What is “Simultaneous Recruiting of New Graduates”?

“Simultaneous Recruiting of New Graduates” (Shinsotsu Ikkatsu Saiyō) is a unique Japanese hiring practice where companies systematically and continuously recruit and screen only graduating students, make job offers (known as naitei), and have them all join the company at the same time upon graduation. This system has created a distinct “new graduate labor market” in Japan, separate from the general labor market.

This practice is characterized by “potential-based hiring,” which values future potential over current experience, and is closely linked to the “Japanese-style employment system” premised on long-term employment and in-house training. Its origins are said to trace back to before World War II, but it became widespread during the post-war period of high economic growth (approx. 1955-1973), when many companies needed to secure a large volume of talent, establishing it as a standard practice.

Through years of practice, detailed rules regarding schedules and eligible candidates have been established, making it a unique recruiting culture in Japan. However, with recent changes in social conditions and the labor market, the system is now facing a period of transformation.

Although this recruiting model also applies to high school graduates, this article will focus on university and graduate school students.

Pros and Cons for Companies and Students

“Simultaneous Recruiting of New Graduates” offers the following advantages for both students and companies:

First, the system has resulted in a high employment rate for university students, with over 90% of job-seeking students securing a position upon graduation in recent years. This is considered one of the factors behind Japan’s lower youth unemployment rate compared to other countries. For students, the standardized timelines and processes make it easier to plan their job-hunting activities and help maintain fairness in application opportunities. For companies, the advantages include securing a large number of new employees at the same time and under the same conditions, which simplifies payroll management and improves the efficiency of training and personnel placement.

However, disadvantages also exist. A key drawback for both sides is the occurrence of “mismatches.” Due to mass hiring through a standardized selection process, companies often face the challenge of hiring individuals who do not fit their specific needs. On the other hand, students often cannot choose their work location or assigned department. If these do not align with their hopes, it can lead to early resignation (a phenomenon colloquially known as haizoku gacha, likening department assignments to the random luck of a capsule-toy machine).

Furthermore, under this system, job prospects are heavily influenced by the economic climate in the year of graduation. This was especially true for the “Employment Ice Age” generation, who graduated during the recession following the bubble economy’s collapse (approx. 1993-2004) and faced a much tougher job market than other generations.

Moreover, the long-standing emphasis on new graduates has meant that the mid-career hiring market in Japan has been relatively small. This created a problem where individuals who failed to find a job upon graduation or left their first job early found it difficult to secure stable employment. This gave rise to the term shinsotsu card (“new graduate card”), symbolizing the precious, one-time opportunity available immediately after graduation. To mitigate this disadvantage, companies are now encouraged to allow individuals within three years of graduation to apply under the same “new graduate” status.

Current System and Recent Changes

Today, it is common for university and graduate students to register on multiple platforms known as “job-hunting sites” to apply for internships and participate in the selection process.

Under the simultaneous recruiting framework, the government sets official start dates (“lifting the ban”) for promotional activities, the selection process, and the issuance of formal job offers (naitei), requesting that all companies comply. However, these requests are not legally binding. In practice, many companies start their information sessions and screening processes earlier and issue informal offers (known as nainai-tei) before the official dates.

At the same time, this traditional recruiting system is now undergoing a transformation. In recent years, a growing number of companies are abolishing simultaneous recruiting in favor of year-round hiring. Additionally, there is a rising trend of using recruitment agencies (agents), which are common in the mid-career market, for new graduate hiring.

The reasons behind the shift in this 50-year-old practice lie in various structural changes in Japan’s labor market, such as the intensification of the war for talent, the advancement of globalization, and the spread of “job-based hiring” systems driven by digitalization.