Almost half (48 per cent) of employers in Japan believe that they will lose staff in the next six months as they seek to earn more by moving jobs, according to new research.
According to the research by global talent services company, Morgan McKinley for its 2023 Salary Guide, 57 per cent of employees in Japan are looking to move jobs in the first half of the year, with 32 per cent selecting ‘higher salary’ as their primary reason for wanting to do so, followed by ‘doing more meaningful and impactful work’ (22 per cent).
The survey revealed that 89 per cent of employers had to offer higher than anticipated salaries to attract new employees over the last 12 months. Furthermore, over half (52 per cent) of employers in Japan think that salaries in their specific sector will rise in 2023, with a third (33 per cent) planning on increasing base salaries across all teams. 44 per cent of employees in Japan are expecting their salaries to increase this year, with 70 per cent also expecting some form of bonus payout.
“Japan is notoriously known for being a candidate-short market, but it has never been more acute than in 2022,” said Lionel Kaidatzis, managing director of Morgan McKinley Japan. “This was due to high demand to hire, slowness of reopening borders for work visas, and a backlog of hires put on hold during COVID-19. As demand eased towards the end of the year, there was an increase in the need for contractors with specialist skills and experience – we expect that to continue throughout 2023.
“Salaries in Japan have remained largely flat, or had little increase, for several decades now which successive governments have tried to address. That said, because of such extreme demand in 2022, salary increases were seen across several functions as a result of talent shortages driving a ‘bidding war’ between companies as they sought to secure the people they needed.”
Kaidatzis concluded: “The considerable devaluing of the Yen against the Dollar in 2022 means that Japan is now seen as a comparatively cheaper location for global companies. So despite the potential recessionary fallout, those global businesses will be less likely to cut headcount or limit their downsizing in Japan, if it comes to that. This means that companies will still be able to hire, and there should be opportunities for candidates looking to move. It will be important to keep up-to-date with salary benchmarks throughout the year if you want to remain competitive in terms of both talent attraction and retention.”
The Morgan McKinley 2023 Salary Guide presents up-to-date salary data for a wide range of roles across Japan, providing hiring managers with industry benchmarks when they are working out what to pay employees and giving professionals more visibility over what they can earn.
Research from businesses and professionals was conducted to find out what companies’ hiring intentions are for 2023, whether there is an appetite to change jobs, and what the expectations are for movement on salaries.
For the Morgan McKinley Japan 2023 Salary Guide, visit:
https://www.morganmckinley.com/jp/salary-guide
