The truth about new graduate recruitment in India that Japanese companies should hurry to address.
Major global companies are already accelerating the competition to acquire new graduates from India as a long-term investment. This article thoroughly explains the reasons why Japanese companies should take action now based on local circumstances and international hiring trends.
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Reasons why the world invests in new graduates from India rather than immediate assets.
In the global hiring market, investment in potential hiring is accelerating more than immediate ability. At the center of this are India's engineering students. In addition to major companies like Google, Meta, and Amazon, European manufacturers and large pharmaceuticals are also reporting a 30% increase in campus hiring in India compared to the previous year (Economic Times).
As a result, not only IITs but also Tier 2 to Tier 3 universities are being approached by Western companies, intensifying the competition for top talent. The background includes a global shortage of STEM talent, intensified competition in AI and data science, and a structural change where early engagement directly connects to corporate competitiveness.
Western companies are transitioning to “comprehensive package-type” fast hiring, including short internships → pre-offers → relocation support, and if Japanese companies maintain the traditional model, there is a risk of being left behind in the global hiring game.
The real reason behind the delay in hiring by Japanese companies in India
Background of the struggles faced by Japanese companies includes information asymmetry and slow hiring processes.
India has over 10,000 universities, and as there is no standardized indicator like deviation values, it becomes difficult to grasp the university level, language proficiency, family intentions, and competition with Western companies.
Additionally, Japan's hiring follows a linear model of "documents → interview → job offer → joining," falling behind Western companies' integrated hiring methods that prioritize candidate experience, speed, and family support.
As a result, students' impression of Japan is that it is "attractive but slow and lacking in information," leading to a structural problem where the more talented individuals tend to flow towards Western companies.
The reason Indian students still choose Japan
Interestingly, Japan, which lags behind Western countries in salary levels, is experiencing an increase in cases where it remains the top choice for Indian students.
The reasons for this are as follows.
The number of Japanese learners has increased fivefold in ten years (trust in culture, safety, and work environment)
Many students prefer Japan's stable environment over the hard work culture of Western countries
Especially in Tier 2 and Tier 3 cities, there is a strong demand to build a stable career overseas
The brand trust in Japanese companies remains high, and the image of
The "correct evaluation criteria" to assess the quality of new graduates from India.
In India, just having a university name is not enough. Successful companies enhance their selection accuracy with the following “composite indicators.”
● Project Experience (GitHub, Hackathons, Kaggle)
Practical skills are reflected more in “what has been created” and “what problems have been solved” rather than in grades.
● NIRF Ranking × NAAC Evaluation
India's evaluation system has a multi-layered structure, so combining multiple criteria is the most accurate.
● Continuity in Japanese Language Learning
A strong indicator is learning for more than six months, taking the JLPT, and participating in role-play interviews.
● Confirmation of Family Intentions
Students who have family consent have a significantly lower risk of declining offers.
● Understanding of Career Opportunities in Japan
Students who understand Japan as a place to form a long-term career have a high retention rate.
By incorporating these into the recruitment process, recruitment accuracy comparable to that of Western companies can be achieved.
The biggest challenge in new graduate recruitment in India, "yield", can be improved like this.
The area where Japanese companies struggle the most is withdrawal of job offers and departure before relocation. Most withdrawals focus on issues surrounding recruitment.
Main reasons for withdrawal:
Lack of image of life in Japan
Concerns about finding a place to live
Complexity of visa procedures
Opposition from family
Lack of comparison points with Western companies
These can be improved through initiatives from the companies.
Effective measures for improving retention rates:
Information sessions for families (online)
Provision of guides for living in Japan
Visualization of visa procedure steps
Early communication with the accepting department
Support for housing and relocation
Implementing these measures has led to cases where the withdrawal rate improved by 30 to 50%, highlighting the importance of recruitment designs that accompany candidates until they join.
Summary: India’s new graduate recruitment is an "investment in future talent".
Recruiting fresh graduates from India is not just a solution to a labor shortage, but a strategic investment that will influence corporate competitiveness in 10 years. The abundance of STEM talent, English proficiency, international perspective, and flexibility are all strengths that are difficult to obtain in Japan.
On the other hand, there are many challenges such as university evaluations, local information, family preferences, attrition rates, and visas.
At Phinx, we minimize these hurdles through collaboration with local universities and Japanese language schools and pointed introductions, ensuring excellent students are matched reliably.
With a unique approach of “headhunting-style for fresh graduates,” we can introduce only the truly necessary personnel.
If your company is considering recruiting fresh graduates from India, please consult with Phinx. We will strongly support you in acquiring global talent to sustain your company’s future.
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