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Uncovering Hiring Challenges in Japan

3. Navigating Cultural Obstacles: The Mindset of Japanese Jobseekers

2024-06-05

In Japan, three traditional employment practices, often referred to as the "Three Sacred Treasures of Japanese Management," have significantly shaped the job market and influenced the mindset of Japanese candidates when considering career changes.

These deeply ingrained practices have historically made Japanese workers more hesitant to change jobs compared to their counterparts in other countries. However, as the economic environment evolves, these traditions are being reconsidered, and a new trend is emerging.


The Three Sacred Treasures of Japanese Management 


Lifetime Employment

Lifetime employment involves companies retaining employees until retirement. Although not legally required, this practice was widely embraced by large corporations during Japan's high economic growth period to secure and retain talent. Employees typically remain with one company, experiencing periodic job rotations.
This system allows employees to become versatile generalists but often hinders the development of specialized skills. Consequently, the drive to enhance one's position and conditions through personal skill development, common in Western countries, has been relatively weak in Japan.

 

Seniority-Based Wages

Seniority-based wages determine salary and rank based on age and length of service. This system was designed to prevent workforce attrition by improving conditions with tenure. For workers, the prospect of gradually increasing wages based on years of service fostered a mindset where changing jobs was not a common consideration.



Company-Specific Unions

Company-specific unions are labor unions formed by employees within a company, differing from the industry-wide unions prevalent in the West. These unions emphasize mutual cooperation and communication, tailoring activities to the company's specific circumstances.
However, the close relationship with the company can make it difficult for workers to leave their jobs. Additionally, the insular nature of these unions limits workers' access to information about labor conditions and employment trends in other companies and industries.

The Changing Japanese Job Market


These traditional employment practices have contributed to the reluctance of Japanese workers to change jobs. However, the job market has significantly transformed since the high economic growth period, leading to a gradual decline in these practices. Economic stagnation, a declining population, globalization, and the rapid advancement of IT technology have intensified competition for talent and altered the business environment.

To maintain international competitiveness and secure top talent, companies are exploring new hiring strategies and employment systems, such as hiring from different industries, utilizing global talent, and adopting "job-specific" hiring.

As the job market evolves, workers' attitudes toward changing jobs are also shifting. Particularly among the younger generation, there is a growing tendency to view job changes as opportunities for personal growth and skill enhancement.

Adapting to the Times: Understanding Japanese Employment Culture


Despite the evolving job market, traditional employment practices continue to influence Japanese workers, especially those in their 40s and older, as well as their parents' generation. For these individuals, long-term employment at a single company remains a symbol of stability. To succeed in hiring in Japan, it is crucial to understand this employment culture while being responsive to market changes.

At BRS, we specialize in bilingual and multilingual talent recruitment. Our consultants are well-versed in the Japanese job market, helping us find the best candidates for each company and position. We also offer bilingual RPO (Recruitment Process Outsourcing) services to support the entire hiring process. Please feel free to contact us for more information.


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