Thursday, December 30, 2010

Japanese businesses lose out in hiring of top Chinese talent

In the old days, when the Japanese management style helped to push Japan to the top of the economic stratosphere, Japanese corporations often laughed at the inefficient operations of their Chinese counterparts.

But now, as fast-growing China is set to overtake Japan as the world's second-largest economy, Japanese companies find themselves near the bottom of the pecking order in terms of hiring in China.

The most talented Chinese are flocking to Chinese, U.S. and European companies that offer higher wages and better chances for promotion than Japanese companies. Other skilled workers are fleeing their Japanese employers for more promising futures at Chinese firms.

And even Japanese workers, who could be regarded as the new "cheap labor" in China, are turning to foreign companies.

A job offer posted on a website for MBA graduates from a prestigious Chinese university underscores how rising salaries in China are luring elite workers.

It said: "Offer from a head-hunting firm. Post of deputy manager, sales headquarters, at a major sports gear company. Experience at a foreign firm in the same business required. Annual pay 1.5 million yuan (19.5 million yen, or $230,000)."

"It's adequate because the rivals are such popular makers as Nike of the United States or Adidas of Germany," said a member of the group. "No one would take the post for 1 million yuan."

Until five years ago, 1 million yuan could hire someone as CEO, said pioneer head-hunter Louisa Wong, founder of Bo Le Associates Ltd., a Hong Kong-based executive search company specializing in Chinese.

One million yuan can now hire only up to a business manager, she said.

Foreign companies used to come to China for cheap labor, but they now need market-knowledgeable people who understand regional differences, can liaise with government officials and lead sales strategy in the country.

According to Wong, the annual salary for a CEO is 2 million to 3 million yuan--a level beyond what ordinary Japanese companies can pay to people in charge of their Chinese operations.

Wong said multinational companies want a "superman" who can handle any task related to developing the Chinese market.

She said her business remained brisk even during the financial crisis that started in fall 2008.

Pierre Zhuang, chief of Bo Le's Shanghai operations, worked for the Chinese arm of Suntory Ltd. when he was recruited by Wong to the nascent head-hunting industry.

The market in China grew tenfold in the past 10 years to 20 billion yuan. Zhuang foresees another tenfold increase in the coming decade.

Bo Le has further expanded its business this year by concluding a deal with Japan's Recruit Co., which obtained a 14.3-percent stake in the company.

Dai Huaizong, chief at the Chinese arm of French electronics and cookware maker Groupe SEB, used to work for another European company. He earns nearly 4 million yuan a year, according to a company that head-hunted Dai.

Yao Mumu, 32, who left a foreign accounting firm in Beijing for the post of deputy financial director at a Chinese infrastructure firm, said phone calls from head-hunters are almost an daily occurrence.

A qualified accountant, Yao earns 400,000 yuan a year, far higher than the income for ordinary Chinese business people.

But she says: "The chances are 90 percent that I will switch jobs in five years. My annual income will perhaps be 1 million yuan then."

However, most Chinese aren't automatically offered huge salaries; they have to work at it to reach that level.

The average monthly wage of workers is 3,700 yuan, even in Beijing, where payments are relatively high. And in a tight job market, new college graduates' initial monthly salary is 3,000 yuan on average.

Changing jobs is one common way to increase one's fortunes, according to Zhu Xiaodong, who runs a marketing company in Beijing.

While an employee could expect to earn only up to 10,000 yuan a month after working many years, "the wage will jump to about 50,000 yuan if you switch jobs after getting new qualifications or building careers," he said.

An MBA degree is one of those qualifications deemed a "ticket to high-paying jobs."

About 78,000 people applied to MBA courses in China in 2010, twice as many as three years earlier.

Gao Xudong, director of the prestigious MBA program at Tsinghua University, said a major change has occurred among the course's graduates in the past five years.

"Most obtained jobs in foreign-affiliates before, but now a majority of our students are aiming for places in domestic companies," Gao said.

China's state-owned enterprises were once infamous for their inefficient management. But they are now regarded as the engine for the nation's growth, and they attract MBA holders by offering favorable benefits packages.

One female student in Tsinghua's MBA program worked for Mitsui & Co.'s local operations and then for Toyota Motor Corp.'s joint venture in China.

The 29-year-old says Toyota's inhouse training program was superb, but she found the daily overtime work unbearable.

Her Chinese colleagues, who went to Chinese automakers or Germany's BMW and Daimler, saw their wages almost double.

"(Toyota's) training is excellent, but the working conditions were bad. It has become a reaping ground for other businesses," she said.

The student said that once she obtains her MBA, Japanese companies will be off her radar in terms of employment.

She is not alone. Many who change jobs say they try to avoid Japanese, South Korean and Taiwanese companies, which have three problems in common: demanding work, low pay and little chance of promotion.

Personnel resources companies in China say wage levels at U.S. and European companies are about 1.5 times that of Japanese firms.

"If you offer salary levels of the past, then Chinese employees would flee," said Li Jun, 33, who quit an NEC Corp. affiliate to found a venture business in the environment field.

In good years for business, Li earns up to 100 million yen.

Born in a poor village in Sichuan province, Li said: "Because we can't foresee the future (in an unstable society), we want to build assets quickly. Companies are not aware of such pressing needs among Chinese workers."

A 33-year-old Chinese graduate of the University of Tokyo, who works for an independent administrative agency in Japan as a researcher, was surprised when he started looking for work in Beijing.

A major Japanese information technology firm offered only a quarter of what he earns now.

"That's so meager even though prices in Beijing are much lower than in Tokyo," he said.

A Chinese telecommunications firm, on the other hand, offered to match his pay in Japan.

"Chinese pay great attention to room for growth, such as how much the company will grow and what they would be allowed to do there," the man said, adding that Japan today doesn't offer such opportunities.

SEB's Dai also says promotion is a huge factor.

Dai has served as chief of Apple Inc.'s Chinese arm. "If Japanese companies do not entrust the post to Chinese, then they are not among the options."

Bo Le's Wong also points to the low level of CEO salaries at Japanese businesses.

Seeking equality among employees may be a Japanese business feature, but it does not work in China, she said.

Some Japanese corporations, such as trading house Mitsubishi Corp. and machinery maker Komatsu Ltd., are taking steps to promote Chinese employees to executive positions.

A locally hired Chinese was promoted to an executive post at Mitsubishi's Dalian subsidiary last year.

And in the Chinese offices of some major Japanese companies, there are cases where Chinese employees earn more than their Japanese colleagues.

But Jin Rui, general manager of Intelligence (China) Co., a Shanghai affiliate of Intelligence Ltd. of Japan, said most Japanese companies still put too much emphasis on Japanese language proficiency in hiring Chinese.

Meanwhile, as Chinese workers fetch higher salaries, young Japanese have emerged as lower-cost workers.

A 29-year-old Japanese man at a major U.S. call center in Dalian was surprised last summer to find his Chinese colleague was paid 13,000 yuan a month, much more than he got.

The employer raised the wages of Chinese after many hopped to a higher-paying U.S. rival and others demanded pay increases.

In Dalian, many offices are being set up to provide outsourcing services for Japanese businesses.

Such offices used to hire mainly Chinese, but they now are turning more to Japanese, who have difficulty finding jobs back home.

"There have always been openings for Japanese," said Wang Jin, head of Pasona Tech Dalian Co.

Chinese workers capable of speaking Japanese have strong academic backgrounds, but their initial pay is still generally lower than Japanese employees.

But in the industry, Japanese are said to be "low cost on the longer term" because they do not demand pay raises as Chinese do.

Japanese also tend to stay longer at one company, well aware of the tough job situation in Japan.

A major U.S. computer maker is also hiring Japanese for its call center in Dalian. In late October, five were newly employed from Japan, and their comments reflect the vast differences between the Chinese and Japanese job markets.

Ayaka Sakurada, 25, graduated from a British university but could not find a job in Britain or Japan. She has decided to study Chinese, too.

Yusuke Umewaka, 31, earned 270,000 yen a month at an apparel shop in Tokyo, but gave up on the "shrinking" retail sector in Japan.

A 28-year-old man quit a listed Japanese company, where he earned 6 million yen a year. He found his former employer, who rejected his proposals for new business, hopeless.

Junko Oishi, 36, came to Dalian after twice losing temporary staff jobs after the 2008 financial crisis. She says she could not expect to find a good job in Japan.

(This article was written by Tokuhiko Saito and Tetsushi Yamamura.)
http://www.asahi.com/english/TKY201012270252.html

Monday, December 27, 2010

U.S. alarmed by falling Japanese enrollments at universities

The U.S. government is taking steps to encourage more Japanese students to study at U.S. universities out of concern that the recent sharp drop in Japanese enrollments might result in weakening bilateral relations over the long run.
The number of Japanese students who entered U.S. universities in fall last year dropped 15 percent from a year earlier to around 24,800, a sharp fall from around 47,000 in 2001, according to the U.S. Institute of International Education.

Japan placed sixth on the nationality list of students studying in the United States last year, while China, listed top, increased enrollments by around 30 percent to some 127,600. India ranked second followed by South Korea.

Declines in Japanese enrollments are blamed on an economic slowdown following the collapse of the bubble economy in the 1990s and the growing tendency among Japanese youth to prefer studying domestically to going abroad.

In order to stem the ongoing trend that Tokyo and Washington fear might lead to atrophying of ties between the two nations, Prime Minister Naoto Kan and President Barack Obama agreed in their talks in November to step up measures to broaden contacts between Japanese and Americans. They also confirmed that they should make use of the Japanese government's program for inviting Americans to teach English at Japanese schools.

The U.S. Embassy in Japan is also weighing in to get more Japanese to study at U.S. schools, sponsoring an English speech contest by Japanese high school students in November in Tokyo.

http://www.breitbart.com/article.php?id=D9KBFPL00&show_article=1

Friday, December 24, 2010

More Japanese students studying after university graduation to boost job prospects

A growing number of Japanese university graduates are studying at vocational schools instead of diving straight into the work force in a bid to acquire marketable skills amid the prolonged recession.

Nearly 20,000 university graduates entered vocational schools across the country this academic year, up nearly 4,000 from the previous year, according to a survey conducted by the Ministry of Education, Culture, Sports, Science and Technology.

Some believe that their chance of finding jobs will increase after study at vocational schools because they are still regarded by employers as new graduates. Most Japanese companies prefer to hire new graduates.

Some vocational schools have even set up special courses for students who have graduated from universities.

The Ohara Gakuen educational corporation set up a special business course at the Tokyo-Suidobashi campus of its Ohara Boki Gakko (accounting school) this academic year. The new course is targeted at graduates of four-year universities and two-year junior colleges who failed to find jobs.

While supporting the students' ongoing job-hunting attempts, the new course trains them to acquire special knowledge and skills in various fields.

Course educators hold numerous interviews with individual students to teach them how to fill in job application forms and how to respond to job interviews, as well as to find the types of jobs they are suited to.

Ohara set up the course in response to a steady increase in the number of university graduates who enter vocational schools after failing to get jobs. As of Dec. 17, 35 out of 37 students enrolled in the course have received job offers.

One of them, a 22-year-old woman who studied at the course after graduating from Waseda University, got a job offer from a trading company.

"The school provides students with sufficient job guidance on an individual basis. It was really helpful. Universities, too, should improve their job guidance," she said.

A total of 1,662 university and junior college graduates and dropouts joined 17 vocational schools Ohara operates in the Tokyo metropolitan area this school year, including those enrolled in the special course. The figure was more than double the 792 students at its schools in the 2006 academic year.

"Some may wonder why these students enter vocational schools after graduating from university. But we've enjoyed high popularity from our students," an Ohara spokesman said. "I think this reflects growing demand for education provided by vocational schools, which help students acquire marketable skills."

Of about 600 freshmen at Tokyo School of Business, which caters to those aspiring to join the media as well as the pet business, 41 are university graduates.

"Usually, around 20 university graduates join our school each year, but the sharp rise is attributable to difficulties in finding jobs," says an official of the school. "If this trend continues, we'll consider setting up new courses."

Altogether, 7.3 percent of the 267,077 people who entered vocational schools in the academic year that began this April were university graduates, according to the ministry -- well above about 5 percent between 2001 and 2008.

The National Association of Special Institutes of Japan expects a further increase in the figure.

"If the severe employ situation continues, the number will further rise," said association Secretary-General Kaoru Kikuta.
http://mdn.mainichi.jp/mdnnews/news/20101223p2a00m0na010000c.html

Thursday, December 23, 2010

No. of Japanese studying abroad down, foreign students in Japan rising

The number of Japanese studying abroad declined by a record level in 2008, while the number of foreign students currently studying in Japan reached a record-high as of May this year, reports by the education ministry and an independent organization showed Wednesday.

The Japan Student Services Organization said in its report that a record-high number of 141,774 foreigners are studying in Japan, up 9,054 from the year before, while the Ministry of Education, Culture, Sports, Science and Technology said the number of Japanese studying abroad totaled 66,833 in 2008, 8,323 fewer than the previous year.

The number of Japanese students studying aboard has been on the decline since peaking at 82,945 in 2004, while that of foreigners studying in Japan has been growing. In 2008, the number of foreign students in Japan was 123,829.

Education ministry officials said the current job recruitment process in Japan is apparently discouraging Japanese students from studying abroad for fear of missing out on opportunities to apply for jobs in a given period.

Students are reluctant to study abroad also because of current economic conditions, the officials said.

The Japanese government has set goals of having 300,000 foreigners studying in Japan and the same number of Japanese studying abroad by the year 2020.

It hopes to increase the number of Japanese students overseas by encouraging them to enroll in short-term programs.

The United States was the most popular destination for Japanese studying abroad in 2008 at 29,264. But the number dropped to 24,842 in 2009, according to the latest data by the Institute of International Education, which is used by the ministry to compile the report.

China was the second most popular at 16,733, followed by Britain at 4,465.

Students from Asia accounted for 92 percent of all foreigners studying in Japan, according to the latest survey by the student services organization. The number of students from China came to 86,173, up 7,091 from the previous year, accounting for 61 percent of the total, followed by 20,202 students from South Korea.

By prefecture, Tokyo has the largest number of foreign students at 45,617, followed by Osaka Prefecture at 10,791 and Fukuoka Prefecture at 9,665.

By university, Waseda University has accepted the largest number of foreign students at 3,568, followed by Ritsumeikan Asia Pacific University at 2,921 and the University of Tokyo at 2,772.

(Mainichi Japan) December 23, 2010
http://mdn.mainichi.jp/mdnnews/news/20101223p2g00m0dm004000c.html

Tuesday, December 21, 2010

Japan's new educational isolation

Would Mainichi readers be surprised to learn that Japan is preparing to ax one of the cornerstones of its higher education internationalization strategy?

The government's cost-cutting panel, which is trying to slash costs in a bid to trim the country's runaway public debt, voted on Nov. 18 to abolish and "restructure" the Global 30 project.

Launched last year with a budget of 3.2 billion yen, Global 30 envisioned "core" universities "dramatically" boosting the number of international students in Japan and Japanese students studying abroad, said the Ministry of Education, Culture, Sports, Science and Technology.

The ministry's strict selection process, however, meant that just 13 elite universities made the initial grade. Now the project has been terminated.

Can Japan afford this? Fewer than 4 percent of Japan's university students come from abroad -- 133,000, well below China (223,000) and the U.S. (672,000). Just 5 percent of its 353,000 university teachers are foreign, according to Ministry of Education statistics. Most of those are English teachers.

At the opposite end of the education pendulum, students here are increasingly staying at home: Japanese undergraduate enrollments in U.S. universities have plummeted by over half since 2000. Numbers to Europe are also down.

Japan, in the view of many, may be entering another period of educational sakoku -- or self-enforced isolation.

South Korea, with about half Japan's population, sends over twice as many students to the U.S. At some American universities, such as Cornell, Japan is behind not just China and South Korea, but even Thailand and tiny Singapore.

Japan's share of global research production, meanwhile, fell from 9.45 percent to 6.75 percent over the last decade, according to the latest Global Research Report. While the report noted "areas of excellence" in Japan's profile, it blamed its faltering performance on a dearth of international collaborations.

Global 30 was supposed to partly remedy those ills, helping Japanese universities reach a government goal of 300,000 foreign students by 2020, while sending the same number of Japanese students abroad.

"We think those universities will set an example for other colleges by leading with good practice," said Kato Shigeharu, deputy director of Higher Education Bureau at the ministry. "This practice will then diffuse to other colleges around the country."

That interview came before the government decision.

With the worst public debt in the industrialized world -- 900 trillion yen ($10.6 trillion) -- Japan has much less fiscal leg-room than its competitors. So budget cutting may be inevitable, but why not intensify the effort to target useless dams or highways rather than education?

The decision has been greeted with dismay. "This government is destroying Japan," said Yoshida Go, a professor with the Office of International Strategic Planning at Nagoya University -- one of the 13 selectees.

"Quite honestly, Japan is late in the game of globalization in higher education. But the government's left hand doesn't know what its right hand is doing." (By David McNeill)

http://mdn.mainichi.jp/perspectives/column/news/20101220p2a00m0na002000c.html

Thursday, December 16, 2010

Firms turning to foreign students

University students are having a hard time finding jobs amid the economic downturn, with those who have secured employment starting after their scheduled graduation next spring hitting a record low of 57.6 percent as of Oct. 1.

But a new trend among firms to seek more aggressive and proactive employees may be creating more chances for foreign students looking for work experience in Japan, even in the increasingly competitive job market.

According to an August poll by job information provider DISCO Inc., 11 percent of responding firms said they have employed foreign students since April, and 21 percent said they plan to do so next fiscal year.

Rakuten Inc., the country's biggest online shopping mall operator, is one of the leading examples of firms opening up to foreign students.

The Tokyo-based company, which expects foreign employees to eventually comprise about half its workforce, began boosting its recruitment of foreign students in fiscal 2009.

It has already promised jobs to 78 students from 17 countries, accounting for about one-sixth of new employees slated to start next spring.

Among them is Cristina Popescu, 26, who came to Japan six years ago from Romania. Popescu grew up while the Eastern European country was democratizing, and state-run firms were collapsing.

"I've seen reports in Europe that say Japan is not doing well, but Japanese firms have technology and are creditworthy," said Popescu, a graduate student at Waseda University.

"I want to be involved in developing overseas markets once I enter the company and eventually start a business on my own to contribute to my homeland," she said. "I would be grateful if I can tie up with Rakuten then, too."

At the end of October, teams of Rakuten employees from nine countries gave presentations on elements they consider necessary for a company to become global.

Among the presentations, which reflected the unique views of the different nationalities, the American team listed flexibility and respect for individuality, while the Chinese team stressed the potential of China's market.

Meanwhile, Cross Marketing Inc., an Internet research company based in Tokyo, started to advertise at job fairs for foreign students from the end of June. The firm is also looking to recruit in China.

http://search.japantimes.co.jp/cgi-bin/nn20101210f1.html?

City to be centre for Japanese scholarship exams Read more: City to be centre for Japanese scholarship exams

BANGALORE: Next year, students from Karnataka who want to study in Japan needn't go to one of the four metros for scholarship exams. They can come to Bangalore instead.

Announcing this in the backdrop of Emperor Akihito's birthday on December 14, Mayayuki Tsuchikawa, consul and head of the consulate told TOI that scholarships are offered in three courses -- undergraduate, diploma and professional training. "Once Class 12 results are out, an announcement will be made. Thereafter, entrance exams will be held here," Tsuchikawa said. Earlier, state students had to go to Delhi, Chennai, Mumbai or Kolkata. The Japanese embassy currently gives scholarships for research in science and at the post-graduate level.

To draw more students to Japanese universities, Tokyo University is setting up a liaison office in Bangalore next year.

VISA POWER

The number of Indian students in Japanese universities may not be high, but Japan is a favourite job destination.

Over 6,000 visas were issued here and work visas were the most. "More than 20,000 people from India visited Japan on a tourist visa last year,'' Tsuchikawa said.

The consul said 30-35 Japanese companies are setting up units in Karnataka and 150 are already functioning. Besides Toyota, some big names include Komtsu, Sony, Toshiba, Nishin and Yakult. "Japan Steel Company, the second largest steel company in Japan, will set up its independent unit next year in Karnataka. Now, it's functioning in collaboration with JSW,'' Tsuchikawa said.

The Japanese Bank for International Cooperation ( JBIC) has extended 44,704 million yen loan to the Bangalore Metro rail project.

After New Delhi, Karnataka is the favourite destination for Japanese in the country -- over 570 of them live in the state, with 560 in Bangalore alone.

Read more: City to be centre for Japanese scholarship exams - The Times of India http://timesofindia.indiatimes.com/city/bangalore/City-to-be-centre-for-Japanese-scholarship-exams/articleshow/7089614.cms#ixzz18Grdkj00