A pre-close is a structured conversation, usually led by the recruiter, before the offer letter is written. It covers the likely numbers on the same basis the candidate uses for their own pay (base, bonus, allowances, equity), the title and its Japanese equivalent, the reporting line, the start date given their notice period, and what they lose by leaving. It also asks what else is in play: other processes, the family's view, and how the candidate expects their employer to react to a resignation.
Japan makes this step more important for two reasons. First, salary and terms are uncomfortable to discuss openly, and a candidate is unlikely to tell a hiring manager that the bonus structure worries them or that an individual contributor role disappoints them. Hiring managers regularly come out of a meeting convinced it went well, while the candidate tells the recruiter something quite different. The pre-close is where those concerns surface.
Second, an offer is not cheap to withdraw. Under the Supreme Court's 1979 Dai Nippon Printing ruling, an accepted naitei creates an employment contract. Getting the terms right before an offer goes out is better than fixing them afterwards.
What it means for a foreign employer
- The offer letter should never be the first time the candidate sees the number. A surprise in writing tends to get a polite delay and then a decline.
- Use an intermediary. The candidate will speak more frankly to a recruiter than to you. Ask the recruiter for the candidate's real reaction, not a summary saying the candidate was positive.
- Settle approvals before the pre-close. Do not test a number that regional finance has not signed off.
- Raise the counteroffer early. Ask what the candidate will do if their employer offers a promotion. The answer tells you how firm the decision is.
- Then give time. Once the formal offer goes out, five to ten business days to decide is normal. Confirm acceptance in writing before standing down other candidates.
Sources
- Supreme Court, Dai Nippon Printing case, 20 July 1979.
- Market practice; no statutory definition.