Good communication needed to close salary expectation gap
Good communication is needed to close the salary expectation gap between candidates and employers in Japan. Despite a conservative salary outlook, one in five (21%) candidates in Japan expects to receive a salary increase of more than 6%; yet, just 6% of employers in Japan plan to offer such an increase, according to research carried out by recruiting company Hays in Japan.
The annual Hays Salary Guide asked more than 1,200 employers about their salary intentions. Overall, 20% plan to award salary increases of 3 to 6% while 74% intend to award pay increases of nil to 3%.
Of the 274 Japanese candidates taking part in a recent Hays online poll on salary expectations, 63% expect to see a pay increase of nil to less than 3% hit their pay packet while 15% expect an increase of between 3 and 6%.
“Employers are looking to maintain costs where possible,” explains Jonathan Sampson, Regional Director of Hays in Japan.
“For candidates this means looking at the opportunity for professional growth offered by a potential employer and not just the salary. This will help you position for promotion once inside the organization to command greater salary increases down the track.”
“The potential for salary increases moves up and down as economic conditions change so it is important not to overreact to salary trends. Employers also need to tread carefully in this market and ensure they are selling the full range of the benefits they offer employees when they are interviewing job candidates.
“Open and honest communication with existing and potential employees regarding salaries and benefits is very important to help bridge the gap in pay expectations,” said Sampson.