5 Reasons Why Its Difficult To Recruit Talent In Japan

Japan remains one of the most difficult countries to source, find and attract talent.  According to a report by Global Talent Strategy, over 81% of hiring managers and employers are having difficulty finding talent for their companies.  Here are 5 reasons why.

1.  Not a Culture of Cold Calling and Direct Marketing

Japan, is not a culture of direct communication.  Decisions take time, group consensus is valued over individual contributions.  Conformity is the rule rather than the norm.

Deals are done through personal networks and referrals.  Having someone call you directly on the phone about a job or any other opportunity is still not as accepted as going through a personal reference or friend.  Thus, the rejection rates for direct marketing or cold calling are higher than in America or Europe, making approaching and convincing candidates much harder.  Face-to-face meetings are preferred, which I personally prefer to establish rapport, however this can lead to a longer sales cycle for closing candidates.

2.  Lack of Talent Coming up the Ranks  

There is a dwindling talent pool of qualified bilingual professionals due to a declining birth rate, less than adequate English education, and preference to remain in the status quo vs. exploring outside their comfort zones.

Japanese go through a fairly rigorous English Language curriculum, in fact, I would say their writing and reading skills are okay, however, when it comes to practical daily or business conversation, there is almost no exposure, and, the language practice they do receive is most often from a Native Japanese English Teacher who has not even gone abroad to study or speak English.

Given the above situation, one can imagine that there is simply less “fish” in the water to meet the demand of Multinationals Firms in Japan for their staffing needs, and its only going to get worse.

3.  Japanese Prefer their Own

Japan`s influx of talented foreign workers who possess high Japanese fluency has been increasing steadily since 2005.  There is a smattering of such talent in Japan, but, still very under represented in the workforce.  Though not stated on paper, there is an overwhelming preference for Japanese Nationals who can speak okay English.  Why you ask?  Because they are selling typically to Japanese companies who prefer a Japanese face and someone who understands the nuances of the culture.  This cuts down on the available limited talent pool.

4.  They Don`t Use Business Social Networking Sites to Search for Jobs

Japanese do not use Social Networking Sites to actively search for jobs.  Linkedin has anemic growth rates in Japan and they`ve been struggling to increase their user base here.  Facebook has a strong following and some recruitment and technology companies like Salesforce.com have their own Facebook Page in Japanese where the passively encourage candidates to apply through skillful Inbound Marketing tactics for Japanese Recruitment Activities but as a whole it is not an effective place to search for candidates.

5.  The Wife has the Final Word

The wife wields the most influence with regards to financial matters and decisions affecting the family.  In Japan, men will typically give checkbook yielding authority to the wife.  The wife is responsible for setting the budget for expenses, entertainment, children`s tuition, etc.  Its no wonder that women hold such a high position when determining if that new job is a right fit for the family.

This can yield potential roadblocks to companies that are not household names.  Startups, VC`s, non-recognizable companies take a lot of explaining to convince the wife its a good move.  Sometime this ends up in no deal, making the whole process of interviewing a complete waste of time.

These are some reasons I`ve experienced with over 10+ years of recruiting in Japan and Asia and why it will continue to be difficult to recruit in the Japanese Market.  Watch for my next upcoming article when I go inside to interview some Internal Corporate recruiters who share their views on the Asia Recruitment scene.

Howard Ichiro Lim is based in Tokyo and San Francisco and brings more than ten years of Asia executive search and business strategy consulting experience.  He is renowned for recruiting top talent in Japan and Asia for a broad range of multinational companies and industries.   Howard established Incredible Consulting Group in 2008 to meet the demand of foreign companies needing help and advice for strategic consulting issues like, market entry, sales, partnership development and finding talented individuals to support their growing operations.
He is bilingual in Japanese and English and speaks conversational Mandarin.  You can email Howard at howard@incredibleconsulting.jp or access his Linkedin profile here.

Finding Talent in Asia - Shanghai vs. Tokyo

image: Speedhawq

Frank Mulligan is an experienced HR and Executive Search professional with over 17 years in China.  He has interviewed and placed hundreds of Chinese professionals in China and abroad. Currently he is teaching China Human Resources at China's premier MBA school, the China Europe International Business School (CEIBS).  I had an opportunity to ask him a few questions regarding Recruitment and Talent Acquisition in China.

How has the Executive Search business been in China recently?   

Frank:  Over the years the business has become both more sophisticated, and more competitive. Each factor leads in a different direction, so for example you see the increased sophistication in the deeper recruiting process that companies are running, and this leads to better assessment of candidates.
At the same time there is huge competitive and price pressures that push people to take shortcuts, such as skipping stages in the recruitment process or hiring cheaper, less-experienced staff to do the search and assessment of candidates. In some ways it's a very schizophrenic market here in China, so it's nice to be on the other side of the fence, teaching human resource issues to China's elite HR and non-HR professionals.

Howard:  I see, yes, that`s very refreshing to hear.  In Japan I think a handful of companies are trying to pursue the same hiring and performance model by implementing some sort of intellectual and behavioral testing to see if the candidate is the “Right Fit” for the company.

How does it compare to when you first started recruiting in China?   

Frank:  No comparison whatsoever. Fees were high, and companies were desperate to hire. We used to say that all you needed to get a job was the ability to speak English, and a pulse. Now things are very different for 3rd party recruitment companies. Now they have to find candidates who can deliver for the hiring company. If they don't, somebody else will.

Howard:  To some extent, I think the same is true in Japan.  You`ve seen a slight drop in fees for companies working with agencies, around 5 - 10% drop over the past 5-years.  I believe this is partly to do with other countries charging lower fees, and, the ability to reach out to candidates directly on Linkedin and other Social Media sites which obviates the need for Recruiters completely in some cases.  You did not have this prior the boom in Social Media and sites like Linkedin.

How have you sourced for candidates in the past in Shanghai, and, what methods have worked for you in terms of filling critical roles for your clients?   

Frank:  In the past everyone sourced the usual way, with target lists, networking, advertising etc. Recruiters tended to be the kind of people who were able to create a large social networks. But these networks tended to be smaller, and based on strong ties. Now the big change is the use of social networking sites, and this extends the recruiter's ability to develop more weak ties. Of course weak ties are the ones that deliver on information issues, such as people's names, title, phone numbers etc.  The other change is the use of Sourcing Teams that plan ahead and hire before time. They use social media sites quite extensively.

Howard:  In Japan, I would say its more industry specific.  There is a growing population of mainly technology professionals who are using Social Media.  Other industries like Pharmaceutical, Manufacturing or Insurance, etc. still prefer networking the old way, with, as you say, target lists, networking, advertising, which makes it challenging and time-consuming to source and find people for searches.

Do you think that recruiting has changed in China since the advent of Social Media?  According to William Chin, who runs the AsiaHR Blog, there has been a marked increase of Branding and Advertising of Jobs through Social Media in China.    

Frank:  The biggest change in China, and pretty much everywhere, is clearly the use of social networking sites, especially Linkedin. You can see that companies are now dis-intermediating recruitment firms with Linkedin. I mean, why pay a search fee when you can buy access to over 100 million middle-class professionals on Linkedin? The whole site is built around a Resume so when you want to search it is surprisingly easy to go from 100 million people to that one Program Manager that you are looking for. If, like some of us, you have a very big network on Linkedin, you don't even have to pay for that access. Coincidentally, social networking is the subject of my PhD, so I have been looking at the impact of social networking/social media on business outcomes.

Howard:  Interesting, yes, I think what you say is true.  I`m interested to see how this develops and changes HR and Talent Acquisition strategy as a whole.  My belief is that recruiting still requires time investment, so, it behooves companies to hire, train and retain people who are capable of going through the entire Recruitment Lifecycle if they don`t want to rely on 3rd-party recruiters in the future.  Its and issue of time and education, does the SVP, VP or hiring manager have time to do his or her own recruitment?   

What recommendations would you give to Foreign Capitalized companies who are looking to expand and ramp up their workforce in China in the future?      

Frank:  As the Hitchhiker's Guide to the Galaxy says, 'Don't Panic!'.  The Chinese economy is likely to move very soon to its next phase of growth, with lower percentage GDP growth and an emphasis on high quality in that growth. So the chaos in the hiring market is likely to abate. I would even suggest that the shift is happening now, but the real change will come after the big meeting in Beijing, when the leaders feel confident enough to make the necessary changes. They want to move from 'Made in China' to 'Innovated by Chinese' but that will take enormous changes in terms of social, technological, economic, and yes, even political issues. Those decisions have to be made at the top.
In respect to ramping up workforces, China is not that different from any other country, no matter what people in China keep telling you. The same rules apply. So, start by spending the time to specify the job clearly. Writing a JD on the spot doesn't cut it. But broadly, companies need to anticipate their hiring need and incorporate the high turnover in China into those figures. Then they need to assess candidates in some detail. 

I'm not a big fan of interviews because the correlation with on-the-job success is not that high, but I think a number of companies do a better job here. These companies bring the candidate, or candidates, in for full day assessments of their skills and fit. Some have a blackball system where one person's negative vote rules the candidate out. Others just agree the best candidate. Whichever way they do it, the advantage that I see is that they spend time with the candidate, and see them 'in the wild' so to speak. Interviews are notoriously biased, and can be gamed by people who's only offering is the fact that they interview well. It's hard to game the system when the 'interview' is taking 8 hours, and involves 4-6 'interviewers'.

Howard:  Very well put and said.  I think blackballing or making a judgement or fitment of an individual based on one-person`s perception or views is very wrong.  They need to take a cross section of past workers, people in the industry and combine that with assessment testing to see if the candidate will work well or not regardless of which country you`re in.

3 Advantages of Working With an Executive Search Firm in Asia

Working with an Executive Search Firm in Asia insures that you make the right decision when hiring a person for your business.  

The costs of a bad hire can have negative results:

-Downtime in sales activities.

-Downtime in planning, operations and strategy.

-Downtime in expanding your business.

-Downtime period…

Why do people invest millions of dollars and significant time in Asia, then decide to skimp or save money on their recruiting costs by searching internally, posting on job boards, or, using a firm outside of Asia to find their person?

It just doesn`t work.  The paradigm I like to use is trying to fit a square into a round peg.  Over 50% or more of hires made with the above strategy result in the person leaving or being dismissed.  After 10+ years in Executive Search and Business Strategy Consulting, in both the US and Asia, you wouldn`t believe how many times I`ve seen this.

Companies can avoid this by partnering with a regional firm in Asia.  Here are 3 advantages of working with an Executive Search Firm in Asia and how it can aid you in your Talent Acquisition strategy:

1) Knowledge of Local Markets

Search Consultants based in Asia have clear advantages when understanding the local market.  A large-percentage of the Search Professionals will have an excellent understanding of the language, culture, business practices as well as access to candidates not available through the general market.

2) Time Zone

Being in the same time zone makes it easier to connect with potential candidates.  When you`re not working with a 16-hour time difference you can call, source and speak with people during the same business hours.  When a client hire is critical, being able to meet several candidates face-to-face and providing that information to the hiring company is very important and can`t be done when you live 5,000+ miles away.

3) Marketing & Customer Intelligence

Strategically partnering with a Search Firm in Asia broadens your company`s presence and brand in the market.  Through the organic process of search and touching several top-level candidates in the country, your company`s presence and impact gets naturally expanded.  Working with a Search Firm in Asia also will provide you on market intelligence regarding your industry.

It behooves companies who are not currently using Search Firms in Asia to reconsider given some of the convincing points above.

Feel free to let me know how you are currently implementing your Talent Acquistion strategy in Asia, we`d like to know. 

About the Author:

Howard Ichiro Lim is a bilingual and bicultural Business Strategy & Search Consultant.  He works in San Francisco and Tokyo spending half the year in each country to stay up-to-date on market information and keeping in touch with clients to better assist them on their US/Asia business strategy.  His company Incredible Consulting Group provides Business Consulting and Executive Search services in the US and Asia.

How To Outsource Some Of Your Work Through Crowdsourcing

If you run a small or medium-sized business, you may not have the people power or time to complete every important detail that arises through the course of business.  Such work like sorting, researching, writing product descriptions and translation work can be done through the Crowd.

The concept is simple, you register for sites like Amazon Mechanical Turk or Clickworker and submit what type of work you`d like completed.  The proposal is floated out the the Crowd (members of the community) and your work is finished by a competent professional with a background or skill set related to your project.

For example, let`s say you`re looking for someone to write a product description for an Account Software Add-on that your company is about to release, simply go to one of the above sites and register your company and statement of work and voila, its finished.

The good thing about these sites is that members are prescreened and qualified through resumes, qualifications and even testing modules to see if the person can really do what he or she claims she can do.

I haven`t used the sites myself, but, it seems like a growing trend and on a path to disintermediation of not having to use only a select number of companies to get the work done.

How To Use Social Media To Win New Clients

I was recently watching a very helpful youtube video on how to develop new clients through Social Media.  The video is about 30-minutes in length and goes over everything from how to find potential contacts in your relevant industry, to companies and ultimately the person who you should be communicating with, a.k.a., the decision maker.

The described methods use Linkedin as a medium.  Here is a brief step-by-step strategy that you can implement for your sales and business development strategy:

Step 1

Do a keyword search on your particular target industry or target market.  There are a number of tools out there, I would start off with the Google Adwords Keywords tool to become more familiar with how to do a keyword search, I would also recommend looking up articles and How-To videos on YouTube as they will give you additional insight into KeyWord search (even for seasoned practitioners).

Step 2

Enter your keyword or keyword phrase into Linkedin`s advanced search engine.   This will give you several hundreds to thousands of search results (people).  You can drill down even further by specifying country, region, and companies (all on the left-bar navigation on the search results).

Step 3

Contact your potential lead through Linkedin.  If you`re a paid subscriber you can use Linkedin`s iNmail to send an inquiry to him/her directly.  If you don`t have time to wait for a response, or, can gauge that the person is not accessing his/her Linkedin account that frequently, I would send a direct email to their corporate account.

You can do this through the following search string:

"email * * domain.com"

For example if Harry Potter worked at Price Waterhouse Coopers in London you would use the following search string:

email * * pricewaterhouse.com
email * * pwc.com

You would get a number of email aliases that have the domain name with Price Waterhouse and can deduct that harry.potter@pwc.com would be this individuals Corporate Email address.

Step 4

Sent an email of something of value, it may or may not register with her/him.  If you can follow up with a warm lead (perhaps a mutual connection or something of common between you two) this would be even better.

Example:

"Hi Harry,
I read your details through Linkedin.  I wasn`t sure how active you are on that account so I am contacting you directly, hope you don`t mind.  I understand you`re involved with the CRM software division for the Retail Industry.
My company CutRedTape.com has developed a CRM platform specifically for the Retail Industry.  We have a number of high-profile clients including WalMart, Uniqlo and other well-known names that are gaining great benefits through using our product.
I would like a few minutes of your time to see if we could discuss over the phone.  Even if you are not immediately interested or have a need, it will give us a chance to connect and network as peers in the industry".

Summary:

Using Social Media, specifically Linkedin in this case, is a great way for you to develop your sales pipeline!

What Has And Has Not Worked For Me In International Sales

With over 10+ years logged in the Executive Search and Consulting Industry, I`ve come to realize that in order to be really effective, truly effective, and to be able to serve your clients well requires going the extra-mile, literally.

Like most Entrepreneurs, we learn what works and what doesn`t, mostly by the process of trial and error.

Social Media has definitely been a game changer when it comes to the way we can gain access to decision makers, connect and start a dialogue.  But at the end of the day, its the face-to-face meeting, establishing rapport and starting a beneficial relationship that results in the win-win deal.

So far, I`ve noticed what has and hasn`t worked in terms of creating good client partnerships.

This is what has worked for me:

Connecting with people at events, through the internet, via Skype or phone, that leads to an eventual face-to-face meeting.

Taking the initial meeting further by regularly contacting the person you met, perhaps on a Social Media Channel or via email and providing value-added advice.

Politely asking if there is ways that you can help the person, and, if that person can help you.

This is what has not worked for me:

Going to a networking event, but, not following up with the people you met, i.e., being to lazy to follow-up.

Cold calling people without any prior reference point, cold calls rarely succeed you need a warm call.

Running an International Company and just staying in your particular country.  I did this for the first year in Japan, this was a mistake, most clients are in the US.  You can`t expect to run an International Business without meeting the decision makers.

Lessons Learned

Go the extra mile, literally, if you want to truly succeed at running an International company.

How To Find A Business Partner in China

I recently spoke with Johnson Choi of Johnson Choi Consulting and iWinery Hong Kong regarding how to build a successful trading business to China.  We`ll have a future podcast for you soon where we talk about this in detail.

Johnson has a very successful Pan-Pacific trading business working with both US-based companies looking to enter China, and, Chinese companies who are interested in exporting and selling their products and services to the US.

He has a unique background that lends well to this type of business - being strategically located in San Francisco and Hawaii and being bilingual in English and Chinese.  He heads the Hong Kong China Hawaii Chamber of commerce  and is an active member of the Asia Pacific Business Community in San Francisco and Hawaii.

I asked Johnson how to find a business partner in China that will lead to future business opportunities for anyone thinking about Asia as part of their portfolio.

Some of the things I gleaned from the meeting and that Johnson advises you should strongly consider are:

Who are you selling to?  Who is your market?

An example of this is when Chambers of Commerce, or, Industry Associations will arrange a "Trade Mission" where a group C-Level execs are wined and dined on a 10-day trip staying at 5-star hotels and speak with Industry Leaders in Asia.  This is always good to make contacts.  However, these same participants come back to the US wanting to sell to the cities they visited on their tour, but, are at a loss to know if their product or services will even sell in that city?

The way to avoid this is to find someone who can prequalify if your product or service will sell before you dump $10,000 - $20,000 on a trip.

Have you done your due diligence?

A very simple concept that leads back to the previous question.  Any person or consultant that promises to take you to Asia and make you millions of dollars in profit, should be able to back up their claims with verifiable testimonials, case studies and references.

The point is that you can save yourself a lot of headache by simply taking the time to read, study and qualify potential business prospects via phone and internet prior to engaging.

40+ Vintners Head to Asia on Wine Mission

The Wine Institute is organizing a 40+ winery trade mission to China, Japan, South Korea, Vietnam, Hong Kong and Taiwan to boost sales of Golden State wines in Asia’s fast-growing markets.

The Oct. 15-26 mission will visit Tokyo, Seoul, Taipei, Ho Chi Minh City, Hong Kong and Shenzen, China, according to the San Francisco-based trade group, which represents about 1,000 California wineries and related businesses.

“Asia is a strong wine market with long-term growth across the board for California wines,” said Linsey Gallagher, the Wine Institute’s international marketing director, said in an Oct. 9 statement.  Read more here...

Asia-Europe Meeting: Building Growth and Cooperation

VIENTIANE, Laos—Leaders from Asia and Europe called Tuesday for closer cooperation between the two continents in addressing the current global economic and financial crisis.

The president of the European Council, Herman Van Rompuy, also unequivocally affirmed the euro's future.

A two-day Asia-Europe Meeting in Laos was attended by leaders and ministers from 51 countries, including new members Norway, Switzerland and Bangladesh.

The meeting, known as ASEM, endorsed closer economic ties between the two continents to promote stronger and sustained growth. Combined, the two regions produce half the world's GDP and have 60 percent of the world's population.

The crisis in Europe has affected not only most economies there but also their trading partners in Asia. But Van Rompuy said there was no sign of Asian resentment that it was being asked to carry its ailing European friends.  Read more here...