Differences between working for non-Japanese and Japanese companies

Understanding, accepting, and accommodating are crucial for not just success but to be able to enjoy working in a different cultural setup. Accepting everything can be debatable, but then change is always slow. Even if we wish to change a system, we must first become a part of the system to make people listen to us. And in order to become a part of a system, we need to understand it. Japanese and foreign companies, especially western companies, have different work styles, and understanding those differences is important for foreigners looking forward to working with Japanese companies.

Working in Japan has its own positives and also challenges. Unlike many other countries, the traditions, culture, and thought processes of the society dominate the work culture very deeply in Japan. So, if you, as a foreigner, are planning to join a Japanese company, you need to understand these core values and work culture differences. And in fact, it is not just limited to Japanese companies but even to foreign companies in Japan where most colleagues would be Japanese. Please note that when we mention non-Japanese companies, we are mainly considering western companies because the work culture in many Asian companies has many aspects similar to what Japan has.

The core value of Japanese culture can be summarized as follows:

• Belonging
• Harmony
• Group orientation
• Politeness
• Modesty
• Gentleness
• Patience
• Formality

These core values highly influence the work culture of Japan. All the above core values reflect in the work culture, and not following them can be treated as disrespect to the culture itself.

When you are considering working for a Japanese company, there are some aspects that you may not have considered, which are different from working for a (non-Japanese) company back home. This is a handy guide to some of the differences between Japanese and foreign companies:

Non-Japanese companies often focus on the employee’s individual growth, while Japanese companies focus on group results

Non-Japanese companies often focus on the employee’s individual growth, with programs and career progressions that value individual effort and work. Individual employees are usually assigned a very specific role, and job scopes are clearly defined, both for work purposes and HR and legal purposes. Employees are encouraged to take personal responsibility for their tasks, even when working as part of a team. Candidates with highly specialized skills are usually highly regarded and better paid.

On the other hand, Japanese companies focus on group results, i.e., what has been achieved through concerted, collaborative efforts of a group of people. Cooperation, teamwork, and group cohesiveness are of paramount importance. When decisions need to be made, the tendency is to consult with more experienced team members, which may take some time before a decision is made. Socializing is important within the Japanese work culture – expect to go for drinks after work with your Japanese colleagues. 

Non-Japanese companies value speed and outcomes, but Japanese companies prefer to focus on training employees

Non-Japanese companies tend to have meritocratic policies, where the performance (or lack thereof) of an employee is rewarded by the compensation they receive and how they are perceived. Salaries in non-Japanese companies tend to be 10-20% higher than in Japanese companies. Non-Japanese companies seek continuous growth and a willingness to train and improve themselves constantly.

Japanese companies tend to have a system of work based on seniority. A newly employed employee is rarely given an important job to undertake by themselves. This tendency is deeply ingrained in Japanese and Asian culture, where more experienced elders guide the younger generation of workers. As such, new employees are patiently trained until they can function on their own. This process normally takes a few years, so patience is key.

Hiring practices with non-Japanese companies can be more contract-based, while Japanese companies have traditionally favored permanent positions

Hiring practices with non-Japanese companies are usually contract-based, while Japanese companies have traditionally favored permanent positions. Japan’s idea of hiring employees for a lifetime of employment is rare in the world. 

Whereas, in American and European companies, it is the norm that employees will change jobs to advance their careers and/or increase their salaries and benefits. As a result, many non-Japanese companies frequently see staff changes across all job categories, and mid-career hiring and recruitment activities are normal and even expected.

The concept of lifetime employment with one company in Japan stems from traditional social welfare systems in Japan. There is almost a responsibility for a Japanese company to look after its employees for life. There is a price for this, though – starting annual salaries can be quite a bit lower than that of non-Japanese companies. 

The lifetime employment practices are fast diminishing, though they continue in large numbers with some of the top Japanese corporates, but changing jobs very frequently still weakens the resume’s value.

No to saying “No”

Most of the western world welcomes criticism and raising a voice if you have a difference of opinion. However, Japan’s modesty, gentleness, and deeply ingrained teamwork culture do not like a straight no. 

In case you have any major differences of opinion, please do not give up but manage to do it with patience; instead of saying a straight “no,” mention that you agree with the group and respect the opinions but wish to suggest something. If you try to change a group’s decision strongly, the chances of success will be almost non-existent.  

If you need any help with working for a company in Japan, check out our recruitment services and do get in touch with us and see how we can help you with all your recruitment requirements.