Dream Arts, which provides cloud services for large companies, has announced a significant increase in starting salaries.
Compared to large companies that are excited about large wage increases, wage increases at smaller companies such as SMEs continue to be slower, and some small and medium-sized companies are starting to announce large wage increases.
On March 18, Dream Arts, which provides cloud services for large companies, announced a significant increase in starting salaries for employees joining the company in April 2024.
Previously, the starting salary was 250,000 yen per month and 3.5 million yen per year, but in 2024 it will be increased by 44% to 360,000 yen per month and 5.04 million yen per year
.Although the above wage increase is a localized case, Toshihiro Nagahama, Chief Economist at Dai-ichi Life Economic Research Institute,”If even a small number of small and medium-sized enterprises decide to raise wages, it will encourage wage increases.”
points out.*However, Dream Arts’ starting salary includes both before and after the change.45 hours of overtime pay per monthIt is included. According to the company,In 2023, the average overtime hours per month will be 14 hours and 56 minutes.
was.
Approximately 10 new graduates are hired every year.
Dream Arts, which announced this wage increase, was founded in 1996. It develops and sells SaaS “SmartDB” for DX, etc., and was listed on the TSE Growth Market in October 2023.
According to the full-year financial results for the fiscal year ending December 2023, sales increased by 21% from the previous year to 4.44 billion yen, operating income increased by 207% from the previous year to 577 million yen, and net income increased by 233% from the previous year. Sales and profits increased to 424 million yen due to strong performance in the cloud business.
The number of employees is 273 (consolidated, as of December 2023), and the company hires about 10 new graduates every year. In addition to increasing the starting salary by 44%, the company is also implementing a gradual wage increase for those under 30 years old starting in 2019, with a monthly salary increase of 27.9% over the five years until 2024.Regarding the aim of the wage increase, a company representative said:”We decided that an annual salary of 5 million yen was necessary in order to attract talented people, so we raised the salary.”
He explains.
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Wage increases are a bigger issue for small and medium-sized enterprises than for large corporations.According to the first round of 2024 spring labor-management negotiations released by Rengo on March 15, the average wage increase rate was 5.28% for all companies, including large companies, but 4.42% for small and medium-sized companies, a difference of 0.86 percentage points. Compared to 2023, the point difference was 0.35 points.Wage increases are widening for small and medium-sized enterprises and large corporations.
That seems to be the case.Regarding wage increases in small and medium-sized companies, Mr. Nagahama, Chief Economist of the Dai-ichi Life Economic Research Institute mentioned above, said:”There are large differences between industries and individual companies, and just because wages are increasing in some companies, it cannot be said that small and medium-sized enterprises as a whole are increasing wages at the same rate as large companies.”
Having said that, I will say the following.
“Costco Gunma Meiwa Warehouse Store,” which opened in Gunma Prefecture, recruited part-time workers at an hourly wage of 1,500 yen, which was significantly higher than Gunma Prefecture’s minimum hourly wage, and as a result, there was an example of the company inviting part-time workers in the area to raise their wages.By highlighting the track record of wage increases, we can expect an increase in the number of people seeking employment or changing jobs.Labor shortages continue for both large and small companies, and companies that cannot respond to wage increases will find it even more difficult to acquire human resources.
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Source: BusinessInsider
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