Japan is experiencing a dire shortage of skilled technology workers, even as it pursues digital transformation and jumpstarts its semiconductor industry. Per a Morgan McKinley report, 75% of tech hiring managers called recruitment very or quite competitive last year due to limited qualified candidates.
This intense competition has forced Japanese employers to accelerate hiring before losing talent to rivals. In contrast, mass tech layoffs plague the US currently. Japan's lack of software engineers in particular has stalled its digital progress. The report advises recruiting foreign workers, since 31% of tech hiring managers cite insufficient skilled applicants as their top 2023 challenge.
To attract talent, Japanese companies focus on quality over quantity in hiring. Half of tech hiring managers expect headcount growth in the first half of 2024. High salary offers are now critical for luring tech employees amid rejected job offers over insufficient pay. Over 70% of tech employers plan to raise wages for certain roles as households struggle with inflation.
For US firms facing similar skills shortages, this shows the importance of compensation, recruitment creativity, and speed for securing top talent. Rather than rapid hiring and later layoffs, competitive signing bonuses, customized training programs, and partnerships with schools can build a pipeline of skilled workers.
Comments