2. International HR Framework
● National
Characteristics
● Economy
● Regional Variations
● Culture
● Work Environment
● Recruiting
● Compensation
Practices
● Voluntary Benefits
● Compliance Elements
● Additional Resources
3. National Characteristics
General History
● 11 February 660 BC
● Feudal Lords 12th Century - 1868
● 1180 - 1868 - Shogunate
● 5 Major Wars
● Civil War
● Became an Empire again in 1868
● Composed of more than 6,852
islands
Population
● 126.9 Million
Languages
● Japanese
● 4 Regional Dialects
4. National Characteristics
Demographics
● Life Expectancy of 83.5 Years
● High Suicide Rate
● Expected Pop. 95 Mill by 2050
● Required Education Ends After Middle School
● High Impact on Recruiting & Hiring
5. National Characteristics
Government Profile
● Emperor, Prime Minister
● Democratic System
● Formed similarly to Britan
Ethnic Diversity
● 99% Literacy Rate
● Shintoism 79.2%
● Buddhism 66.8%
● Christianity 1.5%
● Other 7.1%
7. Regional Variations
Language
● Japanese with Regional Dialects
Employment Law
● Very broad onboarding, no discrimination
● Incentives for retaining/hiring older workers
● Employment Contracts
Salary
● Median Salary: ￥1,000,00/Month ($8,371)
8. Culture Dimensions
Major Holidays
● January 1
● 2nd Monday of January
● February 11
● February 14
● March 3
● March 14
● March 20
● April 29-May 4
● July/August 7
● 3rd Monday of September
● November 3
● December 23
9. Work Environment
● RENGO - Japanese Trade Union Confederation
● 6.75 Million Members with a goal of 10 Million
● Feelings of Unjust Termination
● “Struggling to protect jobs and achieve a better life for all workers”
● Advancing the social movement to organize and improve the working
conditions of non-regular workers
● Unions make reduced hours a large part of their demands
● Karoshi (Death from overwork)
10. Work Environment
● Expat concerns over natural disaster, approximately 20,000 foreigners
have told Tokyo’s immigration office they plan to leave the country
● Priority on work life
● Monetary rewards to stay at one company.
● Group Oriented, Regular Office Hours
● Prefer Face to Face
● Cautious, Conservative Decision making
11. Recruiting
General Recruiting Aspects
● Technology
○ International job sites
● Language
○ English Language skills valued
● Culture
○ Shushin Koyo (終身寉用)
○ 2nd highest number of private
employment agencies
● Employer Brand
○ Best Response rate worldwide
○ Canon
○ Toyota
○ Honda
○ Sony
○ Komatsu
○ Sega
● Job Brand
○ Mandatory Retirement at 60
○ Sexism
12. Recruiting
Compliance Aspects
● The candidate chosen must be a 100% fit
● Lax onboarding regulations, no discrimination
Internet and Social Media
● 34% of Internet users under 35
● Facebook used as a business network
● LinkedIn does not work
13. Compensation Practices
Payroll Cycles & Distribution
● 25th of the month
● Bank accounts are popular
Tax Elements
● 20.5% Income Tax for non residents
● Federal and Local Inhabitant Tax
● If staying for more than 1 year, health insurance and pension are
required.
● 29.5 hours - Part time or Full time
14. Compensation Practices
Tax Elements
● Full Time - Half Shakai Hoken paid by employer, half by employee
● Taxes removed by employer
● When you leave the country you can get your pension paid out in a lump
sum.
15. Compensation Practices
Executive Compensation
● Japanese CEOs make 319 times less than American CEOs
● Higher than ¥100 Million requires disclosure to Shareholders
● High executive salary is a source of shame
● Modest pay is seen to help foster the country’s team spirit
● There is no market for Executives, they are hired internally
16. Voluntary Benefits
Health & Welfare
● National Universal Health Care System
● Maternity / Paternity Leave
Retirement
● Pension Plans
