how do Japanese companies insure loyalty and motivation
Answers
Employee Benefits In Japan
Employee benefits are a major deal in Japan given the fierce competition for talent. Japanese candidates tend to be picky when it comes to choosing a company to work for.
It is advised that new market entrants seeking their first hires to invest more in benefit packages and their brand building to help attract and secure talent.
In Japan, employees are expected to work hard and demonstrate strong loyalty and devotion to the firm, in exchange for some degree of job security and benefits, such as housing subsidies, good insurance, the use of recreation facilities, and bonuses and pensions.
Wages begin low, but seniority is rewarded, with promotions based on a combination of seniority and ability.
Leadership is not based on assertiveness or quick decision making but on the ability to create consensus, taking into account the needs of subordinates.
Surveys indicate continued preference for bosses who are demanding but show concern for workers’ private lives over less-demanding bosses interested only in performance on the job.
This system rewards behaviour demonstrating identification with the team effort, indicated by singing the company song, not taking all of one’s vacation days, and sharing credit for accomplishments with the work group.
Pride in one’s work is expressed through competition with other parallel sections in the company and between one’s company and other companies in similar lines of business.
Thus, individuals are motivated to maintain wa (harmony) and participate in group activities, not only on the job but also in after-hours socialising (nomikai).
The image of group loyalty, however, may be more a matter of ideology than practice, especially for people who do not make it to the top.
As a good rule of thumb, the larger the company, the more employee benefits there are, but the lower the base wage will be. Big companies are big on benefits, security and creature comforts but low on base wages. Small venture companies usually have to pay higher base wages and performance incentives, but provide little security and few creature comforts. It’s a trade-off either way.
Paid Leave:
Permanent and contract employees are entitled to a minimum of 10 days paid leave per annum after six months rising to 20 days with more than six-and-a-half years’ of service. This allowance can be pro-rated for partial years worked.
Compared to the UK this may sound like a very small amount of leave, but there are also no fewer than 15 days of public holidays in Japan every year, plus many companies shut down for a statutory period of several days in the summer or during the New Year.
Sick Leave:
In general, there is no sick leave rights in Japan. When employees get sick they use their paid vacation to take leave of absence. Some foreign companies grant sick leave to their employees as a special benefit.
Social Security:
There are two main types of social security:
1. “Kokumin kenko hoken” or “Citizens’ health insurance”
This is mainly aimed at self-employed people, or long-term temporary or part-time workers (called “freeters” in Japan). It is a system whereby the individual registers at his or her local government office and pays a monthly insurance premium, which is assessed according to income.
This insurance covers 70% of the cost of any health treatment. Many people also take out top-up insurance privately to cover the other 30% of costs, just in case of a major illness or injury. Kokumin kenko hoken is substantially cheaper for the individual than the following option (below), as it only covers health insurance, nothing else. As such, it is the preferred option for many foreigners living in Japan who don’t intend to be here for the long term.
2. “Shakai Hoken” or “Social Security”
This is a much more comprehensive plan than the above, and is a contributory system, whereby 50% of the cost of monthly premiums is covered by the individual through deductions from salary at source (just like NHS contributions in the UK) and 50% by their employer. Companies with more than just a handful of employees are obliged to provide this cover to their employees