The difference between Japanese and Foreign companies

“Foreign companies are meritocratic”. “Japanese companies employ for life”. Many people have an opinion like this regarding Japanese or foreign companies. When truthfully comparing their working styles, it is possible to understand how both of these working cultures have taken shape.

1. Foreign companies have a tendency to value “the individual”, while Japanese companies value “the group”

One particularly large difference between foreign and Japanese companies is in what they respect.

The tendency of foreign companies is to have a situation in which individuals are each given a clearly specified role. This means the duties they are to perform are clearly outlined. According to this, employees take personal responsibility for carrying out their own tasks. Cultures that value the individual also apply this mindset to their hiring processes. They may hire from other industries, and candidates with specialist skills are highly regarded.

On the other hand, a tendency of Japanese companies is to highly value teamwork, cooperation and a sense of unity. When something needs to be decided in the workplace, superiors are consulted. Moreover, time is taken to hold discussions. The consent of various people is received before continuing with the process. Workplace relationships are also important, and a socially minded working style could also be expected.

2. Foreign companies are a contest of speed and results – Japanese companies are an educational environment that takes time

Foreign companies have a tendency to consistently employ meritocratic policies. The performance of an individual is reflected in their compensation and how they are judged. Salaries are 10-20% higher than Japanese companies, and it is possible to be put in charge of a large project during your first year. As such, foreign companies seek continuous growth and a willingness to constantly train and improve oneself.

In Japanese companies there still remains a pronounced system of rank based on seniority. Cases in which a recently employed worker is given important jobs are rare. The other side of this arrangement is that seniors guide their juniors. New employees are patiently trained until they can operate on their own.

3. There is a difference in the relationship between the company and the individual. Foreign companies favour contract style employment while Japanese companies tend towards permanency

When compared with Japanese companies, it is often noted that foreign companies do not have a concept of lifetime employment. In fact, Japan’s ideal of graduate hire and lifetime employment is a rare style elsewhere in the world. For example, it is standard practice for workers in American companies to repeatedly change jobs in order to advance their career. In the same way, foreign companies frequently change staff across all job categories and actively engage in mid career recruitment.

In addition to the lifetime employment practice, Japanese companies have a better handle on systems like social welfare, retirement pay. From new graduates to retirees, there is often a strong drive for the company to protect the lifestyle of each and every employee. However, in an employee’s younger years, there is a tendency for yearly salary to be lower than meritocratic foreign organisations.

Foreign and Japanese companies have a variety of differences in the way they value their work. To find out which style fits your needs, why not discuss the issue with a professional consultant?