Firing is legally challenging in Japan. To work around this, some large companies create a new department for a "new business vertical," transfer unwanted employees into it, and then shut down the entire function, effectively laying them off.
To encourage a return to the office while offering flexibility, one founder told his 100% remote team that only the top 25% of performers could continue working from home. This created a strong incentive for performance across the company.
When recruiting in Japan, understand that candidates are typically more risk-averse and passive. Unlike in the U.S. where talent weighs the opportunity cost of *not* joining a high-growth startup, Japanese candidates often prioritize stability and risk management.
Unlike companies where recruiting is a support role, Uber founder Travis Kalanick elevated it to a frontline function, on par with operations. He dedicated an hour each week to the recruiting team, signaling its importance and making the function more effective and motivated.
A decade ago, stock-based compensation was a foreign concept in Japan. Uber was a pioneering company that introduced and popularized it. Following its massive success, stock options have become an expected part of the compensation package for talent joining Japanese startups.
Early-stage founders often make the mistake of grilling candidates in the first interview. Instead, the entire first hour should be dedicated to selling the company, the vision, and the opportunity. You can't evaluate someone who isn't excited to join your mission yet.
Instead of relying on traditional recruiting, founder Travis Kalanick went on a "global tour." He hosted happy hours in major cities, invited top local talent, personally pitched the Cloud Kitchens vision for an hour, and then networked, creating a direct pipeline of elite candidates.
Top performers happy in their roles won't move for a standard pay increase. To recruit them, dig deep to find personal pain points. Offering creative solutions like covering housing costs or children's tuition can be more compelling than a higher salary alone.
Uber's demanding, US-style interview process (analytical tests, take-home exercises) was initially met with resistance in Japan. However, this friction served as an effective filter; candidates who embraced the challenge were deemed a good cultural fit, while those who questioned it were flagged.