In today's competitive, talent-short job market, employee benefits play a crucial role. They can be the deciding factor when candidates compare similar roles in a seller's market where candidates have more influence.Looking to stay ahead in Japan’s talent war? Our Salary Guide highlights the benefits top candidates value most, helping you design packages that attract and retain the best talent. Perks and benefits trends Flexibility, hybrid work, and work-life balance remain top priorities for employees, with 57.6% still preferring remote work despite a return to office trends.* Work Style Reform, addressing overwork, and promoting balance, continues with 47.1% of companies adopting these initiatives to enhance retention and reduce turnover.***Reskilling is crucial as Japan faces a shrinking workforce and talent shortages. However, many companies provide adequate reskilling programs, even making it a key area of focus.Additionally, Diversity, Equity, and Inclusion (DEI) initiatives are essential to support the inclusion of women, foreign workers, and seniors in the workforce. Fostering inclusivity allows companies to tap into a broader talent pool, ensuring long-term growth and securing top talent in Japan’s competitive talent-short market.
Employees are seeking flexibility and hybrid work options
While many companies are returning to the office, flexible work arrangements remain important in Japan. A recent survey found that 33.9% of workers are remote at least three days a week (a 5.9-point drop since April 2024), but 57.6% still prefer working from home.* With 59.2% prioritizing leave policies and 34.2% supporting a four-day workweek, embracing flexibility is key to staying competitive in the post-COVID era.***
Reskilling is key to success in Japan’s evolving job market
Reskilling is crucial for career development in Japan, with the government investing 1 trillion yen over five years to address the talent shortage.** However, only 17% of workers feel their company offers sufficient support, while 29.5% say it’s inadequate. Despite 31.6% recognizing the need, only 18.2% have acted. Reskilling is essential for staying competitive for both employers and employees.***
DEI is essential for Japan’s workforce growth and competitiveness
Diversity, Equity, and Inclusion (DEI) is critical in Japan as the country grapples with a shrinking workforce. Initiatives, such as gender diversity and including foreign workers and older employees, could boost corporate growth by 2.1% and compensation by 3.7%.****With 70% of job seekers prioritizing DEI, fostering inclusive environments is key to attracting and retaining talent.*****
