Japan May Lose Out on the Global Race for Talent, As Salaries Lag Behind in Asia

February 9, 20178:16 am1182 views

Salary levels for management roles continue to be higher in China, Hong Kong and Singapore than Japan. The 2017 Hays Asia Salary Guide released, reveals that salary increases in Japan will continue to lag behind in Asia. Continuing on last year’s trend, for roles demanding experience and skills, salary ranges are much higher in China, Hong Kong and Singapore.

The Guide highlights salary and recruiting trends drawn from more than 3,000 employers across Japan, China, Hong Kong, Malaysia and Singapore representing six million employees as well as the salary ranges from more than 1,200 roles.

“We found in our survey that in Japan, top reasons for candidates to move to a new employer is to seek new challenges (50 percent), closely followed by salary (49 percent),” says Marc Burrage, Managing Director of Hays in Japan. “Money as a key motivator is a significant increase, up 12 percent from last year, when only 37 percent said salary was the reason for looking for a new job.”

See: Rapidly Ageing Workforce: A Perennial Concern in Japan

“We also learned that over half of the employees surveyed are not satisfied with their current compensation package.”

Unit: 1 million yen; compared by maximum salary; based on currency rates as of 8th Jan 2017; 1CNY=16.9, 1HKD=15.09, 1MYR=26.15,1SPD=81.27; salaries do not include bonuses for R&D Director (Life Sciences). Other roles are representative of the total package value.

Unit: 1 million yen; compared by maximum salary; based on currency rates as of 8th Jan 2017; 1CNY=16.9, 1HKD=15.09, 1MYR=26.15,1SPD=81.27; salaries do not include bonuses for R&D Director (Life Sciences). Other roles are representative of the total package value.

“Skills shortage exists especially in cutting-edge technology fields such as AI and IoT where global competition for talent is becoming increasingly intense. Japan is at a risk of losing highly skilled talent, as workers’ appetite for being rewarded more for their efforts increase. The high percentage of those dissatisfied with their salary is also alarming, because it has the potential of resulting in lack of engagement and risks increased turnover,” Marc added.

Unit: 1 million yen; compared by maximum salary; based on currency rates as of 8th Jan 2017; 1CNY=16.9, 1HKD=15.09, 1MYR=26.15, 1SPD=81.27; salaries do not include bonuses for CFO; other roles are representative of the total package value.

Unit: 1 million yen; compared by maximum salary; based on currency rates as of 8th Jan 2017; 1CNY=16.9, 1HKD=15.09, 1MYR=26.15, 1SPD=81.27; salaries do not include bonuses for CFO; other roles are representative of the total package value.

In the fourth Industrial Revolution, Japan will lose out in the global race for talent if employers continue to depend on the government for further action. As in any race, speed is the key and businesses should now take the lead on key initiatives such as equal pay for equal work and quickly align salaries with the global standards to maintain competitiveness.

Also read: Digital Leadership in Japan: The Perils and Pitfalls

(Visited 1 times, 1 visits today)