Is It Possible to Acquire Talent Residing in Japan for Telework? Current Work Patterns?”

Telecommuting Trends and Cross-Border Work Opportunities

The COVID-19 pandemic has significantly increased the number of telecommuters in Japan. According to a survey by the Ministry of Land, Infrastructure, Transport, and Tourism, around 26% of the workforce engaged in teleworking in 2022.

This shift from the traditional office-centric work style to telecommuting has been particularly prominent in the Tokyo metropolitan area, where 40% of telecommuters reside, well above other regions.

Because of flexible time management, reduction of commuting burdens, and the possibility of ‘workations,’ approximately 87% of current teleworkers express their intention to continue this work style.

Benefits for Foreign Companies Hiring Japanese Teleworkers

Ability to Employ Japanese Talent Pre-Market Entry

Foreign companies pursuing entry into the Japanese market typically establish liaison offices, branches, or subsidiaries, all requiring a physical presence in Japan.

However, they can secure talent from Japan before physically setting up an office by hiring teleworkers. Indeed, a well-known job search platform, plays a significant role in connecting foreign companies with local talent.

Employing Japanese talent before market entry enables these companies to conduct market research, gather information, and prepare for operations effectively. Furthermore, if teleworking continues to be prevalent, companies can minimize office space requirements, leading to cost savings upon market entry.

Reduced Social Insurance Premium Burden

Japan implements a nationwide system called National Health Insurance, which mandates that both employers and employees share the cost of social insurance premiums equally. This covers health insurance, long-term care, pensions, and employment insurance.

For full-time remote workers residing in Japan, there is no requirement to pay these premiums, as they lack a physical office presence. Consequently, foreign employers do not need to contribute to social insurance premiums.

Benefits for Japanese Workers

Opportunity for Higher Income

Japan’s real wage growth has been virtually stagnant over the past 30 years, with a meager 0.1% increase. Monthly government figures reveal that real wages have been continuously decreasing for 17 consecutive months due to the effects of rising prices. Japanese employees often receive low salaries compared to their international counterparts.

This situation has driven many Japanese professionals to seek better-paying opportunities abroad, where similar occupations can offer more than double their Japanese income. The range of work options is diverse, including teleworking, overseas factory work, agricultural work, and more.

Particularly, the recent weakening of the yen has made it even more attractive for Japanese workers to earn a higher income in foreign currencies.

The Growth of Part-Time Employment in Japan: Opportunities for Foreign Businesses

The Growing Interest in Part-Time Work in Japan In response to the emergence of telework during the COVID-19 p […]

BizMOWA

Due to the low primary income, there is a growing trend in part-time jobs.

In Conclusion

The COVID-19 pandemic has triggered a surge in teleworking in Japan, offering a shift from traditional work cultures. Its flexibility and convenience have made it a popular choice for both employees and employers.

For foreign businesses looking to enter the Japanese market, teleworking provides a valuable option for securing talented Japanese professionals without the need for physical relocation.

Teleworking is a mutually beneficial work style, and for companies considering market entry into Japan, it represents a valuable choice for talent acquisition.

Note: Please consult with such experts as a lawyer or a certified public accountant for detailed advice and information.