Interest in hiring foreign nationals has grown rapidly in recent years. According to the Ministry of Health, Labour and Welfare’s “Notification Status of the Employment of Foreign Nationals” (as of the end of October 2024), the number of foreign workers in Japan has reached approximately 2.32 million, remaining at a record high since statistics began. As Japan’s domestic labor force continues to shrink structurally due to a declining birthrate and aging population, more companies each year are treating the hiring of international talent as a strategic option.

At the same time, many recruiters and executives still worry that “hiring foreign workers seems procedurally complex,” “we’re not sure Japanese will be understood,” or “they might leave soon after joining.” Most of these concerns can be resolved by accurately understanding the advantages and disadvantages and taking appropriate measures.

This article organizes the pros and cons of employing foreign workers from a practical perspective and covers status of residence checkpoints, legal obligations, and keys to successful acceptance. Please read through to the end as material for your hiring decisions.

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Main advantages of hiring foreign workers

1. Easing chronic labor shortages

In many industries—including nursing care, construction, manufacturing, and food service—domestic talent alone continues to fall short of hiring needs. According to the Statistics Bureau’s Labour Force Survey, Japan’s working-age population (ages 15–64) is projected to fall to about 60 million by 2040, so a strategy that relies only on domestic hiring will hit medium- to long-term limits.

International talent is one realistic way to fill this structural labor gap. In particular, using the Specified Skilled Worker system allows you to hire job-ready people who have passed industry skills tests and Japanese-language exams. As of 2024, the number of Specified Skilled Worker foreign nationals exceeds 200,000 across all 14 industries, and the pathway has become an established hiring route with a track record.

2. Securing job-ready talent with Japan work experience

Hiring international talent who already live in Japan and have work experience can greatly shorten the post-hire adaptation period. Many have passed the Japanese-Language Proficiency Test (JLPT) at N3–N4 or higher, so everyday on-site communication is fully feasible.

Because foreign talent already in Japan are somewhat accustomed to Japanese workplace culture, you can reduce the mismatch risk of “we hired them, but they couldn’t fit in.” A major feature of hiring talent already in Japan is that it is easy to use as an extension of domestic recruiting.

3. Stronger business competitiveness through multilingual and multicultural capability

With the recovery of inbound demand and advancing globalization, demand is growing for staff who can work in languages such as English, Chinese, Vietnamese, and Indonesian. Having international talent on staff enables overseas customer service, multilingual content production, and foreign-language customer support—opening new business opportunities.

Workplaces that mix members from different cultural backgrounds also make it easier to spot issues and opportunities that a uniform viewpoint can miss. That diverse thinking is a source of innovation is widely recognized in HR and management research.

4. Securing talent as a foothold for overseas expansion

For companies considering expansion into Southeast or South Asia, international talent who understand local language, culture, and business practices offer value that domestic staff cannot easily replace. By developing them from the start as candidates for future overseas site leadership, you can pursue a long-term global talent strategy at the same time.

5. Stronger organization through diversity promotion

The Ministry of Health, Labour and Welfare positions diversity promotion as an important employment policy, and the active participation of international talent also contributes to a company’s social evaluation (ESG and SDGs). Workplaces where diverse talent thrives also improve employer brand in the hiring market, so employing foreign workers can deliver returns beyond cost.

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Disadvantages of hiring foreign workers and how to address them

To succeed at employing foreign workers, you must identify challenges in advance and put appropriate measures in place. Below are the main disadvantages and practical responses.

Communication challenges

When Japanese proficiency is still limited, there is a risk of miscommunicating work instructions or misunderstanding internal rules. Especially on manufacturing and construction sites with strict safety rules, language barriers can lead to human error.

Practical responses:

  • Set JLPT N4 or higher (everyday conversation level) as an application requirement at the hiring stage
  • Prepare work manuals and safety rulebooks in the worker’s native language
  • Establish follow-up support through native-language staff at a Registered Support Organization
  • Hold brief work meetings about once a week and regularly check understanding

Status of residence management and renewal procedures

When employing international talent, you must always know the type of status of residence (visa) and its validity period. Working after the period of stay has expired constitutes the crime of promoting illegal employment, and the company is also subject to penalties (Article 73-2 of the Immigration Control and Refugee Recognition Act). Regardless of business size, executives and HR staff must treat status of residence management as a critical post-hire responsibility.

Practical responses:

  • At hiring, check the residence card and keep copies of the status type and expiration date
  • Register the renewal window on a calendar (about three months before expiration is a guide) and have the person in charge send reminders
  • If procedures are uncertain, outsource to an administrative scrivener (gyoseishoshi) or a Registered Support Organization

Workplace friction from cultural and customary differences

Japanese workplace culture (reporting/contacting/consulting, strict punctuality, and unspoken rules) is not always self-evident to international talent. Someone may answer “yes” when given instructions without fully understanding them, or methods for reporting absence or lateness may differ by culture. When small misalignments accumulate, they can create friction across the team.

Practical responses:

  • At onboarding orientation, put Japanese workplace rules in writing and explain them
  • Hold one-on-one meetings about once a month to catch questions and concerns early
  • Provide cross-cultural understanding training for Japanese staff on the accepting side as well, to deepen mutual understanding

Cost and time for hiring and procedures

Applications and changes of status of residence usually take about one to three months. Document preparation, translation, and various filings create workload that domestic hiring does not require. For companies hiring international talent for the first time, this can mean an unexpected increase in effort.

Practical responses:

  • Plan hiring early and build a schedule working backward from the desired start date
  • Target international talent already living in Japan to avoid travel and entry procedures
  • Outsource application support to a Registered Support Organization to greatly reduce internal staff workload

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Confirming the “status of residence” required to hire foreign workers

Before hiring international talent, first confirm the type of status of residence (visa) and the scope of work permitted. Types of status of residence and details are covered comprehensively in a separate article; the main work-related statuses of residence are summarized below.

Engineer/Specialist in Humanities/International Services

  • Eligible work: Specialized and technical fields such as IT, accounting, law, languages, and marketing
  • Requirements: Education equivalent to a university degree, or 10 or more years of practical experience
  • Period of stay: 1 year, 3 years, or 5 years (renewable)

Specified Skilled Worker (i)

  • Eligible work: 14 industries including nursing care, construction, food and beverage manufacturing, and food service
  • Requirements: Pass the industry-specific skills test + Japanese-language test (equivalent to N4 level)
  • Period of stay: Up to 5 years in total; family accompaniment not permitted

Specified Skilled Worker (ii)

  • Eligible work: Specified industries such as construction and shipbuilding and marine equipment
  • Requirements: Transition from Specified Skilled Worker (i) + pass a more advanced skills test
  • Period of stay: No upper limit on renewals; family accompaniment permitted

Skilled Labor

  • Eligible work: Specialized skills such as foreign cuisine cooking, sports instruction, and gem processing
  • Requirements: Industry-specific specialized skills + practical experience

The scope of work allowed, how long employment is possible, and required procedures all differ by status of residence. Always confirm in advance that the status matches the position you plan to fill. For the latest information on the Specified Skilled Worker system, also refer to the Immigration Services Agency of Japan’s official page on Specified Skilled Worker.

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Legal obligations and main procedures when hiring foreign workers

Notification of the employment status of foreign nationals (employer obligation)

When you hire or separate a foreign national, every employer is required to notify Hello Work (Public Employment Security Office) (Article 28 of the Employment Measures Act). Notification is required regardless of full-time, part-time, or casual employment, and regardless of whether the person is covered by employment insurance.

For those covered by employment insurance, the notification can be combined with the acquisition or loss of insured status forms. If the person is not covered by employment insurance, submit a separate “Notification of the Employment Status of Foreign Nationals.” Violations may result in a fine of up to 300,000 yen, so always complete the process both at hiring and at separation.

Employment contracts and clear statement of working conditions

Under the Labor Standards Act, you are also obligated to state employment conditions in writing for international talent. Issue a “Notice of Working Conditions” that clearly states wages, working hours, leave, social insurance enrollment, grounds for dismissal, and related items. It is desirable to also provide a version translated into the worker’s native language so they can understand it easily.

The Ministry of Health, Labour and Welfare publishes foreign-language templates for notices of working conditions, available for free download in major languages including English, Chinese, Vietnamese, and Indonesian.

For Specified Skilled Worker, a “support plan” is mandatory

When accepting a foreign national under Specified Skilled Worker (i), the accepting company must implement as an obligation the 10 support items prescribed by the Immigration Services Agency of Japan.

Main support contents:

  1. Pre-arrival guidance (providing life and work information before entry)
  2. Airport pickup and drop-off at entry and departure
  3. Securing housing and providing information needed for daily life
  4. Life orientation (explaining Japanese daily-life rules and administrative procedures)
  5. Support accompanying workers to public procedures
  6. Providing Japanese language learning opportunities
  7. Handling consultations and complaints (response in the worker’s native language is required)
  8. Promoting interaction with Japanese people
  9. Job change support in cases of involuntary separation
  10. Regular interviews and reporting to administrative agencies

If it is difficult to fully implement these support measures in-house, you can outsource them to a Registered Support Organization. The overall process of hiring foreign nationals is explained in detail step by step in a separate article.

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Practical Points for Successfully Hiring International Talent

Build an acceptance framework before hiring

To help international talent stay long term without early turnover, it is important to build an acceptance framework in parallel with recruiting.

  • Prepare multilingual manuals: Develop work procedure manuals and safety rules in workers’ native languages
  • Appoint a dedicated contact (mentor): Have a dedicated staff member serve as a consultation point for about three months after joining
  • Prepare daily-life support: Arrange housing, bank accounts, and mobile phone procedures in advance
  • Internal communication: Explain the purpose of hiring international talent and their roles to existing staff in advance

Whether your internal acceptance framework is ready largely determines retention rates. Waiting until after hiring is too late; preparation must be planned backward from the start date.

Reduce administrative burden by using a Registered Support Organization

Under the Specified Skilled Worker system, accepting organizations may outsource the 10 required support items to a Registered Support Organization. Registered Support Organizations are registered with the Immigration Services Agency of Japan, which helps ensure the quality and legality of support.

Complex procedures are one of the main reasons companies hesitate to hire foreign workers, but using a Registered Support Organization can significantly reduce the workload for in-house HR staff. Use the latest trends in foreign worker employment and overall market conditions as a reference as you develop a hiring strategy suited to your industry and talent needs.

Secure speed and certainty by hiring international talent already in Japan

Hiring from overseas can take several months for travel, entry, and status of residence applications. By contrast, hiring international talent already living in Japan often requires only a change of status of residence, so the timeline from offer to start can often be shortened to about one to two months.

International talent already in Japan is often somewhat accustomed to Japanese daily life and workplace culture, so the risk of issues right after joining tends to be lower. Hiring talent already in Japan has advantages across cost, speed, and retention. See actual implementation case studies for success patterns at companies that improved retention by strengthening their acceptance frameworks.

Keep investing in retention support after joining

Hiring is not the “finish line” but the “starting point.” International talent in particular often faces unique stress in daily life and culture, and thin support can lead to early turnover. Monthly one-on-one meetings and a consultation channel available in the worker’s native language are keys to long-term retention.

Intensive follow-up during the first three months after joining greatly improves retention at the one- and three-year marks. Not skimping on this early investment is what separates companies that succeed at employing foreign workers from those that fail.

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Summary

The merits and demerits of employing foreign workers can be summarized as follows.

Main merits:

  • Helps resolve structural labor shortages and break through hiring difficulties
  • Enables you to use people with Japan work experience as ready contributors
  • Improves business competitiveness through multilingual and multicultural capability
  • Lets you build a talent portfolio with overseas expansion in mind
  • Advances diversity and raises organizational adaptability and social reputation

Main demerits and directions for addressing them:

  • Communication challenges → Set Japanese language requirements and prepare multilingual manuals
  • Complexity of status of residence management → Calendar-based management and outsourcing to a Registered Support Organization
  • Cultural friction → Strengthen onboarding orientation and conduct regular meetings
  • Increased administrative workload → Prioritize hiring talent already in Japan and use specialized organizations

Many demerits can have their risks minimized by correctly understanding the system and putting the right framework in place. Especially for a first foreign hire, using a Registered Support Organization early is the most reliable and cost-efficient approach.

YourBright introduces talent matched to your needs from a database of more than 170,000 people on a fully success-based fee model with zero upfront and operating costs. As a Registered Support Organization (registration number: 19-登-000992), we provide end-to-end support from application procedures through post-joining retention, so please feel free to contact us first. Phone: 03-6908-6143 (hours: 9:00–18:00)