Trends in Relocation- Japan- Mid 2012

Over the past few months, I have attended a number of relocation conferences and other seminars, and on the basis of them, here are the trends that I currently see in the relocation space in Japan.

1.     Increased Short-Term Assignments and Rotational Work

After the 3/11 earthquake, we are seeing much more activity in Japan on a “project basis”. While there might be long-term agendas, assignments are only taking a short-term view to deal with the volatility of safety (nuclear issues, etc) and the economic insecurity of the world. Often, assignments will then either be extended, or someone else will rotate in to take over.

2.     More Assignees are Coming from “Emerging” or “Developing” Markets

You can definitely see this trend in all the main centers of Japan. There are more assignees coming from developing Asian countries, and there are more and more Japanese companies wishing to employ such people. This creates a new dynamic for relocation service provision, as this kind of mobility is very different to the “relocating US expat”, for example.

3.     Increased Emphasis Placed on “Value” in Service Provision

While there is continued downward pressure on the price of all services in the mobility market, cost is definitely not everything, and increasingly “value” is being demanded in hand with cost.

“Today the game is based on your ability to help solve significant business problems for clients. If you want to play, you competitive advantage should help your clients make money, save money, or add value to their organization”.

4.     More One-Way Permanent Transfers

We have definitely seen this trend in relocation in Japan in the last 12 months. After the 3/11 earthquake, we have seen a lot of expats return to their home countries, and in exchange, have seen many people returning to take up “local hire” positions in Japan, who have in the past had some strong link with Japan. Often that link is a Japanese spouse, but it is also often past experience in Japan, or experience in working at a Japanese company overseas. This is not just happening in “local hire” cases, but we also see many “traditional assignments” to Japan in this last year whereby the “assignee” has had some strong past relationship with Japan; although this could be due to a medium to long term view to be transferred onto a local employment contract.

5.     Increase in “Split Assignments”

This is happening more and more in other Asian countries, but also happens a little here in Japan too. The family is based in Tokyo; the spouse and children reside in Tokyo, while the expat himself is assigned to other cities in Japan (and we are seeing more relocations into remote areas), or maybe working in other cities in Asia. I feel that Japan should sit up and consider this phenomenon more. With the security available in “life in Japan”, there is a good case for having Japan (Tokyo) as the base, but then having your expats travel into other locations as needed. A little bit of wisdom would see international schools and the relocation industry getting together to make this more viable.