Almost half, or 48%, of employers in Japan are preparing to receive increased resignations in the next six months.
According to research by talent services company Morgan McKinley, 89% of employers plan to lure new employees by offering “higher than anticipated salaries.”
This decision comes as Morgan McKinley reported that 57% of Japanese workers are looking to move jobs in the first half of the year for increased pay and “meaningful and impactful work.”
“Salaries in Japan have remained largely flat, or had little increase, for several decades now, which successive governments have tried to address,” said Morgan McKinley Japan Managing Director Lionel Kaidatzis.
That said, because of extreme talent demand last year, salary increases were seen across several industries. Meanwhile, the subsequent talent shortage has also driven a ‘bidding war’ between companies that want to secure as many people as possible.
Kaidatzis added that they expect more global companies to expand in Japan as it is a “comparatively cheaper location” than Western nations.
“It will be important to keep up-to-date with salary benchmarks throughout the year if you want to remain competitive in terms of both talent attraction and retention,” he added.
Efforts are being made to prepare for a said exodus. In a recent report, Japanese Ambassador to the Philippines Kazuhiko Koshikawa said they would open 100,000 jobs to Filipinos in health care, outsourcing, tourism, and information technology.