Human Resources in Japan

Japanese human resources practices slowly are going through changes…will the pace be enough?

Human resources in Japan has gone full circle. Japanese human resources practices have gone through massive changes in the past 125 years, as has Japanese culture. This transformation has turned Japan into a modern, industrialized nation and  an economic superpower. As more and more westerners gain interest in Japan, the locals remain open and receptive of western technology, education, politics, and science, while still maintaining their cultural identity.

Japanese culture is evident in all companies, big or small, native or foreign-owned. An individual’s prestige is directly linked to the prestige of his or her employer. The company, in many cases, is seen to offer security and welfare. Rank and status are frequently more important than an individual’s name, and the various titles assigned to their position in a company are all in Japanese.

The Japanese believe in Kata: your inner character is determined by how well you obey rules. Kata evolved as parts of Japan’s strictly hierarchical society in which it was assumed that everyone has a defined role in life and, therefore, obligations that are spelled out in detail. This tradition carries into most Japanese businesses: the managers believe it’s their collective corporate responsibility to provide security, income, and jobs for “their” workers.

The main characteristic of Japanese human resource management that surprises westerners is nenko – lifetime (or long-term) employment for company employees. An employee who quits their job in Japan is seen as dishonest and disloyal, which makes it very difficult for individuals to leave a company, even for a better job.

Consequently, sourcing talent can be a daunting task for the human resources department. As a result, most companies partner with colleges and university to hire talent straight out of graduation. Employee selection is based on character rather than skills or experience and, after hiring, the HR department takes on the job of staff training. The downside of this is that your employees may not work in the field for which they studied at college or university.

Pay raises and promotions are automatic: the salary you pay your workers is based mostly on seniority, proximity to retirement, and status. Note that “seniority” is typically tied to an employee’s length of service, not the duties they perform or their merit.

The norm for work-life balance in Japan is not like in the west: work becomes part of private life, and private life becomes part of work. Employees develop emotional attachment to and become dependent on the company. That symbiosis indicates that – with the right resources, control, observation, training, and reporting by the human resource department – your staff may exponentially grow your business in the shortest time possible. Their prestige and self-worth depend on it.

Any tips you may want to share with our readers? As always, my people, the comment section is open.

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