Secrets of Startup Recruiting in the US AND Japan! (feat. Sho Takei) | E2233
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode of This Week in Startups is recorded live from Tokyo during the launch of Japan's first Founder University. Jason Calacanis interviews Sho Takei, co-founder of HyreSearch.com, who brings extensive recruiting experience from working directly with Travis Kalanick at both Uber and CloudKitchens. (03:03) The conversation explores the unique challenges of recruiting in Japan's candidate-driven market, where cultural differences significantly impact hiring practices compared to the US.
- Main themes: AI's transformation of recruiting, cultural differences in Japanese hiring practices, startup recruiting strategies, and the importance of founder involvement in talent acquisition
Speakers
Jason Calacanis
Host of This Week in Startups and founder of Launch Fund, an early-stage investment firm. He's currently expanding Founder University internationally with programs in the US, Saudi Arabia, and Japan through partnerships with organizations like JETRO.
Sho Takei
Co-founder of HyreSearch.com, a data-driven recruiting company helping startups find top talent globally. Previously worked as a recruiter for Travis Kalanick at both Uber (starting in 2015 when it had 4,000 employees) and CloudKitchens (joining as the 50th employee in Asia). Has extensive experience in APAC recruiting and helped bring companies like Asana, Figma, and Pinterest to the Japanese market.
Key Takeaways
Cultural Adaptation is Critical for International Expansion
American recruiting practices often fail in Japan due to cultural differences. (15:51) Sho explains how Uber's intensive interview process, including analytical exercises and presentation requirements, was seen as overbearing and insulting by Japanese candidates. However, this actually served as an effective filter for startup-minded candidates who were willing to embrace American work culture. The key lesson is that what works in one market may need significant adaptation for another, and sometimes those "failures" can actually help you find the right cultural fit for your company.
Stock-Based Compensation Requires Market Education
The concept of equity compensation was relatively new in Japan when Uber arrived, but has gained significant acceptance over the past decade. (05:25) Sho notes that seeing real Uber millionaires emerge from early employees helped validate stock options as legitimate compensation. However, Japanese workers still prefer cash over equity unless they come from high-earning backgrounds like investment banking or consulting where they can afford the risk.
Return to Office Provides Startup Advantages
Startups that maintain five-day office culture have distinct advantages over remote-first companies, especially in early stages. (09:29) Sho advocates for in-person culture during a company's founding phase because it enables better alignment, hustle mentality, and team bonding. While remote work provides access to broader talent pools, the energy and execution speed of co-located early-stage teams often outweighs this benefit.
AI Amplifies Recruiter Capabilities Rather Than Replacing Them
AI tools can make recruiters "10x" more effective by handling administrative tasks and pattern recognition, but human relationships remain essential for closing top talent. (29:00) Sho's team built internal AI tools that automatically suggest relevant candidates and opportunities after interviews, dramatically improving efficiency. However, he emphasizes that "nobody wants to talk to a robot and join a company" - the human element of influence and relationship-building cannot be automated.
Founder Time Investment Signals Company Priority
The most successful recruiting happens when founders personally invest significant time in the process, as demonstrated by Travis Kalanick's global recruiting tour. (47:19) Kalanick would host happy hours in major cities, personally selling CloudKitchens to audiences of 100+ top candidates. This direct founder involvement sends a powerful signal that recruiting is a top company priority and that potential hires are truly valued, significantly improving conversion rates for passive candidates.
Statistics & Facts
- Uber had only 4 people in its Japan office when Sho joined in 2015, despite being a 4,000-person company globally. (03:23) This illustrates how challenging it was for American tech companies to establish presence in Japan during the early expansion phase.
- CloudKitchens required a 50% to 80% salary increase to successfully recruit Japanese executives who had been at their companies for 5-10 years. (37:54) This demonstrates the premium required to attract established talent in Japan's stable employment market.
- Top tech executives in Japan typically earn around $1 million US in total compensation. (37:34) This benchmark helps startups understand the competitive landscape for senior talent in the Japanese market.
