Already outdated? Japanese style employment system January 21 17:58

For the spring fight, Keidanren urged a review of the long-lasting Japanese employment system after the war. Collective recruitment of new graduates, lifetime employment, seniority-based wages ... isn't it timely anymore?

What is the Japanese employment system?

The main features of the Japanese employment system are new graduate recruitment, lifetime employment, and seniority-based wages. Everyone gets a job at the same time, gets promoted in the same way as he gets older, and works for the same company until retirement. Many companies in Japan have introduced such an employment system, which has taken root during the high growth period.

merit

The Japanese-style employment system was a system suitable for an era when the economy was growing and mass production was enough to make cheap products.

For example, collective recruitment of new graduates allows companies to recruit systematically every year, and after recruiting, allows them to experience various jobs through transfers and transfers, etc., and develop employees who are suitable for their company. .

For employees, seniority-based wages, in which the salary rises as the age and length of service increase, lead to a sense of security in employment and economics, and have the advantage that it is easier to draw a life plan.

Disadvantages

However, as the economy became more global and competition with foreign companies increased, the disadvantages of Japanese-style employment came to be pointed out.

For example, employees who grew up in the same company with training and experience alone are not good at creative work and it is difficult to obtain excellent overseas talent, but also raise salaries with emphasis on years of service. Under the system, childbirth and childcare work against women's career development.

Expert: The Japanese employment system is reaching its limits

"If the birthrate and aging population make it difficult to acquire young human resources, and AI advances and advances in technology, such as the development of artificial intelligence, the nature of work will change drastically," said Masashi Yamafuji, a senior researcher at Mitsubishi Research Institute, which is familiar with labor issues. He pointed out that the current Japanese-style employment system, in which companies have human resources and nurture them, is reaching its limits in meeting these challenges. He added, "The last decade has become a critical moment for the Japanese economy. In that context, the Japanese employment system will have to change significantly."

Aim of Keidanren

As globalization of corporate activities progresses and competition for human resources beyond borders intensifies, Keidanren is attractive as a company to highly motivated and overseas human resources who are willing to stay in a Japanese-style employment system. Believe that we cannot show enough.

He points out that not only is it difficult to acquire human resources, but also that it is hindering the growth and success of young human resources who seek to improve their abilities and perform high-value jobs.

Review direction

So how is Keidanren trying to review Japanese-style employment?

For recruitment, it is necessary to actively combine recruitment of mid-career and experienced workers, as well as recruitment of new graduates, as well as recruitment throughout the year.

In terms of wages, it is said that it is desirable to increase the factors that change the speed of salary increases and promotions based on evaluations of work results, because the system automatically increases according to age and length of service.

According to the review, recruitment and achievement of diverse human resources can be expected regardless of nationality, gender, educational background, etc.

Review movements already spreading

Moves to recruit new graduates and review the side-by-side wage system have already begun to spread among major companies.

This year, Fujitsu plans to drastically review the wage system based on seniority and introduce a system that greatly increases salaries according to roles. AI = Due to fierce competition for human resources in advanced fields such as artificial intelligence, it is said that annual income of 30 to 40 million yen can be obtained regardless of the length of service.

Mitsubishi Corporation has revised its personnel system from the current fiscal year onward, starting from the 10th year of joining the company, so that it can be assigned to the management team of a subsidiary, etc., regardless of age, according to their abilities. The aim is to reduce the elements of seniority and secure excellent human resources regardless of age. There is also a movement to review the recruitment of new graduates.

KDDI will stop hiring employees from joining the company in fiscal 2021, and switch to full-year recruitment, and change the recruitment time to twice a year in April and October. The company wants to switch to full-year recruitment to secure a wide range of human resources that cannot be accommodated by batch recruitment.

SoftBank has already introduced full-year recruitment.