2016 JAPAN SALARY & EMPLOYMENT OUTLOOK. Worldwide leaders in specialist recruitment

Transcription

1 2016 JAPAN SALARY & EMPLOYMENT OUTLOOK Worldwide leaders in specialist recruitment

2 JAPAN SALARY & EMPLOYMENT OUTLOOK

3 CONTENTS INTRODUCTION 05 ACCOUNTING & FINANCE 06 BANKING 10 ENGINEERING & MANUFACTURING 14 HEALTHCARE & LIFE SCIENCES 18 HUMAN RESOURCES 23 LEGAL 27 OFFICE SUPPORT 31 PROCUREMENT & SUPPLY CHAIN 34 RETAIL 38 SALES & MARKETING 42 TECHNOLOGY 47 TEMPORARY & CONTRACT 52 CONTACT US JAPAN SALARY & EMPLOYMENT OUTLOOK 3

4 JAPAN SALARY & EMPLOYMENT OUTLOOK

5 INTRODUCTION BASIL LE ROUX Welcome to the 2016 Michael Page Salary & Employment Outlook report for Japan. This report provides executives and professionals with useful insights into salary forecasts and expectations, hiring intentions, and recruitment challenges over the next 12 months. The Michael Page Salary & Employment Outlook combines qualitative and quantitative research, as well as expert insights and commentary from our extensive involvement in the executive and professional employment market. Our clients come from all major industry sectors and range from market-leading multinationals to small and medium-sized enterprises. Consistent with our specialist approach to recruitment, where we have dedicated teams of recruitment professionals servicing all of our industry sectors or functions, the report provides in-depth market insights as well as detailed salary guides with tables divided into job types, years of experience or company size. Alongside this report, we also provide a range of salary tools, advice and information on our website. Go to michaelpage.co.jp to find these features. Thank you to everyone who contributed to this year s Salary & Employment Outlook, I hope you find it helpful and informative. We welcome your feedback and encourage you to contact us for further information or market specific advice at BASIL LE ROUX Managing Director, Michael Page Japan 2016 JAPAN SALARY & EMPLOYMENT OUTLOOK 5

6 ACCOUNTING & FINANCE Finance JAPAN SALARY & EMPLOYMENT OUTLOOK

7 HIRING ACTIVITY The accounting and finance market has enjoyed steady growth and has shown a clear sign of stabilisation after the trend of off-shoring and downsizing in previous years. Although the majority of activity is still driven by replacement hiring, we have seen an increase in headcount, which possibly reflects increasing employer confidence in the Japan economy. Over the next 12 months, we expect to see demand for finance professionals continue to increase, which will create further competition in the market. Hiring activity for accounting and finance professionals remains strong within the consumer sector (particularly retail and FMCG) and the healthcare sector (particularly pharmaceutical and medical devices). Activity within the IT sector has also increased. As many companies are expanding and looking to improve their business operations, they are seeking finance professionals that possess highly specific skills, with particular emphasis on financial analysis, audit and internal controls. Organisations and their C-level executives recognise the importance of highly skilled finance professionals. They seek individuals who can make a positive impact on the business by supporting the decision making process, performing analysis, identifying trends, formulating business strategies, increasing company efficiency through cost control, and possessing a deep understanding of the constantly evolving regulatory environment. Financial Analysts, Financial Planning & Analysis (FP&A) Managers, and Financial Controllers are a selection of the roles with the highest demand. Due to the importance of these skills to business performance, there has been urgency around replacing these roles whenever there has been turnover. For experience level, the highest demand remains for professionals at staff level and middle management. Candidates for Accountant and Analyst positions holding a postgraduate qualification and possessing strong communication skills are still one of the most sought-after groups within the accounting and finance job market. Companies no longer assess only the quantitative accounting skills of applicants and look for professionals with a strong balance between technical knowledge and business acumen. In particular, the ability to communicate across the organisation in a collaborative way, and the ability to apply critical thinking for commercial decisions is sought-after. Companies are increasingly eager to strengthen their internal organisation through hiring candidates with Masters degrees (particularly MBA) with the aim of growing their high potential management group. Accounting and finance managers with bilingual abilities are in high demand and will continue to be over the next 12 months. This skill is a high priority given that finance professionals within foreign multinational companies are often required to interact with an overseas parent company or group finance functions. These roles typically require 2016 JAPAN SALARY & EMPLOYMENT OUTLOOK 7

8 the ability to effectively communicate with different areas of a business and analyze information received from various departments. Financial Controllers will remain in demand in 2016 as this is a key position in any organisation. They are responsible for overseeing not only daily financial operations, but moreover to guide a company s strategic financial decisions in consideration of the wider business. They are also an invaluable member of the management team, and the position needs to be replaced immediately in the case of employee turnover. Accounting and finance professionals with knowledge of IFRS (International Financial Reporting Standards), US GAAP (Generally Accepted Accounting Principles) and JGAAP are in consistent demand due to the need for multinational companies to report to their overseas headquarters. This has seen a continued demand for high potential individuals coming from the audit/assurance functions within the Big Four accounting firms. SALARY AND BONUS LEVELS Cost pressure remains strong for finance and accounting positions, however companies will have to show flexibility and offer competitive compensation and benefits in order to attract top talent in the market. While all accounting and finance positions will see an increase in compensation, especially on starting salaries, some roles will experience a greater jump than others. Candidates in high demand functions, such as FP&A, will typically receive multiple offers, and will be able to command above-average salary and bonus levels when seeking alternative employment opportunities. Individuals with these skills are often changing jobs for larger salary increases, which is placing upward salary pressure on employers. ATTRACTION AND RETENTION Ongoing success within finance functions is directly linked to a company s ability to attract and retain their core talent, especially as it is more and more challenging to find skilled professionals across all levels today. The best employers continue to focus on retention strategies for existing employees and on reviewing their hiring processes to stay competitive in the market. These strategies include a higher level of training, staff/management development programs and secondments - either to other divisions or internationally. Given market conditions, the ability to provide more exposure to financial planning and analysis or projects has also proved successful. Most accounting professionals prefer a mix of financial and non-financial rewards JAPAN SALARY & EMPLOYMENT OUTLOOK

9 ACCOUNTING & FINANCE SALARY TABLES Role Small Company Medium Company Large Company Millions (Yen) Millions (Yen) Millions (Yen) General Accountant / Financial Analyst 0-3 years years years Accounting Manager 5-7 years years Financial Planning & Analysis 5-7 years years Specialist Audit 3-5 years years years Other Financial Controller Finance Director Internal Audit Manager Treasury Manager Tax Manager JAPAN SALARY & EMPLOYMENT OUTLOOK 9

10 BANKING & FINANCIAL SERVICES JAPAN SALARY & EMPLOYMENT OUTLOOK

11 HIRING ACTIVITY There has been relatively higher demand for candidates in asset management, real estate and insurance than investment banking since Investment banks have relatively high turnover and are not influenced by inflation. As a result many are continuously hiring throughout the year. However, this hiring tends to be limited to high potential junior candidates who prove difficult to source. Since equities have performed well over the last year in the secondary market (or circulation market), the need to prevent staff attrition in equity departments became more pronounced than that in bond departments. Trading in not only Japanese stocks, but also Pan Asia Equity in general, has shown particular growth. To support this growth, various securities firms have been actively hiring junior, bilingual candidates. With the GPIF (Government Pension Investment Fund) shifting investment strategies from bonds to equities and alternative investments, asset management firms are hiring experts for positions related to alternative investments. Product Managers with knowledge and expertise in technical products and investment risk will be in particularly high demand. Hiring for real estate investment firms has been consistently active to date. However, rising property prices are creating an increasingly challenging market which is likely to lead to a decrease in hiring this year. Due to increased hiring activity and competition across the banking industry, there is a shortage of high potential junior candidates. These candidates have their pick of offers and will generally not rush to make a decision or accept a new role. There is still strong demand for experienced compliance professionals, especially those with direct experience liaising with local regulators and handling regulatory inspections. Compliance Officers with experience in AML (Anti-Money Laundering), ASF (Anti-Social Forces), Compliance Testing and e-communications monitoring and surveillance remain in high demand. On the buy-side, there has been an increase in demand for senior compliance officers with experience obtaining and maintaining licenses from the FSA and the Kanto Local Finance Bureau. This is due to a number of asset management firms looking to expand their business and obtain a DIM (Discretionary Investment Management) license from local regulators. Finance professionals with experience in areas such as financial reporting, liquidity risk management, capital adequacy and stress testing are highly sought after as financial institutions continue to improve internal controls and comply with new global standards as outlined in Basel III. A number of global investment banks have been looking to strengthen the first line of defense by developing front office teams that specialise in risk and control JAPAN SALARY & EMPLOYMENT OUTLOOK 11

12 Such firms are typically seeking candidates with experience in audit, compliance or other control functions, which is further straining the already limited candidate pools in those functional areas. In previous years, the majority of hiring for internal audit positions was limited to replacement hires. Recently, there has been an increase in new headcount for Internal Auditors in investment banks as part of a global initiative to strengthen audit functions, due to pressure from regulators. The implementation of IFRS for accounting and Solvency II in the insurance industry means that there is continued demand for governance, risk and compliance professionals, as companies continue to strengthen their ERM (Enterprise Risk Management) framework. Big Four audit firms are continuing to build up their advisory teams to perform gap analysis and advise their clients in the financial services industry on how they can minimise the potential impact of regulatory changes. SALARY AND BONUS LEVELS Salary levels for banking professionals working in front office, finance, middle office and operations will remain largely constant with the previous year. There continues to be a shortage of experienced compliance professionals, meaning that those candidates with direct experience can typically negotiate for a higher salary when making a lateral move. Employers tend to offer a higher base salaries than three years ago by approximately 10-20%, because top tier candidates will not consider a lateral move without a base salary increase. In addition, employers often must engage in difficult salary negotiations with potential candidates. ATTRACTION AND RETENTION Many financial institutions are focusing on internal mobility, offering better worklife balance, implementation of programs for working parents, childcare and career progression to retain top performers. Due to a shortage of qualified talent in the market, banks have implemented greater flexibility in their hiring in order to attract bilingual banking professionals with high potential who are looking to make a lateral move. A number of global financial institutions have been focusing on hiring more junior talent from analyst to associate level so they can promote more people internally and grow teams organically. Foreign investment management firms in need of junior banking professionals are starting to transfer talent working in securities and trust banks who have strong potential. In particular, they are targeting individuals with an ability to work with domestic clients, and who are looking for more stability and a long-term career path JAPAN SALARY & EMPLOYMENT OUTLOOK

13 BANKING & FINANCIAL SERVICES SALARY TABLES Role Analyst Associate VP Director Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) Front Office (Sell side) Investment Bank (IBD) Research (Equity and Fixed Income) Sales (Cash and Derivatives) Trading (Cash and Derivatives) Front Office (Buy side) Research (Equity and Fixed Income) Fund Manager Sales (Mutual Fund, FIG, Pension) Product Manager Marketing Front Office (Corporate Bank) Relationship Management Structured Finance (Project/ECA Finance) Front Office (Private Equity) Private Equity Risk Management Credit Risk Market Risk Quants Operational Risk Actuary Operation and Middle Office Trade Support (Exotic and Structured) Trade Support (Flow and Vanilla Products) AM Operations (Client Reporting, Fund Accounting) Bank Operations (Treasury Ops, Remittance, Account Opening) Securities Operations (Settlements) Corporate Governance Internal Audit Technology Audit Central Compliance Compliance Advisory Finance and Accounting Financial Accounting/Reporting Product Control Tax JAPAN SALARY & EMPLOYMENT OUTLOOK 13

14 ENGINEERING & MANUFACTURING Engineering & Manufacturing JAPAN SALARY & EMPLOYMENT OUTLOOK

15 HIRING ACTIVITY There is currently positive hiring activity for engineering professionals due to the steady performance of the manufacturing industry. This is expected to continue over the next 12 months. Hiring for engineering professionals has been particularly strong within the automotive industry, as it continues to be a leading industry in Japan. As the manufacturing industry continues to shift towards an international supply chain, engineers who are able to speak English are in more demand than ever. Due to a computerization trend, there is steady recruitment in the electric industrial devices and equipments industries. There has been strong demand for engineering professionals in the chemical sector due to innovation for new materials in a variety of products such as automobile chassis, airframes, and digital consumer products, etc. Job types that are currently in high demand are Sales Engineers, Application Engineers, Project Managers, and Facility Managers. These job types are expected to be in particularly high demand over the next 12 months. Distribution and logistic property services are building distribution centers and stores throughout the country because of an increase in sales. This trend is creating stronger demand for Construction Managers. Due to the growth of the renewable energy industry, companies have been urgently and actively seeking talented candidates for engineer and business development positions. For engineers, candidates who have experience in another industry may also be considered. Usually, foreign multinationals do not manufacture products in Japan. However, due to the high expectations of Japanese clients, foreign companies have begun to establish manufacturing bases and R&D centers within the country. This has created demand for Plant Engineers and Design Engineers. Professionals with electrical, mechanical or chemical engineering skill sets are in demand due to the fact that many products are mainly composed of electrical, mechanical or chemical technology JAPAN SALARY & EMPLOYMENT OUTLOOK 15

16 SALARY AND BONUS LEVELS Environment, Health and Safety Engineers and Electrical Engineers who work with high voltage will be awarded above average salary and bonus increases, as well as Process Engineers who have a working knowledge of the Japanese Pharmaceutical Act. Since engineers who speak both English and Japanese are more in demand than ever, candidates have been able to command a salary that is from 10% to 15% higher than that of non-bilingual engineers. ATTRACTION AND RETENTION Employers are offering new retention strategies in order to keep qualified engineers by offering flexible working arrangements and setting long term career progression programs. Employers strive to create a corporate culture where it is possible for employees to develop a long term career JAPAN SALARY & EMPLOYMENT OUTLOOK

17 ENGINEERING & MANUFACTURING SALARY TABLES Role 0-3 Years 3-5 Years 5-7 Years 7+ Years Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) R&D Design Engineer Process Development Engineer Researcher S/W Test Engineer Embedded S/W Engineer Industry Designer 7-15 R&D Center Director Plant Engineer Plant Manager 9-20 Process Engineer Manager Process Engineer Facility/Utility Engineer QC/QA Engineer EHS Equipment Engineer Field Engineer Sales Engineer Application Engineer Field Service Engineer In-house Engineer Customer Support Engineer Technical Marketing Project Manager Sourcing Engineer Regulatory Affairs JAPAN SALARY & EMPLOYMENT OUTLOOK 17

18 HEALTHCARE & LIFE SCIENCES Healthcare & Life Sciences JAPAN SALARY & EMPLOYMENT OUTLOOK

19 HIRING ACTIVITY Despite uncertainty in Japan s economic future, hiring activity in healthcare industries will continue to rise with the well-known factor of Japan s aging population and rising healthcare spending per capita. Hiring activity in the clinical development area is expected to remain strong over the next 12 months. The number of global clinical trials in Japan also increased this year. Global sponsors are forecasting this increase to continue in 2016 and are actively selecting global CRO partners with Japan operations. The service to pharmaceutical industry is growing, and manufacturers are investing more in outsourced service providers because of increasing quality and lower cost. Project Managers and Consultants in service companies will continue to be in high demand in Medical Affairs and Medical Science Liaisons with MD/PhD qualifications are in high demand along with CRA, sales and marketing professionals who specialise in healthcare. Employers are requiring not only commercially minded professionals, but also technically strong academics with robust degrees and specialties. Drug Safety (pharmacovigilance and post-market surveillance) hiring is on the rise with stricter regulation on products in clinical trials and following approval. Health technology assessment (HTA) in Japan is yet to be fully implemented, however, the rising healthcare costs and need for government regulation is causing some healthcare companies to invest in health economics and outcomes research (HEOR) and market analytics hiring. Some companies that cover both the life sciences and diagnostics areas are narrowing their coverage towards diagnostics because of larger return on investment. Diagnostic sales hiring will increase to match this growth. Most international healthcare companies continue to struggle to hire qualified candidates with a strong technical skill set and the ability to communicate and influence in both Japanese and English JAPAN SALARY & EMPLOYMENT OUTLOOK 19

20 SALARY AND BONUS LEVELS Many manufacturers are focusing their efforts on fewer therapeutic areas, and as a result, candidates with unique matching specialties are of greater value and demanding higher salaries. Contract research organisations are often able to offer higher salaries than pharmaceutical and medical device manufacturers. This is due to the upward trend of outsourced clinical services and the strong competition among the CROs for qualified candidates. The decrease in life sciences talent in the market is making these candidates more expensive to retain. ATTRACTION AND RETENTION Flexible working time and working from home arrangements are increasingly being used to attract and retain employees, specifically targeting working individuals who are caring for children or the elderly. In terms of attraction and retention strategies, the majority of healthcare professionals prefer financial rewards such as stock options, over non-financial rewards. Housing allowance and relocation assistance are important employment incentives for sales professionals covering regions across Japan JAPAN SALARY & EMPLOYMENT OUTLOOK

21 HEALTHCARE & LIFE SCIENCES SALARY TABLES PHARMACEUTICALS Role Salary (0-3 yrs) Salary (3-5 yrs) Salary (5-7 yrs) Salary (7+ yrs) Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) Clinical Research Clinical Study Manager Clinical Project Manager Clinical Lead (non-md) Clinical Operations Director Clinical Lead (MD) Clinical Development Director Medical Affairs Medical Science Liaison Medical Affairs Manager Medical Affairs Director (non-md) Medical Affairs Director (MD) Research and Development Scientists (non PhDs) Scientists (PhDs) Regulatory and Compliance PMS Manager Regulatory Affairs Manager Pharmacovigilance Manager Regulatory Affairs Director Pharmacovigilance Director QA/QC Manager Commercial Sales/Medical Representative Product Manager Sales Manager Senior/Group Product Manager Marketing Manager Business Development Director Marketing Director Sales Director General Manager Business Unit Director JAPAN SALARY & EMPLOYMENT OUTLOOK 21

22 HEALTHCARE & LIFE SCIENCES SALARY TABLES MEDICAL DEVICES Role Salary (0-3 yrs) Salary (3-5 yrs) Salary (5-7 yrs) Salary (7+ yrs) Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) Regulatory and Compliance Regulatory Affairs Manager Regulatory Affairs Director QA/QC Manager Commercial Sales Product Manager Sales Manager Senior/Group Product Manager Marketing Manager Business Development Director Marketing Director Sales Director General Manager Business Unit Director LIFESCIENCE/DIAGNOSTICS Role Salary (0-3 yrs) Salary (3-5 yrs) Salary (5-7 yrs) Salary (7+ yrs) Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) Clinical Research Sales Product Manager Sales Manager Marketing Manager Business Development Director Marketing Director Sales Director General Manager Business Unit Director JAPAN SALARY & EMPLOYMENT OUTLOOK

23 HUMAN RESOURCES Human Resources 2016 JAPAN SALARY & EMPLOYMENT OUTLOOK 23

24 HIRING ACTIVITY Hiring activity within the human resources field is strong and is expected to continue at this level over the next 12 months. The strength of hiring activity can be attributed to a shortage of qualified and bilingual professionals. There have been a steady number of available jobs, and a continued increase for in-house recruiting positions as well as HR business partners. Industries with the most demand have been the retail, consumer goods, healthcare, and IT. Financial industries recruited at similar levels as the previous year. Hiring activity for bilingual HR consultants also increased due to new projects acquired by major consulting firms. The retail and consumer industries have always seen high demand for HR professionals. They are competing against established Japanese brands and are committed to investing in their staff to retain a leading position in the Japanese market. The IT industry continues to demonstrate innovation, growth and diversity. As a result, more support is needed from HR professionals to increase headcount to capitalise on growth potential. IT companies continue to recruit through their own networks with mixed results. The weakening yen has allowed foreign companies to invest more heavily in human capital. This, combined with a lack of bilingual professionals and a quickly aging workforce, is spurring hiring activity for HR professionals within strong performing industries. Japan s aging population is contributing to a high demand for HR professionals with experience in the healthcare industry. HR Generalists and HR Business Partner positions continue to be in-demand functions for companies as there is an increased demand for HR professionals who are capable of interfacing and partnering with the business from a strategic point of view, rather than operating purely as a support function. These job roles are expected to be in high demand over the next 12 months. With some international companies viewing Japan as an optimistic market for growth, there is a high demand within organisations for recruiters who have previous experience sourcing and attracting talent through innovative channels, such as direct sourcing. The talent pool for recruiting professionals is minimal, and there is a trend of external recruiters to move into internal HR roles. Recruitment roles will be in high demand over the next 12 months. As many businesses are either expanding JAPAN SALARY & EMPLOYMENT OUTLOOK

25 or cutting recruitment costs, they need proactive recruiting professionals who are able to source the most qualified talent through their direct sourcing skills or a recruitment agency. HR professionals who specialise in compensation and benefits are currently highly sought-after. For multinational companies it is always advantageous for HR professionals to be fluent in English. Businesses will also favour professionals with direct sourcing and strategic HR skills for implementing new, cost saving initiatives skills that are in currently in high demand. SALARY AND BONUS LEVELS HR professional who are working in the financial services and commercial industries can expect salary increases of approximately 2%. ATTRACTION AND RETENTION New attraction and retention strategies are starting to emerge, such as job rotation, career progression, special projects, signon bonuses and training abroad. In terms of workplace incentives, most HR professionals prefer financial rewards and career progression JAPAN SALARY & EMPLOYMENT OUTLOOK 25

26 HUMAN RESOURCES SALARY TABLES Role Salary (0-3 yrs) Salary (3-5 yrs) Salary (5-7 yrs) Salary (7+ yrs) Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) Banking and Finance Human Resources Administration Human Resources Generalist (Junior) Learning & Development Specialist Recruitment Specialist Human Resources Generalist (Mid level) Compensation & Benefits Specialist Learning & Development Manager Recruitment Manager Human Resources Manager Compensation & Benefits Head Learning and Development Head Human Resources Generalist (Senior/CRM) Human Resources Director Commerce and Industry Human Resources Administration Payroll Human Resources Generalist (Junior) Recruitment Staff Compensation & Benefits Specialist Learning & Development Specialist Payroll Manager Human Resources Generalist (Senior/CRM) Recruitment Manager Learning & Development Manager Compensation & Benefits Manager Human Resources Manager Human Resources Director JAPAN SALARY & EMPLOYMENT OUTLOOK

27 LEGAL Legal 2016 JAPAN SALARY & EMPLOYMENT OUTLOOK 27

28 HIRING ACTIVITY Hiring activity for the legal market in 2015 was fluid across the market, particularly with an increase in demand for in-house Legal Counsels and Legal Managers. Financial services institutions were actively looking for Legal Counsels with relevant experience, and private practice firms continued to strengthen their M&A and project finance businesses. Amongst the three key areas (commercial, private practice and financial services), the biggest growth clearly stemmed from commercial companies within the pharmaceutical, technology and gaming sectors. Japan has one of the largest pharmaceutical markets in the world, yet its growth rate has been slower than anticipated due to a number of challenges. By global standards, Japan is still not fully up to speed on compliance and regulatory matters, resulting in high demand for Legal Counsels. There is always high demand for legal skills in the technology sector, including media and telecom, and this was particularly the case as the exchange rate enabled technology companies to focus on outbound businesses. As transactions within technology are usually not complex, most mandates were for Legal Managers rather than Legal Counsels. The gaming sector also continued to see growth as Japanese companies looked to expand their businesses overseas, with industry popularity at an all-time high. Likewise, within the technology sector, Legal Managers have been in demand to oversee non-complex legal matters, mostly contract reviews. While the financial services industry itself only experienced limited growth, there has been an increase in demand for Legal Counsels due to a stricter set of regulations. Professionals with compliance exposure to look after regulatory matters, and experience in capital markets and M&A transactions have been in demand. Private practice firms are primarily focused on expanding project finance. For example, a number of airports are currently looking to renovate their facilities, such as the Osaka and Sendai Airport, and the Tokyo Olympics in 2020 will demand substantial infrastructure projects. There was also a greater focus in 2015 on LNG (Liquefied Natural Gas) projects. Given the nature of these transactions, most international law firms targeted PQE with two to five years experience that are both globally and locally qualified. Within private practice the banking and finance sector saw increased optimism due to the government encouraging foreign entities to enter the market, leading to more capital markets and M&A transactions. In this space, PQE three to five years experience that are ideally locally qualified are sought after, with potential to hire a foreign qualified lawyer JAPAN SALARY & EMPLOYMENT OUTLOOK

29 SALARY AND BONUS LEVELS There has been a slight increase in salary within the in-house legal counsel area, particularly for opportunities which require concurrent industry expertise. For example, given the limited number of qualified legal counsels within the healthcare and pharmaceutical industry, institutions were willing to provide attractive packages. Private practice firms continue to offer healthy compensation in line with the industry standard, and financial services firms have remained steady. ATTRACTION AND RETENTION Given the lack of significant variance in salaries amongst commercial institutions, non-monetary benefits have become critical. In this regard, work-life balance and the ability to work from home have been the leading factors to attract and retain professionals. Within private practice, the prospect of advancement with the respective firm has been the most important factor. Once it becomes clear that the partnership track is unlikely, associates look to make a move to in-house. Moreover, even when professionals are on track to become a partner, a good number of associates consider making a move for a more sensible work-life balance. Financial services institutions typically lack the flexibility to significantly increase current employees salaries and titles given the specific restrictions applied to each hire. This extends to offered salaries as well which tend to be in line with market rates JAPAN SALARY & EMPLOYMENT OUTLOOK 29

30 LEGAL SALARY TABLES Role Salary (0-3 yrs) Salary (3-5 yrs) Salary (5-7 yrs) Salary (7+ yrs) Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) Private Practice - Local Newly Qualified Associate Senior Associate Salaried Partner Equity Partner Private Practice - International Newly Qualified Associate Senior Associate Salaried Partner Equity Partner In-house Corporate (MNC) Post-Qualified Experience (PQE) 0-3 years years years Financial Services Post-Qualified Experience (PQE) 0-3 years years years Paralegals and Legal Secretaries Paralegal Senior Paralegal Legal Secretary/Assistant JAPAN SALARY & EMPLOYMENT OUTLOOK

31 OFFICE SUPPORT Office Support 2016 JAPAN SALARY & EMPLOYMENT OUTLOOK 31

32 HIRING ACTIVITY Hiring activity for office support professionals has been strong and is expected to remain strong over the next 12 months. Although comparatively less than last year, there is still a consistent in-flow of expatriate professionals relocating to work in Japan. This has created demand for skilled office support staff especially with previous experience supporting non- Japanese executives. The finance sector continues to experience the strongest hiring activity for office support staff. In addition, the industrial sector has also showed higher volume of hiring activity, particularly in Sales Assistant roles. The retail industry has also experienced strong hiring activity for office support staff due to a slightly higher turnover compared to other industries, which opens opportunities for replacement hires. The retail sector still requires potential applicants to have previous retail or B2C experience. Sales Assistant roles are currently in high demand, especially for the IT sector and companies with tangible products, in line with their sales growth. The demand for General Affairs/Officer Manager roles slowed down slightly in 2015 as this area predominantly hired only on replacement basis. Japanese corporations with plans for overseas business expansion have started to hire bilingual office support professionals to bridge communication between Japan and overseas counterparts. Interpersonal skills are important for office support professionals as businesses are keen to hire individuals who can facilitate both internal and external communication. SALARY AND BONUS LEVELS The financial services, medical, pharmaceutical, and IT fields have been able to offer higher salaries compared to other industries, due to companies requiring that candidates have a background from a similar industry. Employers tend to hire junior staff in office support roles to keep salary levels low. The exception is for Executive Assistant positions where extensive experience is necessary. ATTRACTION AND RETENTION Most office support professionals prefer a mix of financial and non-financial rewards. Work life balance, company stability, English usage, as well as career progression opportunities to areas outside of office support, are some examples of what high-potential, bilingual, office support candidates are looking for when selecting their next employer JAPAN SALARY & EMPLOYMENT OUTLOOK

33 OFFICE SUPPORT SALARY TABLES Role Salary (0-3 yrs) Salary (3-5 yrs) Salary (5-7 yrs) Salary (7+ yrs) Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) Banking and Finance Office Administrator Sales Assistant Administrative Assistant Legal Secretary Group Secretary Secretary/PA Executive Assistant Research Assistant Interpreter Translator General Affairs Facility Management Office Manager Commerce and Industry Office Administrator Sales Assistant Administrative Assistant Group Secretary Secretary/PA Executive Assistant/PA Interpreter Translator General Affairs Facility Management Office Manager JAPAN SALARY & EMPLOYMENT OUTLOOK 33

34 PROCUREMENT & SUPPLY CHAIN Procurement & Supply Chain JAPAN SALARY & EMPLOYMENT OUTLOOK

35 HIRING ACTIVITY Hiring activity within the procurement and supply chain sector was stable across most industries during This is due to a healthy economic outlook and companies looking to maintain headcount levels, while adding new staff in key strategic areas. Hiring for qualified procurement and supply chain professionals is expected to remain strong over the next 12 months. Demand for professionals continues to be consistent within the healthcare sector, specifically across pharmaceutical and medical devices, with international firms continuing to invest strategically in the Japan market. There was considerable increase in demand in the retail and luxury sector. This was due to a consistently weak yen, which drove strong sales from overseas tourists visiting Japan and taking advantage of lower prices on luxury brands. Hiring activity has also been stable within the industrial and automotive industries with no major changes from previous years. Supply chain professionals who specialise in demand and supply planning are in high demand due to a shortage of talent in these disciplines. This role requires strong numerical and analytical skills for accurate forecasting of sales and supply trends. Indirect procurement professionals with the ability to report overseas to global procurement headquarters and manage local stakeholders continue to be in high demand. However, hiring in this area has tended to focus more on staff level roles rather than managerial in recent months. This trend could continue with higher demand for junior professionals with bilingual skills. Procurement professionals with the ability to negotiate and finalise contracts with suppliers based overseas continue to be in high demand due to their linguistic and negotiation skills. Demand for supply chain professionals specialising in logistics operations improvement will be high over the next 12 months. Employers have increased their hiring for Logistics Managers within the retail and luxury product sectors as consumer sentiment improves. As supply chains continue to become increasingly global and automated, procurement and supply chain professionals with bilingual skills in English and Japanese, in addition to knowledge of the latest IT systems and tools, are in high demand. Procurement and supply chain professionals who are proficient in ERP systems, such as SAP and Oracle, will have a significant advantage over other job seekers JAPAN SALARY & EMPLOYMENT OUTLOOK 35

36 SALARY AND BONUS LEVELS Supply Chain Managers and Directors with deep knowledge and experience in a specific industry are able to command higher salary levels. This is due to their ability to manage the entire supply chain and partner with senior executives, as well as their broad knowledge of various aspects of the supply chain like planning, logistics, 3PL operations, and customer service. Bilingual professionals who specialise in indirect procurement will be able to command above average salary and bonus levels. This can be attributed to their communication and negotiation skills, and their ability to manage internal and external stakeholders in order to reduce indirect costs to the business. ATTRACTION AND RETENTION Employers are offering their procurement and supply chain employees more attractive retention strategies, such as better work-life balance, flexible working hours or the ability to work from home. More international exposure and team management responsibilities across countries is also viewed as an attraction and retention tool. Most procurement and supply chain professionals prefer a mix of financial and non-financial rewards JAPAN SALARY & EMPLOYMENT OUTLOOK

37 PROCUREMENT & SUPPLY CHAIN SALARY TABLES Role Salary (0-3 yrs) Salary (3-5 yrs) Salary (5-7 yrs) Salary (7+ yrs) Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) Procurement, Purchasing Buyer (Direct) Indirect/Service Procurement Manager Senior Manager Director Supply Chain Supply Chain Analyst Assistant Manager (Forecasting/Planning) Demand/Supply Planning Manager Senior Manager Director Logistics, Warehousing, Distribution Logistics Staff Customer Service Staff Senior Inventory Controller Logistics Operations Manager Distribution Centre Manager/Lead General Manager/Director PL, Logistics Service Provider Warehouse Team Leader Operations Manager Senior Operations Manager General Manager Vice President Consulting Senior Consultant Manager Senior Manager Director JAPAN SALARY & EMPLOYMENT OUTLOOK 37

38 RETAIL Retail JAPAN SALARY & EMPLOYMENT OUTLOOK

39 HIRING ACTIVITY Hiring within the retail sector remained strong throughout 2015, with usual slowdowns in the beginning of the year and summer due to bonus season. Common reasons for hiring ranges from regular staff turnover, replacement of underperformers, and change of global strategy or local executive management. A healthy volume of hiring activity for retail professionals is expected to continue over the next 12 months. The 2020 Tokyo Olympics is encouraging strong hiring activity, particularly within the sports retail area. Hiring activity in the luxury industry remains stable. There has been demand for retail staff who are able to service the increasing inbound tourists primarily from China and other Asian countries. Merchandisers and Retail Managers will be in high demand over the next 12 months as they are the key individuals who drive revenue. There is turnover for these positions as professionals typically consider outside options after a few years with a company. Headhunting is also becoming more popular for these positions. Hiring activities for Merchandisers at junior level has remained high throughout the year, regardless of brand and product category. Retail professionals who specialise in Ecommerce merchandising will be in high demand over the next 12 months as many retailers launch and expand their Ecommerce businesses. As Ecommerce merchandising is a relatively new specialty, companies need to train and develop existing employees, or hire externally. Regardless of products and brands, there has been an upward trend of hiring demand in digital marketing and data analysis. This tends to be found in medium to large organisations where specialist teams are responsible for specific functions. Retail professionals who are fluent in English are highly sought after, as many companies are centralising businesses from global headquarters. They need staff who can effectively communicate with overseas counterparts. Replacement of non-bilingual middle management is predicted as centralization becomes more common JAPAN SALARY & EMPLOYMENT OUTLOOK 39

40 Proficiency in Excel remains a strong advantage for retail professionals as it is an essential skill for all sales-related roles before a company s IT infrastructure is implemented. The ability to effectively communicate with a range of stakeholders is an important skill. Good communication is crucial as the retail industry involves people at different organisational levels such as global headquarters executives, back office staff, and local store employees. SALARY AND BONUS LEVELS Merchandisers, Sales Managers and Store Managers will be able to command above average salary and bonus levels as they are key players in driving sales revenue. As the build up towards the 2020 Tokyo Olympics continues, sports and outdoor industries are enjoying business success, which will reflect on bonuses this coming year. ATTRACTION AND RETENTION An emerging attraction tool for retail employers is to promote high performing staff to the headquarter office, as well as to have internal mobility opportunities within Japan and overseas. Most retail professionals prefer a mix of financial and non-financial rewards, such as well-rounded employee benefits from product discounts to personal development, and training programs provided by the company. For luxury fashion businesses, clothing allowances are considered to be an important benefit to employees in customer facing roles. A retirement pension plan, or 401K, is particularly important for retail professionals that come from businesses of bigger sizes. They feel more secure when a company includes pension programs as part of compensation JAPAN SALARY & EMPLOYMENT OUTLOOK

41 RETAIL SALARY TABLES Role Salary (0-3 yrs) Salary (3-5 yrs) Salary (5-7 yrs) Salary (7+ yrs) Millions (Yen) Millions (Yen) Millions (Yen) Millions (Yen) Retail Retail Operations Manager Regional Retail Operations Manager Country General Manager Regional General Manager Store Management Visual Merchandiser Visual Merchandising Manager Store Supervisor Store Manager Buying, Merchandising, Sourcing Merchandiser Assistant Manager Manager General Manager/Divisional Manager Director/Vice President Product Management Product Manager Category Controller Product Director Supply Chain, Logistics Assistant Manager Manager Country Manager Regional Director/Vice President Warehousing, Distribution, Inventory Inventory Controller Distribution Manager Regional Distribution Manager Manufacturing, Production Material Planning & Control Manager Production Manager Factory/Plant Manager General Manager Quality, Compliance, Technical Services Product Technologist Manager Senior Manager Director Design, Product Development Designer Chief Designer Manager Director JAPAN SALARY & EMPLOYMENT OUTLOOK 41