May 21, 2013

Japanese Employment Relationship

As mentioned in the last blog (New Grad's Job Hunting 2), more than 30% of new employees straight out of college leave their companies within three years these days in Japan, and this stats is regarded as surprisingly high in Japan, taking into account the fact most of Japanese labors used to stay at the same company through their careers even though the employees had certain complains.

One of major reasons for such "easier" movement than used to be could be change in employment relationship between a company and an employee, specifically the company's less commitment for "lifetime employment."

The Japanese companies used to guarantee their workers' employment throughout their careers.  Plus, compensation of employees generally increased every year.  Employees, in return, had loyalty to their companies by devoting a large part of their lives for the company's work.  Under this kind of employment relationship, I assume that leaving the current company should have been something similar to leaving family and been a very tough decision.

Many Japanese employees worked long hours by sacrificing their private times.


Also, they respected relationship with their colleagues and spent lots of their times with the colleagues, for example, by going out to drinking after work, playing golf on weekends, and so on.


However, the above lifetime employment model has been weakened maybe last a couple of decades as the Japanese economy became globalized, and Japanese companies have more foreign investors, who request for restructuring labors, as I understand.  The employees' loyalty towards their companies have been weakened in accordance with the management change.

I don't know which is better, the old employment model (i.e. company guarantees its employees' lives and the employees in turn devote themselves to the company) or the current one (flexible relationship), as each model has both pros and cons.  But I can at least say that we are now in transition of change in employment style, and many Japanese employees are lost.


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