The Tokyo Talent Boom: Why Global Search Firms Are Rushing Into Japan

Japan is experiencing a seismic shift in executive recruitment, and 2025 is the year everything changed. With top-tier firms like Amrop, H.I. Executive Consulting, and IntelliPro planting strategic stakes in Tokyo, this isn't just expansion—it’s a bold declaration of confidence in Japan’s shifting leadership landscape.

In this episode of Executive Search in Japan, we unpack the forces fueling the boom:

• Talent Scarcity Meets Demand Surge — A critically small pool of bilingual, globally minded executives struggles to keep pace with unprecedented demand.
• Broken Without Leaders — 350 bankruptcies in 2024 were blamed on talent shortages—no leadership, no lifeline.
• Business Climate Accelerating — Rising FDI, digital transformation, and ESG mandates are triggering C-suite hiring across tech, sustainability, and cross-border roles.
• Open the Doors for Outsiders — External hires are surging—75% of new CHROs are brought in from outside, and country manager roles are hotter than ever.
• Global Strategy, Local Execution — International search firms are building Tokyo roots by pairing global reach with local trust—showing they understand Japan, not just “visit” it.

For executive recruiters, this episode is more than data—it’s the playbook for operating in a red-hot and evolving market. Discover where the demand is, why the global leaders are committed, and how you can adapt your strategy to compete or align in Japan’s most lucrative executive search moment yet.

Episode Transcript

Tessa Sourceley (00:00):
Welcome to the Deep Dive.
We sift through the sources youshare to pull out the key
insights.
And today, wow, we're lookingat a market our research calls
hot, hot, hot Japan,specifically why global
executive recruiting firms aresuddenly, well, flocking there
in 2025.
This isn't just randominterest.
It looks like a reallycalculated strategic move.
So our mission today, give youthe shortcut.

(00:22):
Understand why Japan's becomethis crucial hub for top tier
talent and unpack the reasonsbehind this big expansion push.

Chase Stratton (00:29):
Yeah, it's quite something.
What we're really seeing is amajor strategic shuffle, you
could say, among these biginternational players in Japan's
executive search market.
The existing recruiters there,they just can't keep up.
The demand is outstrippingsupply.
And that's created this clearopening for more non-Japanese
firms to come in and set up shopphysically.

Tessa Sourceley (00:47):
OK, so who are we talking about?
Who are these players makingthe leap into Japan?
Our sources point to three bignations.
Right.
Let's start

Chase Stratton (01:03):
with Amrop.
They're a major global name inexecutive search and leadership
advice.
They actually re-entered Japanback on January 10th, 2025.
New office in Tokyo.
And what's really smart abouttheir move is this partnership
with Jomon Associates.
Jomon is a top local advisoryfirm.
So that tie-up, it gives Amropinstant We're talking across key

(01:25):
sectors like industrial, auto,chemicals, consumer, pharma,
finance, IT, telecom.
the works.

Tessa Sourceley (01:31):
Ah, okay.
So that partnership is the keyto unlocking the local market
intelligence.
And the goal seems prettystraightforward.
Serve the multinationalsalready in Japan, but also help
Japanese companies looking toexpand outwards globally.
Amrop's global chair, AnnikaFarhan, actually said this helps
them attract the best talent.
Plus, it really strengthenstheir Asia-Pacific footprint,
you know, adding Japan alongsideChina, South Korea, India,

(01:53):
Australia.

Chase Stratton (01:54):
Exactly.
Then there's HIEC.
Now, they're different.
They're laser-focused ontechnology leadership.
They opened their Tokyo officeApril 8th, 2025.
And this isn't just a, let'sopen an office move.
It's very targeted.
They want a piece of Japan'sdigital transformation market,
which, by the way, is set toexplode.
Projections are, what, USD $236billion by 2030.

Tessa Sourceley (02:17):
Wow, $236 billion.
Okay, that's a serious marketto chase.
And this Tokyo base obviouslyhelps their whole Asia-Pacific
tech focus, right?
Sits alongside Shanghai, HongKong, Singapore, Sydney.
They've put a seasoned partner,Georgia, George Johnson in
charge there.
And his expertise is exactly inthat tech digital AI space
meeting that that huge demandfor leaders who can drive

(02:39):
innovation.

Chase Stratton (02:40):
It's interesting.
They've actually been active inJapan for over 10 years
already.
So they call this move anatural progression.
They stress their one globalP&L model.

Tessa Sourceley (02:48):
Meaning they operate like one unified company
worldwide, sharing resources,profit.

Chase Stratton (02:51):
Exactly.
So Japan isn't just an outpost.
It's deeply wired into theirglobal strategy.
Got it.

Tessa Sourceley (02:57):
And the third one.
Right,

Chase Stratton (02:59):
Intellipro.
They're known as a fast-growingtalent acquisition and HR
solutions firm.
They launched in Tokyo sometimeearly to mid-2025.
It's their first actual officein Japan.
And they're calling it asignificant step in their global
expansion plans.

Tessa Sourceley (03:15):
And their angle seems to be tech-driven
recruitment.
Using AI.

Chase Stratton (03:19):
Yeah, they leverage an AI-powered talent
matching platform, but they alsoemphasize a personalized
approach.
Yoshikazu Watanabe is the Japanmanaging director.
Their stated goal to, quote,redefine industry standards.

Tessa Sourceley (03:32):
Bold claim.
So they're bringing their techtools and their talent network
into Japan, boosting theirAsia-Pacific presence, too.
Okay, so we have Amrop, HIEC,and Telepro all setting up in
Tokyo.
But these aren't just randomdecisions happening in
isolation, are they?
There has to be somethingbigger pulling them in.
What's really driving this boomright now?

Chase Stratton (03:50):
Well, that's the really fascinating part.
It's like a convergence, aperfect storm almost, of market
dynamics making Japan incrediblyattractive right now.
Fundamentally, you have to lookat Japan's demographic
situation.
It's stark.
They're facing this massivechallenge.
The working age population isexpected to drop by nearly 31%
by 2020.
And the overall labor force isset to shrink by millions just

(04:13):
in the next 10 years.

Tessa Sourceley (04:14):
That's staggering.
A 31 percent drop.
The ripple effects must beenormous.
Our sources confirm this hasled to a really widespread labor
shortage.
The OECD calls it historicallyhigh levels and it's hitting
businesses hard.
In 2024, apparently 350bankruptcies were directly
blamed on not finding enoughstaff.

Chase Stratton (04:34):
And you see that low unemployment rate around
2.5 percent in May 2025.
You might think things arefine.
But it hides the real problem.
It's not a lack of jobs.
It's a critical lack ofavailable and crucially
qualified workers.

Tessa Sourceley (04:46):
Okay, so that's the overall picture.
How does that scarcity play outat the top end for these
high-level executive roles?

Chase Stratton (04:51):
It creates this executive talent paradox.
Huge demand for top leaders.
But the supply of the rightkind of candidates, extremely
limited.
It's especially tight forsenior roles in tech, sales,
engineering, places where youneed deep technical skills plus
business-level English.

Tessa Sourceley (05:10):
That double requirement, that's tough.

Chase Stratton (05:13):
Very tough.
And international firms oftenstruggle with cultural
mismatches or differentexpectations.
Plus, the way you find toptalent in Japan is different.
Forget just posting on jobboards for these elite roles.
It relies so much on long-termrelationships on trust.
It demands precisionrecruiting, not just casting a
wide net.

Tessa Sourceley (05:30):
Which is exactly where these specialized
search firms come

Chase Stratton (05:33):
in.
Precisely.
They fill that very specificneed.

Tessa Sourceley (05:36):
But it can't all be about shortages and
problems, surely.
The economy must be playing arole, too.
Is there an upside?

Chase Stratton (05:42):
Oh, absolutely.
You're right.
It's not just about plugginggaps.
Connect this to the widereconomic climate.
Business confidence in Japan,it's been climbing throughout
2025.
The outlook is pretty positive.
And Japan is still a powerhousefor foreign direct investment,
FDI.
It was actually the top foreigninvestor in the US in 2023.

Tessa Sourceley (06:01):
Interesting.

Chase Stratton (06:02):
So when that capital flows into Japan, what
do those companies need?

Tessa Sourceley (06:06):
Senior execs, people who can manage complex
international operations, leadbig changes.

Chase Stratton (06:12):
Exactly.
leaders who can navigate thosecross-border complexities and
drive strategic shifts.

Tessa Sourceley (06:16):
So with this economic optimism, where's the
demand hottest?
Which sectors are really cryingout for talent?

Chase Stratton (06:22):
Well, definitely professionals with strong
digital skills.
Strategic thinkers.
People who can manage intricatesupply chains, integrate IT
across finance, HR, you name it.
That lines up perfectly withwhat firms like HIEC are
targeting with theirdigital-focused clients.
Makes sense.
And then there's the wholesustainability push.
Japan's aiming for net zero by2050.

(06:43):
That's fueling a boom in ESGenvironmental social governance
investment.
So you see huge demand forleaders in green engineering,
sustainable practices,energy-efficient design.
Even construction is lookingfor experts in sustainable
cities.
which isn't surprising when,what, like 93% of Japanese
people live in urban areas.

Tessa Sourceley (07:02):
And you mentioned leadership changes
earlier.
It sounds like companies aren'tshy about replacing people at
the top either.
That must keep recruiters busy.

Chase Stratton (07:10):
It really does.
That's another key piece.
CEO turnover in Japan in thefirst half of 2025, notably
higher than the global average.
We saw 23 CEO departures, oftendriven by strategic pivots
needing fresh leadership.

Tessa Sourceley (07:23):
23 in six months.
Wow.

Chase Stratton (07:25):
And here's something really interesting.
Japan seems to prefer bringingin external candidates for
critical roles.
Take the chief human resourcesofficer, the CHRO.
In Q1 2025, 75% of new CHROhires came from outside the
company.

Tessa Sourceley (07:39):
75% external hires for CHRO.
That's striking and completelydifferent from global trends,
you're saying?

Chase Stratton (07:45):
Generally, yes.
This preference for externalhires creates this constant,
reliable stream of business forhigh-end search firms.

Tessa Sourceley (07:54):
Okay, this is painting a really complex
picture.
It sounds like even governmentpolicy might be nudging things
in this direction.

Chase Stratton (08:00):
It seems that way.
Japan's using this sort oftwo-track strategy with visas.
On one side, they're expandingthe startup visa nationwide this
year.
That gives foreignentrepreneurs two years
residency, less capital neededup front, maybe fostering future
growth.
But on the other side, later in2025, they're massively hiking
the capital needed for thelong-term business manager visa.

(08:22):
It's going from 5 million yenup to 30 million yen.
That's like jumping from 35,000USD to over 200,000 USD.

Tessa Sourceley (08:30):
Whoa, that's a huge jump.

Chase Stratton (08:31):
It really is.
And it suggests a deliberatepivot, right?
They seem to be aiming toattract more established,
well-funded, serious foreigncompanies.

Tessa Sourceley (08:38):
Which are exactly the kind of clients
these executive search firmstarget.

Chase Stratton (08:41):
Precisely.
It aligns perfectly.

Tessa Sourceley (08:43):
So we've covered the market, the
companies, the government.
What about the talent itself?
What are Japanese executivesactually looking for these days
beyond the salary?

Chase Stratton (08:52):
That's a really important angle.
Money matters, obviously, butit's not the whole story.
Our sources show Japaneseemployees increasingly want
clear career development paths.
They want better work-lifebalance, more flexible working
options, things like that.
Corporate socialresponsibility, CSR, is becoming
more important too.
Employer trust.
Company values aligning withtheir own.

(09:15):
And they want leaders whoactually listen and respond to
feedback.

Tessa Sourceley (09:18):
So it's a much more holistic view of the job
and the company culture.

Chase Stratton (09:22):
Absolutely.
which means recruiters need togo deeper.
It's not just about matching aCV to a job spec anymore.
You need comprehensiveassessments, a real
understanding of motivations,cultural fits, ensuring
long-term success.

Tessa Sourceley (09:35):
Okay, so given all these layers, the trust
factor, the cultural nuances,the evolving expectations, does
just having a name in the marketcut it?
Or is that physical office,that local presence, truly
non-negotiable?

Chase Stratton (09:46):
I'd say it's becoming essential.
especially in a market likeJapan where relationships and
trust are just paramount.
Having that local office likeHIEC establishing a physical
base after years of activitylets firms build those deep
roots, connections with clients,connections with candidates.
You need that face-to-faceinteraction, that on-the-ground

(10:07):
understanding.

Tessa Sourceley (10:08):
So it moves them beyond just being a
headhunter calling fromoverseas.

Chase Stratton (10:11):
Exactly.
It positions them as genuinestrategic partners.
And in a market that's tough toenter but offers high rewards,
like Japan being a trustedpartner, is critical.
Proximity really does buildtrust.

Tessa Sourceley (10:22):
Right.
So let's try and wrap this up.
This wave of new offices inJapan isn't just opportunistic.
It shows these firms reallygrasp the unique dynamics there.
It's a clear response to thatdeep talent scarcity, which is
driven by demographics, combinedwith a pretty positive economic
climate and this churn inleadership roles.

Chase Stratton (10:41):
All those factors together create this
complex, urgent need for veryspecific high-level leadership,
the kind of need that only thesefocused, sophisticated
executive search firms canreally meet.

Tessa Sourceley (10:51):
And understanding this shift in
Japan, it actually tells us alot, doesn't it?
About bigger global trends intalent, about how demographics
shape economies, and maybe aboutwhat makes leadership effective
today.

Chase Stratton (11:03):
It absolutely does.
It offers a window into thoselarger forces.

Tessa Sourceley (11:07):
So here's a final thought to leave you with.
Think about this intense focuson bringing in external top
level talent in Japan.
It's driven by these deepstructural issues, but also by
growth opportunities.
What might that signal aboutthe future of leadership, maybe
career paths more broadly,globally?
How could this Japanese exampleinfluence how you approach

(11:27):
talent or structureorganizations or even think
about your own career in thisconnected, fast-changing world?
Something to chew on.