POLL
Salary Survey Results Recruitment firms’ annual polls provide global review By Megan Waters
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eading specialist recruiting firms annually compile salary surveys to provide those in the industry, their clients and potential clients, a comprehensive review of global conditions and salary levels in the recruitment market. The overview and insight into future trends enable recruiters to better support their clients and help them adapt to prevailing market conditions. Recruiters’ clients benefit from the surveys in that they are able to determine both the current salaries that professional roles are commanding elsewhere in the market, and any changes in skill set requirements. Job seekers, meanwhile, additionally are able to assess their value in markets in Japan and other countries. Recruiting experts Hays Specialist Recruitment Japan KK for the past six years have published an annual Asia Salary Guide as well as salary guides for the past 35 years in other regions where they operate. The Michael Page Salary & Employment Forecast combines both quantitative and qualitative research obtained from their Japan survey of 800 employers. The leading professional consultancy’s poll includes extensive information on the professional labour market, giving the recruiter an opportunity to engage with their clients on matters besides recruitment. According to the results of Robert Walters’ Salary Survey, the first bilingual report of its kind in Japan, cost reduction continued to be a major theme in 2012 for businesses across all industry sectors. Despite some firms streamlining functions and moving back-office and operations positions overseas, many employers focused on hiring professionals with strategic skill sets to influence business decisions and improve work procedures. The largest foreign recruitment firm in Japan found in 2012 that the high value of the yen continued to increase the number of outbound acquisitions by Japanese firms, creating tighter competition for professionals with bilingual ability and Western mindsets among firms looking to better compete in overseas markets.
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“Compared with those in the rest of the world, salaries in Japan remained relatively stable”. Rachna Ratra
Demand increased for individuals with the ability to speak Asian languages, in addition to English and Japanese, to coordinate and lead teams based offshore. Hiring was particularly prevalent for professionals in senior IT and supply chain positions, who were required to manage production facilities overseas or integrate foreign vendors into their business frameworks. In 2012, Michael Page found hiring activity was predominantly driven by recruitment for replacement roles created as employees changed positions or firms, or retired. In addition, there was some growth, due to new firms entering the market and increased hiring by Japanese organisations across all sectors. In the financial services sector, although investment banking remained subdued, the asset management and insurance industries remained bright spots. Demand for quality candidates is outstripping supply in Japan’s recruitment market, making attraction and retention key challenges facing employers. Although firms continue to offer attractive remuneration to secure top talent, Japan has not experienced significant wage hikes for several years, nor are large increases typical. Hays found that about half the respondents in Japan increased salaries less than 3% in 2012, only 4% of them gave raises of between 6% and 10%, while 5% raised salaries 10%. Rachna Ratra, director of sales and marketing at Robert Walters Japan, said: “Compared with those in the rest of the world, salaries in Japan remained
relatively stable, although they are still higher than the salaries in many Asian countries”. Markets in South-east Asia, meanwhile, experienced aggressive salary rises. In the gender debate, Hays reported that, despite ongoing efforts to promote a more diverse workforce, about 62% of all new hires were males. Michael Page found that in gaishikei (foreigncapitalised firms), regardless of gender, the salaries of those doing the same job or in the same role did not differ. Hays noted that, when making a mid-career change, 33% of job seekers sought a change to advance their careers. Other reasons included: wanting a salary increase (29%); the desire to specialise in a different field (22%); a wish to improve work/life balance (22%); wanting increased benefits (13%); and a desire for more challenging work (11%). The economic uncertainty in Japan, Hays believes, has caused a strong shift to discretionary bonuses, which employers use to reward those employees who achieve positive results in the area of business. The finance sector continues to be unpredictable, the life sciences market is extremely strong, and domestic factors, such as changes in legislation and an ageing population, have had a positive effect on demand. According to analysis in Michael Page’s forecast, the deteriorating EU economic situation may be benefiting Japan, as European-based firms focus on international expansion in a bid to find growth opportunities not available in their home markets.