Companies tend to opt for temporary employment—which dramatically reduces the length of time required for recruitment, hiring and on-boarding compared to hiring permanent employees—when there is an urgent need for human resources that can make an immediate contribution, such as when a new business division is being set up or when foreign-affiliated companies enter the Japanese market. Given this, an increasing number of companies are renewing the contracts of their temporary employees to unlimited terms or making them permanent employees following revisions to Japan's Temporary Staffing Services Law.
Compared to the situation that existed prior to these revisions, more companies are attempting to gain an advantage over their competitors by hiring competent contract/temporary employees as permanent employees or informing such employees about this scheme in advance.
Additionally, temp-to-perm hiring is becoming more commonplace than the hiring of permanent employees on probationary periods for jobs that were previously assigned almost exclusively to long-term temporary employees. Every year, a growing number of companies are expecting the same level of proactivity and willingness to volunteer for work assignments from their contract/temporary employees as they do from their permanent employees. Some companies are also working to ensure that all of their employees earn equal pay for equal work. However, contract/temporary employees still tend to be treated differently from permanent employees in various ways, such as access to important materials and limited involvement with permanent employees in day-to-day operations. Recruitment may change for the better if improvements are made in this respect.
This report discusses the views of 341 contract/temporary employees working at foreign-affiliated companies and globally expanding Japanese companies, and we hope that its key findings can be used to recruit and retain talented contract/temporary employees.
- Concerns and challenges faced by contract/temporary employees
- Main factors in the job choices of contract/temporary employees
- Key points in boosting employee motivation and retention
- New mutual benefits shared by employers and contract/temporary employees