Japan’s FinTech industry has observed substantial growth over the past few years, with a projected growth rate of 16.50% between 2023-2028. This growth is fuelling an evolution in hiring trends, impacting both companies and job seekers alike. In this blog, we explore four key hiring trends to be aware of in Japan’s FinTech sector.
Rising Demand for Digital Skills
Japan has always been known for its technological advancements and capabilities. And according to the 2022 IMD World Digital Competitiveness Ranking, it ranked 29th for digital know-how out of 64 countries.
It perhaps goes hand-in-hand, then, that digital skills, including blockchain, AI, data analytics, and cybersecurity, are becoming increasingly crucial in the Japanese FinTech arena. The projected 16.5% CAGR by 2023 indicates there’s no sign of this demand slowing any time soon. But what are the implications for hiring and talent?
- A highly competitive market: As more and more companies scout for FinTech professionals with digital skillsets, it creates an increasingly competitive market for tech-savvy talents.
- Higher salaries: As competition for digital skills escalates, candidates will have more power to demand higher salaries and packages.
- Global talent attraction: As both demand and salaries rise, there’s likely to be an influx in global talent looking to work in the FinTech hub of Japan.
- Upgrading of skills: Employees will need to continually upgrade their digital skills to stay relevant in the evolving job market. This needs to be a consideration for employers looking to attract and retain to digital talent. Offering training and developmental opportunities can position them as an employer of choice.
Heavy Competition between Traditional Institutions and Start-ups
Japan’s hiring landscape is divided between traditional financial institutions striving for modernisation and start-ups disrupting the market with innovative solutions. This is another factor responsible for the high demand in FinTech skills. But what are the implications for hiring and talent?
- A wide range of choice: Job seekers have a wider range of opportunities, from established corporations to dynamic start-ups, leading to a candidate-led market. Again, salaries must be competitive and employers need to focus on marketing the advantages of working in a well-established organisation, versus a brand new business.
- Competitive benefits: Salary alone is no longer enough. Employers in Japan must also work to make their benefits attractive and competitive to attract top talent. It’s crucial to consider factors like working conditions and work/life balance.
- Innovation is key: The competitive landscape means it’s time for organisations to remain innovative in terms of their culture, offerings, and products to ensure they retain existing FinTech skills.
Focus on Diversity and Inclusion
There’s an increased emphasis on diversity and inclusion in the FinTech sector globally, with companies recognising the benefits of diverse teams. Despite Japan’s historical struggle with diversity in the workplace, it’s now cited as a top priority. As a result, companies in the country are broadening their talent search beyond traditional demographics, resulting in more inclusive hiring practices. But what are the implications for hiring and talent?
- Innovation’s on the rise: A diverse workforce can lead to more innovative solutions and a broader range of services, making Japan’s FinTech companies more competitive than ever.
- More opportunities for minorities: Job seekers from various backgrounds now have more opportunities than ever in the FinTech industry in Japan.
Growing Remote Work Opportunities
A global phenomenon following the COVID-19 pandemic is an increase in remote work opportunities. Japan is no exception and the rise in remote working is expanding the country’s talent pool beyond geographical boundaries. But what are the implications for hiring and talent?
- A global talent pool: Japanese companies can now tap into a global talent pool, leading to an even more diverse and skilled workforce.
- International opportunities for candidates: Job seekers have access to international opportunities without having to physically relocate to Japan.
- A need for digital infrastructure: Hirers may need to invest in both digital infrastructure and training to manage the shift to remote working.
- Languages shouldn’t eliminate candidates: English is not Japan’s first language, but employers should not eliminate potential hires based on their language skills. Hirers can increase their talent pool by remaining open to speakers of other languages.
These key hiring trends in Japan’s FinTech sector reflect the industry’s rapid evolution. And like them or not (they pose challenges and opportunities for companies and job seekers alike), they’re reshaping the country’s hiring landscape.
As the sector continues to grow, adaptability, innovation and sector knowledge will be key to staying ahead in Japan’s dynamic FinTech job market. If you’re keen to learn more about FinTech recruitment in Japan, why not download our full APAC region Salary Guide.