Analysis: Japan's labour crunch is reshaping how companies attract workers
01/08/2018 09:09
* Companies using flexible schedules and day care to lure
workers
* Some firms relocating to tap into larger worker pools
* Companies are rethinking how they hire and train staff
By Stanley White and Naomi Tajitsu
TOKYO, Aug 1 (Reuters) - Misaki Harada wants to quit her job
as a receptionist at a restaurant management company in Tokyo
and move into marketing for an apparel maker.
But the 24-year-old said she wanted more than just a bigger
paycheck. Her next employer would need to improve her quality of
life.
"If you ask me whether I prefer more money or more flexible
working hours, I would choose more flexible working hours," she
said. "I want to get married soon and start a family. I want to
make sure I have time to take care of my children."
As Japan's population dwindles, its companies are being
forced to change how they attract job seekers like Harada from
an ever-shrinking labour pool.
Nationwide, there are 1.62 jobs available for every job
seeker, the strongest demand for labour in more than 44 years.
The jobless rate is 2.4 percent, near a 25-year low, and real
wages adjusted for inflation have fallen in five of the past six
years.
Flexible working hours, personal benefits like day care and
even rent assistance are now on the table alongside salary.
Such perks, common in the United States and Europe, are only
just catching on Japan, which until recently relied on a culture
of complete devotion to an employer in exchange for job security
and steady pay increases.
Toyota, for instance, opened a 24-hour day care facility in
April for shift workers at its plants near its headquarters in
Toyota City.
"Japanese companies are becoming more flexible about when
and where you work," said Toshiaki Matsumoto, chief executive of
HR Strategy, a human resources consultancy.
Some companies, like Jtekt Corp 6473.T , the world's
biggest supplier of vehicle steering systems, are simply moving
parts of their operations away from competition.
Jtekt last year cut the ribbon on a new technology
development centre in Akita Prefecture, northern Japan, known
more for its rice, sake and namesake dog breed than engineering.
The facility, which will develop technology for self-driving
cars, is adjacent to a university and far from other companies
hiring into the industry.
So far the company, a key supplier of Toyota Motor Corp
7203.T , has hired about 20 engineers and plans to roughly
double its workforce by the end of the year.
"In larger cities, it's difficult to get across the message
that we are hiring because we're competing with many companies
for the same talent," said Fukami Imai, the centre's
representative director.
Denso Corp 6902.T , another Toyota supplier, took the
opposite route, moving part of its self-driving research
programme to Tokyo because it is a more attractive locale than
its headquarters in gritty Nagoya.
"Some companies are offering free food or subsidising rent
so workers can shorten commuting time," Matsumoto said. "Some
companies even provide counselling and time off for couples
trying to conceive."
FORCED TO ADAPT
Japan's working-age population peaked in 1995 at 87 million
and is forecast to fall to 45 million by 2065. Businesses slow
to respond to that demographic change have been hit hard.
Silicon Technology, a semiconductor material maker, is
running one rural plant at half-capacity because it can't hire
enough workers. Toyobo Co Ltd 3101.T said it needs to ramp up
production of film used in flat-panel displays, but can't fully
staff the production line.
Keeping employees from quitting - and not just throwing
money at the problem - is another crucial piece of the labour
puzzle, experts say.
"My new employer paid me more money, but the working hours
were awful," said Daisuke Okamoto, 42, an accountant who left a
job in advertising in April for a position at a consumer goods
company. "At first, I had a lot of regret. Now the company has
given me more flexible working hours and the freedom to
occasionally work from home, so I feel better about the job."
Daikisangyo, which assembles plane fuselages and wings for
Boeing Co BA.N , was having trouble retaining new employees.
Then it introduced a mentoring programme that reduced turnover
to zero, at least for now.
"It's not just about the money anymore," said Tsuyoshi Saso,
a manager at Interworks, a nationwide recruitment site for jobs
in manufacturing. "They also want to work in a positive work
environment with good colleagues."
CHANGING THE WORKFORCE
Foreign workers can help fill some of the gaps, although
they make up only about 2 percent of the current labour force,
and companies hiring for "unskilled" positions like farm work
must rely on trainees under an internship programme that lasts
up to five years.
The government has said it will create new categories for
foreign workers with more limited skills, but will issue only a
small number of such visas. urn:newsml:reuters.com:*:nL3N1T73J0
Mazda Motor Corp's 7261.T suppliers, which typically
operate independently, are cooperating to figure out the best
way to use artificial intelligence and robots to remove human
workers from the equation altogether.
"Our goal is to create unmanned production lines that can
operate 24 hours a day, 365 days a year," said Masato Uno,
chairman of the Hiroshima Manufacturing Engineering Association,
a consortium of Mazda suppliers and IT companies. "We expect
this to address problems with productivity and labour
shortages."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Japan's workforce https://reut.rs/2JveZRv
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Stanley White and Naomi Tajitsu; Editing by Gerry
Doyle)
((stanley.white@thomsonreuters.com; +81 3 6441 1984
twitter.com/stanleywhite1; Reuters Messaging:
stanley.white.reuters.com@reuters.net))