In last month's editorial, I discussed the first 3 reasons why recruiting for good and bi-lingual talents in Japan is extremely challenging, namely, 1) Acute Supply and Demand Imbalance; 2) Loyalty Factor and Risk Averseness; and, 3) Very Passive Candidates.

The following are additional reasons in better understanding the current dearth of qualified and bi-lingual talent pool in Japan:

4. Low English Skills. Any one who has ever been to Japan will immediately agree that Japan has one of the lowest English communication skills amongst the developed nations of the world (in fact, some say that Japan's English literacy rate, around 10%, is the lowest in all of Asia!). As a result, foreign affiliated companies who are naturally seeking bi-lingual talents compete for these talents in a very limited pool. Historians have traditionally attributed this from the country's centuries of being isolated from the rest of the world. However, I believe that the country's educational system has a big say to this malady (n.b.: In Japan, mandatory English courses only begin in secondary education level). I can only hope that the government's educational reform can help solve this problem.

5. Demographic Pressures. We've all heard it. Japan's population is shrinking brought about by its rapidly aging society and its very low birth rate (1.29% in 2006). Compounding this issue is Japan's immigration policies which primarily remain "closed" or restrictive to foreign talents. It's a no-brainer that these demographic pressures will eventually catch up with the war for talent in Japan (if it hasn't already!).

6. Perception Problem for MNCs. In a very image-conscious society such as Japan, perception is everything. Unfortunately, there is a lingering fear among Japanese talents that foreign affiliated companies bring along with them the "hire-and-fire" mentality that is so common in the West. There is also a general perception among them that foreign companies are "unstable" and can easily pull out from Japan. In a country where lifetime employment or risk averseness is pervasive, these perception problems become a stigma for talents to join foreign companies in Japan.

Well, there you have it! These are my Top 6 reasons why the so-called war for talent is no where more true (and fiercer) than in Japan. My advice: when you found a talent suitable to the job and to your organization, act FAST! Otherwise, you'll lose that talent and I can assure you that it's just really a matter of time. --JK