3 in 4 Companies Find Hiring Talent in Their 20s 'Difficult'; Over 40% Say It's Harder Than Last Year, Citing Inability to Match Large Firm Compensation, Survey Shows

Gakujo Inc. conducted an online survey of corporate human resources managers regarding the difficulty of hiring mid-career professionals in their 20s. The results show that a combined 75.2% of companies described the process as 'difficult' or 'somewhat difficult,' revealing that three in four companies are struggling with recruitment.

[Key Survey Findings] (1) Difficulty of Hiring Talent in their 20s: Three in Four Companies Report Challenges When asked about the difficulty of hiring mid-career candidates in their 20s, 37.6% responded 'difficult' and another 37.6% said 'somewhat difficult,' for a total of 75.2%. Only 1.2% found it 'somewhat easy,' and zero percent found it 'easy,' indicating an extremely challenging hiring market. Reasons for the difficulty included issues typical of a tight labor market, such as 'intense competition for talented individuals,' 'low number of applicants,' and 'difficulty forming a candidate pool.' Other cited challenges were 'a high number of offer and interview withdrawals' and a 'gap with the desired candidate profile.' Compensation issues were also noted, with comments on 'salary gaps' and the tendency for young talent to 'gravitate towards famous companies or those with better conditions.'

(2) Comparison with Last Year: Over 40% of Companies Find It More Difficult Compared to previous years, a combined 43.2% of companies feel that hiring has become more challenging, with 22.0% stating it is 'more difficult' and 21.2% 'somewhat more difficult.' In addition to an 'accelerated seller's market,' reasons included 'competitors' salaries rising with inflation' and an 'inability to compete with the recruitment conditions and compensation of famous and large companies.' This suggests that the trend of wage increases and expanded hiring by large corporations is significantly impacting the recruitment activities of other companies, particularly SMEs.

(3) Corporate Responses: Nearly Half are Changing or Adding Recruitment Methods In response to the heightened hiring difficulty, the most common action taken by companies (multiple responses allowed) was 'changing or adding recruitment methods,' at 46.7%. This was followed by 'reviewing recruitment systems and selection processes' (39.5%) and 'revising hiring criteria' (36.9%), indicating a trend of re-evaluating the entire recruitment process. Furthermore, more than one in four companies were addressing compensation and working conditions, with 'reviewing employee work styles and labor conditions' (27.7%) and 'revising offered annual salaries' (27.2%) also being common responses.

[Survey Background] As competition for talent intensifies in the traditional graduate recruitment cycle, an increasing number of companies are strengthening their mid-career hiring efforts targeting individuals in their 20s. This survey was conducted to clarify the current realities and challenges in these recruitment activities.