Introduction
Globalization has advanced internationally in recent years. There are many foreign-affiliated companies in Japan, and people who have studied abroad or are fluent in English prefer foreign companies to Japanese ones. Information about foreign-affiliated companies is scarce, but there are many differences between them and Japanese firms.
Characteristics of Japanese companies
Japanese companies are relatively competitive, so they can work relatively calmly.
- Focus on groups
Japanese companies look for teamwork and a sense of unity when working. When there is a decision, they hold a meeting and discuss it with everyone, which helps build good interpersonal relationships and promote a work style that emphasizes sociability (Walters, 2022).
- Seniority type
The pay in Japanese companies increases as employees get older. Important tasks are often left to seniors (Walters, 2022).
- Long period of education
The seniors will teach the new employees repeatedly until they can do the work by themselves (Walters, 2022).
- Prefer full-time employees
In Japan, in addition to the practice of lifetime employment, there are systems such as social welfare and retirement benefits. Japanese companies value everyone’s lives, from young to old workers. However, young workers’ salaries are lower than those of foreign companies (Walters, 2022).
- Strict work style
Japanese companies have detailed rules regarding working hours, clothing, and manners (xkula.com, 2021).
- Change role
In Japan, there are “sogo-shoku,” which translates to “general work” in English and means “to do various jobs.” Japanese companies often change roles and departments regularly to advance their careers (xkula.com, 2021).
- Comprehensive welfare program
The welfare system in Japan is very good, and there are various benefits such as housing support, vacation, and financial assistance (xkula.com, 2021).
- Receive retirement benefits
When an employee retires in Japan, he or she receives a huge retirement allowance. Generally, occurs after 5-10 years of service (xkula.com, 2021).
Characteristics of foreign companies
Companies in which a foreign company owns more than half of the shares are called foreign-affiliated companies. Compared to Japanese companies, foreign companies are suitable for people with a positive desire to succeed quickly and gain an advantage (xkula.com, 2021).
- Focus on the individual level
Each employee in a foreign-affiliated company is assigned a specific role. As a result, they take personal responsibility for their work. Because foreign-affiliated companies value people, they frequently evaluate human resources for expertise and hire people with experience in other industries (Walters, 2022).
- Meritocracy (speed and results are important)
The harder you work at a foreign-affiliated company, the better your reward and evaluation. You can earn 10-20% more than in Japanese companies, and even newcomers can be given important jobs. Foreign-affiliated companies value employees who are willing to put in the extra effort to improve things (Walters, 2022).
- Prefer contract workers
While Japanese firms employ lifelong employees, foreign-affiliated firms frequently change personnel and jobs to advance their careers. We are also actively seeking mid-career employees (Walters, 2022).
- Free work style
Foreign-affiliated companies have the mindset that “as long as they do a good job, it doesn’t matter what way you work” (xkula.com, 2021).
- Welfare is not very good
Foreign-affiliated companies offer higher salaries, but in terms of welfare programs, Japan is better than foreign companies (xkula.com, 2021).
- No retirement benefits
Most foreign companies either don’t pay severance pay at all or just have Japanese defined contribution pensions (xkula.com, 2021).
What kind of people are suitable for foreign-affiliated companies and what skills do they need?
- Ability to communicate in languages other than native language
Foreign companies must collaborate with people of various nationalities and cultures. As a result, it is critical to understand different countries’ cultures and communication styles. Furthermore, by being sensitive, respectful, open-minded, and communicative, you will be able to work with people of various nationalities (Reynolds, 2016).
- Resilience
Working in an environment with multiple time zones, cultures, and languages may result in numerous failures and setbacks. As a result, it is critical to maintain motivation and recover from difficulties when confronted with challenges (Reynolds, 2016).
- Emotional intelligence
You can understand yourself and control your emotions if you have high emotional intelligence. As a result, even in an emergency or when stressed, you can make decisions calmly. They also have superior interpersonal skills, making them effective communicators (Reynolds, 2016).
- Adaptive thinking
Don’t be trapped by stereotypes when solving problems. People who can change their way of thinking on the fly can succeed internationally in an ever-changing environment (Reynolds, 2016).
- Interpersonal impact
The ability to influence people is useful in many areas of business. For example, negotiating a deal, pitching a product, and so on (Reynolds, 2016).
- Cooperation with surroundings
Cooperation with people from different cultures is critical for international business success. Because having discussions with people who have different communication skills allows us to bring in perspectives from various countries (Reynolds, 2016).
- Good networking skills
Face-to-face networking skills are required for successful international business. Approximately 80% of all jobs are now transmitted via networking. You can meet and communicate with like-minded professionals by mastering elevator pitches and attending industry networking events (Reynolds, 2016).
Conclusion
Japanese and foreign-affiliated companies think and operate in very different ways. Each has advantages and disadvantages, so it is critical to select a company that matches your personality and lifestyle. Working at a foreign-affiliated company necessitates a wide range of skills, but if you can acquire them, you will be able to play an active role on a global scale. You will be able to work stress-free if you understand the characteristics of each company and choose the style in which you want to work.
References
Reynolds, K. (2016). The Top 7 Skills Needed for Success in International Business Hult Blog. [online] Hult Blog. Available at: <https://www.hult.edu/blog/skills-needed-in-international-business/> [Accessed 3 January 2023].
Walters, R. (2022). The difference between Japanese and Foreign companies. [online] <www.robertwalters.co.jp. Available at: https://www.robertwalters.co.jp/en/career-advice/gaishi-nikkei-hikaku.html> [Accessed 3 January 2023].
xkula.com (2021). Difference between Japanese and foreign company in Japan (外資, Gaishi). [online] <xkula. Available at: https://www.xkula.com/difference-foreign-japanese/> [Accessed 3 January 2023].
