mind the gap
japan employer
april 2009
mind the gap
japan employer
april 2009
JAPAN
employee
employer perspectives
Masa Higo and Atsuhiro Yamada
introduction
In this paper, we present information about employers’ allocation of
workplace-based resources, through
workplace policies, company programs, and institutional practices,
which affect quality of employment
in the country context of Japan.
This paper will draw data from a variety of administrative surveys with
nationally-representative samples of
employers in Japan, conducted in
recent years mostly by the Ministry
of Health, Labor, and Welfare, Government of Japan.
Organizations that want to remain employers-of-choice must periodically assess how
shifts in the business environment might affect the effectiveness of their talent management strategies, policies and programs. Globalization and changes in the age
composition of the workforce are two important 21st century trends that can have a
significant impact on the need to customize and adjust core strategies and practices.
Employers around the world are challenged by the need to establish talent management policies and practices that they are globally strategic and also relevant to specific
country contexts. Forward-thinking employers are considering:
ππ How might shifts in the age composition of the workforces in different
countries affect the next generation of human resource policies and practices?
ππ And, how might these policies and practices support the sustainability of
great places to work?
What does “mind the gap” mean?
Train stations across England play recorded messages to remind passengers
that they should “Mind the gap.” These
words of caution urge train travelers to
pay attention to the space between the
door of the train car and the platform in
the station.
agework@bc.edu
For this paper, we use the phrase, “Minding the Gap” to remind employers to pay
attention to any gaps that might exist
between the profile of human resource
policies and programs typically available
in one country compared to the profiles of
availability in other countries.
1
Table of Contents
Quality of Employment: Dimensions of a “Good Job” and a “Good Place to Work” 3
Quality of Employment in Japan
Indicators of Fair, Attractive, and Competitive Compensation & Benefits 4
Indicators of Opportunities for Development, Learning & Advancement 6
Indicators of Wellness, Health & Safety Protections 8
Indicators of Opportunities for Meaningful Work 10
Indicators of Provisions for Employment Security & Predictabilities
12
Indicators of Workplace Flexibility
14
Indicators of Culture of Respect, Inclusion & Equity 16
Indicators of Promotion of Constructive Relationships at the Workplace 18
Summary: Minding The Gap
20
Conclusion: Closing The Gap
20
In Japan, typically, quality of employment in contemporary Japan differs by sector of industry and size of the workplace.1 Thus, we will show how Japanese employers’ allocations of
workplace-based resources for each of the eight dimensions of quality employment vary by
industrial sector and company size (as measured by the number of employees2). Furthermore, to the country’s current concern, over the last decade a gap in quality of employment
has been growing between, in OECD’s classification, regular (fulltime and presumably
lifetime) and non-regular (part-time and/or fixed-term) employees.3 Relative to regular
employees, the non-regular counterpart seems trapped in lower wage, job insecurity, and
lack of opportunities for job skill development.4 Thus, when appropriate, we will indicate
for which type of employee (regular or non-regular) employers allocate workplace-based
resources for quality employment.
2
http://www.bc.edu/agingandwork
The Sloan Center on Aging & Work in
Boston, in collaboration with the Middlesex University Business School in London,
created the Mind the Gap series to provide
employers with basic employment-related information country-by-country. There are two
types of papers in the Mind the Gap series.
Employee Series: This series examines the
perspectives that adults of different ages
have about employment and the assessments that they make about their employment experiences. These papers focus on
one central question:
•• Does age affect employees’ preferences
for an idealized job and their assessments of their employment experiences?
Employer Series: This series examines
the prevalence of human resource policies
and programs at workplaces in a selected
country. Because most talent management
strategies and programs are age-neutral, we
compare the availability of selected human
resource policies in practices in the targeted
country with the availability of similar policies
and practices in a small number of countries
with approximate economic circumstances.
These papers focus on one core question:
•• How does the availability of human
resource policies and programs in the
targeted country compare with other
countries?
Although papers in both series focus on a
single country, when the information contained in two or more papers are considered
in tandem, it is possible to consider whether
employees’ perceptions of their employment
experiences vary from country to country.
mind the gap
japan employer
april 2009
Opportunities
for Development,
Learning &
Advancement
Fair, Attractive
and Competitive
Compensation &
Benefits
Promotion of
Constructive
Relationships at
the Workplace
Quality of Employment: Dimensions of a “Good Job” and a “Good Place to Work”
Most people would agree that “good jobs” are a “good thing.” High quality jobs offer
benefits to employees and to the organizations where they work.
Wellness,
Health &
Safety
Protections
Opportunities for
Meaningful Work
Quality of
Employment
Provisions for
Employment Security
& Predictabilities
Workplace
Flexibility
Culture of
Respect,
Inclusion
& Equity
ππ Benefits for Employees: The quality of employment can affect the health
and well-being of employees. Research confirms that poor quality job (such
as jobs requiring extreme work hours, jobs that are very demanding – particularly those where employees do not have access to the resources they
need to meet those demands) are associated with negative outcomes,
including high stress levels and physiological reactions such cardio-vascular
problems.1
ππ Benefits for Employers: Employers often connect the quality of employment they offer to employees to their employer-of-choice strategies. There
is some evidence that the adoption of policies and practices that promote
the quality of employment available to employees is related to positive outcomes for organizations, such as customer satisfaction and organizational
performance.2 Employer-of-choice strategies can result in enhanced employee engagement which, in turn, can be linked to organizational outcomes,
including financial measures. For example, higher employee engagement
can reduce costs, such as those associated with unwanted turnover. One
study found that 59% of highly engaged employees report that they intend
to stay with their employers in comparison to the 24% of disengaged employees who “intend to stay.” 3 A number of studies have linked employee
job satisfaction with positive performance indicators. Fortune reports positive relationships between being recognized as a “great place to work” and
stock indices.4,5
The Global Institute focuses on eight important dimensions of the quality of employment:
•• Fair, Attractive and Competitive Compensation & Benefits
•• Opportunities for Development, Learning & Advancement
•• Wellness, Health & Safety Protections
•• Opportunities for Meaningful Work
•• Provisions for Employment Security & Predictabilities
•• Workplace Flexibility
•• Culture of Respect, Inclusion & Equity
•• Promotion of Constructive Relationships at the Workplace
The following sections of this paper use the quality of employment framework to discuss
the availability of workplace-based policies and programs in the United States.
agework@bc.edu
3
quality employment in japan:
Indicators of Fair, Attractive and Competitive Compensation & Benefits
ΩΩ Compensation and benefits meet most of employees’ basic economic needs, and
those are distributed in a fair and equitable manner.
About 23.5% of employers in Japan reported in 2008 that they had increased base wages
or salaries for regular employees (excluding those for employees of managerial and semimanagerial positions) since the previous year.5
••
By industrial sector, such base wage increase were more likely to be made in the mining (46.2%), transportation (34.7%), and manufacturing (30.9%) sectors, and they
occurred least in the construction (10.1%) sector.5
••
By company size, employers with 5,000 and more employees (29.9%) were substantially more likely to report that they made such base wage increase than employers
with 1,000-4,999 employees (22.3%), those with 300-999 employees (23.8%), and
those with 100-299 employees (23.5%).5
About 48.4% of employers in Japan reported in 2008 that they provided their regular
employees with financial support for their housing costs as part of their fringe benefits.6
••
By industrial sector, such fringe benefits were more likely to be provided in the finance
& insurance (62.5%), real estate (60.3%), and utilities (electricity, gas, water, etc.)
(56.4%) sectors than in any other industry, and they were provided least in the medical & health care (34.8%) sector.6
••
By company size, the larger the employer, the more likely they were to report that
they provided such fringe benefits; for instance, about 66.0% of employers with
1,000 & more employees, 62.7% of those with 300-999 employees, and 54.1% of
those with 100-299 employees reported that they provided such fringe benefits.6
4
http://www.bc.edu/agingandwork
Opportunities
for Development,
Learning &
Advancement
Fair, Attractive
and Competitive
Compensation &
Benefits
Promotion of
Constructive
Relationships at
the Workplace
Wellness,
Health &
Safety
Protections
Opportunities for
Meaningful Work
Quality of
Employment
Provisions for
Employment Security
& Predictabilities
Workplace
Flexibility
Culture of
Respect,
Inclusion
& Equity
mind the gap
japan employer
april 2009
Figure 1: Percent Employers Implementing Official Systems to Evaluate Employees’ (both Regular and Non-Regular) Individual Performances as a Reference for Determining Wage/Salary by Industrial Sector.5
86.6
Finance & Insurance
Some employers in Japan conduct
individual job performance evaluation for each employee as a reference for setting his or her wage
(or salary) in order to increase
‘fairness’ in distributing compensations among employees.7
As suggested by Figure 1, about
45.6% of employers in Japan
reported in 2008 that they implemented official systems to evaluate employees’ (both regular and
non-regular) performances as a
reference for determining their
wages/salaries. By industrial sector, such systems were more likely
to be implemented in the finance
& insurance (86.6%), telecommunication (84.0%), and real estate
(61.9%) sectors than in any other
industrial sector, and they were
implemented least in the transportation (28.1%) sector.5
84.0
Telecommunication
61.9
Real Estate
58.2
Utilities (electricity, gas, water, etc.)
55.6
Wholesale & Retail
Education & Research
44.5
Manufacturing
43.0
42.2
Service
Construction
39.4
Restaurant & Hotel
38.5
Mining
30.3
Medical & Health Care
28.9
28.1
Transportation
45.6
National Average
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2008 Survey on Affairs
concerning Wage/Salary Increase.
By company size, as suggested
by Figure 2, it is clear that the
larger the employers, the more
likely they were to report that they
implemented official systems to
evaluate employees’ (both regular
and non-regular) performance as
a reference for determining their
wages/salaries. About 82.5% of
employers with 1,000 and more,
71.5% of those with 300-999
employees, 57.0% of those with
100-299 employees, and 38.3%
of those with 30-49 employees
reported that they implemented
such systems.5
Figure 2: Percent Employers Implementing Official Systems to Evaluate Employees’ (both Regular and Non-Regular) Individual Performances as a Reference for Determining Wage/Salary by Company Size.5
82.5
1,000 & more
71.5
300 - 999
57.0
100 - 299
38.3
30 - 99
45.6
National Average
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2008 Survey on Affairs
concerning Wage/Salary Increase.
agework@bc.edu
5
Indicators of Opportunities for Development, Learning & Advancement
ΩΩ Opportunities for the development and advancement of job skills and knowledge
are made available in an accessible manner.
About 63.4% of employers in Japan reported in 2007 that they offered financial support
for their regular employees’ work-related skill training and knowledge development.8
••
••
By industrial sector, such training-related support was more likely to be offered in the
finance & insurance (86.2%), medical & health care (86.1%), and utilities (electricity, gas, water, etc.) (83.5%) sectors than in any other industrial sector, and they were
offered least in the restaurant and hotel (38.6%) sector.8
By company size, generally the larger the employer, the more likely they were to report
that such training-related support was offered; for instance, about 91.9 % of employers
with 1,000-4,999 employees, 76.1% of employers with 100-299 employees, and 56.9%
of employers with 30-49 employees reported that they offered financial support.8
Only about 19.5% of employers in Japan reported in 2008 that they made available paid
training/education leave for their employees (including regular and non-regular employees).6
••
By industrial sector, such opportunities were more likely to be available in the medical
& health care (44.0%), utilities (electricity, gas, water, etc.) (34.5%), and construction (26.5%) sectors than in any other industrial sector, and they were available least
in the restaurant & hotel (6.6%) sector.6
••
By company size, both large and small-sized employers were more likely than those
of medium size to report that they made available such opportunities; for instance,
about 22.3% of employers with 1,000-4,999 employees, 16.6 % employers with 300499 employees, and 21.4% of employers with 50-99 employees reported that they
offered such opportunities.6
6
http://www.bc.edu/agingandwork
Opportunities
for Development,
Learning &
Advancement
Fair, Attractive
and Competitive
Compensation &
Benefits
Promotion of
Constructive
Relationships at
the Workplace
Wellness,
Health &
Safety
Protections
Opportunities for
Meaningful Work
Quality of
Employment
Provisions for
Employment Security
& Predictabilities
Workplace
Flexibility
Culture of
Respect,
Inclusion
& Equity
mind the gap
japan employer
april 2009
Figure 3: Percent Employers Offering ‘Off-the-Job Training and Education’10 for Regular Employees by Industrial Sector8
91.4
Utilities (Electricity, Gas, Water, etc.)
Today, the majority of employers in
Japan report that they make available opportunities for the development of job skill and education.9
Medical & Health Care
84.9
Finance & Insurance
84.7
As suggested by Figure 3, about
75.0% of employers in Japan
reported in 2007 that they offered
off-the-job training and education
programs10 for their regular employees. By industrial sector, such
programs were more likely to be
available in the utility (electricity,
gas, water, etc.) (91.4%), medical
& health care (84.9%), and finance
& insurance (84.7%) than in any
other industrial sector, and they
were available least in the education & research (63.0%) sector.8
Telecommunications
81.4
Construction
78.2
Other
76.5
Transportation
76.1
Manufacturing
76.1
74.1
Real Estate
71.0
Wholesale & Retail
67.2
Restaurant & Hotel
63.0
Education & Research
75.0
National Average
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2007 Basic Survey on Training
and Talent Development.
Figure 4: Percent Employers Offering ‘Off-the-Job Training and Education’ for Regular Employees by Company Size8
100
5,000 and More
By company size, as suggested by
Figure 4, the larger the employer,
the more likely they were to report
that they offered their regular
employees off-the-job training
and education programs10; 100%
of employers with 5,000 & more
employees, 93.1% of those with
300-499, and 69.4% of those with
30-49 employees reported that
they offered such programs.8
1,000 to 4,999
97.1
500 to 999
97.0
93.1
300 to 499
87.4
100 to 299
75.9
50 to 99
69.4
30 to 49
75.0
National Average
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2007 Basic Survey on Training and Talent Development.
agework@bc.edu
7
Indicators of Wellness, Health & Safety Protections
ΩΩ Safety, health, and well-being of employees are promoted through workplace
policies, and social protections are offered in case of injury or illness.
About 80.4% of employers in Japan reported in 2008 that they had (newly hired or
elected from among current employees) at least one safety maintenance manager 11 in
their companies.12
••
••
By industrial sector, such safety-related practices were more likely to be in place in the
utilities (electricity, gas, water, etc.) (99.8%), construction (93.8%), and manufacturing (88.1%) sectors than in any other industrial sector, and they were offered least in
the service (60.2%) sector.12
By company size, in general, the larger the employer, the more likely they were to report that such safety-related practices were in place; about 90.8% of employers with
1,000 & more employees, 87.5% of those with 100-299 employees, and 74.4% of
those with 50-99 employees reported that they had at least one safety maintenance
manager.12
In 2008, about 18.5% of employers in Japan reported that they provided support (including financial support and workplace-based services) for regular employees’ mental health
care needs.6
••
By industrial sector, such support was more likely to be provided in the finance &
insurance (47.9%), telecommunication (41.6%), and utilities (electricity, gas, water,
etc.) (35.8%) sectors, and such support was provided least in the education & research (2.5%) sector.6
••
By company size, in general, the larger the employer, the more likely they were to
report that they offered such mental health care services; about 57.6% of employers
with 1,000 & more employees, 36.5% of those with 300-999 employees, and 14.1% of
those with 30-99 employees reported that they offered such services.6
8
http://www.bc.edu/agingandwork
Opportunities
for Development,
Learning &
Advancement
Fair, Attractive
and Competitive
Compensation &
Benefits
Promotion of
Constructive
Relationships at
the Workplace
Wellness,
Health &
Safety
Protections
Opportunities for
Meaningful Work
Quality of
Employment
Provisions for
Employment Security
& Predictabilities
Workplace
Flexibility
Culture of
Respect,
Inclusion
& Equity
mind the gap
japan employer
april 2009
Figure 5: Percent Employers Regularly Conducting Risk Assessments at the Worksites by Industrial Sector12
41.2
In Japan, except for a few special
cases, regular risk assessments at
worksite are conducted by employers on a voluntary basis.
Utilities (Electricity, Gas, Water, etc.)
Construction
23.3
As suggested by Figure 5, about
20.4% of employers in Japan
reported in 2006 that they conducted risk assessments at their
worksites on a regular basis. By
industrial sector, such safety-related practices were more likely to be
conducted in the utility (electricity,
gas, water, etc.) (41.2%), transportation (32.8%), and construction
(84.7%) sectors than in any other
industrial sector, and they were
conducted least in the telecommunication (9.3%) sector.12
Manufacturing
22.2
32.8
Transportation
Wholesale & Retail
18.8
Services
18.6
10.5
Restaurant & Hotel
Telecommunication
9.3
20.4
National Average
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2006 Basic Survey on
Workplace Safety and Health.
Figure 6: Percent Employers Regularly Conducting Risk Assessments at the Worksites by Company Size12
By company size, as suggested by
Figure 6, generally the smaller the
employer, the more likely they were
to report that risk assessments
were conducted at the worksites
on a regular basis; for instance,
22.1% of employers with 50-99
employees, 20.6% of those with
100-299 employees, and 19.6% of
those with 1,000 & more reported
that they conducted such assessments.12
19.6
1,000 & More
11.5
300 to 999
20.6
100 to 299
50 to 99
22.1
10 to 49
21.9
20.4
National Average
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2006 Basic Survey on
Workplace Safety and Health.
agework@bc.edu
9
Indicators of Opportunities for Meaningful Work
ΩΩ Meaningfulness and fulfilling nature in employment are promoted at workplace.
Only about 8.0% of employers in Japan reported in 2007 that they offered their regular
employees with career counseling services that include consultations about employees’
concerns about current and future job-matches.8
••
••
By industrial sector, such career counseling services were more likely to be offered in
the finance & insurance (30.1%), utilities (electricity, gas, water, etc.) (15.5%), and
telecommunication (11.5%) sectors than in any other industrial sector, and they were
offered least in the transportation (2.3%) sector.8
By company size, in general, the larger the employer, the more likely they were to
report that they offered such career counseling services; about 31.7% of employers
with 1,000 & more employees, 10.9% of those with 300-499 employees, and 7.6% of
those with 50-99 employees reported that they provided such services.8
About 12.4% of employers in Japan reported in 2008 that they made available paid
special incentive leave,13 for regular employees, which aim to support employees’ better
work-family balance and to help increase work motivation through physical and metal
refreshment.6
••
By industrial sector, such opportunities were more likely to be made available in the
utilities (electricity, gas, water, etc.) (46.6%), and finance & insurance (41.9%), and
telecommunication (33.1%) sectors than in any other industrial sector, and they were
made available least in the medical & health care (2.2%) sector.6
••
By company size, in general, the larger the employer, the more likely they were to
report that they made available such opportunities; about 49.2% of employers with
1,000 & more employees, 32.6% of those with 300-999 employees, and 18.0% of
those with 100-299 employees reported that they made such opportunities available.6
10
http://www.bc.edu/agingandwork
Opportunities
for Development,
Learning &
Advancement
Fair, Attractive
and Competitive
Compensation &
Benefits
Promotion of
Constructive
Relationships at
the Workplace
Wellness,
Health &
Safety
Protections
Opportunities for
Meaningful Work
Quality of
Employment
Provisions for
Employment Security
& Predictabilities
Workplace
Flexibility
Culture of
Respect,
Inclusion
& Equity
mind the gap
japan employer
april 2009
Figure 7: Percent Employers Offering Volunteer/Community Participation Leave for Regular Employees by Industrial Sector6
20.0
Utilities (electricity, gas, water, etc.)
Some employers in Japan offer
special paid leave with a specific
aim to provide their employees
with opportunities to be refreshed
from routine works by engaging in
community activities.
As suggested by Figure 7, only
about 2.8% of employers in Japan
reported in 2008 that they offered
volunteer/community participation
leave for their regular employees.
By industrial sector, such opportunities were more likely to be made
available in the utilities (electricity,
gas, water, etc.) (20.0%), finance
& insurance (12.7%), and telecommunication (8.0%) sectors than
in any other industrial sector, and
they were offered least in the restaurant & hotel (0.4%) sector.6
12.7
Finance & Insurance
8.0
Telecommunication
6.3
Mining
5.7
Real Estate
3.6
Service
3.2
Manufacturing
Education & Research
2.7
Construction
2.4
Wholesale & Retail
1.6
Medical & Health Care
1.0
Transportation
0.8
Restaurant & Hotel
0.4
2.8
National Average
0.0%
5.0%
10.0%
15.0%
20.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2008 Comprehensive Survey on
Employment Conditions.
Figure 8: Percent Employers Offering Volunteer/Community Participation Leave for Regular Employees by Company Size6
By company size, as suggested by
Figure 8, the larger the employer,
the more likely they were to report
that they made available volunteer/community participation
leave; about 17.7% of employers
with 1,000 & more employees,
6.6% of those with 300-999
employees, and only 1.8% of those
with 30-99 employees reported
that they made such opportunities
available.6
17.7
1,000 & More
6.6
300 to 999
3.3
100 to 299
30 to 99
National Average
0.0%
1.8
2.8
5.0%
10.0%
15.0%
20.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2008 Comprehensive Survey on
Employment Conditions.
agework@bc.edu
11
Indicators of Provisions for Employment Security & Predictabilities
ΩΩ Job security within an organization is promoted, and terms of employment are
communicated clearly, with an emphasis on smooth transitions through jobs and
careers.
About 58.3% of employers in Japan reported in 2005 that they formally involved regular employees (members or non-members of trade unions14) in making decisions about firing.15
••
••
By industrial sector, such employee involvement (regular employees only) was more
likely to be practiced in the wholesale & retail (88.7%), utilities (electricity, gas, water,
etc.) (88.2%), and restaurant & hotel (87.6%) sectors than in any other industrial sector, and they were practiced least in the service (61.7%) sector.15
By company size, in general, the larger the employer, the more likely they were to
report that such employee involvement (regular employees only) was practiced; about
84.7% of employers with 5,000 & more employees, 77.8% of those with 100-299
employees, and 70.3% of those with 50-99 employees reported that they formally
involved their regular employees in making decisions about firing.15
About 37.3% of employers in Japan reported in 2005 that they organized Employee Work
Condition Councils,16 company-based councils, which consist of the representatives of
both employers and employees (regular employees only), to discuss and negotiate human resource management conditions, company’s business performance, and prospects
for employment security within organizations.15
••
By industrial sector, such company-based councils were more likely to be organized in
the utilities (electricity, gas, water, etc.) (90.4%), finance & insurance (68.9%), and
transportation (51.9%) sectors than in any other industrial sector, and they were organized least in the medical & health care (22.5%) sector.15
••
By company size, the larger the employer, the more likely they were to report that they
organized such company-based councils; about 80.8% of employers with 5,000 &
more employees, 47.0% of those with 300-999 employees, and 22.8% of those with
50-99 employees reported that they organized such councils.15
12
http://www.bc.edu/agingandwork
Opportunities
for Development,
Learning &
Advancement
Fair, Attractive
and Competitive
Compensation &
Benefits
Promotion of
Constructive
Relationships at
the Workplace
Wellness,
Health &
Safety
Protections
Opportunities for
Meaningful Work
Quality of
Employment
Provisions for
Employment Security
& Predictabilities
Workplace
Flexibility
Culture of
Respect,
Inclusion
& Equity
mind the gap
japan employer
april 2009
Figure 9: Percent Employers Regularly Announcing Company Business Performance and Prospects for Employment Security by Industrial Sector15
100.0
Finance & Insurance
Some employers in Japan maintain
frequent and close communication with their employees as a
way to keep employees informed
about their company business
performance and prospects for job
security.
As suggested by Figure 9, the
majority of employers in Japan
(96.8%) reported in 2005 that they
regularly announced their business
performance and future prospects
for their business and employment
stabilities to their employees. By
industrial sector, such practices
were slightly more likely to be
practiced in the finance & insurance (100%), restaurant & hotel
(99.5%), and real estate (99.5%)
sectors than in any other industrial
sectors, and they were practiced
least in the education & research
(95.6%) sector.15
Restaurant & Hotel
99.5
Real Estate
99.5
Utilities (electricity, gas, water, etc.)
99.1
Service
98.0
Telecommunication
98.0
Transportation
97.0
Medical & Health Care
96.9
Construction
96.7
Mining
96.2
Wholesale & Retail
96.1
Manufacturing
96.1
Other
96.0
95.6
Education & Research
96.8
National Average
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2005 Comprehensive Survey on
Employer-Employee Relations.
By company size, as suggested by
Figure 10, the larger the employer,
the more likely they were to report
that they regularly announced their
company business performance
and future prospects for their business and employment stabilities to
their employees; 100% of employers with 1,000-4,999 employees,
97.4% of those with 100-299
employees, and 94.2% of those
with 30-49 employees reported
that that they maintained such
practices.15
Figure 10: Percent Employers Regularly Announcing Company Business Performance and Prospects for Employment Stability by Company Size15
5,000 & More
99.9
1,000 to 4,999
100.0
99.1
300 to 999
97.4
100 to 299
50 to 99
94.0
30 to 49
94.2
96.8
National Average
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2005 Comprehensive Survey on
Employer-Employee Relations.
agework@bc.edu
13
Indicators of Workplace Flexibility
ΩΩ Employees’ options, choices, and control over work conditions are made available in an accessible manner.
About 40.5% of employers in Japan reported in 2008 that they voluntarily made available
for their regular employees extra days off for childcare17 in addition to the current legal
mandate.6
••
••
By industrial sector, such extra flexible work options were more likely to be made available in the finance & insurance (57.3%), utilities (electricity, gas, water, etc.) (52.8%),
and telecommunication (50.4%) sectors than in any other industrial sector, and they
were offered least in the mining (29.9%) sector.6
By company size, the larger the employer, the more likely they were to report that such
extra flexible work options for childcare were offered; for instance, about 56.7% of employers with 1,000 & more employees, 47.8% of those with 300-999 employees, and
37.1% of those with 30-99 employees reported that they offered such extra days off.6
About 30.9% of employers in Japan reported in 2008 that they voluntarily offered their
regular employees extra days off for elderly/family care18 in addition to the current legal
mandate.6
••
By industrial sector, such extra flexible work options were more likely to be offered in
the finance & insurance (55.3%), utilities (electricity, gas, water, etc.) (46.8%), and
real estate (41.0%) sectors than in any other industrial sector, and they were offered
least in the restaurant & hotel (18.0%) sector.6
••
By company size, generally, the larger the employer, the more likely they were to
report that such extra flexible work options were offered; for instance, about 57.4%
of employers with 1,000 & more employees, 44.6% of those with 300-999 employees, and 26.1% of those with 30-99 employees reported that they made such options
available.6
14
http://www.bc.edu/agingandwork
Opportunities
for Development,
Learning &
Advancement
Fair, Attractive
and Competitive
Compensation &
Benefits
Promotion of
Constructive
Relationships at
the Workplace
Wellness,
Health &
Safety
Protections
Opportunities for
Meaningful Work
Quality of
Employment
Provisions for
Employment Security
& Predictabilities
Workplace
Flexibility
Culture of
Respect,
Inclusion
& Equity
mind the gap
japan employer
april 2009
Figure 11: Percent Employers Offering Flextime Work Options for Regular Employees by Industrial Sector6
35.3
Telecommunication
Some employers in Japan make
available flextime work hour options as a way to increase their
employees’ control over their work
hours.
As suggested by Figure 11, only
6.2% of employers in Japan reported in 2008 that they made available flextime work options for their
regular employees. By industrial
sector, such options were far more
likely to be made available in the
telecommunication (35.3%) sector
than in any other industrial sector,
followed by the utilities (electricity, gas, water, etc.) (15.3%), and
medical & health care (10.7%) sectors. They were offered least in the
construction (1.6%) sector.6
15.3
Utilities (electricity, gas, water, etc.)
10.7
Medical & Health Care
7.6
Financial & Insurance
6.1
Other Service
Manufacturing
5.4
Wholesale & Retail
4.9
Education & Research
4.2
Transportation
3.7
Real Estate
3.2
Restaurant & Hotel
Construction
Mining
National Average
0.0%
2.2
1.6
5.0
6.2
10.0%
20.0%
30.0%
40.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2008 Comprehensive Survey on
Employment Conditions.
By company size, as clearly suggested by Figure 12, the larger the
employer, the more likely they were
to report that they made available
flextime work options for their
regular employees; about 29.4%
of employers with 1,000-4,999
employees, 14.3% of those with
300-999 employees, and 6.9%
of those with 100-299 employees
reported that that they made such
options available.6
Figure 12: Percent Employers Offering Flextime Work Options for Regular Employees by Company Size6
29.4
1,000 & More
14.3
300 to 999
100 to 299
50 to 99
National Average
0.0%
6.9
4.4
6.2
10.0%
20.0%
30.0%
40.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2008 Comprehensive Survey on
Employment Conditions.
agework@bc.edu
15
Indicators of Culture of Respect, Inclusion & Equity
ΩΩ Diversity, inclusion, and equity at workplace are valued and promoted by workplace practices.
About 24.1% of employers in Japan reported in 2007 that they made available both maternity and paternity leave for their regular employees.19
••
••
By industrial sector, such gender-equity human resource managements were more
likely to be practiced (only for regular employees) in the finance & insurance (55.6%),
telecommunication (45.6%), and medical & health care (33.6%) sectors than in any
other industrial sectors and they were practiced least in the transportation (10.2%)
sector.19
By company size, the larger the employer, the more likely they were to report that
such gender-equity human resource managements were practiced (only for regular
employees); about 94.5% of employers with 5,000 & more employees, 63.9% of
those with 300-999 employees, and 13.9% of those with 30-99 employees reported
that they made such opportunities available.19
About 12.8% of employers in Japan reported in 2007 that they included their non-regular
employees (i.e., part-time and/or fixed-term) as part of the beneficiaries for their workplace-based resources for mental health care needs.20
••
By industrial sector, such inclusive support for non-regular employees was more likely
to be made available in the finance & insurance (37.1%), utilities (electricity, gas, water, etc.) (29.8%), and telecommunication (28.8%) sectors than in any other industrial sector, and they were offered least in the restaurant & hotel (2.5%) sector.20
••
By company size, generally the larger the employer, the more likely they were to report
that such inclusive support was made available for non-regular employees; about
46.8% of employers with 1,000 & more employees, 29.0% of those with 300-999
employees, and 15.8% of those with 100-299 employees reported that they practiced
such non-regular employee inclusions.20
16
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Opportunities
for Development,
Learning &
Advancement
Fair, Attractive
and Competitive
Compensation &
Benefits
Promotion of
Constructive
Relationships at
the Workplace
Wellness,
Health &
Safety
Protections
Opportunities for
Meaningful Work
Quality of
Employment
Provisions for
Employment Security
& Predictabilities
Workplace
Flexibility
Culture of
Respect,
Inclusion
& Equity
mind the gap
japan employer
april 2009
Figure 13: Employers that Had Increased Female Employees (Regular and Non-Regular) since the Previous Year by Industrial Sector19
44.9
Finance & Insurance
By international standards, Japan’s
gender gap in employment rate is
large.21 Some employers in Japan
increase the number of female
employees at their workplaces
in order to mitigate such gender
inequality.
As suggested by Figure 13, about
29.9% of employers in Japan
reported in 2007 that they had
increased the number of female
employees, including regular and
non-regular employees, at their
workplaces since the previous year.
By industrial sector, such female
employment increases were more
likely to be seen particularly in
the finance & insurance (44.9%),
medical & health care (41.7%),
and telecommunication (39.5%)
sectors, and they were seen least
in the mining (21.9%) sector.19
41.7
Medical & Health Care
39.5
Telecommunitcation
Real Estate
32.3
Wholesale & Retail
32.3
Other Service
30.3
Manufacturing
30.0
Transportation
29.5
28.8
Utilities (electricity, gas, water, etc.)
26.5
Education & Research
Restaurant & Hotel
22.8
Construction
22.3
Mining
21.9
29.9
National Average
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2007 Basic Survey on Female
Employment Management.
By company size, as suggested by
Figure 14, the larger the employer,
the more likely they were to report
that they had increased the number of female employees, including
regular and non-regular employees,
at their workplaces since the previous year; for instance, about 61.5%
of employers with 5,000 & more
employees, 41.3% of those with
300-999 employees, and 27.1% of
those with 30-99 employees reported that they had more female
employees than in the previous
year.19
Figure 14: Percent Employers that Had Increased Female Employees (Regular and Non-
Regular) since the Previous Year by Company Size19
61.5
5,000 & More
48.5
1,000 to 4,999
41.3
300 to 999
33.3
100 to 299
27.1
30 to 99
29.9
National Average
0.0%
20.0%
40.0%
60.0%
80.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2007 Basic Survey on Female
Employment Management.
agework@bc.edu
17
Indicators of Promotion of Constructive Relationships at Work
ΩΩ Constructive relations between employers and employees are maintained, and
respectful and professional interactions among co-workers are promoted by
workplace practices.
The majority of employers in Japan (88.8%) reported in 2005 that they considered it
“important for their company business performance” to develop or maintain positive
relations between employers and employees.15
••
By industrial sector, the importance of positive employer-employee relations was
more likely to be reported by employers in the utilities (electricity, gas, water, etc.)
(98.3%), telecommunication (95.5%), and transportation (92.1%) sectors than in
any other industrial sectors, and it was reported least by those in the service (83.9%)
sector.15
••
By company size, employers with 1,000-4,999 employees (90.0%) and those with 5099 employees (89.6%) were more likely than those with 300-999 employees (87.0%)
to report that the development and maintenance of positive employer-employee relations were important for their business performance.15
About 23.2% of employers in Japan reported in 2005 that they organized Internal Complaints Advocacy Councils,22 which aim to facilitate effective employer-employee communications when employees have complaints about work conditions and human resource
management practices at the workplaces.15
••
By industrial sector, such councils were more likely to be organized in the utilities
(electricity, gas, water, etc.) (74.9%), finance & insurance (50.1%), and transportation (32.4%) sectors than in any other industrial sector, and they were lest likely to be
organized in the education & research (7.8%) sector.15
••
By company size, in general, the larger the employer, the more likely they were to report that they organized such councils; about 31.7% of employers with 1,000 & more
employees, 10.9% of those with 300-499 employees, and 7.6% of those with 50-99
employees reported that they organized such councils.15
18
http://www.bc.edu/agingandwork
Opportunities
for Development,
Learning &
Advancement
Fair, Attractive
and Competitive
Compensation &
Benefits
Promotion of
Constructive
Relationships at
the Workplace
Wellness,
Health &
Safety
Protections
Opportunities for
Meaningful Work
Quality of
Employment
Provisions for
Employment Security
& Predictabilities
Workplace
Flexibility
Culture of
Respect,
Inclusion
& Equity
mind the gap
japan employer
april 2009
Some employers in Japan regularly
hold office meetings as a venue
through which to discuss directly
with employees, share work-related concerns, and prevent frictions
not only between employers and
employees but also among employees of different levels.
As suggested by Figure 15, about
49.8% of employers in Japan reported in 2005 that they held regular office, face-to-face meetings23
with employees (including regular
and non-regular), which aim
specifically to develop or maintain
constructive relationships among
workers and between employers
and employees at the workplace.
By industrial sector, such meetings were more likely to be held in
the utilities (electricity, gas, water,
etc.) (84.6%), finance & insurance (73.7%), and transportation
(65.7%) sectors than in any other
industrial sector, and they were
held least in the telecommunication (38.7%) sector.15
By company size, as suggested by
Figure 16, the larger the employer,
the more likely they were to report
that they held regular office, faceto-face meeting23 with employees
(including regular and nonregular), which aim specifically to
develop or maintain constructive
relationships among workers and
between employers and employees
at the workplace; about 72.3% of
employers with 5,000 & more,
52.9% of those with 300-999 employees, and 39.7% of those with
50-99 employees reported that
they held such meetings with their
employees.15
Figure 15: Percent Employers Holding Regular Office Meetings23 with Employees (including Regular and Non-Regular) by Industrial Sector15
84.6
Utilities (electricity, gas, water, etc.)
73.7
Finance & Insurance
65.7
Transportation
59.5
Mining
55.4
Restaurant & Hotel
50.0
Medical & Health Care
Wholesale & Retail
47.4
Construction
46.7
Manufacturing
45.6
Other Service
45.5
Other
44.4
Real Estate
40.0
39.2
Education & Research
38.7
Telecommunication
49.8
National Average
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2005 Comprehensive Survey on
Employer-Employee Relations.
Figure 16: Percent Employers Holding Regular Office Meetings with Employees (including Regular and Non-Regular) by Company Size15
72.3
5,000 & More
1,000 to 4,999
53.8
300 to 999
52.9
47.0
100 to 299
39.2
50 to 99
46.5
30 to 49
49.8
National Average
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Source: Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2005 Comprehensive Survey on
Employer-Employee Relations.
agework@bc.edu
19
summary: minding the gap
Based on the information presented in this paper about employers’ allocations of workplace-based resources for our eight quality employment indicators, how do we characterize employers-of-choice in Japan? Our findings may be summarized as follows:
••
By industrial sector, the information presented suggests that, in general, employers
in the utilities (i.e., electricity, gas, water, etc.), finance & insurance, and telecommunication sectors provide workplace-based resources, which cover substantially
more dimensions of the quality employment indicators than do those in any other
industry.
••
By company size, the information presented suggests that, in general, the larger the
employer (as measured by the number of employees), the more likely they are to
provide workplace-based resources for quality employment across the eight dimensions of the indicators.24
••
By employment status (regular vs. non-regular employees), the information presented
clearly suggests that, in general, employers allocate workplace-based resources
for quality employment primarily for their regular employees. Japanese employers’
attempt to promote quality employment of non-regular employees seems marginal
compared to that of the regular counterpart.
••
These findings altogether suggest that, in general, for regular employees, large-sized
employers in the utilities (electricity, gas, water, etc.), finance & insurance, and telecommunication sectors of industry provide more workplace-based for quality employment
than do employers in any other categories. Thus, in the country context of Japan
today, employers-of-choice for regular employees may be found among employers of
these categories.
conclusion: closing the gap
The information presented in this paper has delivered suggestive and general background
knowledge about possible employers–of-choice in Japan today. More specific inquiries in
the future may obtain more in-detailed and definitive information about what in the current
country contexts have enabled the possible employers-of-choice in Japan to provide more
workplace-based resources for quality employment than do any other type of employer.
In concluding this paper, we draw two major implications for employers about looming
human resource challenges in the decade ahead.
1. Current economic downturn and deregulation of industries
Possible employers-of-choice in Japan today may be found in three industrial sectors utilities (i.e., electricity, gas, water, etc.), finance & insurance, and telecommunication.
Similar to some other country contexts, in Japan these sectors represent regulated industries – industrial sectors in which the government (central and/or local) controls their
resources, price, profits, etc. in order to protect growth and stability of their businesses.25
20
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mind the gap
japan employer
april 2009
Since the burst of the bubble economy in the early 1990s, the Japanese government has
been gradually deregulating various sectors of the country’s industry in order to increase
effectiveness and competitiveness of the sectors’ business against intensifying global
competition.25 Despite this ongoing trend, these three sectors have remained most protected by the government and thus less exposed to the impacts of deregulation.26
However, the current global economic downturn may place the Japanese government
under pressure over the next decade to further deregulate these three most-protected industrial sectors. Such deregulation process may posit a severe challenge against those employers’ remaining employers-of-choice. The impact of such deregulation on the employers
of these three industrial sectors may not be minimal – in the decade ahead, employers of
other industrial sectors might find ways to provide continuous allocate more workplacebased resources for quality of employment than do those of the three industrial sectors.
2. Non-regular employees and job skill development
In Japan, where lifetime employment is still a prevalent human resource management
practice, a growing gap of quality of employment between those inside of the institution – regular employees – and those outside of it - non-regular employees – has been a
major public concern roughly over the last decade.
Non-regular employees have always participated in the country’s workforce as part-time
and fixed-term employees. However, the share of non-regular employees within the
country’s workforce has rapidly increased from 20.2% in 1990 to 33.7% in 2007.2 More
problematically, non-regular employment is overrepresented typically by those in their
20s. In generalnon-regular employees are substantially less likely to receive workplacebased resources to develop or advance job skills and knowledge in a long-term and
stable manner.2
A long-term concern for Japanese employers is, younger workers’ lack of sufficient opportunities for job skill development. Such lack of opportunity could lead to a decrease
of quality in a workforce employers may rely on in the decades ahead.27 Japan as a whole
is characterized by cultural and linguistic homogeneity, strict immigration policy, scarce
natural resources, and severe workforce shortages projected in the decade ahead.28 In
order to remain competitive in the increasingly competitive global economy today and
in the future, employers in Japan are called for fully engaging in expanding opportunity
for job skill development for non-regular employees at large and for younger workers in
particular.
agework@bc.edu
21
about the institute
Established in 2007 by the Center on Aging & Work, the Global Perspectives Institute is
an international collaboration of scholars and employers committed to the expansion of
the quality of employment available to the 21st century multi-generational workforce in
countries around the world.
The Global Perspectives Institute focuses on innovative and promising practices that
might be adopted by employers and policy-makers.
The Institute’s research, publications, and international forums contribute to:
ΩΩ a deeper understanding of the employment experiences and career aspirations of employees of different ages who work in countries around the world;
ΩΩ informed decision making by employers who want to be employers-of-choice
in different countries; and
ΩΩ innovative thinking about private-public partnerships that promote sustainable, quality employment.
Apart from the Mind the Gap series, the Global Perspectives Institute publishes a Statistical Profile Series highlighting workforce demographic trends in different coutries as well
as a Global Policy Series focusing on selected worforce policy in certain country contexts.
For more information on our publications, please visit us online at:
www.bc.edu/agingandwork
The Sloan Center on Aging & Work at Boston College promotes quality of employment
as an imperative for the 21st century multi-generational workforce. We integrate evidence
from research with insights from workplace experiences to inform innovative organizational decision-making. Collaborating with business leaders and scholars in a multidisciplinary dialogue, the Center develops the next generation of knowledge and talent
management.
The Sloan Center on Aging & Work is grateful for the continued support of the Alfred P.
Sloan Foundation.
22
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japan employer
april 2009
Masa Higo
Research Associate
The Sloan Center on Aging & Work at Boston College
Doctoral Candidate
The Department of Sociology, Boston College
Masa Higo is a research associate at the Sloan Center on Aging & Work at Boston College, and is a teaching
fellow and a doctoral candidate in the Sociology Department at Boston College. He teaches social gerontology courses, and conducts research on cross-national comparative public policy with respect to older worker
labor force participation, retirement, and health care for the elderly with a special country focus on Japan, the
United States, and the United Kingdom.
Atsuhiro Yamada
Associate Professor, Social Policy
The Department of Economics, Keio University, Tokyo, Japan
Atsuhiro Yamada is a labor economist and is currently Associate Professor of Social Policy at Keio University (Tokyo, Japan). He co-authored The Economics of Older Workers in Japan (2004, Tokyo: Nihon Keizai
Shinbun-sha), and has written a large number of journal articles on the effect of various public policies
related to older workers. As a national expert (Japan) for the Organization for Economic Co-operation
and Development (Paris, France), he also researches the income distribution of older population in Japan
from cross-national comparative perspectives.
agework@bc.edu
23
references
1 For example, see:
Barnett, R. C., & Gareis, K. C. (2002). Full-time and reduced-hours work schedules and marital quality: A study of
female physicians with young children. Work and Occupations, 29(3), 364-379.
Butler, A. B., Grzywacz, J. G., Bass, B. L., & Linney, K. D. (2005). Extending the demands-control model: A daily
diary study of job characteristics, work-family conflict and work-family facilitation. Journal of Occupational and
Organizational Psychology, 78(2), 155-169.
Karasek, R. A., Jr. (1979). Job demands, job decision latitude, and mental strain: Implications for job redesign.
Administrative Science Quarterly, 24(2), 285-308.
Kasl, S. V. (1996). The influence of the work environment on cardiovascular health: A historical, conceptual, and
methodological perspective. Journal of Occupational Health Psychology, 1(1), 42-42.
Johnson, J. V., & Hall, E. M. (1988). Job strain, work place social support, and cardiovascular disease: A crosssectional study of a random sample of the Swedish working population. American Journal of Public Health,
78(10), 1336-1342.
Lewis, S. Brookes, M., Mark, A. & Etherington, D. (2008). Work engagement, work-family enrichment and gender:
A positive approach to quality of working life. Working Paper. London: Middlesex University Business School.
Melchior, M., Niedhammer, I., Berkman, L. F., & Goldberg, M. (2003). Do psychosocial work factors and social
relations exert independent effects on sickness absence? A six year prospective study of the GAZEL cohort.
Journal of Epidemiology & Community Health, 57(4), 285-293. doi:10.1136/jech.57.4.285
Swanberg, J. E., & Simmon, L. A. (2008). Quality jobs in the new millennium: Incorporating flexible work options
as a strategy to assist working families. Social Service Review, 82(1), 119-147.
Wilson, M. G., Dejoy, D. M., Vandenberg, R. J., Richardson, H. A., & McGrath, A. L. (2004). Work characteristics
and employee health and well-being: Test of a model of healthy work organization. Journal of Occupational and
Organizational Psychology, 77(4), 565-588.
2 For example, see:
Allen, T. D., Eby, L. T., Poteet, M. L., Lentz, E., & Lima, L. (2004). Career benefits associated with mentoring for
protégés: A meta-analysis. Journal of Applied Psychology, 89(1), 127-136.
Barnett, R. C., & Hall, D. T. (2001). How to use reduced hours to win the war for talent. Organizational Dynamics, 29(3), 192.
Edmans, A. (2008). Does the stock market fully value intangibles? Employee satisfaction and equity prices. Philadelphia, PA: University of Pennsylvania- The Wharton School. Retrieved from http://ssrn.com/abstract=985735
3 Towers Perrin. (2005). Winning strategies for a global workforce: Attracting, retaining and engaging employees
for competitive advantage. Stamford,CT: Towers Perrin. Retrieved from http://www.towersperrin.com/tp/
getwebcachedoc?webc=HRS/USA/2006/200602/GWS.pdf
4 Great Places to Work Institute. What makes a great place to work: Financial results. Retrieved April 15, 2009, from
http://www.greatplacetowork.com/great/graphs.php
5 Unfortunately, most of the research linking employer-of-choice strategies with business outcomes tends to focus
on correlational relationships. Such studies do not definitively establish that being a “best place to work”
causes positive organizational performance; indeed, it might also be true that high profits and strong financial
growth cause higher employee engagement and foster perceptions that a particular workplace is an employerof-choice.
6 Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2008 Comprehensive Survey on
Employment Conditions [Heisei 19 nen Shūrō Jō ken Sō gō Chō sa]. Data obtained for this survey were drawn
from 4,178 companies (the response rate: 78.2%). Retrieved from http://wwwdbtk.mhlw.go.jp/toukei/kouhyo/
indexkr_8_9_1.html.
24
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mind the gap
japan employer
april 2009
7 To date, employees’ wages and salaries have been determined based largely on the length of service (to the
same employer), qualifications (i.e., educational background), and the business performance of the office,
workplace, or company where the employees serve. In the context of Japan, the introduction of official systems
to evaluate employees’ individual performances as reference points for determining their wages or salaries
may be interpreted as an employer effort to increase fairness and transparency in deciding wages or salaries.
8 Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2007 Basic Survey on Training and
Talent Development [Heisei 18 nen Nō ryoku Kaihatsu Kihon Chō sa]. Data obtained for this survey were drawn
from 6,886 companies (the response rate: 41.2%). Retrieved from http://wwwdbtk.mhlw.go.jp/toukei/kouhyo/
indexkr_38_1.html.
9 Employers in Japan, those of large companies (i.e., 1,000 & more employees) in particular, have typically
practiced continuous job rotations and office relocations mostly of their regular employees throughout their
careers within the organizations. Employers maintain such internal labor market strategies as part of their
long-term strategies to formulate and develop employees’ organization-specific job skill, knowledge, and social
network. Such practices do not necessarily aim at employee career development based on employees’ own
preferences or desires. For this discussion, see:
Barnes, William (2001). “Internal labor market” Pp. 202-204 in Encyclopedia of Japanese business and management, 1st ed. Allan Bird (ed). London: Routledge.
Okusa, Yasushi, Giorgio Brunello, & Kenn Ariga (2000). “Occupational and internal labor markets in Japan.
Industrial Relations” Journal of Economy and Society. 36(4): 446-473.
10 The term, “Off-the Job Training and Education,” refers to a form of collective education, typically including a
series of lectures, panel discussions, role-playing, etc., for training, developing, and updating workers’ workrelated skills and knowledge. As an antonym of On-the Job Training and Education, Off-the-Job Training and
Education is typically held away from regular workplaces; employers often pay to send their employees such
venues.
11 Safety Maintenance Manager (Anzen Kanrisha, in Japanese), refers to a person qualified by the Ministry of
Health, Labor and Welfare to be responsible for maintaining worksite safety and health. Since October, 2006,
the Law concerning Industrial Safety and Health (Law No. 57 of June 8, 1972) mandated that employers in
certain industrial sectors (i.e., mining, manufacturing, transportation, etc.) with 50 and more employees hire
at least one qualified safety maintenance manager.
12 Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2006 Basic Survey on Workplace Safety
and Health [Heisei 17 nen Rō dō Anzen Eisei Kihon Chō sa]. Data obtained for this survey were drawn from
8,543 companies (the response rate: 70.9%). Retrieved from http://wwwdbtk.mhlw.go.jp/toukei/kouhyo/indexkr_13_9.html.
13 The term, Special Incentive Leave, refers to a form of leave policy aiming to provide employees with opportunities
to spend time specifically for their work-life balance and to increase work-related motivations by engaging in
non-work activities. Employers voluntarily make available this leave policy since the current labor law or public
policy does not mandate the provision of this leave program.
14 An employee union in Japan is characteristically organized and operated within each company. While nationwide
federations of unions exist, often employees organize such company-based unions operate the unions rather
as an integral part of the company. Typically, due to its close relation to the companies, company-based unions
do not wish to harm the economic wellbeing of the company and thus considerably limit their actions in
burgeoning and negotiations. For this discussion, see:
Debroux, Philippe (2003). Human resource management in Japan: Changes and uncertainties. London: Ashgate
Publishing.
Kumazawa, Makoto (1996). Portraits of the Japanese workplace: Labor Movements, Workers, and Managers.
Oxford: Westview Press.
15 Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2005 Comprehensive Survey on
Employer-Employee Relations [Heisei 16 nen Rō shi Kankei Sō gō Chō sa]. Data obtained for this survey were
drawn from 2,748 companies (the response rate: 68.7%). Retrieved from http://wwwdbtk.mhlw.go.jp/toukei/
kouhyo/indexkr_11_11.html.
agework@bc.edu
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16 The term, Employee Work Condition Council (Rō shi Kyō gi Kikan, in Japanese), refers to a section organized
within a company consisting both of employers and employees, which aims to facilitate employees’ negotiations over company management, production processes, work conditions, and fringe benefits. Employee Work
Condition Councils operate independently of a trade union in that the former actively involves itself with the
management affairs of the company as its main activity.
17 Currently, the Labor Standard Law (Law No. 49 of April 7, 1947) in Japan mandates that employers provide their
employees of both genders in the private sector employment with up to 19 month for their childcare leave if
requested. For public sector employees, the duration of child care leave can be up to 36 months.
18 For elderly/family care leave, the Labor Standard Law (Law#: 49/1947) mandates that employers provide their
employees with up to 93 consecutive days per year if requested.
19 Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2007 Basic Survey on Female Employment Management [Heisei 18 nen Josei Koyō kanri Kihon Chō sa]. Data obtained for this survey were drawn
from 5,937 companies (the response rate: 85.4%). Retrieved from http://wwwdbtk.mhlw.go.jp/toukei/kouhyo/
indexkr_17_5_1.html.
20Ministry of Health, Labor and Welfare, Government of Japan. (2009). The 2007 Survey on Working Conditions of
Part-Time Employees [Heisei 18 nen Part-Time Rō dō sha Koyō kanri Kihon Chō sa]. Data obtained for this survey
were drawn from 6,653 companies (the response rate: 72.8%). Retrieved from http://wwwdbtk.mhlw.go.jp/
toukei/kouhyo/indexkr_17_5_1.html.
21 As of 2007, for the average of OECD (30) countries, the employment rate in this year was 79.0% for men and
59.4% for women; the gender gap was about 19.6%. Japan’s gender gap in employment rate was wider than
that of the OECD average – for Japan, the employment rate was 89.8% for men and 64.4% for women; the
gender gap was 25.4%. Japan’s gender gap in employment rate was substantially wider than that of the average of 15 European Union countries (15.4%), United States (12.5%), Germany (12.15), and France (9.3%).
22 The term, Internal Complaints Advocacy Council (Kujyō Shori Kikan, in Japanese), refers to a workplace-based,
voluntarily organized group consisting both of employers and employees, which aims to facilitate communication between employers and employees especially when employees have major complaints concerning their
daily work conditions and employers’ human resource management practices.
23 The term, Regular Office Meetings (Shokuba Kondan Kai, in Japanese), refers to employer-initiative, office-based
regular meetings aiming specifically to facilitate face-to-face communication between employees and office
managers. Main agenda for this type of meeting include current and future business performance of the company and workplace conditions at the worksite.
24 An exception in this context is found in employers’ practice of conducting risk assessments at the worksite as
part of the indicator of Wellness, Health, & Safety Protection.
25 Beeman, Michael L. (2002). Public policy and economic competition in Japan: Change and continuity in antimonopoly policy, 1973-1995. London: Routledge.
26 Hosoe, Nobuhiro (2004). “The deregulation of Japan’s electricity industry” Japan and the World Economy 18
(2006): 230–246.
27 Organization for Economic Co-Operation and Development (2008). Jobs for youth: Japan. Paris: OECD.
28 The Global Institute, the Sloan Center on Aging & Work at Boston College (2008). Statistical profile of Japan,
Country Profile No.1 November 2007. Retrieved from: http://agingandwork.bc.edu/documents/CP01_Workforce_Japan.pdf
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http://www.bc.edu/agingandwork
mind the gap
japan employer
april 2009
For all of the Sloan Centers’ Publications, visit our website at www.bc.edu/agingandwork
Mind The Gap Series:
mtg01: United States, Employee
mtg01: United States, Employer
mtg02: Japan, Employee
mtg02: Japan, Employer
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