Are Indian engineers prone to quitting? 3 reasons why they tend to leave Japanese companies and how to prevent it
It is said that Indian engineers tend to leave their jobs easily, but statistics show that the retention rate in Japanese companies is rather high. This article organizes the factors for leaving and the structure of retention.
Contents
"Indians quit easily" is a misconception. Data shows a high retention rate in Japanese companies.
First, the most important fact is that the retention rate of Indian engineers in Japanese companies tends to be higher than that of engineers from other countries.
Here is some representative data:
The settlement rate of Indians residing in Japan is about 40%, higher than that of China and Vietnam
(calculated from the Ministry of Justice 'Statistics of Foreign Residents')The rate of Indians working at Japanese companies staying for more than three years is 60-70% range
(average from retention rate surveys of Japanese IT and manufacturing companies)The proportion of Indian engineers 'accompanying family' is higher compared to other countries, showing strong willingness for long-term stay
(data from the survey by the Embassy of India in Tokyo)The turnover rate of Indian IT personnel (within Japan) is around 5-10%, significantly lower than the domestic turnover rate in India which exceeds 20%
Especially, a major reason for the lower turnover rate is that those wishing to build a long-term career are selected at the time of coming to Japan.
In other words,
"Indian engineers quit quickly"
is a story of the local job change culture in India, and it does not apply to the personnel coming to Japan.
Reason for leaving ①: Lack of clear career path (structurally prone)
Statistically, the largest factor for leaving is answered by a higher percentage to be lack of clarity in career path than salary.
In India,
Promotion criteria are clear
Technical level and results are directly reflected in evaluations
Role changes occur quickly
Because these cultural norms are common, the following situations lead to dissatisfaction:
Assigned with ambiguous roles
Promotion conditions are not visible
Cannot participate in technology selection
Expertise cannot be utilized due to 'general operations'
Preventive Measures
Clearly define roles for "1 year, 3 years" before joining
Role definitions based on skills
Quarterly career discussions in 1on1
Delineate and share the scope of technical discretion
Many companies that enhanced career transparency have improved retention of Indian personnel by 30-40%.
Reason for leaving ②: Communication “cultural gap”
The data shows the next most common reason for leaving is communication inconsistency.
The representative gaps are as follows:
The uniquely Japanese vague expressions (such as "consider," "think positively") are hard to understand
A lack of frank feedback leads to feeling "unappraised"
The culture of honorifics in Japanese can be mentally burdensome
It is hard to join in small talk culture, which creates a sense of isolation
However, these can be greatly improved with communication measures.
Prevention measures
Bi-monthly 1-on-1s and progress reviews
Sharing expected roles in writing
Using English alongside in technical discussion settings
Preventing isolation through a mentor system
Continued support for learning Japanese
There are examples where companies that implemented these saw a dropout rate improvement of 10-15%.
Reason for leaving ③: Mismatch in salary and role (not 'the salary itself')
In Japan, it is often perceived as 'quitting due to low salary', but looking at the real data,
the core reason for leaving is not **'salary itself' but 'mismatch between salary and role'**.
Indian talent highly values rewards for performance, so the following are likely to lead to dissatisfaction:
Hired as a developer but mainly doing tester tasks
Lack of growth in a career that only involves maintenance
Lack of transparency in salary increase scales and evaluation criteria
Too much clerical work despite being in a technical role
Preventative Measures
Clarify job descriptions
Set salary increase criteria based on technical level
Clearly define areas for technical challenges
Indicate the salary increase range for each year
This will significantly reduce mismatch-related turnover.
The real reason why 'Indian engineers settle easily,' as data indicates
When multiple surveys and corporate achievements are combined, it can be said that Indian engineers are actually more likely to stay.
The structural factors behind this are as follows:
By the time they arrive, the group that has a strong intention to "work in Japan" is already narrowed down.
They tend to have a strong intention for long-term stay due to the desire to bring family along.
Japan is perceived as highly secure and safe, making it more preferable.
The stable employment model of Japanese companies appears attractive.
Competitive pressure is lower than Western recruitment, making it more comfortable.
Engagement in the workplace increases through learning Japanese.
Moreover, statistics from the field show that,
the turnover rate of Indian engineers is around 5-10%
which is almost equal to or actually below the average turnover rate of Japanese companies overall.
Summary
There is an image that Indian engineers tend to leave jobs easily, but statistical data clearly shows that retention rates at Japanese companies are actually high.
Many factors for turnover, such as unclear career paths, communication gaps, and role mismatches, are "environmental factors" that **can be resolved by the organization**.
At Phinx, we provide comprehensive support to prevent post-hire mismatches, including onboarding design after hiring, visualization of career paths, support for learning Japanese, and 1-on-1 designs to increase retention rates. Please consult with us if you wish to improve the success rate of hiring Indian engineers.
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