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2018 Hiring Trends │ Manufacturing

AUTOMOTIVE

The demand for specialised engineers will increase as the development of autonomous vehicle technologies is being pursued in incremental stages with targets set for 2020 and 2035. We expect demand to be particularly high for software engineers working with radar, ultrasonic, and camera systems that are used for features such as collision detection and automated braking. Demand for electrical engineers is increasing while demand for mechanical engineers remained consistent with 2016 numbers, and companies continue to make strong bids to attract such professionals.

Companies are also bidding strongly for professionals who can handle system-related work such as programming; this is especially true for junior-level professionals and mid-career professionals in their early 30s to mid-40s. More companies are adopting a welcoming stance towards young professionals with experience in fields such as robotics and algorithm development who are looking to move into the automotive sector. Moves to recruit highly skilled foreign professionals from India, China, and Germany, among other countries, are also becoming increasingly common, particularly for software engineers.

With the positive market conditions resulting in an expansion of and increase in foreign-affiliated companies in Japan, the demand for sales and commercial professionals is steadily growing.

Overall, salaries are trending higher than in 2016, with the salary levels of technical professionals increasing by an average of 10% and a maximum of about 20% when changing jobs. Sales professionals see an average increase of 10% and as much as 15% for particularly talented candidates. For engineers with extensive experience in the automotive sector, especially those with experience related to advanced driver assistance systems, telematics, and electric & hybrid vehicle technologies, salary levels are expected to increase.

GENERAL MANUFACTURING

With overall confidence in the market, foreign manufacturing-related companies have continued to grow and invest further in Japan, and we have seen a very buoyant recruitment market in the general manufacturing sector as a result. This has been led by a strong demand in factory automation and robotics, electronic equipment and components, mechatronics, and industrial tools and equipment.

In response to the growing domestic demand for factory automation, we have seen many companies bringing in next-generation industrial technologies such as Industrial IoT (IIoT) and industrial network systems. As a result, both well-established businesses and new market entrants are aggressively recruiting electrical, mechanical, and software engineers as well as commercial personnel with English proficiency.

To overcome competition and attract and secure strong candidates, an increasing number of companies are taking a flexible and creative approach regarding salary levels, job grades, and work locations. Due to personnel shortages, it is not uncommon for skilled technical professionals who are proficient in English to receive multiple job offers and experience a resulting 10-20% increase in salary. More companies are now also proactive in recruiting foreign technical professionals with business-level Japanese proficiency.

There are signs indicating companies are making proactive moves towards furthering the participation of women in the workplace.  Small to medium-sized companies are attempting to hire more female manufacturing professionals, while an increasing number of large foreign-affiliated manufacturers are getting headcount specifically for female employees with the aim of increasing the proportion of female directors on their management teams. Despite these efforts, however, it remains difficult for companies to find qualified women in the manufacturing sector to fill these positions and there is still an acute talent shortage of both men and women in this sector.

The same trends can be observed in Kansai in sectors such as factory automation, 3D printing, and electronic parts manufacturing.

To bolster the English capabilities of their overseas business personnel, Japanese companies in Kansai tend to hire young bilingual professionals as temporary or contract employees, with a view to eventually promoting them to regular permanent employee status.

CHEMICAL

Due to the rise in global demand for electric vehicles, the chemical industry has seen a continued increase in the R&D of electronic materials. As Japan is a global leader in the automotive industry and a centre of excellence for science and technology education and research, a lot of global attention is paid to the activities of Japanese OEMs and the materials being used for their electronics and batteries. This is inevitably leading to increasing sales for both Japanese and foreign-affiliated companies in these areas, and we have seen a rise in the hiring of sales and marketing professionals to meet this demand. For the major automotive and electronics companies, increasing  globalisation along with the economic growth in Asia are contributing to the recruitment of sales professionals responsible for the ‘spec-in’ business here in Japan.

As the IoT (Internet of Things) gains popularity, so does the demand for electronic parts and chips for semiconductors and recruitment activities in these sectors are vigorous. In addition, companies focusing on engineering plastics are also enjoying increased growth and demand thanks to the increased use of their products in lightweight components for automobiles and aircraft.

For the cosmetics and nutraceuticals industries, much of their increasing growth can be attributed to Japan’s ageing population. We have observed steady growth in the demand for pharmaceutical ingredients and nutraceuticals as well as sustained growth in the sale of cosmetic ingredients from chemical companies to cosmetics makers. As a result, there is a constantly increasing demand for sales professionals in these areas.

The hiring of non-Japanese employees with strong technical qualifications and/or experience has also continued to rise, and we have seen many new entrants into the chemical market as small to mid-sized foreign companies look to capitalise on the growth of the Japanese market.

Competition for talented candidates has led an increasing number of Japanese companies to break away from more traditional seniority-based pay systems and offer more competitive salaries. Salary levels for talented sales professionals can increase by as much as 30% when changing jobs, and technical service professionals can also see increases of approximately 20%.

ENERGY & INFRASTRUCTURE

The energy industry saw significant change in2017 largely due to ongoing reforms and the Japanese government’s liberalisation of the electricity market.

We continued to experience very high demand for developers in both the solar and wind industries, and we saw solar companies and projects shifting more from the sales, acquisition, and early development stages to the construction/operations and maintenance phase. Given this shift, facility maintenance and repair became crucial and hiring of sales and commercial professionals softened. Demand drastically increased for technical professionals, especially those with licenses and certifications in civil and electrical engineering.

Due to the chronic talent shortage in the energy industry, companies, especially those in the renewable energy sector, are becoming more flexible with their recruitment of senior professionals and professionals from outside the energy industry. Compared to previous years, as some companies have matured and developed their knowledge and expertise, they are now more willing to hire professionals from other industries and provide them with comprehensive training and support. Renewable power plants are generally located in remote areas of Japan which makes it very difficult for companies to attract and secure talent on-site. As a result, it is quite common for companies to hire experienced senior professionals in their 50s and 60s as site managers or engineers and have them manage operations and maintenance work at multiple locations.

In the traditional energy sector, we also saw steady hiring for sales and engineering professionals due to the ongoing maintenance and refurbishment of thermal power plants. Given the growing importance of increased efficiency, the reduced environmental impact of thermal power plants, and the continued uncertainty surrounding nuclear power in Japan, hiring in the plant equipment and components suppliers remained strong. However, renewable energy companies have also been aggressive in their efforts to attract talent from these sectors.

In 2018, we expect a continued increase in the trend of SMEs in the energy industry entering Japan. We also anticipate continued growth in energy retailers, energy storage, and environmentally related businesses. 

CONTRACT

As an increasing number of companies in Kansai move to reduce overtime work and encourage employees to use up paid leave as part of moves to address work-style issues, recruitment of temporary and contract staff has increased to boost workforce sizes.

>> See more hiring trends

 

 

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