Differences Between Working for Non-Japanese and Japanese Companies

Understanding, accepting, and accommodating are crucial for success and enjoying 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 to become a part of a system. 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, Japanese society’s traditions, culture, and thought processes dominate the work culture very deeply.

So, if you, as a foreigner, are planning to join a Japanese company, you need to understand these core values and differences in work culture.

These differences in working style and processes are not just limited to Japanese companies but also to foreign companies in Japan, where most of the colleagues are 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 those of Japan.

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

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

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

When 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:

Individual Contribution for Growth Vs. Group Results

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

Western companies and companies influenced by Western work culture often focus on the employee’s individual contribution to their career growth. You will often come across training programs meant for individual growth 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 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. Socializing is important within the Japanese work culture—expect to go for drinks after work with your Japanese colleagues. 

Speed and Outcomes Vs. focus on training employees

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, with a sharp focus on speed and outcomes in terms of revenues and profits for the long term as well as the short term. Western companiese also seek employees to have a keen willingness to train and improve themselves constantly.

Japanese companies often sacrifice speed to maintain the the highest level of quality by strictly adhering to processes. The training programs and processes of Japanese companies focus more on improving teamwork rather than focusing on individuals.

Japanese companies tend to have a system of work based on seniority. A newly employed employee is rarely given an important job to undertake alone. 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 independently. This process normally takes a few years, so patience is key.

Contract Vs. Permanent Positions

Non-Japanese companies prefer contract-based hiring for many positions, while Japanese companies have traditionally favored permanent positions. Japan’s idea of hiring employees for a lifetime of employment is rare in the world. 

In American and European companies, however, it is the norm that employees 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. A Japanese company is almost obligated to look after its employees for life. There is a price for this, though—starting annual salaries can be quite a bit lower than those 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 raises 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 get in touch with us to see how we can help you with all your recruitment requirements.