Attracting Top Talent to Japan: Insights and Expert Strategies

Japan’s influential economy, stability and drive for innovation make it a strategic destination for global talent, but attracting top professionals requires tailored strategies and a deep understanding of the market. Leading HR experts and recent market data weigh in on the core roles, key attraction drivers and structural support necessary to successfully recruit top-tier talent to Japan.

What Core Roles Should Companies Target for Global Recruitment in Japan?

Companies find success by focusing their global recruitment efforts on two distinct talent pools where expertise is highly valued: Software Product Development talent and Executive-Level talent. Casey Abel, founder and CEO of ZooKeep, Executive Director at HCCR and executive and Co-Founder of Meshd, with 15 years in Japan’s talent markets, notes that successful recruitment often focuses on a few core white-collar jobs.

The two core talent pools where companies generally find success in attracting talent to Japan are:

• Software Product Development – This pool includes Engineers & Product Managers for companies looking to build global products.
• CFO and CEO or General Management talent.

Why is Compensation One of the Top Drivers in Japan’s Talent Market?

Historically, one of Japan’s major appeals for attracting top-level talent has been the country’s stability and rich culture. However, the landscape has changed. The weakened yen and inflation have pushed costs higher, making compensation one of the top drivers of career decisions.

Recent data from the FocusCore Salary Guide confirms this shift, highlighting that Salary clearly stands out as the No. 1 factor when searching for a new job. It was chosen by around 30% of employees and 28% of employers as their first priority, with career progression and responsibilities following closely behind.

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Market Realities and Strategic Pay

The data shows compensation increases are becoming standard, with nearly 60% (58.6%) of survey respondents reporting a salary increase this year, especially for director-level leaders. Simon Jelfs, Managing Director at FocusCore, emphasizes that to compete for top executives, businesses must keep base salary offers attractive and transparent. This focus on fixed pay is crucial as candidates prioritize salary stability.

Brad Corbet of Motionworks confirms that for senior roles, candidates “want a cushion in terms of salaries.” He warns that many global companies often “don’t really understand the market enough to pay them competitively.” Corbet highlights that for senior level roles such as Country Head or Representative Director roles, especially for startups in Japan, there is a high risk factor for candidates since the success of the company is not just with the role but the company backing, leverage in the market, branding and more. Therefore, the compensation package for those types of roles should reflect the risk.

Corbet also notes that the “traditional expat package, doesn’t really exist anymore,” with the market shifting toward hybrid expat packages. Further, he says “many multinational companies are shifting away from the traditional ‘expat package’ and more to local talent who ‘understand the market better.’”

What are the Key Non-Cash Attraction Drivers?

Abel emphasized that the drivers to attract talents for these two distinct talent pools are quite different. The opportunity for impact and the quality of life in Japan are essential non-cash drivers that attract top talent, particularly in two distinct segments.

Attraction for Software Product Development Talent:

For Software Product Development talent, “in our experience the key attraction points for such talents historically have been the opportunity to live and work in Japan (this is a growing driver of decision making for talents in this space as Japan’s popularity is rising), as well as the opportunity to bring global best practices in software development to legacy industries in order to have excess impact on the work being done,” Abel said.

Abel continued, “Many people are keen to focus on the impact of their work and the ability to see their work get into the market, so attracting talents based on their ability to shape and ship a real product to market is super key in this category.” 

Japan’s high quality of living and affordable cost of living often serve as compelling incentives that outweigh income differences with overseas markets. Providing more autonomy in the work that Software Product Development talents do is also a major attraction. 

In essence, attraction points often overcome compensation gaps by focusing on these unique career opportunities:

• Product Ownership
• “Excess Impact”
• Quality of Living

Attraction for Executive-Level Talent:

Jaco Minnaar of Page Executive stresses that relocating to Japan is about “stepping onto a platform for meaningful impact.” 

Abel reinforces this fact saying, “the biggest attraction point for these roles is the ability to own the transformation of an entire business.” The market’s scale, stability and reputation for innovation make it a strategic choice for senior leaders.

Abel credits the ability to own the transformation of an entire business as the major driver for this talent pool. He notes the strong push to strengthen governance and competitiveness is creating a strong demand for expert operators, especially in functions such as finance, given the historically high levels of investment by private equity and accelerated M&A activity. Companies must demonstrate commitment to a clear strategic direction and empower individuals to make a significant impact.

Minnaar adds that the world-class safety, education and cultural richness of Japan make relocation highly attractive for families. Abel has seen executives “take cash-based compensation pay cuts in lieu of receiving equity upside on turnarounds if things go well” when these strategic criteria are met. 

What Structural Support is Required for Senior Hires?

To mitigate compensation challenges and ensure success, organizations must provide robust structural and financial support tailored to the executive market.

Compensation Structuring Solutions

Page Executive advises that organizations should offer “competitive packages aligned with global benchmarks.” Dan Ring, founder of Elevate, suggests exploring secondment models, which allow executives to be paid against their home-country market. Additionally, where compensation is localized, benefits such as company housing can help “offset tax burdens and make the opportunity more compelling”.

Organizational and Leadership Support

Ring emphasizes that the key to attracting and engaging talent lies in creating the right mix of autonomy, flexibility and clarity. Success for senior talent depends on how well organizations prepare and support their leaders. Key structural support includes giving the executive access to the right people and resources and ensuring they are “backed by strong bilingual talent and structured cultural support.”

Strategic Priorities for Business Setup and Retention

The most sought-after executives are those who can bridge Japan with global HQs and deliver quick, measurable profit wins. Dr David Sweet, Founder & CEO of FocusCore, stresses that companies will double-down on leaders who combine local fluency with global agility.

Hiring Strategy and Retention:

Corbet advises that for business setup, it’s “better to start from the top and then work your way down.” This means hiring a senior-level person who can develop the business and relationships, as opposed to a junior salesperson, which often leads to people leaving quickly. For retention, the biggest factors for keeping talent are salary, the culture and work-life balance. Jonathan Cant notes that candidates are searching for positions with “longevity and opportunities for growth.”

The demand for bilingual talent in accounting and finance remains strong, driving rapid salary growth. Recruiting competent accounting professionals is particularly difficult as these roles often require Japanese nationality or fluency.

FAQ

How has the weak yen impacted Japanese talent priorities?

The weakened yen and rising inflation have caused compensation to become the No. 1 driver of career decisions, surpassing historical priorities such as job stability.

What is the most in-demand local talent pool in Japan right now?

The demand for bilingual talent in accounting and finance remains strong, with the FP&A talent pool being highly international, while recruiting competent accounting professionals is more difficult.

Do traditional expat packages still exist for senior hires in Japan?

No, the “traditional expat package doesn’t really exist anymore.” The market has shifted towards hybrid expat packages and a preference for locally based bilingual, bicultural leaders.

Conclusion: Offering Enduring Value

Attracting top talent to Japan requires closing the gap between perception and reality. While focusing on core roles and ensuring competitive compensation is crucial, the ultimate success lies in offering enduring value: influence, stability and the chance to shape legacy projects in a market that values long-term vision.

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