Shifts in Expatriate Job Postings and the Trend of Mid-Career Overseas Recruitment
Currently, the demand for mid-career recruitment to fill expatriate positions is on the rise. This is because Japanese companies are expanding their investments abroad, creating a need that internal talent pools can't solely fulfil. As a result, companies are increasingly turning to the external market to hire experienced expatriates.
This trend mirrored the booms of the mid-2000s (China expansion) and early-to-mid 2010s (Southeast Asia expansion), where companies relied heavily on expatriate staff.
Recently, the number of mid-career hires for expatriate assignments increased in 2019 but gradually declined due to the pandemic, then falling below half its peak by 2021. However, it's now steadily increasing again.
Factors Driving the Growth of Mid-Career Expatriate Recruitment
Resumption of Overseas Expansion and Foreign Direct Investment by Japanese Companies
While existing bases aim to "reduce the number of Japanese expatriates and rely on local personnel," new bases and expansions often require expatriate staff from headquarters. This creates a challenge in securing enough internal candidates.
One reason for this is the shift in expansion targets. Previously focused on Southeast Asia, there are now more expatriate job postings in North America and Mexico, targeting parts supply to North America. Unlike non-English-speaking regions like Southeast Asia, North America and Mexico require higher English proficiency, which presents a hurdle for some internal employees. Additionally, concerns regarding safety and living standards compared to Japan make internal staffing challenging.
Localisation of Business at Existing Bases
Even at existing bases, there is a need for individuals with strong international communication skills and knowledge of overseas markets to drive localisation efforts. This is especially true in Southeast Asia, where companies are transitioning from solely Japanese partnerships to working with local and Western companies. This creates a demand for expatriates with experience in cross-cultural business relations.
Gap Between Recruitment Plans of Overseas Business Departments and Human Resources Departments
There can be a mismatch between the recruitment plans of overseas business departments and human resources departments, leading to sudden job openings for expatriate positions. As overseas operations recover post-pandemic, the need for expatriates may not always align with the hiring schedules of human resources departments.
Key points on successful expatriate recruitment
While many companies currently struggle to fill expatriate positions solely with internal talent, relying solely on mid-career hires isn't the only solution.
Establishing an in-house training method would allow companies to recruit students with study abroad experience or returnees from among new graduates and create career paths for them as future expatriate managers. It is crucial to develop a personnel strategy that not only supplements mid-career expatriate recruitment but also fosters the creation of internal development for overseas roles.
If you have concerns about securing personnel for your future overseas business strategies, please contact JAC Recruitment's Overseas Expansion Support Office.
