionel KaidatzisManaging Director, Morgan McKinley Japan

This is your opportunity to Go Beyond all expectations.

How can you be successful in the evolving talent landscape?

The top 5 hiring challenges companies will face in 2025.

 

of organisations in Japan found hiring ‘Very’ or ‘Quite’ competitive in 2024. The main barriers to recruitment in 2025 are…

  • Lack of skilled candidates available
  • Length of hiring process
  • Level of Flexibility offered
  • Employer branding not attractive
  • Pay and benefits not competitive enough

What do people want? Key benefits to offer…

 

Employees in Japan are not very satisfied with the benefits they receive, with 57% being ‘neutral’, ‘dissatisfied’ or ‘highly dissatisfied’ with their packages.

Offering strong benefits, both financial and non-financial, increases your chance of attracting and retaining top talent.

    Top 5 most desired benefits:

  • Pension (above statutory requirements)
  • Health and wellbeing benefits and support
  • Bonus
  • Work from home
  • Flexible working hours: Flexi-start, flexi-finish

Flexibility is still high on the agenda.

 

Flexibility around working patterns remains a prominent request, yet 26% of organisations are asking staff to be in the office more regularly compared to this time last year.

Giving freedom around where and when your people do their work gives your attraction and retention a boost.

Employees’ preferences for ‘in office’ days per week:

24%

1-2 days per week

31%

3-4 days per week

31%

5 days per week

14%

Remote work

Up, down or flat? The state of salaries.

More companies are now recognising the need to adjust remuneration, creating a clear divide between those aligning with global standards and those lagging behind. To stay competitive, businesses must benchmark pay structures, ensuring they attract, retain, and motivate top professionals in an evolving global talent market.

67%

of organisations kept their salary bandings level over the second half of 2024.

63%

of employers plan to increase salary offers in 2025 for certain, hard-to-fill roles.

48%

of professionals are optimistic that they will receive an increase in 2025.

2025 Japan salary guide.

Explore salaries to find out how much you should be paying your employees or how much you could be earning this year.

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Download your Salary Guide for 2025.

Salary data, insights and advice to guide your talent strategies. Benchmark what you are paying your teams against the industry averages for roles in your location.

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