Japan appears highly attractive to global tech businesses. It boasts the world’s fourth-largest economy and a base of sophisticated consumers. Yet, many foreign startups find Japan a surprisingly difficult market to crack. 1. High Standards for Quality and Service Japanese customers expect perfection. Products are judged not only on what they do, but on how reliably and gracefully they perform. Even minor bugs can seriously damage a tech brand’s reputation. Companies like Amazon succeeded only after building robust local support teams and adopting strict quality controls to meet these standards. Service expectations are equally demanding. 24/7 Japanese-language support, efficient returns, and extremely reliable delivery aren’t “nice-to-haves”; they’re essential requirements. These expectations can overwhelm new entrants unfamiliar with local norms. 2. Trust and Long-Term Relationships Business in Japan is personal. Trust must be built slowly, often through lengthy introductions, face-to-face meetings, and social engagement. Unlike in Western markets, companies rarely switch suppliers quickly, preferring domestic partners they know well. This culture is reinforced by Japan’s famous keiretsu system, networks of interlinked companies with close relationships. Breaking into such a system takes immense patience and a strong local presence. Salesforce found success by empowering trusted Japanese staff to lead operations independently and by investing heavily in local partnerships. 3. Caution and Slow Change Japan’s business culture is conservative and risk-averse. Companies often stick with established brands rather than try something new. This cautious approach slows sales cycles; major decisions can take months and must go through consensus-driven processes like nemawashi and the ringi system. Rapid disruption is rare. Even innovative tech firms must demonstrate steady value and long-term commitment before gaining wide acceptance. 4. Regulatory and Bureaucratic Hurdles Government regulations present another challenge. Japan’s bureaucracy is thorough and slow-moving, requiring detailed compliance checks and extensive paperwork, especially in sectors like finance or public infrastructure. These requirements mean startups must be well-prepared and patient as they enter the market. 5. Lessons from Successes and Failures Some Western companies have struggled, while others have adapted and thrived: Uber failed in Japan by ignoring local regulations and cultural norms. Japan’s taxis already offered safe, reliable, and convenient service, reducing Uber’s appeal. The company’s aggressive approach clashed with Japan’s consensus-driven business culture, leading to a quick withdrawal. eBay entered late and misunderstood consumer preferences, never building the trust or convenience offered by Japanese competitors. Its retreat illustrates that simply replicating a global model doesn’t guarantee success in Japan. Stripe succeeded by adapting to Japan’s unique systems, customizing its offerings, and accommodating local payment methods. Its willingness to learn and adjust underpinned steady growth. Netflix and Amazon both found success by investing in local content, customer service, and infrastructure tailored to Japanese preferences. Netflix thrived by producing Japanese-language programming and personalizing experiences for local audiences. 6. The Bottom Line Japan rewards commitment, patience, and adaptation. Companies that thrive here localize their products and services, invest deeply for the long term, and build lasting trust with customers and partners. For those willing to meet Japan’s high standards and navigate its layered business culture, opportunities remain substantial, but shortcuts rarely work.

Japanese below As of 2025, AI has become an indispensable tool in the financial sector, supporting both operational efficiency and advanced decision-making. Key areas of adoption include real-time fraud detection, multidimensional credit scoring, and AI-powered customer service via chatbots. The use of generative AI for report drafting and automated investment advice is also expanding. Main benefits of AI in finance include: More accurate fraud detection and risk prediction through behavioral and transactional data analysis Enhanced credit assessments using alternative data such as utility payments and rental history 24/7 customer support through intelligent virtual assistants Significant cost reduction by automating back-office tasks such as payment processing and reporting However, several challenges are emerging. AI models often function as “black boxes,” making it difficult to explain the rationale behind decisions—a critical concern in regulated industries. In addition, biased training data can lead to unfair outcomes, particularly in lending or insurance. The rise of generative AI also introduces new cybersecurity risks, including fake voice and document manipulation. On the regulatory front, oversight is tightening. With the EU’s AI Act and similar efforts globally, transparency and accountability in AI-driven financial services are increasingly emphasized. In Japan, the Financial Services Agency and Bank of Japan are also beginning to establish AI governance guidelines, signaling the need for stronger compliance and governance frameworks. Looking ahead: Generative AI will see broader use beyond customer service—extending to investment advisory, document automation, and even internal training Human-in-the-loop workflows, where AI supports but doesn’t replace human decision-making, will become standard AI will play a growing role in ESG analysis, including environmental risk assessments and ethical investment scoring Financial professionals will increasingly be required to possess data and AI literacy as a core skill set 金融業界におけるAI活用の現状と展望 2025年現在、AIは金融業界において「業務効率化」と「高度な意思決定支援」の両面で不可欠な存在となりつつあります。特に、不正取引のリアルタイム検知や、信用スコアリングの多角的分析、カスタマーサポートのチャットボット化などが急速に普及。生成AIを活用したレポート作成や投資アドバイスの自動化も進んでいます。 AI活用の主なメリットは以下の通りです： 取引データや行動履歴を分析することで、不正検知やリスク予測が従来より正確に 与信審査では、過去の信用履歴に加えて代替データ（公共料金支払いなど）も活用 チャットボットや仮想アシスタントにより、24時間体制の顧客対応が可能に バックオフィス業務（決済処理、レポート作成など）の自動化で大幅なコスト削減 ただし、課題も明確になりつつあります。 AIモデルの判断がブラックボックス化しやすく、「なぜその結果になったのか」が説明しづらいこと、また、学習データに含まれるバイアスによる不公平な判断が懸念されています。さらに、生成AIによる音声や文書の偽造など、サイバーリスクも新たな課題となっています。 規制面でも動きが活発化。 EUの「AI法」などを皮切りに、金融におけるAI利用には高い透明性・説明責任が求められる時代が到来。日本でも金融庁や日銀がAIのガイドライン整備に着手しており、今後は「ガバナンス体制の強化」が金融機関にとって重要なテーマになります。 今後の展望としては：  生成AIの業務活用は、顧客対応・文書処理だけでなく、投資助言や社内教育にも拡大 AIと人間が協力しながら業務を進める「Human-in-the-Loop」体制が標準化 ESG（環境・社会・ガバナンス）評価や気候リスク分析などにもAIが活用される見通し 金融人材には「データ・AIリテラシー」が必須スキルとなりつつある

Japan stands at a critical inflection point in its relationship with artificial intelligence. As the nation faces demographic pressures, global competition, and the urgent need for digital transformation, leadership has emerged as the decisive factor in determining whether AI adoption will succeed or fail. For Japanese executives, the challenge extends beyond technology itself—it is about guiding organizations through cultural transformation while preserving the values that have long defined Japanese business excellence. AI adoption in Japan reflects deep cultural characteristics that influence how organizations embrace new technologies. In 2024, 25.8% of Japanese companies reported implementing AI in some capacity, a sharp increase from 9.9% in 2023. Yet this still lags far behind global benchmarks, where 65% of firms regularly use generative AI and 78% apply AI overall. Japan’s comparatively slower pace stems from its cultural emphasis on consensus-building, risk avoidance, and quality assurance. While Western companies often favor rapid experimentation and customer-facing pilots, Japanese firms typically follow a deliberate progression—focusing first on internal efficiency, then governance, and only later on external applications. The practice of nemawashi, or behind-the-scenes consensus building, continues to shape adoption patterns, requiring leaders to secure organizational agreement through proof-of-concept projects and gradual rollouts that prioritize procedural legitimacy and consistent quality [1]. This cultural context places new demands on Japanese leadership styles. Traditional models, defined by hierarchical decision-making and long-term stability, are now evolving to accommodate the flexibility and visionary thinking required for AI-driven transformation. Modern leaders must balance adaptability and empathy with data-driven decision-making, moving away from command-and-control approaches toward empowering teams and fostering shared visions. Companies such as Google Japan and NTT Data Malaysia demonstrate how Japanese leaders can navigate international markets by blending global mindsets with traditional values like kaizen-driven quality and consensus leadership. The most effective leaders now combine meticulous attention to detail and ethical standards with new capabilities in change management and technological adoption, ensuring that employees rally around AI initiatives while maintaining long-term organizational sustainability. [2] A central challenge lies in building AI literacy across organizations. Surveys suggest that around 23.6% of Japanese workers—roughly 8.56 million people—express interest in becoming AI human resources, offering significant potential to close the projected shortage of 790,000 IT professionals by 2030. Yet developing AI literacy requires more than technical training. Leaders must create environments where employees see technology as complementary to human skills rather than a threat to job stability. Successful programs emphasize practical, accessible applications, such as AI transcription for interviews, generative AI tools for bilingual client proposals, or AI-powered platforms that streamline report creation. By embedding AI into daily workflows without disrupting established practices, companies can reduce anxieties and build confidence in its value. [3] AI is also reshaping workforce planning models. The traditional practice of scaling human resources in line with business growth—by hiring more sales staff, expanding support functions, and increasing marketing investment—must now account for automation potential before recruitment decisions are made. This is particularly evident in HR, where AI supports recruitment, resume screening, and automated employee queries in both Japanese and English. Companies like Makana Partners have redesigned recruitment processes around AI integration, increasing responsiveness and efficiency. These adjustments also respond to broader demographic challenges: with Japan’s working-age population projected to shrink by 24 million by 2050, AI is becoming essential for sustaining productivity. By capturing and transferring the knowledge of experienced workers to younger generations, organizations are addressing the urgent need for skills transfer in an aging workforce [4]. The philosophy of kaizen, or continuous improvement, provides a natural bridge for AI adoption. This emphasis on incremental progress aligns well with implementation strategies that focus on gradual optimization rather than disruptive change. Japanese companies are already applying AI in ways that reinforce this tradition. Manufacturing firms, for example, are using AI-guided systems and virtual reality training to help younger workers learn from senior colleagues, while Hitachi has developed an AI tool that assists workers in diagnosing equipment issues and recommending remediation steps, improving the abilities of unskilled employees by 30%. By framing AI as an extension of kaizen, leaders can reduce resistance and position new tools as enhancements to established practices rather than threats. To succeed in this environment, Japanese executives require a distinctive mix of competencies. While they need not become engineers, they must understand AI’s capabilities and limits, identify areas for measurable impact, and personally test systems to evaluate workflow implications. Equally important are strong foundations in business acumen, change management, and cultural bridge-building. Leaders must anticipate employee concerns, communicate empathetically, and facilitate collaboration between more cautious older workers and younger generations eager to experiment with new tools. By fostering dialogue and reducing fear of experimentation, executives can support gradual but lasting cultural change. Overcoming resistance remains one of the most pressing challenges. Japan’s ingrained aversion to risk and failure can inhibit progress, yet its traditions of precision and ethical rigor also offer advantages in areas where reliability and trust are paramount. Effective change strategies emphasize controlled experimentation, reframing setbacks as opportunities for learning rather than as failures. Media narratives play an important role in this cultural shift, showcasing examples of calculated risks that yield long-term success and encouraging organizations to see experimentation as a driver of innovation. Practical strategies for AI adoption reinforce these cultural considerations. Leaders are advised to begin with internal efficiency initiatives before expanding outward, to frame AI as a way of strengthening existing capabilities in manufacturing and customer service, and to invest in training programs that extend beyond technical skills to include ethical awareness and change management. Initiatives like Google’s Japan Reskilling Consortium, which unites business, government, and nonprofit partners, provide models for comprehensive education. Creating safe spaces for experimentation and emphasizing AI’s immediate, measurable benefits further support adoption while aligning with Japan’s preference for thorough validation. Looking ahead, Japan’s path toward becoming the world’s most AI-friendly country offers lessons for organizations worldwide. By emphasizing ethics, reliability, and long-term sustainability, Japan is uniquely positioned to lead in sectors such as healthcare, autonomous systems, and manufacturing. The key lies in leaders’ ability to guide their organizations through cultural transformation while preserving values that define Japanese business excellence. If positioned as a complement to human skills rather than a replacement, AI can provide sustainable competitive advantages that benefit both companies and society. Ultimately, Japan’s AI journey is less about technology itself than about leadership evolution, organizational resilience, and cultural adaptation. By embracing AI as a tool for continuous improvement and human enhancement, Japanese leaders are crafting a model of responsible innovation—one that integrates technology with cultural identity to create a future where AI strengthens rather than diminishes human potential. Citations  [1] greeden (2025). [Latest Analysis] Why Is There a Gap Between Japan and Overseas in Generative AI Adoption? — Cultural Background, Pros/Cons, and Outlook for the Next 5 and 10 Years - IT & Life Hacks Blog｜Ideas for learning and practicing. [online] IT & Life Hacks Blog｜Ideas for learning and practicing - Quick life hacks for every day Support by AI. [Accessed 27 Aug. 2025]. [2] Nakayama, C. (2024). Reconciling tradition and innovation: Japan’s path to global AI leadership. [online] World Economic Forum [Accessed 26 Aug. 2025]. [3] AI inside Inc. (2022). Approximately 20% of the Japanese Workforce Are ‘Potential AI Human Resources’The Key to Solving the AI/IT Labor Shortage in Japan by Reskilling Job Transition. [online] [Accessed 26 Aug. 2025]. ‌[4] Schneider, T., Hong, G.H. and Le, A.V. (2018). Managing Japan’s Shrinking Labor Force With AI and Robots - IMF F&D Magazine - June 2018 | Volume 55 | Number 2. [online] IMF. ‌[Accessed 25 Aug. 2025]. [5] Endo, M. (2025). Japanese companies use AI to pass on veteran workers’ skills. [online] Asianews.network. Available at: https://asianews.network/japanese-companies-use-ai-to-pass-on-veteran-workers-skills/ [Accessed 27 Aug. 2025].

Japan's talent acquisition landscape has undergone a fundamental transformation, driven by unprecedented demographic pressures and evolving workforce expectations. With the unemployment rate holding steady at 2.5% in May 2025, and the job-to-applicant ratio reaching 1.22 in June 2025, the competition for skilled professionals has intensified dramatically. These figures underscore the challenges companies face in attracting and retaining talent in a tightening labor market [1]. Japan is experiencing one of the most acute labor shortages among developed nations. The working-age population continues to shrink, with the number of individuals aged 65 and older reaching a record 36.25 million in 2024, accounting for 29.3% of the total population . This demographic shift has created severe workforce constraints, particularly in sectors like construction and nursing, where job-to-applicant ratios are as high as 4.6 and 3.7, respectively [2][3]. The severity of this challenge is further evidenced by a record 260 corporate bankruptcies in 2023 attributed solely to an inability to secure sufficient workers [4][5]. One significant transformation in Japan's recruitment landscape is the shift toward skills-based hiring. Companies are increasingly recognizing that rigid credential requirements limit the available talent pool. This skills-first approach prioritizes competencies over degrees and job histories, opening opportunities for previously overlooked talent segments, including career changers from non-traditional backgrounds [6]. The concept of workplace flexibility has evolved from a desirable perk to a fundamental expectation, especially among Japan's younger workforce. Recent surveys indicate that 75% of workers now prefer flexible arrangements, marking a lasting shift in employment expectations . This transformation has been accelerated by the COVID-19 pandemic, which forced many Japanese companies to adopt remote work practices previously considered incompatible with traditional business culture [7][8]. Japan's Generation Z and millennial workers bring distinctly different expectations compared to previous generations. Unlike older cohorts who prioritized job security and company loyalty, younger professionals place greater emphasis on purpose-driven work, personal growth, and work-life balance. Research indicates that 38% of Gen Z workers prioritize work-life balance over pay and benefits when selecting employers [9] [10]. In Japan's relationship-driven business culture, employer branding carries exceptional significance. Research indicates that 92% of job seekers in Japan consider an employer's reputation before applying for positions, while 80% will actively avoid companies with poor reputations or uninspiring online presence . The concept of employer branding in Japan extends beyond traditional marketing to encompass fundamental cultural values of trust, harmony, and long-term commitment. Japanese professionals value stability and are particularly cautious about joining organizations that may undergo management integration or restructuring. This creates both challenges and opportunities for companies seeking to build strong employer brands [11] [12]. The integration of artificial intelligence and digital technologies into recruitment processes has gained significant momentum in Japan. These innovations automate candidate screening, enhance data analysis accuracy, and improve overall efficiency in talent acquisition. However, the adoption remains uneven across industries, with traditional manufacturing and retail sectors showing slower uptake compared to technology companies [13]. Japan's response to labor shortages has involved expanding workforce participation among previously underutilized demographics. Female labor force participation reached a historic high of 53.6% in 2023, while employment among seniors aged 65 and older continues to grow, reaching 9.14 million workers . This demographic diversification requires companies to adapt their workplace cultures and policies to accommodate diverse needs and expectations. Organizations that successfully integrate these expanded talent pools often gain competitive advantages through increased innovation, broader market understanding, and enhanced problem-solving capabilities [14][15]. Modern Japanese professionals, particularly younger generations, seek employers who offer clear pathways for skill development and career progression. Companies that invest in continuous learning programs, mentorship opportunities, and cross-functional exposure demonstrate commitment to employee growth that resonates strongly with talent-conscious candidates [16]. While salary remains important, Japanese workers increasingly value comprehensive benefits packages that address work-life balance, mental health support, and family responsibilities. Companies like Uniqlo have gained recognition through progressive policies including flexible work hours, extensive paid leave options, and significant salary increases to address inflation concerns [17]. International companies entering the Japanese market must navigate the complex intersection of global best practices and local cultural expectations. Success requires understanding that Japan's revered customs, such as meticulous quality control and consensus-building decision-making, can enhance global enterprises when integrated thoughtfully. Professional recruitment consultancies play a crucial role in navigating Japan's complex talent landscape. With extensive market intelligence and strategic positioning, specialized firms help organizations understand local hiring dynamics while connecting them with qualified bilingual professionals. The consultative approach adopted by experienced recruitment partners provides valuable insights into market compensation benchmarks, cultural expectations, and effective attraction strategies tailored to Japan's unique conditions. Japan's work culture continues evolving, driven by demographic necessities and generational change. Companies that proactively adapt to these shifts while maintaining cultural sensitivity will gain significant competitive advantages in talent acquisition and retention. Organizations must invest in both recruitment technology and comprehensive training programs to remain competitive. The skills-first approach requires sophisticated assessment tools and ongoing development infrastructure to identify and nurture talent effectively. Success in Japan's talent market requires commitment to long-term relationship building with both candidates and employees. Companies that demonstrate genuine investment in employee well-being and career development create sustainable competitive advantages in talent retention. The transformation of Japan's labor market presents both unprecedented challenges and remarkable opportunities. Organizations that understand these dynamics and adapt their strategies accordingly will thrive in one of the world's most sophisticated and demanding business environments. The key lies in balancing respect for Japan's cultural heritage with progressive approaches to talent management, creating workplaces that attract, develop, and retain the best professionals in an increasingly competitive landscape. Citations [1] Trading Economics (2025). Japan unemployment rate. [online] Tradingeconomics.com [Accessed 27 August 2025] [2] nippon.com. (2024). Number of Seniors in Employment Continues to Rise in Japan. [online] [Accessed 27 August 2025] [3] Team Alp (2025). Why Is There a Labor Shortage in Japan? [online] Alp Consulting. [Accessed 27 August 2025] [4] Lu, Y.S. (2025). Unleashing the 2025 Japan Job Market: A Perspective. [online] Makanapartners.com. [Accessed 26 Aug. 2025]. [5] Bloomberg, E.Y. / (2024). Japan’s Population Falls at Record Rate. [online] TIME. [Accessed 25 Aug. 2025]. [6] OECD. (2025). Empowering the Workforce in the Context of a Skills-First Approach: Practical considerations for a skills-first approach. [online] [Accessed 25 Aug. 2025]. [7] 世界経済フォーラム. (2023). Putting Skills First: A Framework for Action. [online] [Accessed 27 Aug. 2025]. ‌[8] Lu, Y.S. (2025). Unleashing the 2025 Japan Job Market: A Perspective. [online] Makanapartners.com. [Accessed 27 Aug. 2025]. ‌[9] admin (2024). Gen Z Decoded: How to Harness Their Potential for Future Success - TG Japan. [online] TG Japan. [Accessed 27 Aug. 2025]. [10] admin (2022). Understanding Gen Z to Drive Success in the Future Workforce - TG Japan. [online] TG Japan. [Accessed 27 Aug. 2025]. ‌[11] HirePlanner - All In One Hiring Platform - ATS - Job Board - Job Posting - Agency Management. (2022). Why Invest In Employer Branding To Recruit In Japan? | HirePlanner - All In One Hiring Platform - ATS - Job Board - Job Posting - Agency Management. [online] [Accessed 26 Aug. 2025]. [12] Fasthire.io. (2024). 5 Ways to Enhance Employer Branding in Japan - Blog. [online] [Accessed 25 Aug. 2025]. ‌[13] RYZEConsulting. (2025). Bill’s insight of hiring market in Japan for 2025. RYZEConsulting. [online] [Accessed 27 Aug. 2025]. ‌ [14] E-housing.jp. (2025). Inside Japan’s Work Culture Crisis and the Bold Moves to Fix It | E-Housing. [online] [Accessed 27 Aug. 2025]. ‌[15] nippon.com. (2024). Number of Seniors in Employment Continues to Rise in Japan. [online] [Accessed 27 Aug. 2025]. ‌[16] jcoadmin (2024). What do Millennials & Gen Zs value in their jobs? - JustCo Premium Coworking. [online] JustCo Premium Coworking - The Place That Works For You. [Accessed 27 Aug. 2025]. [17] Hyresearch.com. (2024). 2024 Employer Branding Trends and Effective Strategies for Hiring in Japan. [online] [Accessed 26 Aug. 2025].

We were excited to welcome Summer Marsden to Makana Partners as an intern. With a background in marketing and communications, Summer brought curiosity and creativity to her work, diving into the world of executive search with fresh perspective and enthusiasm. During her internship, she supported our consultants in sourcing candidates, managed and updated our Loxo database, and contributed to marketing and website projects that strengthened our online presence. Summer’s adaptability and initiative shone through in every task, and we’re grateful for the energy and insights she brought to our team. We’re grateful for Summer’s time, effort, and creativity, and we look forward to seeing where her talents take her next. What is one thing you learned about the executive search industry during your internship that surprised you? How has it changed how you view the work we do? Having such little knowledge of executive search before arriving, I was surprised by how much of the sourcing involved reaching out to candidates who already had jobs. Knowing more about how limited the active search pool is now, it makes a lot of sense. It gave me a stronger appreciation for the nuance and complexity of the work that Makana Partners does, as sourcing individuals with jobs creates the issue of identifying and potentially poaching strong candidates at companies without creating a bad relationship with the company that they work at. You never know if the company they work for currently could become a new client in the future, so finding professional ways to handle these situations is difficult and impressive. Can you describe a time when you helped with sourcing candidates? What strategies or tools did you find most effective, and why? Most recently, I helped source candidates for an HRBP position for a high-profile client. The tool I found most effective was the Google programmable search engine, as it allowed me to identify LinkedIn profiles in Japan that matched the title we needed to search for. In addition, having strict requirements to follow when searching through profiles is really helpful in weeding out the unqualified candidates, and highlighting the best ones. How did managing and updating our database help you understand how important accurate data is to our operations? Did it give you a new perspective on how we work? Just the sheer number of profiles on Loxo–over 22,000–gave me a good view into how important updating candidate profiles would be before I got into the meat of the work. Realistically, only about 5% of those profiles would become active clients, so being able to update those profiles was extremely important. Tasks as simple as updating nicknames, birthdays, and tags gave an insight into the small details that make a large difference when identifying the ‘right’ candidate for a job. Tedious as it might have been, I really do believe that it made candidate searches much easier. What did you enjoy most about creating or managing content for our social media or website? Can you give an example of a post or project you’re proud of? At first, learning how to use the Shazamme platform to edit the Makana Partners website was really difficult and frustrating. However, once I got used to the platform and found creative ways to make it produce what I wanted, I got a lot of enjoyment out of it. Once I had finished creating and curating all of the new tabs and content to be added to the website, it was really satisfying to see what a big difference the changes had made. I’m hopeful that it brings more engagement to the website, and more recognition to the Makana Partners name in general. You worked on a variety of tasks—like sourcing, data management, social media, and more. How did you stay organized and manage your time effectively? What was the most challenging part, and how did you handle it? To help manage the workload, as well as avoid boredom, I would prioritize more time-sensitive tasks when necessary and find ways to jump around tasks to give myself little brain breaks. Each day, I would use Microsoft Planner to keep track of the daily time-sensitive tasks, such as posting on LinkedIn or completing individual projects from Ken or Yan Sen. When those tasks were done, I’d let myself bounce between background activities such as Loxo profile updates, candidate searches, or social media content creation. This allowed me to space out large projects like the Loxo updates, while also having the freedom to dedicate time to more urgent tasks without feeling overwhelmed. The most difficult part was probably just handling the times when both Ken and Yan Sen would have extra tasks that they needed help with, but I always found ways to prioritize the most important ones and work efficiently to get them done. Even when they were time-sensitive, both Ken and Yan Sen were reasonable with when they wanted results, and often were surprised by how quickly I was able to produce them. Just staying focused and not letting short deadlines overwhelm me was the best way to handle it all. How did working with consultants, mentors, and other team members help you grow professionally? Did they challenge any of your assumptions or teach you something unexpected? I really enjoyed getting to meet and know many of the Makana Partners team members, and reflect on their individualities and different skillsets that provided them with advantages and expertise in different areas of executive search. I was constantly impressed by consistent announcements of high-level placements, and even more impressed by how each announcement came with praise for any consultants who had worked with them or helped them in the process. I can imagine that executive search and recruiting can be a pretty competitive arena, but the Makana Partners consultants were all extremely supportive of each other, which goes to show the positive work culture and environment. You supported research and reporting tasks during your internship. What did you learn about analyzing the market or preparing reports that you didn’t know before? I learned how important it is to use the tools at your disposal (AI, research databases, partner firm articles like Horton) to gain large amounts of information fast. Coming into the internship, I knew little about the Japanese market in general, and even less about executive search, which made my confidence low. However, once I got into specific tasks, I realized how easy it was to increase my knowledge when using the right tools. If you could suggest one improvement—whether to our sourcing process, data management, or social media efforts—what would it be and why? If possible, I would get consultants more involved in the marketing process when possible. Even with a marketing background, having only 1-2 people in charge of content creation and ideation limits the boundaries for where you can go. When Jayson suggested the “day in the life” video, it was great! I’m sure that other consultants would have unique and creative ideas like this, if given the opportunity and encouragement to think and share. Plus, having more autonomy in what kind of content they can create (not just articles) might bring more excitement and eagerness to the task. Looking back, which part of your internship helped you grow the most? What new skills or knowledge are you taking away from this experience? I never saw creativity as one of my strong suits, but having to run all of the content creation for Makana Partners (website design & social media) has definitely given me a lot more confidence in that area. I was also able to learn so much about a completely new industry in a really short amount of time, which goes to support my ability to soak up information and learn new skills really quickly. In addition, watching how consultants work with candidates to showcase their skills and career profile gave me unique lessons on how to bolster my own professional profile and leverage my experience to get job interviews and offers.

‌‌‌Switching industries later in one’s career is no longer an anomaly in Japan’s labor market—it is becoming a strategic advantage. Once considered risky or impractical, making a move at 49 or 50 is increasingly seen as both viable and valuable, not only for the professionals themselves but also for the companies that employ them. Japan’s labor market is undergoing a transformation driven by deep demographic shifts, persistent talent shortages, and a cultural rethinking of what experience and age mean in the workplace. The demographic backdrop is key to this change. Japan recorded 67.81 million employed individuals in 2024, a record high despite the country’s declining population. This growth is fueled by greater workforce participation among women and seniors, with 25.7% of those aged 65 and older now working. With unemployment remaining below 3% and a job-to-applicant ratio of 1.24, experts describe the situation as a “long-lasting and persistent” labor shortage [1]. The government’s decision to extend the mandatory retirement age to 65, fully effective in April 2025, further reflects recognition that Japan cannot afford to lose its experienced professionals. More than 83% of retired government employees say they want to continue working, a sentiment that mirrors a broader societal shift toward extended careers [2]. Together, these forces create conditions in which mid-career professionals are increasingly encouraged to make strategic transitions. This shift is being felt most acutely in industries facing structural shortages. Companies in construction, nursing, transportation, healthcare, and IT are opening their doors to candidates who may not have direct industry experience but bring transferable skills that can quickly add value. The technology sector illustrates this urgency most clearly: Japan is projected to face a shortage of 220,000 IT professionals by 2025, with demand especially strong in AI, cybersecurity, and cloud computing. Salaries in IT reflect this demand, with entry-level roles paying around ¥8 million—well above the national average of ¥4.60 million—and experienced specialists earning up to ¥15 million [3][4]. Mature professionals with transferable skills thus find not only opportunity but also attractive financial incentives. Evidence also suggests that age is an advantage, not a liability. Manufacturing companies with high proportions of employees in their 50s are often outperforming peers financially, with return-on-equity scores exceeding 10%. BIPROGY, for example, counts 40.6% of its workforce in their 50s and maintains a strong 14.3% ROE [5], challenging the conventional wisdom that older workforces undermine performance. Japanese employers are beginning to recognize that accumulated experience translates directly into organizational resilience and results. Transferable skills are at the center of this shift. Employers value project management, cross-cultural communication, financial literacy, and leadership capabilities more than ever. A manufacturing operations manager can reposition into logistics leadership, while an HR director can transition into consulting or talent development in another industry. Global experience is particularly prized as Japanese companies expand abroad, with professionals who have led multicultural teams or managed international projects standing out for their ability to navigate complex cross-cultural dynamics [6]. Preparation remains crucial. Targeted upskilling through government and private training programs helps professionals transition successfully. ESG management courses prepare candidates for roles in sustainability, AI literacy programs support moves into technology, and executive education in digital transformation equips leaders for cross-industry mobility [7]. Specialized platforms now make it easier to gain credentials in emerging fields, whether moving from manufacturing into renewable energy or pivoting into technology through digital transformation programs. Even with these opportunities, cultural fit continues to matter. Japanese companies still emphasize harmony, teamwork, and consensus, but attitudes are shifting toward valuing adaptability, learning agility, and change management experience. Employers increasingly seek candidates who balance technical capability with humility, openness, and cultural sensitivity [8]. Mid-career professionals must show they can align with a company’s vision while offering fresh insights gained from other industries or international work [9]. The results of these changes are measurable. Today, more than 37% of all job openings are filled by mid-career hires, with non-manufacturing sectors reaching nearly 40%. Four out of five Japanese companies now engage in mid-career hiring, up from just under 60% a decade ago, marking a clear break from the traditional lifetime-employment model [10]. Companies like Daikin demonstrate what this new reality looks like in practice: extending retirement to 65, allowing specialists to work past 70, and revising personnel systems so that promotions and salary increases remain possible beyond age 60. These systems reflect a growing belief that older professionals represent untapped value rather than a burden [11]. Japan’s employment system is moving away from rigid, tenure-based hierarchies toward fluid, skills-based models. Experience across multiple organizations—once considered a liability—is now a strength, as companies seek diverse perspectives to tackle new challenges . For professionals in their late 40s or 50s, this marks a unique moment. The combination of demographic pressure, evolving employer attitudes, and government support for extended working lives has created an environment where career transitions are not only possible but often advantageous [12]. The message is clear: switching industries later in one’s career is no longer a gamble in Japan—it is a timely strategy. By combining targeted training, cultural awareness, and a clear story around transferable skills, mid- and late-career professionals can successfully reposition themselves, often gaining greater influence and opportunity than they enjoyed in previous roles. Japan’s demographic challenges have opened an unprecedented window for those willing to adapt, offering mature professionals the chance to contribute their accumulated wisdom to new fields while shaping the future of work itself. Citations [1] JILAF | Japan International Labour Foundation. (2025). Economic and Labour Situation in Japan, February 2025 In 2024, Record-High 67.81 Million Employed - JILAF, Japan International Labour Foundation . [online] [Accessed 27 August 2025] [2] L&E global. (2025). Japan: 2025, Looking Ahead, LEGlobal , [online] [Accessed 26 August 2025] [3] Team Alp (2025). Why Is There a Labor Shortage in Japan? [online] Alp Consulting [Accessed 26 August 2025] [4] Benito, J.P. (2025). Shifting to IT in Japan 2025: Your Gateway to New Opportunities. [online] Makanapartners.com. [Accessed 27 August 2025]. [5] Kennedy, M. (2023). Workers in Their ‘Nifty Fifties’ Helping Japanese Companies to Achieve 10%+ ROE. [online] Substack.com. [Accessed 26 August 2025]. [6] Ayako (2025). Leveraging Experience: Japan Career Transition After 40. [online] Aya’s Japan Move Guide. [Accessed 25 August 2025]. ‌[7] Patrick, K. (2025). 8 Best AI Training Companies in Japan for 2025. [online] Edstellar.com. [Accessed 27 August 2025]. [8]Technica-zen.com. (2025). AI Literacy/Governance Training Service テクニカ・ゼン株式会社. [online] [Accessed 27 August 2025]. [9] CastroJasper (2025). Lesson 1: Understanding Japanese Companies’ Mindset at Job Interviews. [online] fastoffer.co.jp [Accessed 27 August 2025]. [10] slate-admin (2023). Mid-career Hiring is Becoming the New Normal for Corporate Japan - Slate Executive Search. [online] Slate Executive Search. [Accessed 26 August 2025]. [11] Tochibayashi, N. and Ota, M. (2024). Senior employment in Japan could solve employee satisfaction. [online] World Economic Forum. [Accessed 27 August 2025]. [12] Dsj-rec.com. (2025). Is the ‘Lifetime Employment’ Model Finally Dead? | Java Developer - Global Investment bank | Jobs | Divine Solutions Japan - Consultancy and Recruitment. [online] [Accessed 26 August 2025].

In Hawaiian, the word “Makana” means “gift” or “blessing.” At Makana Partners, our mission is to embody that meaning—to deliver a truly valuable gift to someone’s life. The role of a headhunter is not merely to introduce candidates. It is to connect individuals at pivotal career moments with companies seeking transformation—to hand both parties a “gift” called potential. As with any gift, timing is everything. It must be delivered with care, in the right form, at the moment it’s needed most. The same is true in the world of headhunting. We don’t simply line up candidates based on resumes and checkboxes. We strive to understand each person’s path, values, and rhythm of life—then reach out only when we feel, “This is the right moment for this challenge.” That’s our way. Sometimes, we encourage someone to let go of their current stability. Sometimes, we introduce candidates who might be unexpected from the client’s perspective. But at the heart of it all lies a single question: “What is the most meaningful gift we can offer for this person’s future?” Makana is not a one-way transaction. When the people we place thrive, bring fresh perspectives to organizations, and make a difference in the world—that entire cycle becomes proof of the Makana we’ve given. Each time we witness someone’s potential unfold, we are reminded of the true purpose of our work. We may be offering jobs—but in reality, we’re delivering something far greater: the courage to change, the hope for the future, and the power to believe in oneself. These are the sentiments behind the name Makana Partners. Like a gift, we want to deliver encounters that change lives. With that conviction in our hearts, we continue—day by day—to connect people to people, and people to companies. Makana — 人の人生に贈る、新たな可能性 ハワイ語で「Makana」とは、“贈り物”や“恩恵”を意味する言葉です。私たちMakana Partnersが担う使命は、まさにその言葉の通り、人の人生にとっての“価値ある贈り物”を届けることにあります。ヘッドハンターという仕事は、単なる人材紹介業ではありません。キャリアの転機を迎える人と、変化を求める企業。その両者に、可能性という名の“ギフト”を手渡すことなのです。 贈り物は、タイミングが重要。求められているときに、最適なかたちで、心を込めて届ける。これは、ヘッドハンティングの世界でも同じです。ただ経歴を見て条件に合う人材を並べるのではありません。その人がこれまで歩んできた道、価値観、人生のリズムを理解し、「この瞬間にこそ、この挑戦を」と感じたときに、声をかける。それが私たちの流儀です。 ときには、今ある安定を手放すよう促すこともある。ときには、クライアントにとって意外な人材を紹介することもある。しかし、そこにあるのは常に「相手の未来にとって、本当に価値ある贈り物とは何か？」という問いです。 Makanaは一方的なものではありません。紹介した人材が活躍し、企業に新たな風を吹き込み、世の中に影響を与える。その循環のすべてが、私たちが贈った“Makana”の証明になるのです。人の可能性に触れるたび、自らの仕事の意味を再確認する。贈っているのは仕事かもしれません。しかし、実はもっと大きなもの—「変化への勇気」「未来への希望」「自分を信じる力」—そうした目に見えない贈り物を届けているのだと、私は思います。 Makana Partners という名には、そうした想いが込められています。贈り物のように、人生を変える出会いを届けたい。そんな思いを胸に、今日も私は人と人、人と企業をつなぎ続けています。

Recent Trends in Executive Hiring in Japan's Financial Industry | 日本の金融業界におけるエグゼクティブ採用の最近の傾向

The Japanese tech industry in 2025 is booming and evolving, so IT candidates must bring more than just coding skills. What makes an IT candidate stand out today? A blend of cutting-edge tech know-how, bilingual communication, and adaptability in team settings. Below we explore key traits through mini-scenarios that highlight what employers value in the current market.