Companies Scrap Recruiting Guidelines

The issues of low workforce diversity and increasing labor shortages continue to plague Japan’s stagnant economy. Both the Japanese government and Japan’s big-business lobby, know as Keidanren, are desperately looking for solutions. In an effort to increase the labor pool in both number and diversity, Japanese companies are abolishing their recruiting guidelines after the class of 2021 graduates from college. The Keidanren, which consists of representatives from over 1000 companies, is leading this effort, but some of their companies are reluctant to change their old practices.

The Japanese recruiting schedule is incredibly strict, preventing many students, foreign workers, and older workers from ever joining the companies. Companies hold informational sessions in March of the students’ third year and conduct interviews in June of the students’ fourth year. The students are expected to start work in July following their June graduation. These strict guidelines create two large problems. First, it’s difficult for foreign workers to enter the workforce. Many foreign students are still adjusting to life in Japan, and the one-time-only recruiting schedule can be too fast paced. It’s widely accepted among American companies that workforce diversity increases productivity in the long run because it leads to more unique ideas and opinions. Second, this schedule results in an inefficient distribution of resources. Japanese companies have traditionally only looked to hire new graduates as generalists and then teach them the specifics of the job. This may work in some cases, but it’s difficult for a specialized worker, maybe 3 or 4 years out of college, to get a job, even if this person is more qualified. This is a stark contrast to how western companies find talent, and thus is an example of how Japanese companies are refusing to adapt to the modern world.

Strict recruiting guidelines is just one of the many reasons why the Japanese economy has stagnated. I personally believe that many of these reasons can be attributed to cultural reasons like how Japanese people have a tendency to honor tradition so much to the point that they cannot adapt. Although these business traditions worked during Japan’s post war economic rise, companies must critically examine if these traditions will continue to work in today’s fast-paced globalized world.