Question

how do Japanese companies insure loyalty and motivation

Answer 1

Many both in and outside Japan share an image of the Japanese work environmentthat is based on a "simultaneous recruiting of new graduates" (新卒一括採用 Shinsotsu-Ikkatsu-Saiyō) and "lifetime-employment" (終身雇用 Shūshin-Koyō) model used by large companies as well as a reputation of long work-hours and strong devotion to one's company. This environment is said to reflect economic conditions beginning in the 1920s, when major corporations competing in the international marketplace began to accrue the same prestige that had traditionally been ascribed to the daimyō–retainer relationship of feudal Japan or government service in theMeiji Restoration.

Answer 2

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.