Back to blogs

【Temporary employment, Contract employment, Outsourcing】

Posted by en world Japan

over 3 years ago

Due to the difficulty of hiring permanent employees, temp staff hiring is on the rise. Motivation to return to work is also up among the stay-at-home parents and "50s and over" demographics.

In 2019, hiring top globally-minded talent as permanent employees is an increasingly challenging prospect, and more and more businesses are relying on hiring non-permanent employees in an attempt to make up for staff shortages. For this reason, there was a greater need for individuals with highly-specialized skills in the non-permanent employee market than before, and hiring budgets rose 3 - 5% from the previous year. There was a tendency to hire candidates with limited experience but high potential, along with an increase in the number of candidates over the age of 50 finding employment. Although the trend of valuing specialization and strategy grew stronger in all industries and job functions, increased demand was especially notable in two areas where it has previously been low, FinTech venture companies and digital marketing positions. 

As candidates are affected by public opinion of promoting diversity and support of working style reforms, drive to rejoin the work force has grown among the "working mother" and "over 50, second career" demographics. In addition, more and more companies turned to foreign staff to meet hiring demands.

The need for non-permanent employees affected by economic trends. Higher demand for talent who can be active on a global scale.

The non-permanent employee hiring market in 2020 is expected to be drastically affected by economic trends. If the economy remains strong, the likelihood of top talent working short-term positions being hired as permanent employees by other companies will increase, which will likely increase the number of employers looking to convert temp staff into in-house employees to avoid losing their top talent. On the other hand, if the economy weakens, more and more companies will be increasingly cautious about hiring permanent employees, which is expected to increase the demand for temporary hires. As for what companies are looking for in candidates, the keywords "global perspective," "practical skills," and "strategy" will likely increase in importance regardless of economic trends. 
In terms of hiring interest, the needs of technology companies (especially software and digital companies) and medical-related companies seem likely to remain strong. However, this interest will diverge depending more on the initiatives of individual companies than whole industries. Recently, because the stage for non-permanent employee is expanding and the salary gap between them and regular employees is also shrinking, increasing numbers of candidates are choosing the irregular employee path. The majority of companies which can adapt to changes will probably proactively and strategically carry out hiring of irregular employees. For this reason, the tendency of employers to require independence and adaptability in addition to language ability and global-mindedness for hiring non-permanent employees is likely to grow stronger.

Senior Team Manager
Kango Nakatake

▼Download Whitepaper 
Reflections on recruiting global talent for 2019 and prospects for 2020_en world Japan_20191205

<Contact information>
​en world Japan K.K.
Tokyo Square Garden 12F, Kyobashi 3-1-1, Chuo-ku, Tokyo 104-0031
Email :