Japanese traditional labor enviroment

There are three significant reasons.

First reason is the traditional lifetime employment system. Most Japanese companies guarantees lifetime job security for every employee of a company, and they will not get fired even if their performance is poor. People who do not have enough capability to work in their company are called “Madogiwa-zoku” literary meaning “people who sit at the window”. It means there is not much to do but gaze absently out of the window. Obviously, this system has an advantage which strength their royalty due to long-term employment. In these days, this system is collapsing in this current recession and diversification of employment.

The seniority ranking system is also important factor. Seniority ranking system is that wage and position rise in accordance with age and length of work. Moreover, it is difficult to accept the situation that a person have boss who is younger than him, or a person has subordinate who is older because the idea of Confucianism in which people respect for the elderly is deeply rooted on Japanese culture. Considering this invisible cost, it is natural a company is not willing to hire a mid-career worker, and it can be said that this system is essential for Japanese society.

Simultaneous Recruiting of New Graduates, which companies hire new graduates all at once, is third reason. Due to this system, college students usually have to start participating in recruiting activities before they begin their senior year of school. If a college student does not find a job before graduation, the possibility of being a regular worker will dramatically decrease. The major advantage of this system is that companies save on the cost of induction course because similar new graduates join a firm all at once.

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