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Week 13 U N D E R S TA N D I N G T H E C U R R E N T S I T U AT I O N O F J A PA N E S E E M P LOY M E N T A N D T H E C H A L L E N G E S FA C I N G AGENDA FOR TODAY This week, we will focus on the following topic: General features of Japanese employment and trend in Japanese labor market New Graduate Recruitment Update Japanese Companies Hiring Foreigners – Current situation and concerns Assignments for this week – Submition required ※ Read through PPT slide, watch video, and answer to the questions. Feature of Japanese Employment ◆ Lifetime employment; ◆ Seniority wages; ◆ Mandatory retirement; ◆ New -grad collective recruitment (A) Trend in Japanese Labor Market The number of employees is increasing for women (15 -64 years old) and the elderly (65 years old and over), while for men (15 -64 years old) has been decreasing since peaking in 1997. By regular and non -regular, males (aged 15 -64) have been declining over the long term, but females have increased since 2015.
According to the latest public survey, women's consciousness of having a job, the answer “It is better to continue working even if I have children” reached 61.0%, ever since the start of the 1992 survey.
Increase in working population of women (15 -64 years old), approximately 67.4% (2017) Working population over age 65, about 23% (2017) At the age of 60, many older workers in Japan continue to work but on fixed -term contracts. These jobs typically involve significant wage cuts and underutilization of their skills. Childcare Leave According to the survey conducted by the Ministry of Health, Labor and Welfare, the childcare leave acquisition rate by gender in 2017 was 83.2% for women (+ 1.4% compared to the previous year) and 5.14% for men (+ 1.98% compared to the previous year).
Although the rate of taking childcare leave for men is still low compared to women, the rate of growth has been increasing steadily, especially in recent years.
Vacation The average paid leave days granted per year is about 19 days, of which the average number of days taken is 9 days. In traducing flex -time about 5%. Job change The number of job changers has been increasing over the long term.
30% of employees who graduated from university graduates are leaving within 3 years Continue: Features of Japanese recruitment and labor market https://exporttojapan.co.uk/guide/hr -recruitment/hiring -in -japan/ There are very limited information on Japanese labor market and recruitment system delivered in English, however, here is an interesting video in English providing useful information on recruitment system in Japan and Japanese labor market.
Take your time and watch the video for your further understanding: (B) Trend in New Graduates Recruitment ✓ Basic approach to collective recruitment of new graduates 22.1% of companies increased the number of planned hiring from the previous year by 6.1 points . Companies‘ willingness to hire has recovered in 2022. Regarding the number of planned hiring of 2021 graduates, “Same as last year” was the highest at 69.3 %. More than 20% of the 2021 graduates “decreased (from the previous year)” the number of planned hiring due to the corona crisis, but after 2022 graduates, the number of “increased” has increased for the second consecutive year. It can be seen that the willingness to hire is on a recovery trend . ✓ The most common reason for companies implementing spring collective recruitment is “Because of the ability to secure a young workforce efficiently” (80.8%) , “Can train the workers efficiently in a long -term”( 64%) Trend in New Graduates Recruitment - continued ⚫ The number of companies with the impression that they want to hire fewer students than in the previous year increased . When asked about their impressions of the students who applied, 54.5% of the respondents answered that they had the same general impressions as in the previous year, but 25.2% said that they had fewer students than in the previous year, an increase of 9.1 points from the previous year. ⚫ When companies were asked about the reasons for their current level of satisfaction, companies with few students who wanted to hire said that their aptitude and aspirations were not as high as in previous years, and that they had been unofficially selected as students whose abilities and company matched them well. Trend in New Graduates Recruitment - continued ⚫ The percentage of those who conducted interviews and informal job offers between March and May was about the same as 20 2 0 graduates . ⚫ Looking at the four -year comparison of the ratio of interviews and unofficial job offers from March to May, the ratio of interviews and unofficial job offers in March was almost the same as 20 2 0 graduates . ⚫ Looking at the implementation status of activities since April, the implementation rate, which had declined for 2021 graduates in the first year of the corona crisis, has recovered to the pre -coronavirus rate for 2022 and 23 year graduates. ⚫ Approximately 90% of companies plan to continue hiring new graduates in 2024. ⚫ More than 80% of companies hire new graduates with the expectation that they will be active after the third year of employment . ⚫ On the other hand, a ccording to a survey by the Japanese government, more than 30% of university graduates leave their jobs within three years . If you think that 10 people will be hired and 3 people will quit within 3 years, you can realize that it is a large number. Issues of New graduate recruitment - high turnover Form the results of the survey are published in the "Status of Turnover of New Graduates Employed “by the Ministry of Health, Labor and Welfare Issues of New graduate recruitment - high turnover (continued) ⚫ The turnover rate is highest in the first year and decreases in the second and third years. From this data, we can see that it is important to reduce the turnover rate in the first year in order to reduce the turnover rate of new graduates . ⚫ In the future, it is expected that it will become more difficult to recruit human resources due to the impact of the declining birthrate. Therefore, reducing the early turnover rate is the key to reducing hiring and training costs, and ultimately to future corporate growth. Online Recruting Activities ⚫ Regarding online recruitment activities. “ Conducting ” web seminars for 2022 graduates was 86.5% of the companies that answered. ⚫ Compared to the same period of the previous year (68.6%), it increased by nearly 20 points. Although the number of companies conducting self -promotion videos and video interviews is small, it exceeded the survey for the same period of the previous year, and an increasing trend can be seen. ⚫ The implementation rate of online interviews has further increased from the dramatic increase in the previous year's survey (73.4%), exceeding 80% (81.0%). Due to the effects of the prolonged corona disaster, web interviews became mainstream, and there were many cases where job offers were made without ever meeting face -to -face. Regarding the hiring of new graduates in the next fiscal year, "hiring as much as this term" was the highest at 34.2%, followed by "strengthening the hiring of new graduates" at 24.5%.
The research shows that the hiring new graduates process has not been is stopped in 2020 during the coronavirus epidemic.
However, as of September, 22.6 % of the companies answered that they have not decided on a hiring plan for the next fiscal year, and 3.9% of the companies answered that they would reduce the number of new graduates hired. This shows that the coronavirus epidemic has little effect on the number of applicants.
Moreover, we can assume that c ompanies will continue to focus on hiring new graduates. Regarding the image of human resources and recruitment standards required for recruitment activities, 33.1%companies answered that "the image of human resources and recruitment standards required in this year have changed significantly." Compared to FY2019, it increased by 26.5 points (6.6% → 33.1%), indicating that the desired human resources image and recruitment criteria have changed significantly due to the influence of the coronavirus epidemic.
Due to the recent rise in the university entrance rate, “university graduates” account for more than 60% of human resources. In addition, compared to last year (2019), the hiring of “junior college / technical college graduates” is emphasized (8.3% → 13.5%), and there are many “specialized / technical jobs” among the occupations that are being recruited with priority (48.1%).
From this, it can be seen that they are actively hiring human resources who can be “ready to work ” by acquiring skills and knowledge before joining the company. Japanese companies appealing to the students According to the recent survey, r egarding the items that should be appealed in the recruitment publicity in the future, "Working on SDGs (31.6%)" ranked first.
In addition, 21.2% of listed companies answered that they are “ working on diversity and inclusion, ” which greatly exceeds the 6.4% of unlisted companies . It can be seen that there is a strong tendency among companies to conside r that it is important to appeal their stance to promote diverse values and work styles, including initiatives for the SDGs. Hiring foreigners in Japanese Companies Now, let’s look at the trend in Japanese companies hiring foreigners. Research shows that 60% of companies are positive about hiring foreigners. The question "Are you currently hiring foreigners?", 29% companies answered that “currently hiring ”, “w e are not hiring now but are considering" (33%) . In addition, 62% of companies are willing to hire foreigners in the future . The research shows that many companies are interested in hiring foreigners, however, The research revealed that there are few obstacles or concerns facing Japanese companies. Research conducted by Engage ( https://en -gage.net/ ) Number of valid responses: 2,263 companies Survey period: June 18th to July 19th, 2019 S ales and C ustomer S ervice (26%) IT/WEB/Game/Communication Engineers (15%) Sales P osition (11%) M edical / welfare / education personnel (11%) P lanning / office work (11%) , Electrical / Mechanical Engineers (9%) Interpreters / Translators (8%) Creative Position (4%) Consultants (2%) Construction / Civil Engineers (1%), Security/ Cleaning staff (1%) Others (4%) * Limited number of annual intake, less than 3 foreign graduates. The job category of hir ing foreigners This table shows the job category of foreigners hired by companies: The purpose of hiring foreign students Regarding the purpose of hiring foreign students, "to secure excellent human resources regardless of nationality," which was ranked first in the survey conducted in the past, also ranked first.
Next, the newly added option "because there was an application" occupies the top position, and many companies hired international students who had no plans to hire at first but had contact with them and met the hiring criteria.
Regarding future hiring plans, 57.2% of the companies answered that they "want to actively hire" or "if there are good people, they will hire", accounting for more than half. 2020 Graduate Foreign Student Recruitment Situation Survey By Mynavi Corporation Global Recruitment Planning Business Office Survey period: November, 2019 -December, 2019 1,209 valid responses Challenges for hiring foreigners The top three reasons for not hiring or considering hiring foreigners are "underdeveloped education and training," "concerns about Japanese language ability," and "complexity of administrative procedures." There is little know -how in hiring foreigners and education and training, communication problems between employees (limits of the work environment centered on Japanese language), complicated welfare support for foreign employees, the higher priority of utilization of elderly and female employees than foreigners are major obstacles of hiring foreigners.
However, with the rapid progress of globalization, there is an urgent need to secure excellent human resources and promote diverse human resources in an organization, and the interest of companies in hiring foreigners is increasing. Continue: Hiring Foreigners Although the hiring method for foreign countries has not been well -established at present, it is a fact that many companies want to hire positively if there are good international students. Therefore, it is critical that foreigners (international students) themselves to collect Japanese labor market and company information and actively contact companies may be a step that leads to hiring for international students . Learning Outcomes for Today Now, in order to enhance your understanding in Japanese employment trend, take your time to answer to the following questions: A. What is the major obstacles for Japanese company hiring foreigners, and what are the effective measures to be taken to promote foreign workers? How would you convince Japanese managers?
B. Do you think Japanese companies should continue to hire new graduates, or terminate and shift to year -round recruitment? State the reasons. The answer to the above questions should be submitted via DUET no later than 6 th January. (word, free format)