Generation Z Job Seekers: The Complete Guide Part 3 - What Do Job Seekers Think About Regional Companies?

The " Recruitment Branding Expert" consulting team, which supports branding in talent acquisition, conducted the "Generation Z Job Seekers: Comprehensive Survey 2024" (hereinafter referred to as this survey) targeting job seekers graduating from universities and graduate schools in 2024 and 2025 (release available here ).

This series will unravel the characteristics of today's job seekers based on the survey results and additional web research.

Part 3 delves into the deciding factors for students joining both urban companies (headquartered in metropolitan areas) and regional companies (*), exploring avenues for regional companies to attract talent.

*Urban/Regional Definition: Urban areas include Tokyo, Nagoya, and Osaka metropolitan areas (Tokyo, Kanagawa, Saitama, Chiba, Aichi, Osaka, Hyogo, Kyoto prefectures). All other prefectures are defined as regional.

 

The deciding factors for joining urban companies are "higher salary" and "market value"

First, in the question asking about the desired employment area, 5.6% of students attending urban universities and 31.9% of students attending regional universities responded that they would "work for a regional company." The percentage choosing regional companies is significantly lower.

This result suggests an outflow of young people to urban areas. According to the "Basic Resident Register Population Movement Report" released by the Ministry of Internal Affairs and Communications in January 2024, only seven metropolitan areas, including Tokyo, experienced a net inflow of residents. The concentration of population in Tokyo continues unabated. One factor cited in the Ministry of Land, Infrastructure, Transport and Tourism's "Measures to Correct Tokyo's One-Point Concentration" is the influx of young people in their late teens and twenties moving to Tokyo for education and employment.

Next, let's examine the deciding factors for joining urban and regional companies, respectively. For both, "business stability," "an industry aligned with dreams or aspirations," and "brand recognition" were cited as key factors. This indicates that these are elements students prioritize when seeking employment, regardless of whether the company is urban or regional.

On the other hand, when examining the differences in key factors between urban and regional companies, let's look at the factors that rank highly for urban companies.

While some factors are universally important to all job-seeking students, others, like salary and market value, appear to be uniquely emphasized by students joining urban companies. The largest difference is "Good salary" (25.7%), which is a key deciding factor for students joining urban companies. Other factors, such as "high-caliber employees providing stimulation" and "advantageous for future career changes," indicate that students joining urban companies prioritize aspects linked to enhancing their market value and skill development more than those joining regional companies.

Three Key Barriers to Joining Regional Companies

How do students perceive employment with regional companies? We examine this based on results from an additional web survey of students (*).

※ Survey subjects: University/graduate students nationwide; Sample size: 316 total (Students considering regional employment but joining urban companies = 147; Students joining urban companies without considering regional employment = 169; Eligibility: University/graduate students graduating in 2024 or 2025 registered with the career support NPO "Encourage"). The panel base is the same as the main survey, but respondents were newly recruited for this survey, so they are not necessarily the same individuals. Survey period: July 19–22, 2024

We present the views of students who responded, "I considered employment with a regional company but will join an urban company." When asked why they considered regional companies, "Fewer people, quiet and relaxing" and "Lower living costs and rent" were cited by nearly equal numbers of students as the top reasons. Other high-ranking responses included "Seems like I could do the work I want, which is appealing" and "Abundant nature makes it easy to enjoy outdoor activities."

However, when asked why they ultimately chose not to join a regional company, "Better convenience of urban life" stood out as the overwhelmingly top reason at 35.4%. Other top reasons included: "I felt urban companies offered greater long-term stability," "I didn't want to be separated from my partner or close friends," and "I thought urban companies offered more entertainment and cultural opportunities." Many of these points also appeared in responses from students who "never considered rural companies and only applied to urban firms."

Looking at the survey results so far, it is striking how many students find the unique resources of rural areas—such as "quiet and peaceful" or "abundant nature"—appealing and consider employment with rural companies. However, in the subsequent consideration phase, factors like "convenience of daily life," "salary," and "availability of entertainment and cultural activities" become stumbling blocks, leading rural companies to be ultimately excluded from the list of potential employers. Simply conveying the appeal of regional areas to young people will not solve the challenges faced by regional companies in recruitment.

Refining communication is the first step in revising recruitment efforts

Regarding "convenience of daily life," a major hurdle for employment with regional companies, one potential solution is introducing flexible work arrangements that allow employees to live in more convenient areas while working for the regional company. However, this survey also asked about "desired work styles after joining the company." It revealed that a significant majority (65.6%) of job seekers aiming for urban companies prefer a "commute-based" work style. It's important to keep in mind that the introduction of remote work may not be a major deciding factor for employment at regional companies.

Regarding "high salary," this reflects the harsh future planning of students affected by the economic downturn. While many students cite "lower living expenses and rent" as a benefit of working for regional companies, the psychological factor influencing their choice of urban companies appears to be "lower wages as a benefit" rather than just lower living costs. That said, making a no-risk decision to raise wages as an upfront investment is unlikely to be easy. Similarly, addressing the "lack of entertainment and cultural offerings" – a major barrier to employment at regional companies – presents a high hurdle.

While these factors are difficult to resolve, there is potential to increase student interest in regional companies by improving communication. Below are the key factors influencing employment decisions where significant differences exist between urban and regional companies, as mentioned earlier.

Regarding "salary," it's difficult to resolve overnight. However, by emphasizing other top-ranked points like "high caliber of employees," "broad scope of work and problem-solving," and "ability to utilize one's skills and expertise," these could be presented as new attractions alongside existing recognized strengths of regional companies. This could leave a strong impression on job-seeking students and encourage them to join.

Regarding "the breadth of work and problem-solving opportunities" and "the ability to utilize one's skills and expertise," a friend of mine who joined a local government's agricultural civil engineering department cited this as a key factor in choosing their employer: "During an information session led by university alumni, I heard about real-world situations where knowledge and experience gained at university were applied. I also researched the job duties independently. When I saw content I had encountered in past research or university classes, that was the deciding factor." Another acquaintance, who had always been interested in tourism and hospitality, decided to join a regional revitalization NPO on a remote island after being invited by a friend who had already secured employment there.

Defining what can be uniquely achieved in regional areas or within the company itself, and then clearly communicating how a job seeker's own university experiences, major, and strengths can be applied to that mission, can help them envision their potential impact. This, in turn, can become a decisive factor in their decision to join.

To achieve this, alongside developing the message, it's also crucial to devise effective ways to connect with job seekers. Our recruitment branding experts introduce the "Job Hunting Journey," which maps out the people and events that influenced job seekers at each phase, from learning about a company to deciding where to join.

When asked about the people and events influencing them at each job-hunting phase, students joining urban companies cited "company information sessions and internships" and "conversations with people close to them" as top factors for awareness, understanding, and application. At the decision stage, "parents, family, and relatives" ranked highest. This suggests they are strongly influenced by real-world experiences—direct interactions with the company and surrounding reputation—rather than direct company engagement.

Awareness to application: Surveyed both "current job seekers (regardless of whether they decided on a company)" and "those who completed job hunting." Decision to join a company: Surveyed only "those who decided on a company and completed job hunting."

When interviewing acquaintances from regional universities, I particularly felt that students from these institutions have more limited job search information sources, making the above trends more pronounced. In regional areas, opportunities for medium-to-long-term internships are overwhelmingly scarce. I heard anecdotes about regional venture companies that successfully recruit students as immediate contributors by securing them as long-term interns. Building deeper connections with job seekers earlier on seems to be a significant advantage in recruitment.

Additionally, I heard stories like: "It seems the professor's endorsement was a key factor for someone deciding to join a certain regional company," and "A local company became the talk of the town for revoking new graduate job offers during the pandemic, leading to it being shunned." Rather than casting a wide net for recruitment targets, might it be effective to deliberately narrow the focus, designate priority universities for recruitment efforts, and concentrate on building awareness within those universities through seminars and alumni networks when hiring students from regional universities?

Dentsu Inc.'s recruitment branding experts will develop messages and contact points that can be decisive factors for joining regional companies. Leveraging networks with Dentsu Group companies in each region, we will also energetically support the recruitment activities of regional companies.

A New Approach to Recruitment Centered on Job-Hunting Students
In February 2024, Dentsu Inc. launched the "Recruitment Branding Expert" consulting team focused on hiring Generation Z. We support corporate recruitment branding using proprietary methods such as the "Job Hunting Journey Map"—a Dentsu original concept utilizing marketing methodology—and the "3C Framework," which simultaneously achieves highlighting company strengths, differentiation from competitors, and building rapport with job seekers. When considering effective recruitment activities for Generation Z with diverse values, please feel free to contact us.

Dentsu Inc. Recruitment Branding Expert Secretariat (Nishii, Iwabe)
Email: recruit-branding-expert@dentsu.co.jp

【"Gen Z Job Seekers Survey 2024" Overview】
・Purpose: To identify Gen Z's attitudes and trends regarding job hunting
・Target Area: Nationwide, Japan
・Eligible Participants: University and graduate students registered with the career support NPO "Encourage" scheduled to graduate in 2024 or 2025
・Valid Responses: 818
・Survey Method: Online survey
・Survey Period: February 9–15, 2024
・Survey Agency: RECCOO Inc.
・Urban/Rural Areas: Defined as Tokyo, Nagoya, and Osaka metropolitan areas (Tokyo, Kanagawa, Saitama, Chiba, Aichi, Osaka, Hyogo, Kyoto) as urban; all other prefectures as rural