Modern businesses are increasingly competing across borders as globalization and technology advance. Especially in the field of engineering, it has become even more important to recruit talented engineers across nationalities. This article looks at the recruitment market.

Benefits and risks of hiring foreign engineers

Hiring foreign engineers has many advantages in terms of diversity and innovation. Companies with higher diversity reportedly have a higher revenue to innovation ratio. On the other hand, hiring foreign engineers also comes with risks, such as difficulties in obtaining visas and language barriers. In fact, many companies say they face restrictions related to hiring foreign workers. Please refer to our articles on the cost-effectiveness of hiring foreign engineers and case studies of companies that have done so.

Understanding the market

Regions of the global engineer population and major engineer populations

According to information published by the Ministry of Economy, Trade and Industry, it is estimated that the gap between supply and demand for IT manpower (supply-demand gap) could grow to about 790,000 people in 2030, the largest in Japan, as demand exceeds supply. This is partly due to the shrinking workforce, but also because IT trends change so quickly that there are not many people who can keep up with the changes. With so many companies doing AI, cloud computing, data science, IoT and DX, the lack of engineers is a social issue that needs to be addressed.

While there is a shortage of engineers at home, the number of engineers worldwide is growing, especially in Asia (India and China) and Eastern Europe. Since 1.5 million engineers graduate from universities in India every year, many companies are recruiting (placing) their campuses in India to attract top talent. You can read more about placement in a separate article on our site.

How to effectively recruit foreign engineers

The traditional job screening for foreign engineers needed to be conducted locally or relocated to work in Japan, but with the spread of remote work, it is becoming easier. According to a survey by Nomura Research Institute, nearly 25% of employees in Japan continue to work remotely even after the coronavirus. This allows companies to recruit from a broad talent pool and greatly reduces geographic constraints.

https://www.nri.com/jp/knowledge/report/lst/2023/cc/0228_1

While there is concern that the language barrier may cause communication inconsistencies, some companies, such as Rakuten, have created a flexible environment for foreign engineers, making English as the company’s official language and English for interactions on Slack.

On the other hand, there is also the problem of people not settling down after hiring due to mistakes in visa applications, lack of preparation, and incompatibility with the culture of the organization.

Hiring foreign engineers brings new perspectives and capabilities to the organization, driving diversity and innovation. This is an increasingly important factor in today’s globalized world of technology and business. With proper understanding and organization, and an effective recruitment process, these challenges can be overcome. We must remember that market understanding, risk assessment, and an effective hiring process are essential to success.

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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