The harsh truth of the “Japanese job type” promoted by the government.Reasons why wage increases are a “dream story”

Companies will be encouraged to introduce job-based wages that clarify the skills they want, and by matching the skills they have learned with the jobs that companies want, we will promote job changes and create a system that will raise wages.

This is the aim of the government’s “trinity labor market reform.”

Praising the European “job type”, but…

Needless to say, job-based wages (job wages) are the mainstream wage system in Europe and the United States.In this guideline, the seniority-based wage system in Japan is an enemy.are doing.

The seniority-based wage system is criticized as follows.

“Because the standards for jobs and the skills required for them are unclear, the objectivity and transparency of evaluations and wages are not sufficiently ensured, and it is difficult to understand how individuals will be rewarded if they work hard.In addition to low engagement, it was difficult to change jobs, and even if you changed jobs, it was difficult to increase your salary.” (from the aforementioned “Guidelines for Trinity Labor Market Reform”)

On top of that, he said, “Through structural wage increases through the introduction of wages that match the actual situation of each company, we will reduce the wage disparity that exists between Japanese companies and foreign companies, even though they perform the same job, according to the economic situation of each country. We aim to reduce it while taking into consideration the difference in circumstances.”

Written in praise of Western job pay, as if it would automatically raise wagesis.

There is no concept of “promotion” in the job type

In reality, however, the introduction of job-based wages has nothing to do with wage increases.

First, the principle of job-based employment is to hire people based on job descriptions, which define the skills and qualifications required for the job, and conclude an employment contract.

Wages are also determined by the job in charge, and basically there is no concept of personnel transfers or promotions.

The company’s right to personnel affairs is greatly restricted, such as requiring the consent of the person in question when changing duties, transferring or transferring to a different place of assignment for the convenience of the company.

In addition, regardless of whether they are new graduates or mid-career, it is common to employ a “vacancy replacement method” in which people with the necessary job skills are hired each time.

At the same time as graduating from unskilled students with only potential (potential ability), a large number of new graduates are hired, and even after joining the company, the company has a powerful personnel authority.Japan’s so-called membership type that allows you to transfer to various workplaces and occupations with a single orderdifferent from

“People-based” rather than “job-based”

The biggest difference is the salary system.

Wages are also “job standards” determined for each job (post) in charge, and unless the job changes, wages are fixed and do not change.

In order to increase wages, workers are required to acquire the necessary skills for higher posts themselves. This wage system is called “job wages” or “job grade system.”

While job wages are based on the “job criteria” that apply people to jobs, Japan is said to be based on “human standards” that apply jobs to people.

Define the “job performance ability” that people have for each grade,Do you meet the proficiency requirements for the grade?determines wages. This system is called “skills pay” or “skills qualification system”.

As long as new recruits with no skills are trained over a long period of time, salaries are built up through regular salary increases and performance-based wages, which are raised annually based on the skills they have acquired.

Originally, skill wages are not raised unless the ability requirements are met, but there is no index to objectively measure the ability possessed, and the number of years of work experience is emphasized.become.

Of course, unless there are extraordinary circumstances, the skills that have been acquired will not decline, so there will be no “demotion”, and there will be no choice but to pay according to seniority.

It is difficult to introduce “job type” in Europe and the United States

In any case, Prime Minister Fumio Kishida“We will review the seniority-based salary system based on membership to a system centered on job-based job-based wages.”says.

However, it is extremely difficult to reorganize the wage system of all Japanese companies into a cross-industry and occupational wage system like in Europe and the United States.

In fact, Tomoko Yoshino, chairman of Rengo, a central organization of labor unions and a member of the Council for the Realization of New Capitalism, said, “A company’s personnel system is based on the situation surrounding the industry, labor-management practices, and the reality of the workplace. It should be considered,” and the introduction of job-based wages “needs careful consideration, as it may not be suitable for some companies depending on the size of the company or the type of industry.” I am stabbing a nail.

In that case, it will support the introduction of the “Japanese version of job-based wages” modeled on companies that have already introduced job-based wages.

So, what is the “Japanese version of job pay” currently being introduced by some Japanese companies?

Three features of the Japanese version of the job type

Broadly speaking, the Japanese version of job pay has the following three characteristics.

1. If you don’t catch up to a higher job class yourself,salary remains fixednever going up
2. Job changes such as demotionRisk of salary cutsThere is also
3. Abolition of regular pay raise system(Transition to individual evaluation salary increase/decrease), abolition of various allowances such as family allowance and housing allowance

As long as you stay in your current post, your salary will not increase, and your voluntary challenge to a higher rank will be emphasized.

Among the companies that have introduced job-based pay, there are also companies that have systems in place that allow employees to take on challenges through a posting (open recruitment) system. However, even if you think you have the skills appropriate for the post,If 10 people apply for one post, it will be rejected and the job is not guaranteed..

In addition, in the case of the Japanese version of job-based pay, there is still room for a higher post due to personnel changes, but there is no guarantee that the company will prepare the desired post.

That way, even as you get older, you stay within your current grade, and your salary stays fixed for the rest of your life.

Frequent raises and demotions?

Furthermore, in the Japanese version of job-based wages, “feature 2”, demotions and promotions, frequently occur.

Job wages are compensation for duties (posts), but conversely, postoffs (demotions) also occur when duties cannot be fulfilled or there are no jobs that are required.

thereforeSalary reduction due to demotion, which could not have occurred in the conventional membership-type skill-based wage system, is likely to occur easily.On the other hand, even if you are young, if you are considered to have high job skills, there will be a “skip” that will increase your grade by two levels.

If the skills required by the company change depending on the business environment, post-off will be forced due to job changes.

In order to recover, it is necessary to constantly refine new expertise and advance your career. A personnel consultant who is familiar with the job classification system points out:

“As long as you don’t grab a job yourself and advance your career, your salary won’t go up.Even if you get a high-paying professional job when you’re young, your salary won’t increase unless you’re in your 40s and your expertise is obsolete and you can’t advance your career as a professional.One way to raise your salary is to become a manager, but if that’s too difficult, you’ll have no choice but to change jobs.”

With the job-based pay system, it will no longer be possible to settle for your current position or salary.

Abolition of uniform periodic salary increases

In addition, as described in “Feature 3: Abolishment of the regular salary increase system,” the seniority-based regular salary increase system, which existed in the conventional membership-type performance-based salary system, will be abolished.

At large companies, there is a uniform raise of around 5,000 to 6,000 yen for each year of service.

Based on seniority reductionSome companies that have introduced job-based pay have abolished fixed raises and replaced them with “evaluation raises,” in which salaries increase or decrease within the range of grades (for example, base salary of 300,000 to 350,000 yen).be.

In that case, if the personnel evaluation results are five ranks from S to D, there is a system in which wages are increased for B evaluations and above, not increased for C evaluations, and reduced for D evaluations.

“Family is self-chosen”.Abolishing the allowance

Furthermore, as long as the job type mechanism is the “job standard”,Abolition of personal allowances such as family allowances that are not related to workbe done.

Many of the companies that have introduced job-based wages have abolished personal allowances such as family allowances, housing allowances, and perfect attendance allowances, and have standardized on a single base salary.

An HR manager at a major precision equipment manufacturer, which introduced job-based pay in 2021, said:

“I’m basically in charge ofThe idea of ​​job wages is that treatment is determined only by the size of the jobis.

Buying a house or having a spouse is nothing more than a self-selection, and it is not right to set up allowances that increase or decrease remuneration based on the attributes that a person acquires through self-selection.”

When it comes to the Japanese version of job pay, it seems to be a harsh world where the duties and responsibilities in charge are strictly questioned, and the salary is reflected as it is.

Looking at this, the government’s “trinity labor market reform” aims,Reskilling→Introduction of job-based wages→Facilitation of labor mobility→Increase in wagesThe realization of , seems like a grand dream story.

Even with job pay, if there were to be people who changed jobs, it would be people who were demoted because they could not fulfill their duties and responsibilities, or people whose salaries would never increase.

It is hard to believe that wages will rise if those people change jobs.