JAPAN SALARY GUIDE

Transcription

1 JAPAN SALARY GUIDE

2 morganmckinley.co.jp 2

3 MANAGING DIRECTOR S LETTER The majority (60%) of permanent employees who responded to the 2015 Morgan McKinley Salary Survey, say they have received an increase in their annual salary. However, most of these have been relatively moderate uplifts of between 1-8 percent. This is a result of companies continuing to be under tight constraints when it comes to budgets and headcount. However, in-demand professionals with the right skills and experience can command larger increases in salary. Most (77%) Japanese professionals in permanent work surveyed have received or are expecting to receive an annual bonus this year. However, any increase in bonus payment remains relatively flat, with the majority (58%) reporting bonus increases of between 1-8 percent. The contract market continues to grow across all sectors in Japan, with more companies offering contract roles and increasing numbers of professionals being open to this arrangement. Organisations continue to value the flexibility this gives them to tackle short-term needs, and it is often easier to gain headcount approval for contract staff and temp-to-perm arrangements, which provide both sides with the opportunity to see if the fit is right. For professionals it can also provide flexibility, varied work experience and network building. Contract rates are steadily increasing as it becomes ever more popular for companies to hire staff on this basis. The majority (64%) of Japanese contract and temporary workers, who responded to the 2015 Morgan McKinley Salary Survey, say their contract rate or salary has increased in the last year. I hope you enjoy reading the detailed report. If you have any thoughts on current salary trends in professional occupations in Japan, we would be very interested to hear from you. LIONEL KAIDATZIS MANAGING DIRECTOR Tel: lionel@morganmckinley.co.jp 3

4 CONTENTS BANKING & FINANCIAL SERVICES 5 Front Office 6 Compliance 7 Finance, Audit & Risk 8 Operations and Project / Change Management 9 FINANCE & ACCOUNTING 10 Finance & Accounting 11 IT 13 ASSET MANAGEMENT 17 HUMAN RESOURCES 19 SALARY SURVEY RESULTS 21 4

5 BANKING & FINANCIAL SERVICES 5

6 BANKING & FINANCIAL SERVICES FRONT OFFICE The majority of global investment banks and commercial banks increased headcounts in 2014, as political stability and a weaker Yen benefited Tokyo's financial services sector. Growth in equity sales and trading stabilised after a significant upswing in Whilst there was movement across equity businesses following bonus payments, this was not at an aggressive rate was a year of careful and calculated expansion for fixed income sales and trading. There was notable hiring in senior Japanese Government Bond sales areas. The Investment Banking division (IBD) business showed some encouraging growth signs, with THE MAJORITY OF GLOBAL INVESTMENT BANKS AND COMMERCIAL BANKS INCREASED HEADCOUNTS IN 2014 moderate increases in analyst to associate headcounts. The majority of professionals were hired through the bank s entry level group hiring programs. There was robust hiring activity among global corporate banks. Corporate banking relationship managers and transaction bankers were areas with the most demand. Private equity had moderate growth, particularly in associate level hiring. FRONT OFFICE PERMANENT (BASIC SALARIES, MILLION PER ANNUM) ROLE: ANALYST ASSOCIATE VP DIRECTOR MANAGING DIRECTOR FIXED INCOME SALES 6M - 9M 7M - 15M 14M - 23M 18M - 30M 25M - 45M FIXED INCOME TRADING 6M - 9M 7M - 16M 15M - 23M 20M - 33M 25M - 45M EQUITY SALES 5M - 8M 7M - 13M 13M - 22M 17M - 28M 25M - 35M EQUITY TRADING 5M - 8M 7M - 14M 15M - 20M 18M - 30M 25M - 40M EQUITY RESEARCH 5M - 8M 7M - 13M 13M - 20M 17M - 25M 25M - 45M DERIVATIVE STRUCTURING 5M - 8M 7M - 13M 14M - 20M 17M - 32M 25M - 35M FX / COMMODITIES 6M - 12M 8M - 18M 15M - 25M 20M - 30M 25M - 35M IBD COVERAGE BANKING 5M - 11M 8M - 15M 18M - 22M 22M - 30M 30M - 35M ECM / DCM 5M - 11M 8M - 15M 18M - 22M 22M - 30M 30M - 40M M&A PRODUCT SPECIALIST 6M - 12M 9M - 18M 18M - 25M 25M - 32M 30M - 40M STRUCTURED FINANCE / SECURITISATION 5M - 9M 7M- 12M 12M - 16M 17M - 25M 22M - 35M PRIVATE EQUITY 7M - 10M 9M - 15M 13M - 17M 18M - 25M 20M - 40M CORPORATE BANKING RELATIONSHIP MANAGERS TRANSACTION BANKING (CASH MANAGEMENT & TRADE FINANCE) STRUCTURED & PROJECT FINANCE 6M - 8M 9M - 11M 12M - 15M 15M - 20M 18M - 25M 6M - 8M 9M - 11M 12M 15M 15M - 20M 18M - 25M 6M - 8M 9M - 11M 12M - 15M 15M - 20M 18M - 25M 6

7 BANKING & FINANCIAL SERVICES COMPLIANCE Tokyo s compliance market was very active during 2014, with the majority of hires between associate and vice president level. There has been less activity at head of function and chief compliance officer level. The contract market is stable, with most hires in supporting administrative roles. The lack of junior (newly qualified) talent in the Japanese financial services sector means that investment banks often need to turn to other functions such as operations, front office and risk management, or even look at candidates from the Big Four in order to fill vacant posts. In some instances, banks have had to look at relocating compliance staff on secondments to Japan from overseas offices. Japan to hire more professionals across all areas of central compliance, trade surveillance, control room and compliance advisory. We expect this trend to continue in 2015, with compliance professionals in high demand. Basic salaries at analyst to assistant vice president level will continue to increase in 2015, and compliance professionals at vice president level can expect to command salary increases of 20 percent and above. TOKYO S COMPLIANCE MARKET WAS VERY ACTIVE DURING 2014, WITH THE MAJORITY OF HIRES BETWEEN ASSOCIATE AND VICE PRESIDENT LEVEL A rise in trading related probes in recent months, together with new legal and regulatory changes highlights the need for investment banks in COMPLIANCE PERMANENT (BASIC SALARIES, MILLION PER ANNUM) ROLE: ANALYST / NON-OFFICER ASSOCIATE / AVP / MANAGER VP / SENIOR MANAGER SVP / DIRECTOR DIRECTOR / SENIOR DIRECTOR COMPLIANCE CORE / CENTRAL COMPLIANCE 6M - 8M 9M - 13M 14M - 18M 19M - 22M 22M+ TRADE SURVEILLANCE / MONIROTING 6M - 8M 9M - 14M 15M - 18M 19M - 22M 22M+ CONTROL ROOM 7M - 9M 9M - 14M 15M - 18M 19M - 24M 25M+ ADVISORY - 12M - 16M 17M - 20M 22M+ 25M+ 7

8 BANKING & FINANCIAL SERVICES FINANCE, AUDIT & RISK The control functions within banking and financial services continue to recruit actively. Aside from financial accounting where most hires are replacement hires, there has been significant hiring in product control at select tier one banks that maintain a team of 20 to 40 controllers onshore. There is also a strong appetite from banks for junior talent at analyst and associate level. These trends create opportunities amongst a wide range of accounting professionals that include; product controllers, MBA graduates and Big Four professionals. Banks are also keen to attract junior financial accountants, within asset management or insurance companies, who are eager to develop a career in product accounting. THE INTENSIFICATION OF REGULATORY REQUIREMENTS TO STRENGTHEN BANKING CONTROLS HAS CREATED NEW ROLES IN OPERATIONAL RISK The internal audit function has also been a hot area of recruitment for business auditors at associate and manager levels. The candidate pool for auditors possessing a strong investment banking business sense remains narrow. Investment banks in Tokyo are resorting to hiring financial and product accountants, as well as developing talent internally. Within risk management, credit risk saw a limited number of hires in Credit risk teams appear to be very stable and experienced minimal turnover. Operational risk, market risk and liquidity risk continue to be very active. The intensification of regulatory requirements to strengthen banking controls has created new roles in operational risk. Similarly, the implementation of Basel III has created new roles in market liquidity risk. Professionals working in finance, audit and risk - also considered the banks first line of defence - will continue to be in high demand, commanding basic salary increases in FINANCE, AUDIT & RISK PERMANENT (BASIC SALARIES, MILLION PER ANNUM) ROLE: ANALYST / NON-OFFICER ASSOCIATE / AVP / MANAGER VP / SENIOR MANAGER SVP / DIRECTOR DIRECTOR / SENIOR DIRECTOR FINANACE MANAGEMENT ACCOUNTING 6M - 7M 8M - 12M 13M - 15M 16M - 19M 20M+ FINANCIAL CONTROL 6M - 8M 8M - 13M 14M - 18M 19M - 22M 22M+ PRODUCT CONTROL 6M - 8M 9M - 13M 14M - 18M 19M - 22M 22M+ VALUATION CONTROL 6M - 8M 9M - 14M 15M - 18M 19M - 22M 22M+ TAX 5M - 7M 8M - 13M 14M - 18M 19M - 22M 22M+ AUDIT IT AUDIT 6M - 8M 9M - 13M 14M - 18M 18M - 20M 20M+ INTERNAL AUDIT 6M - 8M 9M - 13M 14M - 18M 19M - 24M 24M+ RISK MANAGEMENT OPERATIONAL RISK 6M - 8M 9M - 13M 14M - 18M 19M - 22M 22M+ CREDIT RISK 6M - 8M 9M - 13M 14M - 18M 19M - 22M 22M+ MARKET RISK 6M - 9M 10M - 14M 15M - 20M 20M - 25M 25M+ QUANTITATIVE RISK 8M - 10M 11M - 15M 16M - 20M 20M - 25M 25M+ 8

9 BANKING & FINANCIAL SERVICES OPERATIONS AND PROJECT / CHANGE MANAGEMENT Tokyo experienced a very buoyant hiring market in operations and project/change management in There is a clear indication that the transfer of production tasks is now complete, which allows investment banks to keep very streamlined and profitable operation functions. In operations, the recruitment market continues to be heavily driven by replacement hiring. This is mainly due to candidate mobility across banking competitors and within their current employment. A relatively strong equities market has seen hot areas of recruitment in operations continue to be confined to cash equities trade processing roles. Other areas of derivatives operations recruit very actively. With the exception of banking technology, project management office (PMO) teams have been scarce in banking operations in recent years. However, the increase of regulatory and market initiatives has created new headcounts for business analysts and project managers. These professionals are in high demand in the area of risk control, where project managers with line operations experience are called to strengthen the controls of the bank. This trend is set to continue in Whilst bonuses in banking operations have significantly decreased in recent years, operations and project/change management professionals can expect basic salary increases of up to percent. TOKYO EXPERIENCED A VERY BUOYANT HIRING MARKET IN OPERATIONS AND PROJECT/CHANGE MANAGEMENT IN 2014 OPERATIONS AND PROJECT / CHANGE MANAGEMENT PERMANENT (BASIC SALARIES, MILLION PER ANNUM) ROLE: ANALYST / NON-OFFICER ASSOCIATE / AVP / MANAGER VP / SENIOR MANAGER SVP / DIRECTOR DIRECTOR / SENIOR DIRECTOR OPERATIONS SETTLEMENTS 6M - 7.5M 8M - 11M 12M - 16M 17M - 19M 19M+ SHARED SERVICES 6M - 7.5M 8M - 11M 12M - 16M 17M - 19M 19M+ OPERATIONS RISK & CONTROLS 6M - 7.5M 8M - 12M 13M - 18M 18M - 22M - TRADE / SALES SUPPORT 6M - 8.5M 9M - 13M 14M - 18M 18M - 22M 22M+ PROJECT/CHANGE MANAGEMENT BUSINESS ANALYST 7M - 9M 10M - 14M 14M - 16M - - BUSINESS MANAGEMENT - 9M - 13M 14M - 18M 18M - 22M 22M+ PROJECT MANAGER - 10M - 14M 14M - 18M 18-22M 22M+ 9

10 FINANCE & ACCOUNTING 10

11 FINANCE & ACCOUNTING PERMANENT Many of last year s trends will continue into 2015, however, there have been a few surprises. Recruitment activity has remained buoyant throughout the holiday period and into the New Year. Traditionally, that activity increases as the first quarter progresses. The majority is replacement hiring; consolidation rather than expansion remains the priority for most companies. However, firms are keen to backfill open positions with stronger profiles who can add value to the business and have wider skill sets and a business partnering mind-set. It is no longer enough to crunch the numbers; new hires must find ways to communicate effectively with the business and find a way to translate strong analysis of the numbers into practical business suggestions for increasing profitability and keeping costs down. Technology continues to revolutionise finance. Clients are moving from more manual systems to automated enterprise resource planning (ERP) ones, SAP in particular. As well as freeing up time to deal with more strategic matters, these systems give more clarity to overseas stakeholders and avoid unnecessary duplication and human error. Hiring is quite consistent across this sector, with particular demand across retail, consumer, life science (including medical devices and pharmaceutical), IT software and energy companies. Morgan McKinley expects salaries to remain flat for the first half of Many jobseekers choose their next company based on career path and content of the role. Increasingly, professionals are moving at parity or for a modest increase (5-10%) in base salary. However, professionals with the right mix of experience, qualifications and language skills, can still command larger increases. HIRING IS QUITE CONSISTENT ACROSS THIS SECTOR, WITH PARTICULAR DEMAND ACROSS RETAIL, CONSUMER, LIFE SCIENCE, IT SOFTWARE AND ENERGY COMPANIES CONTRACT The rise of contract recruitment was a persistent theme in 2014 and Morgan McKinley expects this trend to continue in More companies are offering contract roles and an increasing number of professionals are open to this arrangement. Companies value the flexibility this gives them to tackle short-terms needs. It is often easier for firms to make the business case for headcount approval for contract staff, and temp-to-perm arrangements provide both sides with an opportunity to consider if the fit is right. For professionals it provides flexibility (for example, while they pursue a relevant qualification), variety in their work experience, network building, and can often give a much better work-life balance. Historically, the majority of contractors have been either very junior and keen to get the experience contract roles offer, or much older and perhaps close to retirement, and finding it difficult to secure a permanent role for this reason. This is no longer the case. Contract rates are moving steadily upwards as it becomes increasingly popular to hire staff on this basis. There is demand for contract staff across all sectors, and increasingly at a senior level. Some companies that have struggled to close critical senior finance positions have brought contractors in as an interim measure. 11

12 FINANCE & ACCOUNTING ACCOUNTANCY & FINANCE PERMANENT (BASIC SALARIES, MILLION PER ANNUM) ROLE: SMALL ORGANISATION (UP TO 100 STAFF) MEDIUM ORGANISATION ( STAFF) LARGE ORGANISATION (500+ STAFF) CFO 14M - 18M 17M - 20M 21M+ FINANCE DIRECTOR - 14M - 17M 18M+ FINANCIAL CONTROLLER 10M - 12M 12M - 14M 13M - 16M FP&A MANAGER - 9M - 12M 10M - 14M SENIOR FINANCIAL ANALYST 6.5M - 7.5M 6.5M - 8M 6.5M - 10M FINANCIAL ANALYST 4M - 6M 5M - 7M 5M - 8M JUNIOR FINANCIAL ANALYST - 4M - 5.5M 4M - 5.5M GENERAL ACCOUNTING MANAGER - 8.5M - 11M 11M - 15M SENIOR FINANCIAL ACCOUNTANT - 5M - 7.5M 6M- 8.5M FINANCIAL ACCOUNTANT 4M - 6.5M 4M - 6M 5M - 7M JUNIOR FINANCIAL ACCOUNTANT - 4M - 5.5M 4M - 5.5M HEAD OF INTERNAL AUDIT M - 15M INTERNAL AUDIT MANAGER - 8M - 11M 8M - 11M INTERNAL AUDITOR M TAX MANAGER - 8M - 11M 12-15M TAX ACCOUNTANT - 4M - 6M 5M - 7M TREASURY MANAGER - 9M - 11M 10M - 13M TREASURY ANALYST - 5M - 7M 6M - 8M COLLECTIONS / AR MANAGER - 6M - 8M 6M - 8M ACCOUNTS PAYABLE MANAGER - 5M - 7M 6M - 8M ACCOUNTS PAYABLE / CREDIT / AR STAFF 4M - 5M 4M - 5.5M 4M - 6M COST ACCOUNTANT - 5M - 7M 6M - 8M 12

13 IT 13

14 IT Over the last few years there has been a trend within the financial services industry, in particular insurance, to undertake mid to large sized information technology (IT) transformation projects. For many foreign professionals who have found themselves between roles of the financial services sector we predict a slight increase in average salaries, where the average minimumfollowing the financial crisis and other downsizing initiatives, it has been the difference between staying in or leaving Japan. In 2015, we do not envisage significant change in salaries within IT. However, outside salary for junior infra and apps for Tokyo is still shy of 6 million JPY and the average is around 7.5 million JPY, with a maximum of just over 10 million. Senior executive director level roles, which are scarce in Japan these days, can range from 18 million upwards; down to an entry level analyst role which ranges between 5-8 million. An associate to vice president position in applications would range between million; and the equivalent on the infrastructure side potentially coming in at 8-15 million depending on level and experience. In other areas of the financial services sector, the tendency to outsource or offshore is still commonplace. Companies are still looking to cut costs by moving certain functions to centres such as Manila and Bangalore and will probably continue to do so into This can come at a cost though, with disparate teams, communication issues and service quality issues. Positive financial results in certain sectors, together with Abenomics and an improvement in the strength of the Yen, has seen a cautious approach to building up teams again in Japan. Firms continue to keep the budgets and headcounts tight. However, companies still need talent and the contract market continues to be strong, with hiring in areas of ukeoi (independent contract for a specific task), haken (temporary staffing) and Keiyakushain (direct contract staff). COMPANIES HAVE IDENTIFIED TECHNOLOGY AS A KEY AREA OF GROWTH THIS YEAR Larger organisations are now utilising internal mobility teams more than ever to ensure they are not losing talent to competitors; giving employees opportunities in other countries or teams. Increasingly, internal recruiters are discouraged from using agencies where possible. However, specialist recruitment agencies are often required when helping companies to find strong bilingual talent. Pharmaceutical and fast moving consumer goods (FMCG) companies (gaishikei) will continue to hire at the same steady rates. With the majority of their technology centralised in head offices outside Japan we will likely see localisation, infrastructure, and application project positions opening up. Senior roles in all sectors will remain rare but with talent now more confident in their job changes we may see some back fills in various areas. Companies in these sectors will also be looking to temporary staffing solutions to accommodate these projects and initiatives where applicable. Companies have identified technology as a key area of growth this year. However, those that have grown IT last year will not be in such a rush to do so and remain steady. Small to large international firms setting up in Japan will have both permanent and contract hiring needs. This includes areas such as security, online payments, networking and telecommunications. The majority of ukeoi-based hiring is in areas where finite IT projects are still in progress. For example, a consultant is hired in the interim to fulfil part or all of a particular project. This could involve a localization project or a longer term project to upgrade the whole of an infra or application solution for a major financial firm. Haken hiring will continue to be utilised for some of the more generic roles in IT, such as helpdesk and desktop support. 14

15 IT IT COMMERCE & INDUSTRY (BASIC SALARIES, MILLION PER ANNUM) ROLE: INFRASTRUCTURE / NETWORK INFRASTRUCTURE ENGINEER 8M - 12M STORAGE/DATABASE ENGINEER 8M - 12M NETWORK ENGINEER 5M - 12M MANAGEMENT / CONSULTING CIO / CTO 15M - 20M PROJECT MANAGER 8M - 12M SERVICE DELIVERY MANAGER 10M - 15M SOLUTION ARCHITECT 8M - 15M SAP / ERP / CRM CONSULTANT 8M - 12M BUSINESS INTELLIGENCE 8M - 12M BUSINESS ANALYST 6M - 10M IT CONSULTANT 8M - 12M DEVELOPMENT SOFTWARE / APPLICATION ENGINEER 6M - 12M ANDROID / IOS ENGINEER 5M - 8M SEARCH ENGINE ENGINEER 5M - 8M DATA MINING 5M - 8M DEVELOPER / TECHNICAL SUPPORT 6M - 10M RETAIL IT MANAGER 10M - 15M INFORMATION SYSTEM MANAGER 8M - 12M POS/ STORE SYSTEM MANAGER 8M - 12M CREATIVE PRODUCTION GAME ENGINE DEVELOPER 4M - 8M WEB MASTER 6M - 10M WEB DESIGNER 4M - 8M 15

16 IT IT FINANCIAL SERVICES(BASIC SALARIES, MILLION PER ANNUM) ROLE: APPLICATIONS DEVELOPER-VB,NET 8M - 12M DEVELOPER-C#,C++,JAVA 8M - 14M APPLICATIONS SUPPORT 9M - 17M SENIOR DEVELOPER-C++/JAVA 14M - 20M ALGORITHM/QUANT DEVELOPER 13M - 20M SOFTWARE AND SOLUTION ARCHITECT 13M - 18M HEAD OF DEVELOPMENT 20M - 34M MANAGEMENT IT RISK AND AUDIT 10M - 15M IT RISK AND AUDIT- SENIOR 15M - 20M BUSINESS ANALYST 10M - 19M PROJECT MANAGER 12M - 19M PROGRAMEE MANAGER 16M - 23M IT MANAGER 12M - 18M CIO 20M - 50M INFRASTRUCTURE DESKTOP / HELPDESK / TECHNICAL SUPPORT 6M - 8M DESKTOP / HELPDESK / TECHNICAL SUPPORT-TEAM LEADER 8M - 12M DESKTOP / HELPDESK / TECHNICAL SUPPORT-MANAGER 10M - 15M NETWORK ENGINEER 8M - 17M NETWORK TEAM LEADER 10M - 20M WINTEL SYSTEMS ENGINEER 8M - 13M SECURITY ANALYST 8M - 15M SYSTEMS, STORAGE & SERVER ADMINISTRATOR 8M - 18M DATABASE ADMINISTRATOR 11M - 15M 16

17 ASSET MANAGEMENT 17

18 ASSET MANAGEMENT PERMANENT In 2014, hiring within asset management was very active in both the back office and front office, especially mutual fund sales/marketing and institutional sales. This year, Morgan McKinley expects to see an increase in the investment area, in particular within Japanese asset management companies that are looking to increase headcounts for long short strategy analysts and fund managers. There has been increased movement amongst Japanese asset management professionals moving to foreign asset management companies and also a marked increase from banks and securities firms in Morgan McKinley expects a steady job flow in 2015, especially in the sales and marketing area, as well as client services. Basic salary trends show a slight increase in the following areas; mutual fund sales - 7.2% increase, institutional sales - 8.1% increase, compliance 5.4% increase, and client services (reporting, RFP) 4.8% increase. MORGAN MCKINLEY EXPECTS A STEADY JOB FLOW IN 2015, ESPECIALLY IN THE SALES AND MARKETING AREA, AS WELL AS CLIENT SERVICES ASSET MANAGEMENT PERMANENT (BASIC SALARIES, MILLION PER ANNUM) ROLE: ANALYST / NON-OFFICER ASSOCIATE / AVP VP / SENIOR MANAGER SVP / DIRECTOR DIRECTOR / ED/MD FUND MANAGER'S ASSISTANT 4M - 5.5M 5.5M - 7.5M FUND MANAGER 5.5M - 8.5M 6M - 12M 12M - 28M 15M - 18M 18M- 40M RESEARCH ANALYST 5.5M - 7.0M 7.5M - 12M 11M - 22M 16M - 29M 17M+ PERFORMANCE ANALYST 5.5M - 7.5M 7.5M - 10M 10M - 14M 13M - 18M 15M+ PRODUCT DEVELOPMENT / MANAGEMENT SALES & BUSINESS DEVELOPMENT 5.5M - 7.5M 7M - 11M 9.5M - 16M 14M - 21M 25M+ 5M - 8M 8M - 12M 12M - 24M 16M - 26M 20M+ EXECUTION TRADER 4.5M - 6M 6M - 8M 8M - 16M 11M - 18M 14M+ CLIENT SERVICES 4.5M - 6.5M 6.5M - 11M 9M - 12M 12M - 19M 15M+ CLIENT REPORTING 4.5M - 6M 6M - 9M 8M - 14M 13M - 18M 14M+ FUND ACCOUNTING/ PENSION ACCOUNTING 4M - 5.5M 5.5M - 8.5M 8.5M - 14M 10M - 18M 13M+ TRADE OPERATIONS 4.5M - 5M 5M - 8.5M 7.5M - 12M 9M - 17M 13M+ COMPLIANCE 5.5M - 7.5M 7.5M M 11.5M - 19M 17M - 21M 21M+ PROJECT MANAGER / BUSINESS ANALYST 4.5M - 6.5M 6.5M - 9M 9M - 13M 13M - 18M - RFP 5M - 6.5M 5.5M - 11M 7M - 15M 12M - 16M 15M+ MARKETING MATERIAL 5.5M - 7M 5M - 10M 8M - 14M 12M - 15M 15M+ 18

19 HUMAN RESOURCES 19

20 HUMAN RESOURCES PERMANENT Many medium to large sized multinational corporations (MNC) are focused on reorganisation projects within human resources (HR), establishing more specialist HR functions within learning and development (L&D), compensation and benefits (C&B) and talent acquisition. This requires support from experienced HR operations professionals and HR business partners. IT/technology, pharmaceuticals/life sciences and retail companies lead the way with regards to expanding HR headcount. There has been strong demand for talented bilingual HR business partners and experienced L&D/ training specialists. This looks set to continue in Experienced professionals in this area can expect base salaries in the region of 7-8 million at the lower end and up to million JPY at management level. In-house recruiters at all levels of experience are particularly in demand. Recruitment teams are expanding to add full time support/coordinators and specialists, as companies seek to maximise direct sourcing and reduce costs. Junior level roles are starting from 4.5 to 6/6.5 million JPY for individuals with two to three years of experience. Mid-career professionals can expect around 7 to 8.5 Million JPY base and 9 to 12 million plus for manager level, depending on industry/ size. Japan remains a key market for investment for many retail companies. As they continue to rapidly expand JAPAN REMAINS A KEY MARKET FOR INVESTMENT FOR MANY RETAIL COMPANIES their businesses throughout 2015, it is expected to put pressure on securing experienced retail recruiting specialists and retail training professionals. Any movement in this market will continue to have a big impact as the talent pool is very limited. Salary bands within retail vary greatly depending on the size of the business and the industry. Retail recruiting specialists can expect competitive salaries in line with other industries. Experienced retail training specialists could experience increases of up to 10 percent or higher. Demand in roles covering talent management is also likely to increase, although firms may struggle to meet expectations regarding candidate profiles in this area, along with HR business partners. Banking and financial services was very flat in 2014 with the possibility of some retraction in Outside of a small number of specialist positions such as L&D, C&B, HR operations, most recruitment has been focused on recruitment process outsourcing (RPO) solutions and contract hiring. Firms continue to manage very tight budgets but increases can be expected as competition for top bilingual talent remains strong. HUMAN RESOURCES PERMANENT (BASIC SALARIES, MILLION PER ANNUM) ROLE: HUMAN RESOURCES DIRECTOR 12M - 35M HUMAN RESOURCES MANAGER 8M - 16M HUMAN RESOURCES GENERALIST/HRBP 7M - 18M COMPENSATION & BENEFITS MANAGER 9M - 18M LEARNING & DEVELOPMENT MANAGER 8M - 16M RECRUITMENT MANAGER 8M - 16M PAYROLL MANAGER 7M - 9M HUMAN RESOURCES JUNIOR GENERALIST 4.5M - 7M COMPENSATION & BENEFITS SPECIALIST 6M - 9M RECRUITMENT STAFF 4M - 10M LEARNING & DEVELOPMENT SPECIALIST 6M - 9M PAYROLL 3.5M - 7M HUMAN RESOURCES ADMINISTRATION 4M - 6M 20

21 SALARY SURVEY RESULTS 21

22 SALARY SURVEY RESULTS DEMOGRAPHICS Morgan McKinley surveyed 132 professionals in Japan for the Salary Survey in January Respondents are all professionals on the Morgan McKinley database and from our website morganmckinley.co.jp, who are engaged in a range of specialist sectors such as Banking & Financial Services (73%), Technology (26%), Retail/ FMCG (30%), Pharmaceutical (7%), Construction & Engineering (5%), Public Sector (3%), Media (1%), Healthcare (1%) and Legal (1%). Approximately one quarter (26%) of the Japanese professionals who responded have between 1-2 years of experience in their current role or one that is similar. A further 26 percent have 3-5 years of experience and just over one fifth (21%) have 6-9 years of experience. The remainder (26%) have over ten years of experience in the current role or a similar role. The majority (81%) of those surveyed are male, 16 percent are female and the remaining three percent prefer not to say. They ranged in age from years with 20 percent in the bracket, 34 percent in the bracket, 28 percent in the bracket and 18 percent in the 51+ the bracket. The vast majority (89%) of those surveyed are permanent employees and the remainder (11%) are contract or temporary workers. Has your salary increased in the last twelve months (Permanent employees)? Most (60%) of the professionals who answered say their annual salary has increased in the last year. Over one third (37%) say their salary has remained the same and the remaining three percent say their salary has decreased in the last twelve months. Forty-four percent of respondents, who have received a pay rise, say their salary increased by 1-4 percent. Over one quarter (26%) say the increase was between 5-8 percent and 12 percent say they experienced a salary increase of between 9-12 percent. Just under one fifth (18%) of professionals say they experienced an annual pay increment of more than 13 percent. For those who received an annual salary increase, most believe this is based upon meeting personal key performance indicators (KPIs) (63%) and group or company performance (56%). Just under one fifth (19%) of respondents say annual pay increments can be attributed to exceeding one s own personal sales target. Other reasons given for salary increases include; change in employer, new job and promotion. PLACE GRAPH HERE 22

23 SALARY SURVEY RESULTS Have you received or are you expecting an annual bonus from your employer for 2014 (Permanent employees)? The majority (77%) of Japanese professionals who responded say they have received or are expecting to receive an annual bonus for Nine percent say they have not received and are not expecting to receive an annual bonus and the remainder (14%) say they do not receive annual bonuses at all. Forty-four percent of those who received a bonus for 2014 say it increased by 1-4 percent. Fourteen percent say it increased by 5-8 percent and 12 percent say it increased by 9-12 percent. Just under one third (30%) say their annual bonus increased by more than 13 percent. Meeting personal KPIs (41%) and group and company performance (47%) are seen by the overwhelming majority of respondents as reasons upon which annual bonuses are based. Just 12 percent say bonuses are based upon exceeding one s own personal sales target. Other reasons for bonus payments, listed by respondents, include; an increase in base salary and a fixed/guaranteed bonus. Has your temporary or contract rate or salary increased in the last 12 months? The majority (64%) of Japanese contract and temporary workers say their contract rate or salary has increased in the last year. The remaining 36 percent say their salary or rate of pay has remained the same. Half (50%) of the temporary and contract employees who did experience an increase say it was between 5-8 percent. One quarter (25%) say they experienced a pay increment of 1-4 percent, 12 percent say the increase was between 9-12 percent and the remainder (13%) say they experienced an uplift in salary of more than 13 percent. For those contract and temporary workers who did experience an uplift in pay, over one third (38%) say this is due to group or company performance and 31% say it is based upon meeting personal KPIs. The remainder (8%) say rate or salary increases can be attributed to exceeding one s own personal sales target. Other reasons cited by temporary and contract employees include; a fixed/guaranteed salary increase and a change in job. PLACE GRAPH HERE 23

24 SALARY SURVEY RESULTS As part of your remuneration, what are the benefits in your current package? The majority of Japanese professionals who responded receive a mobile phone (52%) and an annual bonus scheme (62%) as part of their remuneration package. Just under half (both 47%) receive a laptop/computer and a pension/ superannuation scheme. Other benefits, which Japanese professionals get as part of their current package include; flexible working arrangements (37%), share incentive/option scheme (28%), paid study leave (8%), training (39%), private health/life insurance (34%) and gym membership (9%). Fifteen percent of respondents say they receive no extra benefits as part of their remuneration package. Other benefits noted by respondents are a housing plan, meal allowance and language lessons. Which remuneration benefits are most important to you? The largest proportion (49%) of professionals who responded say that annual bonus scheme is the most important benefit for them. Just over one third (35%) say flexible working arrangements are an important benefit and one quarter (25%) say a pension/ superannuation scheme is important. Other benefits seen as important to Japanese professionals include; mobile phone (11%), laptop/computer (10%), share incentive/option scheme (17%), paid study leave (9%), training (12%), private health/life insurance (14%), gym membership (5%) and a housing allowance. Do you think female employees in your company are earning less than male employees in the same role? Less than half (45%) of the Japanese professionals who responded say they do not think women are earning less than men in the same role. Over one quarter (27%) say they do think women earn less than their male counterparts in the same role. The remainder (28%) say they are undecided. PLACE GRAPH HERE 24

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