Hiring Foreign Engineers: A Valuable Investment

Hiring Foreign Engineers: A Valuable Investment
Calendar 2023-09-14

Recruiting foreign engineers is playing an increasingly important role in modern business. Increasing globalization and the rapid development of technology are driving companies to seek more diverse and global talent. Foreign engineers come from different cultures and backgrounds, but are characterized by high technical skills and creativity.


In addition, hiring foreign engineers is more than just hiring, it is also a valuable investment for companies. When people with international perspectives and different experiences join an organization, they can bring new ideas and perspectives and improve a company’s competitiveness.


In this article, we will show how hiring foreign engineers creates value for Japanese companies!


Cost of hiring foreign engineers

The main cost factors for hiring foreign engineers are divided into recruitment, relocation (moving expenses), visa processing, and development and education. These costs vary greatly from country to country, company to company, and from individual candidate to candidate, but they are often common elements.


The hiring of foreign engineers outside of Japan is often done through recruitment agencies.


The agency fee is said to be about 35% of the annual salary companies pay to the people they hire, so if your annual salary is 5 million yen, you need to pay 1.75 million yen to the recruitment company. Another success fee is a fixed payment of millions of yen for each new employee, so you need to consider it depending on the number of people you want to secure.


When interviewing people on site or in Japan, it is expected to cost 10 to 200,000 per person, including hotel and lodging expenses, as there will be travel expenses for both interviewers and students.


If the company pays for the relocation, it will cost about 300,000 per person for the first month’s rent plus initial costs such as security deposit and key money.


1.5 million + 500,000 + 300,000 + = 2.3 million


If you add visa application and Japanese language education expenses to this, it will cost about 2.5 million ~ 3 million yen to hire a foreigner abroad.


The cost of hiring varies from company to company, as complete online interviews and company housing can save you a lot of money.



Improving technological capabilities

One of the main reasons many Japanese companies hire foreign engineers is because of their advanced technical skills and new perspectives. For example, by hiring foreign engineers, SoftBank has significantly increased its development capabilities in cutting-edge technology areas such as AI and machine learning. Foreign engineers, such as the IIT students often featured in the article, have been able to increase their competitiveness in the market and accelerate the growth of the business.


On March 29, 2022, SoftBank also launched Musubu Connect, a service that provides Japanese living and support to companies hiring foreign workers. In addition to hiring our own foreign engineers, the reason why we provide livable services to foreign workers may be because we want other companies to enjoy the growth of the technology sector.


https://news.mynavi.jp/techplus/article/20220329-2306772/



Expansion into global markets

Foreign engineers can develop an understanding of the global market through their hometown and experience. This is an important advantage for Japanese companies as they expand into overseas markets. For example, according to an article published in 2019, Toyota Nankai Group has placed at least 1 Vietnamese engineer in every branch of the Toyota-affiliated channel, and is considering sending talented employees back to Vietnam to serve as executives in the future. By hiring foreign engineers in Japan and sending them to overseas bases, we can effectively advance global market development. In addition, students such as the Indian Institute of Technology, which we often cover in our articles, maintain high English proficiency, so they can break through the language barrier that is always a problem when they go abroad.


https://www.aba-j.or.jp/info/industry/8518/

Diversity and Innovation

Teams from diverse backgrounds can be more creative and find new ways to solve problems. Japanese technology giant Rakuten is focusing on hiring foreign engineers. In 2012, English became the company’s official language, and half of the people currently in the development department are foreign nationals. Rakuten, which operates many businesses, is an example of a company that creates a diversity environment and creates new value by hiring foreign engineers.


https://onl.sc/QxxAQMp



Eliminating the talent shortage

The shortage of engineers in Japan has long been a problem, and hiring foreign engineers is one solution to this problem. For example, Sony has been actively recruiting foreign engineers to help it retain skilled engineers and maintain its technical capabilities.


From these examples, it is clear that hiring foreign engineers is a valuable investment for Japanese companies. It provides ROI in the form of improved technology, global market deployment, enhanced diversity and innovation, and the elimination of talent shortages. Foreign engineer recruitment has access to a wider and more diverse pool of talent, helping Japanese companies to become more competitive and achieve sustained growth!


If you are interested in hiring students from the Indian Institutes of Technology(IIT) or foreign engineers, please make inquiries [https://beyond-t.jp/contact]

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