JAPAN
SALARY
GUIDE
2015
MANAGING DIRECTOR’S
LETTER
The majority (60%) of permanent employees who responded to the 2015 Morgan McKinley Salary Survey, say they have received an increase in their annual salary. However, most of these have been relatively moderate uplifts of between 1-8 percent. This is a result of companies continuing to be under tight constraints when it comes to budgets and headcount. However, in-demand professionals with the right skills and experience can command larger increases in salary.
Most (77%) Japanese professionals in permanent work surveyed have received or are expecting to receive an annual bonus this year. However, any increase in bonus payment remains relatively flat, with the majority (58%) reporting bonus increases of between 1-8 percent.
The contract market continues to grow across all sectors in Japan, with more companies offering contract roles and increasing numbers of professionals being open to this arrangement. Organisations continue to value the flexibility this gives them to tackle short-term needs, and it is often easier to gain headcount approval for contract staff and temp-to-perm arrangements, which provide both sides with the opportunity to see if the fit is right. For professionals it can also provide flexibility,
varied work experience and network building. MANAGING DIRECTOR Tel: +81 3 5403 7064 | [email protected] LIONEL
KAIDATZIS
Contract rates are steadily increasing as it becomes ever more popular for companies to hire staff on this basis. The majority (64%) of Japanese contract and temporary workers, who responded to the 2015 Morgan McKinley Salary Survey, say their contract rate or salary has increased in the last year. I hope you enjoy reading the detailed report. If you have any thoughts on current salary trends in professional occupations in Japan, we would be very interested to hear from you.
CONTENTS
BANKING & FINANCIAL SERVICES 5
Front Office 6
Compliance 7
Finance, Audit & Risk 8
Operations and Project /
Change Management 9
FINANCE & ACCOUNTING 10
Finance & Accounting 11
IT 13
ASSET MANAGEMENT 17 HUMAN RESOURCES 19 SALARY SURVEY RESULTS 21
BANKING &
BANKING &
FINANCIAL SERVICES
FRONT OFFICE
The majority of global investment banks and commercial banks increased headcounts in 2014, as political stability and a weaker Yen benefited Tokyo's financial services sector.
Growth in equity sales and trading stabilised after a significant upswing in 2013.
Whilst there was movement across equity businesses following bonus payments, this was not at an aggressive rate.
2014 was a year of careful and calculated expansion for fixed income sales and trading.
There was notable hiring in senior Japanese Government Bond sales areas.
The Investment Banking division (IBD) business showed some encouraging growth signs, with
THE MAJORITY OF GLOBAL INVESTMENT
BANKS AND COMMERCIAL BANKS
INCREASED HEADCOUNTS IN 2014
moderate increases in analyst to associate
headcounts. The majority of professionals were hired through the bank’s entry level group hiring programs. There was robust hiring activity among global corporate banks. Corporate banking relationship managers and transaction bankers were areas with the most demand.
Private equity had moderate growth, particularly in associate level hiring.
ROLE: ANALYST ASSOCIATE VP DIRECTOR MANAGING DIRECTOR
FIXED INCOME SALES ¥6M - ¥9M ¥7M - ¥15M ¥14M - ¥23M ¥18M - ¥30M ¥25M - ¥45M
FIXED INCOME TRADING ¥6M - ¥9M ¥7M - ¥16M ¥15M - ¥23M ¥20M - ¥33M ¥25M - ¥45M
EQUITY SALES ¥5M - ¥8M ¥7M - ¥13M ¥13M - ¥22M ¥17M - ¥28M ¥25M - ¥35M
EQUITY TRADING ¥5M - ¥8M ¥7M - ¥14M ¥15M - ¥20M ¥18M - ¥30M ¥25M - ¥40M
EQUITY RESEARCH ¥5M - ¥8M ¥7M - ¥13M ¥13M - ¥20M ¥17M - ¥25M ¥25M - ¥45M
DERIVATIVE STRUCTURING ¥5M - ¥8M ¥7M - ¥13M ¥14M - ¥20M ¥17M - ¥32M ¥25M - ¥35M
FX / COMMODITIES ¥6M - ¥12M ¥8M - ¥18M ¥15M - ¥25M ¥20M - ¥30M ¥25M - ¥35M
IBD COVERAGE BANKING ¥5M - ¥11M ¥8M - ¥15M ¥18M - ¥22M ¥22M - ¥30M ¥30M - ¥35M
ECM / DCM ¥5M - ¥11M ¥8M - ¥15M ¥18M - ¥22M ¥22M - ¥30M ¥30M - ¥40M
M&A PRODUCT SPECIALIST ¥6M - ¥12M ¥9M - ¥18M ¥18M - ¥25M ¥25M - ¥32M ¥30M - ¥40M STRUCTURED FINANCE /
SECURITISATION ¥5M - ¥9M ¥7M- ¥12M ¥12M - ¥16M ¥17M - ¥25M ¥22M - ¥35M PRIVATE EQUITY ¥7M - ¥10M ¥9M - ¥15M ¥13M - ¥17M ¥18M - ¥25M ¥20M - ¥40M CORPORATE BANKING
RELATIONSHIP MANAGERS ¥6M - ¥8M ¥9M - ¥11M ¥12M - ¥15M ¥15M - ¥20M ¥18M - ¥25M TRANSACTION BANKING (CASH
MANAGEMENT & TRADE
FINANCE) ¥6M - ¥8M ¥9M - ¥11M ¥12M – ¥15M ¥15M - ¥20M ¥18M - ¥25M STRUCTURED & PROJECT
FINANCE ¥6M - ¥8M ¥9M - ¥11M ¥12M - ¥15M ¥15M - ¥20M ¥18M - ¥25M
BANKING &
FINANCIAL SERVICES
ROLE: NON-OFFICER ANALYST / AVP / MANAGER ASSOCIATE / SENIOR VP / MANAGER SVP / DIRECTOR DIRECTOR / SENIOR DIRECTOR COMPLIANCE
CORE / CENTRAL COMPLIANCE ¥6M - ¥8M ¥9M - ¥13M ¥14M - ¥18M ¥19M - ¥22M ¥22M+ TRADE SURVEILLANCE /
MONIROTING ¥6M - ¥8M ¥9M - ¥14M ¥15M - ¥18M ¥19M - ¥22M ¥22M+ CONTROL ROOM ¥7M - ¥9M ¥9M - ¥14M ¥15M - ¥18M ¥19M - ¥24M ¥25M+ ADVISORY - ¥12M - ¥16M ¥17M - ¥20M ¥22M+ ¥25M+
COMPLIANCE
| PERMANENT (BASIC SALARIES, ¥ MILLION PER ANNUM)
COMPLIANCE
Tokyo’s compliance market was very active during 2014, with the majority of hires between associate and vice president level. There has been less activity at head of function and chief compliance officer level. The contract market is stable, with most hires in supporting administrative roles.
The lack of junior (newly qualified) talent in the Japanese financial services sector means that investment banks often need to turn to other functions such as operations, front office and risk management, or even look at candidates from the Big Four in order to fill vacant posts. In some instances, banks have had to look at relocating compliance staff on secondments to Japan from overseas offices.
A rise in trading related probes in recent months, together with new legal and regulatory changes highlights the need for investment banks in
TOKYO’S COMPLIANCE MARKET WAS VERY
ACTIVE DURING 2014, WITH THE
MAJORITY OF HIRES BETWEEN ASSOCIATE
AND VICE PRESIDENT LEVEL
Japan to hire more professionals across all areas of central compliance, trade surveillance, control room and compliance advisory. We expect this trend to continue in 2015, with compliance professionals in high demand.
Basic salaries at analyst to assistant vice president level will continue to increase in 2015, and
compliance professionals at vice president level can expect to command salary increases of 20 percent and above.
BANKING &
FINANCIAL SERVICES
FINANCE, AUDIT & RISK
The control functions within banking and financial services continue to recruit actively. Aside from financial accounting where most hires are
replacement hires, there has been significant hiring in product control at select tier one banks that maintain a team of 20 to 40 controllers onshore. There is also a strong appetite from banks for junior talent at analyst and associate level. These trends create opportunities amongst a wide range of accounting professionals that include; product controllers, MBA graduates and Big Four professionals.
Banks are also keen to attract junior financial accountants, within asset management or insurance companies, who are eager to develop a career in product accounting.
THE INTENSIFICATION OF REGULATORY
REQUIREMENTS TO STRENGTHEN
BANKING CONTROLS HAS CREATED NEW
ROLES IN OPERATIONAL RISK
The internal audit function has also been a hot area of recruitment for business auditors at associate and manager levels. The candidate pool for auditors possessing a strong investment banking business sense remains narrow. Investment banks in Tokyo are resorting to hiring financial and product accountants, as well as developing talent internally.
Within risk management, credit risk saw a limited number of hires in 2014. Credit risk teams appear to be very stable and experienced minimal turnover. Operational risk, market risk and liquidity risk continue to be very active. The intensification of regulatory requirements to strengthen banking controls has created new roles in operational risk. Similarly, the implementation of Basel III has created new roles in market liquidity risk.
Professionals working in finance, audit and risk - also considered the banks’ first line of defence - will continue to be in high demand, commanding basic salary increases in 2015.
ROLE: NON-OFFICER ANALYST / AVP / MANAGER ASSOCIATE / SENIOR VP / MANAGER SVP / DIRECTOR DIRECTOR / SENIOR DIRECTOR FINANACE MANAGEMENT ACCOUNTING ¥6M - ¥7M ¥8M - ¥12M ¥13M - ¥15M ¥16M - ¥19M ¥20M+ FINANCIAL CONTROL ¥6M - ¥8M ¥8M - ¥13M ¥14M - ¥18M ¥19M - ¥22M ¥22M+ PRODUCT CONTROL ¥6M - ¥8M ¥9M - ¥13M ¥14M - ¥18M ¥19M - ¥22M ¥22M+ VALUATION CONTROL ¥6M - ¥8M ¥9M - ¥14M ¥15M - ¥18M ¥19M - ¥22M ¥22M+ TAX ¥5M - ¥7M ¥8M - ¥13M ¥14M - ¥18M ¥19M - ¥22M ¥22M+ AUDIT IT AUDIT ¥6M - ¥8M ¥9M - ¥13M ¥14M - ¥18M ¥18M - ¥20M ¥20M+ INTERNAL AUDIT ¥6M - ¥8M ¥9M - ¥13M ¥14M - ¥18M ¥19M - ¥24M ¥24M+ RISK MANAGEMENT OPERATIONAL RISK ¥6M - ¥8M ¥9M - ¥13M ¥14M - ¥18M ¥19M - ¥22M ¥22M+ CREDIT RISK ¥6M - ¥8M ¥9M - ¥13M ¥14M - ¥18M ¥19M - ¥22M ¥22M+ MARKET RISK ¥6M - ¥9M ¥10M - ¥14M ¥15M - ¥20M ¥20M - ¥25M ¥25M+ QUANTITATIVE RISK ¥8M - ¥10M ¥11M - ¥15M ¥16M - ¥20M ¥20M - ¥25M ¥25M+
BANKING &
FINANCIAL SERVICES
OPERATIONS AND PROJECT / CHANGE
MANAGEMENT
Tokyo experienced a very buoyant hiring market in operations and project/change management in 2014. There is a clear indication that the transfer of production tasks is now complete, which allows investment banks to keep very streamlined and profitable operation functions.
In operations, the recruitment market continues to be heavily driven by replacement hiring. This is mainly due to candidate mobility across banking competitors and within their current employment. A relatively strong equities market has seen hot areas of
recruitment in operations continue to be confined to cash equities trade processing roles. Other areas of derivatives operations recruit very actively.
TOKYO EXPERIENCED A VERY BUOYANT
HIRING MARKET IN OPERATIONS AND
PROJECT/CHANGE MANAGEMENT
IN 2014
With the exception of banking technology, project management office (PMO) teams have been scarce in banking operations in recent years. However, the increase of regulatory and market initiatives has created new headcounts for business analysts and project managers. These professionals are in high demand in the area of risk control, where project managers with line operations experience are called to strengthen the controls of the bank. This trend is set to continue in 2015.
Whilst bonuses in banking operations have
significantly decreased in recent years, operations and project/change management professionals can expect basic salary increases of up to 10-15 percent.
ROLE: NON-OFFICER ANALYST / AVP / MANAGER ASSOCIATE /
VP / SENIOR MANAGER SVP / DIRECTOR DIRECTOR / SENIOR DIRECTOR OPERATIONS SETTLEMENTS ¥6M - ¥7.5M ¥8M - ¥11M ¥12M - ¥16M ¥17M - ¥19M ¥19M+ SHARED SERVICES ¥6M - ¥7.5M ¥8M - ¥11M ¥12M - ¥16M ¥17M - ¥19M ¥19M+ OPERATIONS RISK & CONTROLS ¥6M - ¥7.5M ¥8M - ¥12M ¥13M - ¥18M ¥18M - ¥22M - TRADE / SALES SUPPORT ¥6M - ¥8.5M ¥9M - ¥13M ¥14M - ¥18M ¥18M - ¥22M ¥22M+
PROJECT/CHANGE MANAGEMENT
BUSINESS ANALYST ¥7M - ¥9M ¥10M - ¥14M ¥14M - ¥16M - - BUSINESS MANAGEMENT - ¥9M - ¥13M ¥14M - ¥18M ¥18M - ¥22M ¥22M+ PROJECT MANAGER - ¥10M - 14M ¥14M - ¥18M ¥18 - ¥22M ¥22M+
OPERATIONS AND PROJECT / CHANGE MANAGEMENT | PERMANENT
(BASIC SALARIES, ¥ MILLION PER ANNUM)
FINANCE &
FINANCE &
ACCOUNTING
PERMANENT
Many of last year’s trends will continue into 2015, however, there have been a few surprises. Recruitment activity has remained buoyant
throughout the holiday period and into the New Year. Traditionally, that activity increases as the first quarter progresses. The majority is replacement hiring; consolidation rather than expansion remains the priority for most companies.
However, firms are keen to backfill open positions with stronger profiles who can add value to the business and have wider skill sets and a “business partnering” mind-set.
It is no longer enough to crunch the numbers; new hires must find ways to communicate effectively with the business and find a way to translate strong analysis of the numbers into practical business suggestions for increasing profitability and keeping costs down.
CONTRACT
The rise of contract recruitment was a persistent theme in 2014 and Morgan McKinley expects this trend to continue in 2015. More companies are offering contract roles and an increasing number of professionals are open to this arrangement. Companies value the flexibility this gives them to tackle short-terms needs. It is often easier for firms to make the business case for headcount approval for contract staff, and temp-to-perm arrangements provide both sides with an opportunity to consider if the fit is right. For professionals it provides flexibility (for example, while they pursue a relevant
qualification), variety in their work experience, network building, and can often give a much better work-life balance.
HIRING IS QUITE CONSISTENT ACROSS
THIS SECTOR, WITH PARTICULAR DEMAND
ACROSS RETAIL, CONSUMER, LIFE
SCIENCE, IT SOFTWARE AND ENERGY
COMPANIES
Technology continues to revolutionise finance. Clients are moving from more manual systems to automated enterprise resource planning (ERP) ones, SAP in particular. As well as freeing up time to deal with more strategic matters, these systems give more clarity to overseas stakeholders and avoid unnecessary duplication and human error. Hiring is quite consistent across this sector, with particular demand across retail, consumer, life science (including medical devices and pharmaceutical), IT software and energy companies.
Morgan McKinley expects salaries to remain flat for the first half of 2015. Many jobseekers choose their next company based on career path and content of the role. Increasingly, professionals are moving at parity or for a modest increase (5-10%) in base salary. However, professionals with the right mix of
experience, qualifications and language skills, can still command larger increases.
Historically, the majority of contractors have been either very junior and keen to get the experience contract roles offer, or much older and perhaps close to retirement, and finding it difficult to secure a permanent role for this reason. This is no longer the case.
Contract rates are moving steadily upwards as it becomes increasingly popular to hire staff on this basis.
There is demand for contract staff across all sectors, and increasingly at a senior level. Some companies that have struggled to close critical senior finance positions have brought contractors in as an interim measure.
FINANCE &
ACCOUNTING
ROLE: SMALL ORGANISATION (UP TO 100 STAFF) MEDIUM ORGANISATION (100-500 STAFF) LARGE ORGANISATION (500+ STAFF)
CFO ¥14M - ¥18M ¥17M - ¥20M ¥21M+
FINANCE DIRECTOR - ¥14M - ¥17M ¥18M+
FINANCIAL CONTROLLER ¥10M - ¥12M ¥12M - ¥14M ¥13M - ¥16M FP&A MANAGER - ¥9M - ¥12M ¥10M - ¥14M SENIOR FINANCIAL ANALYST ¥6.5M - ¥7.5M ¥6.5M - ¥8M ¥6.5M - ¥10M FINANCIAL ANALYST ¥4M - ¥6M ¥5M - ¥7M ¥5M - ¥8M JUNIOR FINANCIAL ANALYST - ¥4M - ¥5.5M ¥4M - ¥5.5M GENERAL ACCOUNTING MANAGER - ¥8.5M - ¥11M ¥11M - ¥15M SENIOR FINANCIAL ACCOUNTANT - ¥5M - ¥7.5M ¥6M- ¥8.5M FINANCIAL ACCOUNTANT ¥4M - ¥6.5M ¥4M - ¥6M ¥5M - ¥7M JUNIOR FINANCIAL ACCOUNTANT - ¥4M - ¥5.5M ¥4M - ¥5.5M
HEAD OF INTERNAL AUDIT - - ¥12M - ¥15M
INTERNAL AUDIT MANAGER - ¥8M - ¥11M ¥8M - ¥11M
INTERNAL AUDITOR - - ¥6 - ¥8M TAX MANAGER - ¥8M - ¥11M ¥12 - ¥15M TAX ACCOUNTANT - ¥4M - ¥6M ¥5M - ¥7M TREASURY MANAGER - ¥9M - ¥11M ¥10M - ¥13M TREASURY ANALYST - ¥5M - ¥7M ¥6M - ¥8M COLLECTIONS / AR MANAGER - ¥6M - ¥8M ¥6M - ¥8M ACCOUNTS PAYABLE MANAGER - ¥5M - ¥7M ¥6M - ¥8M ACCOUNTS PAYABLE / CREDIT / AR STAFF ¥4M - ¥5M ¥4M - ¥5.5M ¥4M - ¥6M
COST ACCOUNTANT - ¥5M - ¥7M ¥6M - ¥8M
IT
Over the last few years there has been a trend within the financial services industry, in particular insurance, to undertake mid to large sized information
technology (IT) transformation projects. For many foreign professionals who have found themselves between roles of the financial services sector we predict a slight increase in average salaries, where the average minimumfollowing the financial crisis and other downsizing initiatives, it has been the difference between staying in or leaving Japan.
In 2015, we do not envisage significant change in salaries within IT. However, outside salary for junior infra and apps for Tokyo is still shy of 6 million JPY and the average is around 7.5 million JPY, with a maximum of just over 10 million. Senior executive director level roles, which are scarce in Japan these days , can range from 18 million upwards; down to an entry level analyst role which ranges between 5-8 million. An associate to vice president position in applications would range between 10-15 million; and the equivalent on the infrastructure side potentially coming in at 8-15 million depending on level and experience.
In other areas of the financial services sector, the tendency to outsource or offshore is still
commonplace. Companies are still looking to cut costs by moving certain functions to centres such as Manila and Bangalore and will probably continue to do so into 2015. This can come at a cost though, with disparate teams, communication issues and service quality issues.
Positive financial results in certain sectors, together with Abenomics and an improvement in the strength of the Yen, has seen a cautious approach to building up teams again in Japan. Firms continue to keep the budgets and headcounts tight. However, companies still need talent and the contract market continues to be strong, with hiring in areas of ukeoi (independent contract for a specific task), haken (temporary staffing) and Keiyakushain (direct contract staff). The majority of ukeoi-based hiring is in areas where finite IT projects are still in progress. For example, a consultant is hired in the interim to fulfil part or all of a particular project. This could involve a localization project or a longer term project to upgrade the whole of an infra or application solution for a major financial firm. Haken hiring will continue to be utilised for some of the more generic roles in IT, such as helpdesk and desktop support.
COMPANIES HAVE IDENTIFIED
TECHNOLOGY AS A KEY AREA OF
GROWTH THIS YEAR
Larger organisations are now utilising internal mobility teams more than ever to ensure they are not losing talent to competitors; giving employees opportunities in other countries or teams.
Increasingly, internal recruiters are discouraged from using agencies where possible. However, specialist recruitment agencies are often required when helping companies to find strong bilingual talent.
Pharmaceutical and fast moving consumer goods (FMCG) companies (gaishikei) will continue to hire at the same steady rates. With the majority of their technology centralised in head offices outside Japan we will likely see localisation, infrastructure, and application project positions opening up. Senior roles in all sectors will remain rare but with talent now more confident in their job changes we may see some back fills in various areas. Companies in these sectors will also be looking to temporary staffing solutions to accommodate these projects and initiatives where applicable.
Companies have identified technology as a key area of growth this year. However, those that have grown IT last year will not be in such a rush to do so and remain steady.
Small to large international firms setting up in Japan will have both permanent and contract hiring needs. This includes areas such as security, online payments, networking and telecommunications.
IT
IT
| COMMERCE & INDUSTRY (BASIC SALARIES, ¥ MILLION PER ANNUM)
ROLE: INFRASTRUCTURE / NETWORK INFRASTRUCTURE ENGINEER ¥8M - ¥12M STORAGE/DATABASE ENGINEER ¥8M - ¥12M NETWORK ENGINEER ¥5M - ¥12M MANAGEMENT / CONSULTING CIO / CTO ¥15M - ¥20M PROJECT MANAGER ¥8M - ¥12M
SERVICE DELIVERY MANAGER ¥10M - ¥15M
SOLUTION ARCHITECT ¥8M - ¥15M
SAP / ERP / CRM CONSULTANT ¥8M - ¥12M
BUSINESS INTELLIGENCE ¥8M - ¥12M
BUSINESS ANALYST ¥6M - ¥10M
IT CONSULTANT ¥8M - ¥12M
DEVELOPMENT
SOFTWARE / APPLICATION ENGINEER ¥6M - ¥12M
ANDROID / IOS ENGINEER ¥5M - ¥8M
SEARCH ENGINE ENGINEER ¥5M - ¥8M
DATA MINING ¥5M - ¥8M
DEVELOPER / TECHNICAL SUPPORT ¥6M - ¥10M
RETAIL
IT MANAGER ¥10M - ¥15M
INFORMATION SYSTEM MANAGER ¥8M - ¥12M
POS/ STORE SYSTEM MANAGER ¥8M - ¥12M
CREATIVE PRODUCTION
GAME ENGINE DEVELOPER ¥4M - ¥8M
WEB MASTER ¥6M - ¥10M
IT
IT
| FINANCIAL SERVICES(BASIC SALARIES, ¥ MILLION PER ANNUM)
ROLE: APPLICATIONS DEVELOPER-VB,NET ¥8M - ¥12M DEVELOPER-C#,C++,JAVA ¥8M - ¥14M APPLICATIONS SUPPORT ¥9M - ¥17M SENIOR DEVELOPER-C++/JAVA ¥14M - ¥20M ALGORITHM/QUANT DEVELOPER ¥13M - ¥20M
SOFTWARE AND SOLUTION ARCHITECT ¥13M - ¥18M
HEAD OF DEVELOPMENT ¥20M - ¥34M
MANAGEMENT
IT RISK AND AUDIT ¥10M - ¥15M
IT RISK AND AUDIT- SENIOR ¥15M - ¥20M
BUSINESS ANALYST ¥10M - ¥19M PROJECT MANAGER ¥12M - ¥19M PROGRAMEE MANAGER ¥16M - ¥23M IT MANAGER ¥12M - ¥18M CIO ¥20M - ¥50M INFRASTRUCTURE
DESKTOP / HELPDESK / TECHNICAL SUPPORT ¥6M - ¥8M DESKTOP / HELPDESK / TECHNICAL SUPPORT-TEAM LEADER ¥8M - ¥12M DESKTOP / HELPDESK / TECHNICAL SUPPORT-MANAGER ¥10M - ¥15M
NETWORK ENGINEER ¥8M - ¥17M
NETWORK TEAM LEADER ¥10M - ¥20M
WINTEL SYSTEMS ENGINEER ¥8M - ¥13M
SECURITY ANALYST ¥8M - ¥15M
SYSTEMS, STORAGE & SERVER ADMINISTRATOR ¥8M - ¥18M
ASSET
ASSET MANAGEMENT
PERMANENT
In 2014, hiring within asset management was very active in both the back office and front office, especially mutual fund sales/marketing and
institutional sales. This year, Morgan McKinley expects to see an increase in the investment area, in particular within Japanese asset management companies that are looking to increase headcounts for long short strategy analysts and fund managers.
There has been increased movement amongst Japanese asset management professionals moving to foreign asset management companies and also a marked increase from banks and securities firms in 2014.
MORGAN MCKINLEY EXPECTS A STEADY
JOB FLOW IN 2015, ESPECIALLY IN THE
SALES AND MARKETING AREA, AS WELL AS
CLIENT SERVICES
Morgan McKinley expects a steady job flow in 2015, especially in the sales and marketing area, as well as client services. Basic salary trends show a slight increase in the following areas; mutual fund sales - 7.2% increase, institutional sales - 8.1% increase, compliance – 5.4% increase, and client services (reporting, RFP) – 4.8% increase.
ROLE: NON-OFFICER ANALYST / ASSOCIATE / AVP SENIOR MANAGER VP / DIRECTOR SVP / DIRECTOR / ED/MD
FUND MANAGER'S ASSISTANT ¥4M - ¥5.5M ¥5.5M - ¥7.5M - - - FUND MANAGER ¥5.5M - ¥8.5M ¥6M - ¥12M ¥12M - ¥28M ¥15M - ¥18M ¥18M- ¥40M RESEARCH ANALYST ¥5.5M - ¥7.0M ¥7.5M - ¥12M ¥11M - ¥22M ¥16M - ¥29M ¥17M+ PERFORMANCE ANALYST ¥5.5M - ¥7.5M ¥7.5M - ¥10M ¥10M - ¥14M ¥13M - ¥18M ¥15M+ PRODUCT DEVELOPMENT / MANAGEMENT ¥5.5M - ¥7.5M ¥7M - ¥11M ¥9.5M - ¥16M ¥14M - ¥21M ¥25M+ SALES & BUSINESS
DEVELOPMENT ¥5M - ¥8M ¥8M - ¥12M ¥12M - ¥24M ¥16M - ¥26M ¥20M+ EXECUTION TRADER ¥4.5M - ¥6M ¥6M - ¥8M ¥8M - ¥16M ¥11M - ¥18M ¥14M+ CLIENT SERVICES ¥4.5M - ¥6.5M ¥6.5M - ¥11M ¥9M - ¥12M ¥12M - ¥19M ¥15M+ CLIENT REPORTING ¥4.5M - ¥6M ¥6M - ¥9M ¥8M - ¥14M ¥13M - ¥18M ¥14M+ FUND ACCOUNTING/ PENSION ACCOUNTING ¥4M - ¥5.5M ¥5.5M - ¥8.5M ¥8.5M - ¥14M ¥10M - ¥18M ¥13M+ TRADE OPERATIONS ¥4.5M - ¥5M ¥5M - ¥8.5M ¥7.5M - ¥12M ¥9M - ¥17M ¥13M+ COMPLIANCE ¥5.5M - ¥7.5M ¥7.5M - ¥11.5M ¥11.5M -¥19M ¥17M - ¥21M ¥21M+ PROJECT MANAGER / BUSINESS ANALYST ¥4.5M - ¥6.5M ¥6.5M - ¥9M ¥9M - ¥13M ¥13M - ¥18M - RFP ¥5M - ¥6.5M ¥5.5M - ¥11M ¥7M - ¥15M ¥12M - ¥16M ¥15M+ MARKETING MATERIAL ¥5.5M - ¥7M ¥5M - ¥10M ¥8M - ¥14M ¥12M - ¥15M ¥15M+
HUMAN
HUMAN
RESOURCES
PERMANENT
Many medium to large sized multinational corporations (MNC) are focused on reorganisation projects within human resources (HR), establishing more specialist HR functions within learning and development (L&D), compensation and benefits (C&B) and talent acquisition. This requires support from experienced HR operations professionals and HR business partners.
IT/technology, pharmaceuticals/life sciences and retail companies lead the way with regards to expanding HR headcount. There has been strong demand for talented bilingual HR business partners and experienced L&D/ training specialists. This looks set to continue in 2015. Experienced professionals in this area can expect base salaries in the region of 7-8 million at the lower end and up to 12-14 million JPY at management level. In-house recruiters at all levels of experience are particularly in demand. Recruitment teams are expanding to add full time support/coordinators and specialists, as companies seek to maximise direct sourcing and reduce costs. Junior level roles are starting from 4.5 to 6/6.5 million JPY for individuals with two to three years of experience. Mid-career professionals can expect around 7 to 8.5 Million JPY base and 9 to 12 million plus for manager level, depending on industry/ size.
Japan remains a key market for investment for many retail companies. As they continue to rapidly expand
JAPAN REMAINS A KEY MARKET FOR
INVESTMENT FOR MANY RETAIL
COMPANIES
their businesses throughout 2015, it is expected to put pressure on securing experienced retail recruiting specialists and retail training professionals. Any movement in this market will continue to have a big impact as the talent pool is very limited. Salary bands within retail vary greatly depending on the size of the business and the industry. Retail recruiting specialists can expect competitive salaries in line with other industries. Experienced retail training specialists could experience increases of up to 10 percent or higher. Demand in roles covering talent management is also likely to increase, although firms may struggle to meet expectations regarding candidate profiles in this area, along with HR business partners. Banking and financial services was very flat in 2014 with the possibility of some retraction in 2015.
Outside of a small number of specialist positions such as L&D, C&B, HR operations, most recruitment has been focused on recruitment process outsourcing (RPO) solutions and contract hiring. Firms continue to manage very tight budgets but increases can be expected as competition for top bilingual talent remains strong.
ROLE:
HUMAN RESOURCES DIRECTOR ¥12M - ¥35M
HUMAN RESOURCES MANAGER ¥8M - ¥16M
HUMAN RESOURCES GENERALIST/HRBP ¥7M - ¥18M
COMPENSATION & BENEFITS MANAGER ¥9M - ¥18M
LEARNING & DEVELOPMENT MANAGER ¥8M - ¥16M
RECRUITMENT MANAGER ¥8M - ¥16M
PAYROLL MANAGER ¥7M - ¥9M
HUMAN RESOURCES JUNIOR GENERALIST ¥4.5M - ¥7M
COMPENSATION & BENEFITS SPECIALIST ¥6M - ¥9M
RECRUITMENT STAFF ¥4M - ¥10M
LEARNING & DEVELOPMENT SPECIALIST ¥6M - ¥9M
PAYROLL ¥3.5M - ¥7M
HUMAN RESOURCES ADMINISTRATION ¥4M - ¥6M
SALARY SURVEY
SALARY SURVEY
RESULTS
DEMOGRAPHICS
Morgan McKinley surveyed 132 professionals in Japan for the Salary Survey in January 2015. Respondents are all professionals on the Morgan McKinley database and from our website morganmckinley.co.jp, who are engaged in a range of specialist sectors such as Banking & Financial Services (73%), Technology (26%), Retail/ FMCG (30%), Pharmaceutical (7%), Construction & Engineering (5%), Public Sector (3%), Media (1%), Healthcare (1%) and Legal (1%).
Approximately one quarter (26%) of the Japanese professionals who responded have between 1-2 years of experience in their current role or one that is similar. A further 26 percent have 3-5 years of experience and just over one fifth (21%) have 6-9 years of experience. The remainder (26%) have over ten years of experience in the current role or a similar role.
The majority (81%) of those surveyed are male, 16 percent are female and the remaining three percent prefer not to say. They ranged in age from 20-51+years with 20 percent in the 20-30 bracket, 34 percent in the 31-40 bracket, 28 percent in the 41-50 bracket and 18 percent in the 51+ the bracket.
The vast majority (89%) of those surveyed are permanent employees and the remainder (11%) are contract or temporary workers.
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Has your salary increased in the last
twelve months (Permanent employees)?
Most (60%) of the professionals who answered say their annual salary has increased in the last year. Over one third (37%) say their salary has remained the same and the remaining three percent say their salary has decreased in the last twelve months.
Forty-four percent of respondents, who have received a pay rise, say their salary increased by 1-4 percent. Over one quarter (26%) say the increase was between 5-8 percent and 12 percent say they experienced a salary increase of between 9-12 percent. Just under one fifth (18%) of professionals say they experienced an annual pay increment of more than 13 percent. For those who received an annual salary increase, most believe this is based upon meeting personal key performance indicators (KPIs) (63%) and group or company performance (56%). Just under one fifth (19%) of respondents say annual pay increments can be attributed to exceeding one’s own personal sales target. Other reasons given for salary increases include; change in employer, new job and promotion.
SALARY SURVEY
RESULTS
Has your temporary or contract rate or
salary increased in the last 12 months?
The majority (64%) of Japanese contract and temporary workers say their contract rate or salary has increased in the last year. The remaining 36 percent say their salary or rate of pay has remained the same.
Half (50%) of the temporary and contract employees who did experience an increase say it was between 5-8 percent. One quarter (25%) say they experienced a pay increment of 1-4 percent, 12 percent say the increase was between 9-12 percent and the remainder (13%) say they experienced an uplift in salary of more than 13 percent.
For those contract and temporary workers who did experience an uplift in pay, over one third (38%) say this is due to group or company performance and 31% say it is based upon meeting personal KPIs. The remainder (8%) say rate or salary increases can be attributed to exceeding one’s own personal sales target. Other reasons cited by temporary and contract employees include; a fixed/guaranteed salary increase and a change in job.
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Have you received or are you expecting
an annual bonus from your employer for
2014 (Permanent employees)?
The majority (77%) of Japanese professionals who responded say they have received or are expecting to receive an annual bonus for 2014. Nine percent say they have not received and are not expecting to receive an annual bonus and the remainder (14%) say they do not receive annual bonuses at all.
Forty-four percent of those who received a bonus for 2014 say it increased by 1-4 percent. Fourteen percent say it increased by 5-8 percent and 12 percent say it increased by 9-12 percent. Just under one third (30%) say their annual bonus increased by more than 13 percent.
Meeting personal KPIs (41%) and group and company performance (47%) are seen by the overwhelming majority of respondents as reasons upon which annual bonuses are based. Just 12 percent say bonuses are based upon exceeding one’s own personal sales target. Other reasons for bonus payments, listed by respondents, include; an increase in base salary and a fixed/guaranteed bonus.
SALARY SURVEY
RESULTS
As part of your remuneration, what are
the benefits in your current package?
The majority of Japanese professionals who responded receive a mobile phone (52%) and an annual bonus scheme (62%) as part of their remuneration package. Just under half (both 47%) receive a laptop/computer and a pension/
superannuation scheme. Other benefits, which Japanese professionals get as part of their current package include; flexible working arrangements (37%), share incentive/option scheme (28%), paid study leave (8%), training (39%), private health/life insurance (34%) and gym membership (9%). Fifteen percent of respondents say they receive no extra benefits as part of their remuneration package. Other benefits noted by respondents are a housing plan, meal allowance and language lessons.
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Which remuneration benefits are most
important to you?
The largest proportion (49%) of professionals who responded say that annual bonus scheme is the most important benefit for them. Just over one third (35%) say flexible working arrangements are an important benefit and one quarter (25%) say a pension/ superannuation scheme is important. Other benefits seen as important to Japanese professionals include; mobile phone (11%), laptop/computer (10%), share incentive/option scheme (17%), paid study leave (9%), training (12%), private health/life insurance (14%), gym membership (5%) and a housing allowance.
Do you think female employees in your
company are earning less than male
employees in the same role?
Less than half (45%) of the Japanese professionals who responded say they do not think women are earning less than men in the same role. Over one quarter (27%) say they do think women earn less than their male counterparts in the same role. The
