Behind every successful business is a person or team that turned an idea into reality. At the core of this kind of progression is the critical role of human resources (HR). HR drives organizational growth and innovation by utilizing effective management strategies to nurture employees.
This would require adapting to local customs, frameworks, and cultural nuances depending on the environment. So, if you’re a foreigner interested in HR in Japan, you’ve come to the right place!!
Before we get into HR in Japan, we would like to give you an overview of Japanese work culture. This will help you understand why certain practices in HR in Japan exist and what kind of issues or challenges they serve to address.
- What is the Japanese work culture like?
- What are common recruitment and hiring practices by HR in Japan?
- What role does HR in Japan play in supporting employees?
- What are some legal and social aspects of HR in Japan?
- What are some challenges for international companies regarding HR in Japan?
- Final Thoughts
What is the Japanese work culture like?
Respect and collectivism are two important traits in terms of the common Japanese work ethic and group dynamic. A typical Japanese workplace functions under a solid hierarchical structure. With this structure, it is expected of employees to understand that their seniors hold a certain degree of authority that commands formalities. So, when working in a team in the Japanese workplace, decisions are made with precision. This is done by reaching a consensus with respect to the seniors’ insights.
Business etiquette is also an important aspect of Japanese work culture. For example, Japanese employees often find themselves working overtime. This is due to the long-standing practice of staying in the office until one’s superior leaves first. However, this may change as the years go by.
Non-verbal communication plays a pivotal role in Japanese work culture as well. Understanding different non-verbal cues in Japan will contribute to an effective interaction with Japanese employees. You might encounter some cues such as kūki yomenai 空気読めない (cannot read the room). Essentially, this concept implies that not all concerns are often voiced in the workplace. To minimize conflicts in the workplace, employees tend to avoid direct confrontation. Thus, the importance of being able to read the room.
Japanese Business Culture with Rochelle Kopp
What are common recruitment and hiring practices by HR in Japan?
Hiring Practices in Japan vs. Western Standards
Shukatsu 就活 Recruitment System
A unique feature of HR in Japan is Shukatsu 就活. This applies to university students who have about one more year left before graduation. Through this system, companies and students connect and interact through seasonal recruitment cycles around winter and summer. This is different from the ad-hoc and year-round recruitment practices in the West.
Formal Interview Process
With an emphasis on respect to seniors and higher-ups, HR in Japan holds highly formal interviews. Applicants must come prepared with knowledge of interview etiquette such as business card exchanging, attire, and more. Additionally, some Japanese companies that one would find in big job-hunting events in Tokyo (e.g. Tokyo Winter Career Forum) may hold interviews on the spot! In such a case, it would be ideal for an applicant to come prepared with some prior research about the company to leave a good impression.
Internships as Recruitment Tools
Serving as a sort of extended interview process by HR in Japan, students may consider doing internships at Japanese companies where they wish to work full-time after graduation. By doing so, companies will be able to assess the student’s suitability for future employment. While this practice may also be common in the West, it might differ in terms of assessment criteria and duration.
Effective Recruitment for Foreign Businesses
Overcoming Language Barriers
Non-Japanese speaking candidates who are hoping to apply for a Japanese company might find that the language barrier could make or break some opportunities. Most of the time, if not always, Japanese companies expect a certain level of proficiency. Achieving the JLPT N3 certification is a considerable level, although N2 or N1 will open up many more doors.
However, there are also multinational companies with Japanese offices. A lot of these companies accept English as the main mode of communication in the workplace. Nevertheless, it would always help to learn a new language not only for work but to meet and get to know more people as well! If you’re looking for affordable Japanese lessons, check out Japan Switch, a Tokyo-based language school providing both lessons and self-study tips and manuals!
Attracting Top Talent in the Japanese Market
For those who are looking to become recruiters and not applicants, one of the big questions is how to attract top talent in the Japanese market. Going up against large corporations might be tricky, but this is not to say it is impossible to find the perfect recruit for your team!
First, you may want to consider participating in local recruitment events and channels such as the Tokyo Winter Career Forum, GaijinPot Expos, or connecting with agencies. Learning which ones are most popular will also help you expand your reach efficiently and meet potential recruits in large numbers.
Second, we cannot stress Japanese language proficiency enough. Showing applicants that you can ensure smooth communication is a plus point. Although many Japanese employees may turn to non-verbal cues to express how they feel about projects, it is still important to use the language to understand them better.
Third, promoting work-life balance would be appealing to an applicant’s eyes. Traditional companies usually have a culture of long working hours or overtime. Thus, promoting a healthier working environment with flexible hours, remote work options, or support for family commitments could make your company stand out!
Lastly, legal compliance will boost your credibility as a company. Once applicants see that your company complies with Japanese labor laws and regulations, they may feel a sense of security in terms of employment and employee rights.
Looking to hire an accountant? Check out our case study to learn about a Japanese accounting firm that we’ve helped to scale!
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What role does HR in Japan play in supporting employees?
Performance Evaluation and Development
360-degree feedback can be expected of HR in Japan. In essence, this kind of evaluation method involves receiving feedback from people in higher, equal, and lower positions. This method is an effective way to provide a diverse view of an employee’s performance by compiling perspectives from colleagues with varying expectations. Similarly, one may also expect a group evaluation to assess a team’s collective responsibility.
Although there may be an emphasis on collectivism, HR in Japan still expects employees to engage in self-assessment. This practice parallels the Japanese concept of kaizen which implies continuous improvement. By reflecting on one’s performance, they will be able to identify any points for improvement and reflect on new goals they would like to achieve.
On-the-job training (OJT) and Off-the-Job training (Off-JT) are also some training and development opportunities offered by HR in Japan. OJT is a cornerstone of training in many Japanese companies. New hires use this to their advantage to work with their colleagues, develop and enhance practical skills, and get a hang of the company culture.
On the other hand, Off-JT consists of seminars, workshops, and courses outside of the company’s regular workload. These serve as supplementary opportunities for employees to gain skills and knowledge that are not directly related to their current job responsibilities. Off-JT opportunities allow individuals to develop not only as their company’s employees but as a person in general.
Curious to learn more about unique principles such as kaizen, nemawashi, and consensus-building? Consider reading our article on Japanese Management!
Work-life balance and employee well-being
HR in Japan (or anywhere, really!) is also in charge of ensuring that the employees can balance and separate their work lives from their personal lives. One way they do this is by implementing work-life balance policies. HR in Japan is slowly making moves to increase policies that encourage a healthier balance which includes setting overtime limits and flexible working options. Additionally, they seek to address the issue of karoshi which means death from overwork. They monitor working hours to make sure that it complies with labor laws.
To promote overall health and wellness as well, HR in Japan promotes health benefits such as covering employees’ health insurance and offering gym programs, and recreational activities. Employees must be in a healthy physical and mental condition to work efficiently. Thus, HR in Japan makes it a point to watch over their employees’ health.
Furthermore, HR in Japan can also provide support for hobbies and personal development. This helps staff distinguish a healthy separation between their professional and personal lives.
What are some legal and social aspects of HR in Japan?
Understanding Japanese Labor Laws
Under the Japanese Constitution, hiring regulations are built upon points such as non-discrimination, employment agreements, probation periods, and mandatory social insurance enrollment. For example, it is by law that companies must not discriminate in hiring based on factors such as nationality or family origin. These points exist to uphold an employee’s rights not only as a worker but as a person as well so that all prospective workers are presented with fair opportunities.
Japan also has some strict laws on firing regulations. The Labor Contract Act, for example, protects employees from unreasonable dismissal. Employers may only dismiss employees upon providing objectively reasonable grounds.
Additionally, employers may be put in a situation in which their company needs restructuring which could cause some employees to lose their jobs. In such a case, employers will be required to prove that the redundancy (termination of an employee’s job due to company restructuring) was necessary and that they made efforts to avoid terminations.
Diversity, Inclusion, and Networking
Japan’s workforce may be historically known as a male-dominated sector, especially in senior roles. However, this is slowly changing thanks to an emphasis on gender diversity with initiatives and movements to promote women taking on leadership positions.
Additionally, Japan’s aging population implies a shrinking domestic workforce. To address this, there is now a growing trend to hire foreign individuals. Aside from bringing diversity to the workplace, this will also promote cross-cultural collaboration.
Networking will also play a big role in HR in Japan. Building relationships remains a deeply integrated part of the Japanese business culture. There are a handful of important notes about networking in Japan. For example, nomikai culture is an after-work drinking party. This takes a team out of the workplace and into an informal setting such as an izakaya to strengthen relationships and expand networks.
Another point about networking in Japan is being long-term oriented. Japanese networking is all about building long-term relationships, so it will take time to be acquainted, build trust, and collaborate. This is different from some Western networking styles which tend to be more transactional.
What are some challenges for international companies regarding HR in Japan?
Leading and Motivating Japanese Teams
As a foreigner in Japan, it may be challenging to lead and motivate a predominantly Japanese team due to cultural differences. However, this can easily be overcome by being open to learning new things and practicing respect. Japanese business etiquette plays an important role in the workplace. Foreigners who wish to work in HR in Japan should familiarize themselves with these customs and expectations.
We have also previously mentioned the idea of collectivism and teamwork in Japan. Some people might think that HR in Japan might involve individual-based evaluations. Although, teamwork is much more common. Adjusting to HR in Japan means encouraging a collaborative team environment and promoting nemawashi which means consensus-building.
Lastly, communication may be another challenge for international companies in Japan. Aside from the language barrier, Japanese employees tend to avoid direct confrontation. This may clash with individuals who come from backgrounds in which they voice out all their concerns directly. You can overcome this by learning Japanese and expressing your perspective on a situation. After some time, this practice will make employees feel comfortable enough to start doing the same.
To help you start, we have an article on Japanese business phrases, so you might want to give that a read!
Struggling to scale your business in Japan?
Technology and HR in Japan
Japan is known to be technologically advanced on a global scale. That being said, there is an increasing significance of the role of technology in HR in Japan.
An interesting take on this is the fact that over 90% of major Japanese companies have either used or are currently considering using generative AI. However, this does not necessarily imply that the use of AI has made their operations much easier. A lot of surveyed companies by the Asahi Shimbun expressed that they have witnessed data and authenticity concerns.
Recruitment and Talent Acquisition, for example, can be done by using advanced software and social networking platforms to source, track, and recruit candidates. It is also common for employers to use AI tools to assist in screening resumes to save time. HR in Japan can also use technology to manage employee data such as performance evaluations, work hours, and more.
With a rise in remote working options as well, Japanese companies are seeking to take collaboration, communication, and project management to the virtual environment.
While AI plays a critical role in optimizing certain procedures in today’s changing world, it may also come with its cons in the context of HR in Japan. There may be concerns about privacy, costs, potential over-reliance on technology, and the depersonalization of the HR process. How do you think technology should be used by HR in Japan?
Final Thoughts
HR in Japan this 2024 may be expected to start adapting to global trends but also addressing long-standing local issues in the workplace. As we have mentioned earlier, traditional Japanese companies tend to have a culture of overtime and a historically male-dominated workforce.
However, this is slowly changing with an increase of foreign talent integrating their cultures in the workplace. This opens up new perspectives and ways of operating a company.
In summary, HR in Japan practices unique systems and principles such as shukatsu, 360-degree feedback, kaizen, and more. Compared to the West, HR in Japan has a relatively different approach to recruiting, managing, and nurturing employees.
So, if you’re ready to build your team and hire Japanese employees, we hope that you were able to consider valuable points for your business as well!
2X-5X YOUR BUSINESS IN JAPAN
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