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Why you need to pay your temporary workers better

by Fabian Hoshino

The job market in Tokyo remains active, and candidates are in a much stronger position than a few years ago. This is not only affecting the permanent recruitment market but also the mid- to high-level temporary staffing market. If you still have the mentality of a few years ago, when it was easy to secure temporary workers even at low fees, you will struggle if you try to do the same these days.

Hiring junior candidates
Let’s look at the younger, junior candidates. If you are looking to hire junior talent on a temporary basis, either for a long-term position or maybe even on a temp-to-permanent basis, you might think the rate should be low, due to their lack of experience. However, the really strong young candidates can usually choose from multiple offers. So even if you are able to secure someone initially, the risk of losing him or her is extremely high. It is just a question of time until the individual receives an offer for a permanent position that usually pays significantly more.

Unless they have special family situations or other reasons, the vast majority of the strong junior talent will prioritize permanent positions that pay better and offer career development and employment stability.

Hiring experienced candidates
So what about the more experienced candidates who might consider temporary positions? Even candidates who were mostly considered for temporary positions until a few years ago are now being approached for permanent positions. One reason is simply the shortage of candidates, but another reason is also that companies are more flexible with regards to age and number of job changes. That means you need to offer a competitive salary to secure them and keep them committed for the long term. However, the beauty of hiring someone more experienced is that, thanks to their experience, their output is higher and they are more independent, more professional, and more committed (if they are well-paid).