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Mid-career recruitment strategy for 2021 to survive in the COVID-19 pandemic 【Permanent Recruitment (Tokai area)​】

Posted by en world Japan

over 2 years ago

Sixty percent of foreign capital companies ​initiated hiring freezes ​
The IT industry is doing well even under the pandemic​

In the Tokai area, the number of job orders  decreased by 50% to 60% ​
year-on-year, and nearly 60% of foreign capital companies initiated hiring freezes. Among Japanese companies, the number of jobs drastically decreased after a review of hiring for automobile and machinery manufacturing, and as of December 2020, the trend is for a slight increase. The IT industry, which has been doing well, continues to do so with no impact from the pandemic, including foreign capital companies and Japanese companies, except for some companies providing services to manufacturers. In particular, among remote work-related IT service companies, the number of job orders have significantly increased compared to an average year.​

Moves for enhancement of screening criteria and stringent selection in hiring​

During the COVID-19 pandemic, companies have raised their screening criteria, and the tendency to recruit global talent by focusing on people who can hit the ground running has grown strong.  Many foreign capital companies and Japanese companies have yet to decide on the number of job orders in 2021 Because companies are cautious about recruitment,​
I believe it will take a while to recover the number of jobs to the same level as that of the previous year.​​

The introduction of teleworking is delayed in the Tokai area though implementation is expected as a strategy to acquire talent​

The Tokai area has many manufacturing companies; however, only a limited number of companies implemented a remote working system during the declared state of emergency. Among the companies that implemented a remote working system at that time, 90% restored their normal system of going to the office after the state of emergency was released. ​

The pandemic led to a review of work styles and a shift to the different working styles, such as teleworking which enables people to work regardless of their work location. The future challenge for companies in the Tokai area is to establish a structure and a system that incorporates remote working, and this may be the key to acquiring top talent.​

Popular industries changed from automobiles and machinery to IT and healthcare ​
People looking to change jobs seek workplaces where they can sharpen specialist skills​

Because of the regional characteristics of many job seekers oriented toward working at major and financially stable companies, the number of job seekers decreased to around 30% during the COVID-19 pandemic. ​

With a sudden transformation from the workers’ market to the hirer’s market, people in their 40s and older motivated to change jobs in a search for a greater challenge, although they had no complaints about their current jobs, have become particularly cautious. Because remote working gradually became popular, the need to change jobs by job seekers in their mid-30s to 50s hoping to return to the Tokai area shifted to a decreasing trend. ​

There is also a change in the trend of companies where they wish to work. ​

The automobile, airline, and machinery industries that had been popular were affected by declining business results because of COVID-19, and people looking to change jobs have less of an interest in such industries, but popularity has been growing in the IT-related, chemical, healthcare, and pharmaceutical, and food industries. Since major Japanese companies have been implementing early retirement for those in their 40s and older due to worsening economic conditions, job seekers who are concerned about their careers as generalists, prefer to work where they can sharpen specialist skills have been increasing.​

Speed of online interviews is advantageous to recruitment with the chance to acquire applicants from other prefectures​

Previously around 10% to 20% of companies conducted online interviews, which has now increased to around 80%. Since visiting companies for the first interview by applicants is no longer necessary with the introduction of online interviews, the hurdle for applying by people from other prefectures has been lowered, and for companies, this means an increase in opportunities to meet talent who cannot be found locally. ​

On the other hand, many companies are particular about face-to-face interviews. These companies tend to be disliked by people looking to change jobs, and because the slow selection speed, many talent have been acquired by competitive companies. More than ever, job seekers are paying close attention to whether companies have been adjusting to the environment and taking action towards the future. It is essential to implement remote work and IT systems to become a company that the job seekers will choose.​

The trend in the number of job orders and job seekers YoY comparison​
(Permanent recruitment/Tokai area)​

Senior Consultant​
​Nagoya Office​
Rika Kato​

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