Trend of Hiring "Young Inexperienced Personnel" Expands Amid SMEs' Difficulty in Recruiting Experienced Talent

Rakzas Inc. (Headquarters: Kita-ku, Osaka / President and CEO: Seijiro Fukushige, hereinafter "the Company") conducted a survey among individuals involved in hiring at small and medium-sized enterprises (SMEs) regarding the actual situation of hiring young, inexperienced personnel for mid-career positions.

Background of the survey: The expansion of hiring targets to include "inexperienced/less experienced individuals" in mid-career recruitment

As a preliminary survey, when 790 hiring professionals were asked about their mid-career hiring policies over the past three years, 30.8% answered, "We focused on hiring experienced personnel but midway expanded the target to include inexperienced or less experienced individuals," while 21.1% answered, "We targeted inexperienced or less experienced individuals from the beginning." In total, 51.9% of the companies included inexperienced or less experienced individuals in their hiring scope.

From these results, it is evident that a certain number of companies are expanding their mid-career hiring targets beyond experienced personnel to include inexperienced and less experienced individuals.

Therefore, in this survey, we focused on SMEs to clarify the background of expanding the hiring target to inexperienced or less experienced individuals in mid-career recruitment, as well as the actual situation after hiring. Particularly in SMEs, where securing talent and post-hire training often become challenges, we surveyed hiring professionals at companies that have hired inexperienced personnel for mid-career positions within the past three years. We investigated their reasons for starting to hire inexperienced personnel, their anxieties before hiring, their sense of burden after implementation, and their intentions to continue in the future.

Reasons for starting to hire young inexperienced personnel: "Talent shortage" and "Lack of experienced applicants" rank high

When asked what prompted them to start hiring young inexperienced personnel for mid-career positions, the most common answer was "Severe talent shortage" at 33.5%, followed by "Lack of experienced applicants" at 33.0%. This suggests that many companies find it difficult to secure sufficient talent solely through recruitment that assumes experienced candidates.

Additionally, 22.0% of companies answered that they "Felt intensified competition in hiring experienced personnel." Furthermore, responses such as "Many candidates declined even after receiving an offer" (17.5%) and "The cost of hiring experienced personnel was too high" (16.5%) also ranked high. It appears that in hiring experienced personnel, not only acquiring applicants but also competition leading up to the hiring decision and cost aspects are becoming issues.

On the other hand, 15.5% of companies answered "We considered inexperienced personnel from the beginning," and another 15.5% answered "We wanted to strengthen the training of young talent with an eye toward the future." While many companies began hiring young inexperienced personnel as a response to talent shortages and difficulties in hiring experienced workers, it was found that a certain number of companies include inexperienced individuals in their hiring scope with an eye toward future organizational building and talent development.

Anxieties before hiring were "Training time," "Becoming effective," and "Burden on the field." However, after implementation, 56.5% answered that "The burden was smaller than expected."

When asked about their prior anxieties regarding the hiring of young inexperienced personnel, the most common response was "Training takes time" at 41.5%. This was followed by "Anxiety about whether they can become effective" (39.0%) and "Increased burden on the field" (38.0%), indicating significant concerns about post-hire training and field acceptance when hiring inexperienced individuals.

Furthermore, "Anxiety about early turnover" also reached 30.5%. Conversely, only 13.0% of companies answered that they "Had no particular anxieties," suggesting that many companies are taking the plunge into hiring young inexperienced personnel while harboring some sort of anxiety.

However, when asked about their impression after actually hiring young inexperienced personnel, 16.5% answered "There was almost no problem," and 40.0% answered "It was not as difficult as expected," meaning a total of 56.5% answered that the burden was smaller compared to their prior anxieties. Only 18.0% said it was "Exactly as anxious as expected," and 12.5% said it was "Much harder than the anxiety," showing that many companies feel the training and field burdens often feared before hiring were not as significant as expected after implementation.

Furthermore, as for the benefits felt by expanding the hiring target to the young inexperienced demographic, "It became easier to secure the number of hires" was the most common at 36.5%, with "The number of applicants increased" (30.5%) and "Hiring speed improved" (28.5%) also ranking high. For companies that find it difficult to hire experienced personnel, hiring young inexperienced personnel is considered a realistic option for expanding the applicant pool and satisfying hiring needs.

66% of hiring companies are positive about continuing. The possibility of inexperienced hiring expanding as a "training-oriented" hiring approach

When asked what preparations they made for accepting young inexperienced personnel, the most common answer was "Conducted training and study sessions" at 40.5%. This was followed by "Prepared manuals and procedural documents" (30.5%), "Established a mentor/buddy system" (26.5%), and "Assigned OJT trainers" (25.0%). It was found that many companies do not just hire inexperienced individuals, but also prepare a reception system with an eye toward post-hire training and retention.