Top 3 challenges for Japan's HR in 2022 (hint, the answer isn't clear yet)

(日本語)

Two years ago I published an article based on survey results collected from Japan-based HR professionals with that aim of understanding the effects of Digital Transformation on Japan's HR function. That article was a continuation of two similar articles that I had published in 2017 and 2015.

Coming into 2020, my hope was to investigate those findings further over the course of 2020 through more communications for a deeper dive per sub function of Japan's HR. Sadly, covid-19 came long and spoiled that plan as the world of work rapidly transformed around the crisis. The timing of Japanese HR's plans to adapt around digital transformation created a perfect storm alongside the mission critical needs surrounding workplace reform. The outcome, at least from my own perspective (which can be argued), was that Japan's HR function has created an opportunity to reposition itself nearer toward global standards.

Now again in 2022, the hope for more exploration of the HR function in Japan with data and direct feedback from Japan's HR professional network is renewed with a bigger plan for consistent interactive deeper dives into the survey findings over time.

"THANK YOU" to those who shared their time to take the survey. Without your kind support, this wouldn't be possible. Those who replied to let me know they competed the survey will receive all of the detailed results as a present sent to them directly soon :)

The articles from here will include the exact result per question from the 117 responses collected. It's no secret that I'm not an expert statistician, so my aim with transparency is to build upon results over time and create a more accurate resource for Japan's HR professionals.

The formula for these surveys is simple. No more than 10 questions, most questions can have more than 1 answer, and it shouldn't take more than 3 minutes to complete. In the past I went for a volume of responses with a wide range of HR professionals, though have decided to be more targeted around 100 responses per survey since I’d like to avoid spamming and build into more specialized insights per sub-function of HR over time.

To start the survey off with a look in the mirror, I wanted to know;

• "What are your HR team's top 3 pain points?"
• "What do you think the business leaders & peers outside of HR see as the top 3?"
• "Do you think both perspectives are aligned?"

Japan's HR see the top 3 challenges as:

1. finding talent, 53%
2. retaining talent, 48%
3. change management, 44%

(leadership development, 41%)

When asked what HR thinks the business sees as their top 3 challenges, the list became:

1. finding talent, 62%
2. retaining talent, 48%
3. leadership development, 42%

(change management, 29%)

Does Japan's HR see alignment between their needs and how those needs are perceived by the other leaders and their peers (key non-HR stakeholders) throughout the business?

Other than differences in prioritization of Change Management between HR and the business, the HR professionals surveyed seem to have a good level of self awareness and alignment with the needs of the organization. Perhaps this can be proven better with similar surveys done with the C-level or executive non-HR and something to consider later on this year. Looking at the data and comparing that with conversations within my network, I believe the difference between Change Management and Leadership Development could be that, while Japan's HR sees the point of Change Management being an issue, the other stakeholders see the need equally, though change can only be led by well developed leaders. So, it seems to be a question of executing change now or equipping managers to lead change later.

It is also interesting to see the perception of prioritization of hiring new talent between what Japan's HR sees they need (53%) versus the sense of urgency they are feeling from the business (63%). The difference is nearly 20%. The current perception from HR is similar to that of 2015 (50%). It appears to be business as usual, that is until we look at the fear of attrition.

This will require more follow up, though based on previous years' findings, I can see Japan's HR has drastically increased prioritization of employee retention and engagement from 28% in 2015 to 48% in 2022 (up 71%).

The war for talent has escalated and even Japan’s workforce isn’t immune to the global trend. Surprisingly, the apparent strategy based on the survey results has shifted from the offensive to attract and win talent from the competition to defensive measures to engage and secure their existing workforce. To foreshadow an article to come later this year, further findings about HR's hiring plans in 2022 could be misaligned with a defensive strategy. Talent Acquisition will be the second most sought after HR position with 25% of those surveyed stating they will create or backfill this role in their HR team during this year. Looking at the number of TA openings and the clear market trend , this appears to be accurate.

This is a brief glimpse of the following 7 questions asked and what will be covered in future articles this year:

• Which area or areas of specialization within your HR team will need the most development?
• Is there a sufficient number of team members to support these areas that need development?
• Which team will be of greatest priority for development during 2022? (1 answer)
• What strategies will be used to develop your HR team this year?
• Which HR position(s) will be of greatest need to create or backfill within 2022?
• What method(s) will you use to find this HR talent?
• What are the top 3 challenges you will face to hire the HR talent you need in 2022?

Please comment your thoughts below and subscribe for future newsletter articles.

If you’re an HR professional in or supporting Japan, please feel free to join the conversation in the HR Japan Roundtable LinkedIn group. If you’d like to be included in future surveys, please message me directly and I will openly share all the results of any survey you complete.

— About —

I have lived in Japan and worked in the Recruitment & Staffing industry for over 15 years. In this time, I have used my strong interest to continuously learn about HR's international standards along with how HR operates in Japan. The contrast between the two has stirred many questions and I hope to use these articles as an opportunity for exploration and discovery as I work with Japan's HR to bring them together through open, but anonymous feedback as we achieve a greater purpose...

My goal is to provide visibility for HR professionals in Japan so that they can improve our quality of life.

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