How Companies Should Act in a Candidate-Short Market

In today’s job market, companies acknowledge we are in a candidate-short environment, especially here in Japan with an aging population and inflation. But understanding this is not enough to resolve the problem. What truly matters is the company’s reaction. To attract and secure top talent, organizations must adapt their approach across every stage of the hiring process, from before the interview until the final onboarding.

The hiring process starts from before the first interview with the job description. As your first contact point to the candidate, if the JD is too rigid, flat, or vague, you’ve lost from the start. Keep the requirements short and minimal as possible, knowing what your employer value proposition is, i.e., know your company and team’s appealing points and why the candidate would want to apply to the role.  Explain clearly the company culture or values. And include the hiring process the candidate can expect to experience.

This leads to the interview. As important as this is, many organizations still make the interview process unnecessarily long, unclear, tiring, and one-sided. To stand out in today’s competitive market, interviews must be smooth, transparent, and efficient. Every interaction should not only evaluate the candidate but also sell the opportunity. Always keep in mind, candidates are assessing you and your company just as much as you are assessing them.

When it comes to salary offers, one of the most important rules is to avoid low-ball offers, especially if the candidate is currently employed. Top-talent, currently employed, has less motivation to move to a new, unknown company. They have a salary and a lifestyle accustomed to that salary, so when a company offers a lower salary, it sends the wrong message to the candidate. Some companies in Japan combine summer and winter bonuses, which lower the monthly salary, so even though the overall compensation may be ¥1,000,000 more per year, the monthly takehome pay is lowered. Again, this is a showstopper. However, if a company is honest and realistic about what the organization can offer from the first meeting and knows it’s competitive for the market rate, then this increases your chances of getting a candidate to agree to join your company. (For more information on salaries in Japan, check out our annual Salary Guide.) 

The hiring process doesn’t end when the offer is accepted. The first few weeks after a candidate joins a company determines whether they will stay long-term or quickly quit. A thoughtful, structured onboarding process helps new employees feel welcomed, supported, and confident in their decision to join. Assigning clear responsibilities, offering early feedback, and ensuring managers actively engage in the process makes a big difference. A good onboarding experience is the foundation of employee retention and long-term engagement.

If you have any questions, wish to upgrade your hiring process or want to better understand the Japan job market, please contact us at info@focuscoregroup.com.