Almost one third (31 per cent) of all employers expect to increase salaries between three and six per cent in their next review. This and other key findings from the fourth annual Hays Salary Guide signify the emergence of a new employment landscape in Japan.
The Hays Salary Guide includes recruiting trends and typical salaries for over 600 job functions in 17 specialist industries across Japan, China, Hong Kong, and Singapore.
It reveals that 42 per cent of the workforce in Japan can expect salary increases above 3 per cent this year. Also, with a strengthening economy and improved firm performance, 53 per cent of employers have indicated they will award bonuses to more than half their staff this year. This is up from 19 per cent last year.
In addition to salary and bonus, 91 per cent of employers provide benefits including health, pension, housing allowance and life assurance.
Hiring intentions are also up. While last year 35 per cent of employers expected to increase their permanent headcount, this year 41 per cent expect to do so.
Nigel Heap, Managing Director of Hays Asia Pacific comments: “Japan’s employment landscape is on much firmer footing than this time 12 months ago. There are the first signs of skill shortages which will put pressure on salaries.
“In the IT industry for example, employers have found it difficult to recruit skilled talent for specialist roles. Sales professionals are also a hot commodity, particularly those with a strong network of contacts within their industry. There is also greater demand for bilingual candidates within Finance Technology, Human Resources, Sales & Marketing and Pharma.”
“As a result, candidates do expect an increase in salary and are aware that, if their skills are those in demand, they are in a strong position to achieve their goals this year. Employers will therefore need to be well informed in order to get the right outcome for their hiring strategies.”
