1. Introduction
Understanding the unique systems and culture of Japanese companies is crucial for career advancement and promotion. This is particularly true for exceptional talent graduating from overseas universities, as the promotion and evaluation criteria in Japanese companies can differ significantly from their home countries. While Japan has traditionally valued lifelong employment and seniority-based promotions, signs of change are emerging due to intensified global competition. For example, 83.3% of major Japanese corporations now employ foreign talent, and hiring international staff is becoming more common. However, the ratio of foreign managers remains low, with foreign managerial staff accounting for only an average of 0.22% in the early 2010s*1. To break this mold, Japanese companies have recently begun to embrace diversity management. Notably, Fast Retailing, known for its Uniqlo brand, has set a goal to make 80% of its managers and 40% of its high-ranking officers foreigners by fiscal year 2030*2. These efforts are opening pathways for foreign talents to advance into management and executive levels in Japanese companies, making them increasingly attractive options for long-term career development.
This article discusses the skills valued in Japanese companies, successful examples of foreigners and overseas graduates advancing to managerial positions, the differences in career paths between Japanese and foreign companies, and concrete action plans for promotion.
2. Skills Valued in Japanese Companies
For promotion in Japanese companies, it is crucial not just to perform well but also to acquire skills that are highly valued internally. Here, we discuss some of the key skills that are particularly emphasized.
2.1 Leadership (Goal Setting & Staff Development)
In Japanese companies, managers are expected not only to give instructions but also to lead teams and nurture staff. The ability to set goals, share them with team members, and manage progress is essential. At the same time, the ability to develop the strengths of subordinates and support their growth is also valued. For instance, a personnel survey by Yum Technology Japan highlighted common traits among promoted employees, such as conducting regular self-reflections for personal growth and building good relationships with colleagues*3. Leadership that builds trust and educates subordinates is linked to higher evaluations. Additionally, the so-called "lead by example" leadership is respected in Japan, where leaders demonstrate high ethical standards and responsibility, becoming trusted figures within the organization.
2.2 Harmoniousness (Teamwork & Respect for Diverse Opinions)
Harmoniousness and teamwork are particularly valued in the Japanese workplace culture. Japanese companies emphasize 'wa' (harmony), preferring team cohesion and collaboration over individual performance. Smooth communication with colleagues and cross-departmental collaboration are critical. The ability to respect diverse opinions and seek consensus is also essential. For talents graduated from overseas, it is important to leverage their diverse backgrounds while being open to and accepting different perspectives. In Japan, it is customary to conduct preliminary adjustments before meetings to align stakeholders’ views. Adapting to such cultures and supporting the team as an 'unsung hero' can lead to high evaluations. Moreover, harmoniousness involves not just conforming but also understanding and approaching others without imposing one's views. The multicultural understanding gained overseas can be a strength in Japanese workplaces, helping to bridge gaps between team members and build trust.
2.3 Logical Thinking (Problem Solving & Strategy Development)
With the growing emphasis on data-driven decision-making in Japanese companies, the importance of logical thinking has increased. Identifying the essence of issues and deriving appropriate solutions is crucial. For instance, global companies like Toyota and Sony enhance their competitiveness by rigorously applying the PDCA (Plan-Do-Check-Act) cycle to continuously improve. In business, where complex problems are common, the ability to analyze data and propose evidence-based solutions is key to promotion. Talents who can make logical and persuasive proposals are often seen as suitable leaders.
2.4 Language Proficiency (Utilization of Japanese and English)
As globalization progresses, the use of English in Japanese companies is increasing. Especially in foreign-affiliated and internationally expanding Japanese firms, the ability to communicate in English is often a requirement for promotion. However, in many domestic companies, business is still primarily conducted in Japanese, and advanced Japanese language skills are required. For instance, speaking at internal meetings, presenting, and writing business documents in Japanese can influence promotions. For international talent, being proficient in both Japanese and English is a significant advantage, opening doors to lead global projects.
3. Key Points for Foreigners to Become Managers
For foreign talent from overseas universities looking to advance to managerial or leadership positions in Japanese companies, there are several key points to consider. This section discusses real-life examples and the challenges and strategies involved in such advancements.
3.1 Examples of Promotion and Appointment of Foreign Managers
In recent years, there have been increasing instances of foreigners being appointed to managerial and executive positions in Japanese companies. Analyzing these success stories helps understand the factors behind promotions and appointments.
3.1.1 External Appointment Examples
Some Japanese companies, aiming to drive globalization, recruit foreign executives from outside the company. For instance, Takeda Pharmaceutical, a traditional Japanese company, now has a majority of its executives as foreigners. In 2014, French national Christophe Weber was appointed CEO, significantly steering the company towards global operations*4. Takeda's case shows that "advanced management skills in English" and "leadership integrating different cultures" are expected of foreign executives and have indeed led to successful outcomes.
Shiseido has also successfully expanded its global operations by appointing a German executive. Even in traditional Japanese companies, clear visions and results from foreigners are increasingly leading to significant posts.
From a data perspective, the changes are more apparent. Fast Retailing, known for its Uniqlo brand, has announced plans to increase its foreign managerial staff to 80% by 2030*2. Additionally, as of 2013, Nomura Holdings had 158 foreign managers, the highest among Japanese companies at the time*5. While the finance sector has historically embraced global talent, it is expected that a broader range of industries, including manufacturing and retail, will appoint capable international talent in the future.
3.1.2 Internal Promotion Examples
At the same time, cases of foreign employees being promoted to managerial positions within companies are also increasing. Rakuten Inc. is proactive in promoting diversity within the company, with many foreign managers active in technical departments and other areas. Rakuten's policies of making English the official language and fostering a culture that respects diversity have created an environment where foreign employees can excel. As a result, a system that allows promotion based on merit, reducing language and cultural barriers, is functioning effectively*6.
Mercari has established a "Global Operations Team" specializing in interpretation and translation to support smooth communication between foreign and Japanese employees, leading to increased instances of foreigners taking on team leader and project manager roles*7.
3.1.3 Factors for Success
The common factors in these success stories involve both the efforts of the foreign managers themselves and the accepting corporate environment.
Exceptional Professional Skills and Results: Clear contributions to performance are persuasive when supported by data.
Advanced Language and Communication Skills: The ability to discuss with management in Japanese and conduct business overseas in English.
Cultural Adaptation and Leadership: Understanding Japanese business manners and organizational culture while demonstrating leadership that leverages personal strengths.
Utilization of Corporate Mentors and Support Systems: Having a network within the company, such as direct supervisors or HR personnel who can support and push for advancement.
For example, Hitachi Ltd. aims to make 30% of its executives non-Japanese by 2030, requiring leadership training for foreign employees and cross-cultural management training for Japanese employees*8. Such mutual accommodation is crucial.
These equipped foreign employees break the traditional notion that "Japanese should manage Japanese," earning trust and being promoted or appointed to significant positions.
3.2 Challenges and Strategies for Promotion
Foreigners face specific challenges when adapting and advancing in Japanese companies, primarily due to cultural differences and communication gaps. This article discusses these challenges and strategies for overcoming them.
3.2.1 Barriers Due to Cultural Differences
The Japanese workplace is rife with unwritten rules and traditions. For instance, there is a tendency to avoid direct confrontations in hierarchical relationships, and meetings may not always conclude with clear decisions but rather through pre-meeting adjustments to achieve consensus. For foreign employees, the culture of "reading the air" and the delicate communication based on honorifics and etiquette can be confusing. Additionally, the emphasis on harmony in Japanese companies can discourage individuals from standing out. While self-assertion and risk-taking are valued in leaders abroad, caution and coordination are often prioritized in Japan. This gap can lead foreigners to wonder why they are not being evaluated as expected.
Overcoming this challenge requires a deep understanding of Japanese business culture. Actively asking questions to seniors and supervisors and learning the assumptions that Japanese colleagues take for granted can be effective. For example, the formalities of pre-meeting adjustments and approval processes through written proposals have underlying rationales specific to Japanese companies. Learning this tacit knowledge from mentors can mitigate culture shock. Additionally, attending Japanese business etiquette training or studying through books and materials can also be beneficial.
However, it is not necessary to completely adapt one's style to fit the Japanese mold. Instead, it is ideal to balance this by incorporating Japanese-style considerations when expressing new ideas and candid opinions that can only come from a multicultural background.
3.2.2 Communication Gaps
In addition to language barriers, the indirect expressions and ambiguous language typical of Japanese can lead to misunderstandings. According to a survey by Persol Research Institute, the biggest challenge in accepting foreign talent in Japanese companies is the "communication gap," and the key to managing foreigners is "expressiveness." That is, the true intentions behind the indirect expressions of Japanese supervisors and colleagues may not be conveyed, requiring more clear and direct communication.
Indeed, some foreign employees have experienced situations where they believed their proposals had been approved because they received a "yes" at a meeting, only to realize later that it was merely a polite response. To prevent such miscommunications, it is crucial to clarify uncertainties on the spot. When encountering ambiguous responses or idioms, it is necessary to ask further questions without hesitation. Additionally, documenting key points in emails for later verification can be an effective strategy.
Moreover, building everyday relationships also contributes to smoother communication. For example, inviting supervisors to lunch or sharing hobbies during casual conversations can help build trust. If subordinates feel they can consult about anything, team management becomes much more efficient. Although Japanese employees tend to be cautious around their superiors, continual sincere interaction can gradually open their hearts.
In summary, the challenges for foreigners seeking promotion in Japanese companies can be encapsulated as confusion due to cultural differences and difficulties in communication. Overcoming these challenges involves:
Active Learning of Japanese Business Culture and Customs (Utilization of Mentors and Training)
Communication with Reduced Ambiguity (Thorough Verification and Attitude for Mutual Understanding)
Building Trust with Colleagues (Listening and Dialogue, Sincere Interaction)
Taking these measures to enhance internal evaluation can turn being a foreigner from a disadvantage into a strength, paving the way to managerial positions.
4. Differences in Career Paths Between Foreign and Japanese Companies
For overseas graduates, understanding the differences in career paths between Japanese and foreign companies is also crucial when considering their careers. Each has different approaches to promotion and talent development, which can guide individuals in choosing an environment that aligns with their preferences and strengths. This section compares the criteria for promotion and approaches to career formation between the two.
4.1 Comparison of Promotion Criteria (Meritocracy vs. Seniority)
Foreign-affiliated companies and global corporations operating in Japan generally emphasize meritocracy, where even younger employees can rise quickly through the ranks if they deliver strong results. Promotion timing and speed are less tied to age, and it is not uncommon for individuals in their late 20s to attain managerial positions in some regions overseas. In contrast, Japanese companies traditionally emphasize seniority and the duration of service at certain positions, with promotions often accompanied by specific age and tenure requirements. The typical pattern involves employees entering the company through mass recruitment as new graduates and climbing the ladder through extensive in-house experience.
Actual data also highlights differences in promotion practices between foreign and Japanese companies. A study by Recruit Works Institute shows that the average age for promotion to a managerial position in Japanese companies is approximately 38.6 years, whereas it is 34.6 years in the United States*9. Furthermore, promotions to senior management in Japan occur on average at the age of 44, later compared to other countries. This is because securing a managerial position in Japan often involves rotating through various departments over many years, naturally delaying promotion. Additionally, the proportion of MBA holders in managerial positions is extremely low in Japan (1.6% for managers and 1.5% for senior managers), in contrast to about 15% in the U.S. This suggests that in Japan, in-house experience and personal networks are often valued over educational credentials and qualifications.
However, Japanese companies are increasingly introducing performance-based personnel systems. They are adopting schemes that promote employees who achieve specific results regardless of their age, and some have started incorporating job-based employment, recruiting the most suitable candidates for positions internally and externally. Still, seniority elements are deeply ingrained in the corporate culture, and issues of transparency and fairness in evaluations remain more ambiguous compared to foreign companies.
Foreign companies typically have rigorous evaluations based on achievement of numerical targets and competencies. Systems where a certain percentage of employees are promoted or face demotion or dismissal if they do not meet outcomes are common. On the other hand, in Japanese companies, promotions often depend on recommendations by superiors and deliberations by HR, following a more relative evaluation process. In other words, "foreign companies fit people to posts," whereas "Japanese companies fit posts to people." The former selects suitable individuals for predefined roles from both within and outside the company, while the latter focuses on nurturing individuals within the company to eventually match them to suitable positions as they mature.
This difference is crucial for overseas graduates considering their careers. Those who prefer to take on responsible positions at a young age and be evaluated based on their abilities might find meritocratic foreign companies or startups more appealing. Conversely, those who wish to develop expertise while gradually advancing within a stable environment might find large Japanese corporations more suitable.
Nevertheless, Japanese companies are undergoing transformation, with an increasing number looking to boost their foreign managerial staff ratios. Opportunities for early promotion are expanding for talented individuals, making it essential for overseas graduates to carefully assess whether a company’s promotion criteria align with their desired career pace.
4.2 Approaches to Career Formation
Next, the differences in career formation approaches are discussed. In foreign companies and typical Western corporate cultures, there is generally a greater emphasis on specialization. Employees are often placed in specific roles (such as marketing, finance, etc.) from the time of their initial recruitment, allowing them to grow as professionals within that field. Consequently, major career shifts within the same company are less common, and professionals typically advance or switch jobs while enhancing their specialized skills. For example, someone hired as an engineer might progress along a clear path to senior engineer, manager, and director within their specialty.
In contrast, Japanese companies have traditionally focused on developing generalists. They employ new graduates in general positions and rotate them through various departments every few years, allowing them to experience different aspects of the company. This approach is expected to produce individuals with broad knowledge and a strong internal network, preparing them to eventually take on managerial or executive roles with a comprehensive view of the company. This type of career path, sometimes referred to as being a "jack-of-all-trades," is based on the idea that effective management decisions require integrating knowledge from multiple departments. For example, in major manufacturers, it is not uncommon for an individual to rotate from sales to HR to planning departments, then to overseas assignments and back to manufacturing, eventually reaching a managerial position in their 40s.
While this system may seem to risk diluting professional clarity as one progresses, the intention is to cultivate versatile individuals within the company. Additionally, for students unsure of which field to specialize in, this setup allows them to discover their strengths and interests through diverse experiences. Indeed, many find their aptitude during these rotations and subsequently focus on enhancing their specialization while advancing their careers.
However, recent trends show a shift in this generalist orientation. In fields where technological innovation is rapid, there is a growing recognition that "one cannot manage without specialization," prompting even Japanese companies to enhance systems for professional roles and recruit mid-career professionals with specific expertise. For example, in IT companies and research-driven organizations, specialists in particular fields are increasingly being promoted to project leaders or heads of research. This shift indicates a trend towards maintaining broad experiences within a company while also preserving core expertise.
These changes are also related to increasing labor market fluidity. Traditional Japanese employment practices assumed lifelong employment and seniority-based progression, but career paths that enhance specialization through job changes are becoming more common. As a result, companies are more actively recruiting highly specialized professionals who can immediately contribute as experts, providing more opportunities for managing positions while walking a specialized career path.
Ultimately, the choice of career path depends on what one values and wishes to achieve, whether as a specialist wanting to perfect specific skills or as a leader looking to demonstrate organizational oversight. In recent years, there are cases where individuals have honed their specialties in foreign companies and then been invited to executive positions in Japanese firms, and vice versa. It is crucial to identify a corporate culture and system that matches one's career aspirations and to strategically shape one's career accordingly.
5. Concrete Action Plans for Aiming for Promotion
This section presents concrete action plans for overseas-educated individuals aiming for promotion in Japanese companies. These include daily work-related initiatives and long-term self-improvement efforts directly linked to career advancement.
5.1 Skill Acquisition and Improvement (Qualifications and Training)
For promotion, enhancing one's market and internal value through skill improvement is essential. In addition to the strengths of overseas education and language skills, strategically acquiring and enhancing skills valued within Japanese companies is crucial.
Qualification Acquisition: Obtaining certifications recognized in one's profession or industry can help demonstrate expertise. For instance, IT engineers might consider certifications related to cloud technologies like AWS or Azure, project managers could pursue PMP or information processing examinations, and business skill enhancements might include an MBA or certifications like the Small and Medium Enterprise Consultant or Certified Public Accountant.
Language Skill Improvement: Polishing business Japanese, achieving the Japanese Language Proficiency Test N1, or attending training in honorifics and business email writing are effective strategies.
Utilization of Training and Learning Opportunities: Actively participating in both internal and external training sessions, such as leadership, presentation, and cross-cultural communication training, is advisable. Acquiring skills necessary for post-promotion roles in advance is recommended.
Keeping Up with the Latest Trends: Staying informed about industry trends and technologies like DX and AI is essential. Organizing study groups or sharing expertise within the company can also showcase initiative and expertise, contributing to favorable evaluations.
5.2 Utilization of Mentors
Utilizing a mentorship program or reliable mentors can significantly expedite promotion.
Internal Mentors: Asking senior employees or managers several levels above oneself to serve as mentors can provide insights into the skills and behaviors necessary for promotion.
External Mentors: Engaging with communities like Jelper Club or consulting industry seniors, university alumni, or professionals connected through LinkedIn can also be beneficial. These external perspectives can offer unbiased advice not confined by internal company politics.
Building Relationships with Mentors: To maximize advice from mentors, displaying a proactive learning attitude is crucial. Requesting regular one-on-one meetings to report on goal progress can help maintain a continuous relationship.
6. Conclusion
For international talent aiming for career advancement in Japanese companies, a long-term perspective and persistent determination are essential. The path to promotion is not always smooth, and there may be moments of frustration with the unique pace of Japanese companies. However, as discussed in this article, many companies are undergoing transformations, and depending on one's efforts, opportunities for promotion can be seized.
The key to career advancement lies in continually contributing to the organization while enhancing one's strengths and addressing weaknesses. Continuous learning and self-improvement are essential; acquiring new knowledge and skills and keeping up-to-date are critical for professionals in any environment. Conversely, ceasing to learn can lead to career stagnation.
Those with overseas educational experiences already possess the ability to tackle challenges in unfamiliar environments. Leveraging this strength, flexibly adapting to Japanese corporate culture, and finding one's unique way to achieve results are advised.
Additionally, mental resilience is indispensable for promotion. With promotion comes increased expectations and responsibilities, potentially leading to greater pressure. Persisting in self-assertion within a different culture is not easy. However, like many foreign predecessors who have built careers in Japan, balancing adaptation with self-assertion and building trust with colleagues can open new paths.
Stay confident and continue to embrace challenges.
(Editor: Jelper Club Editorial Team)
Sources and Notes
１.「外国人管理職人数ランキングトップ62、首位は日本IBM58人、1人以上存在する企業はわずか112社」（東洋経済オンライン）：https://toyokeizai.net/articles/-/8609/
２.「ファストリ、外国人管理職8割に 海外で採用増・育成」（日本経済新聞）：https://www.nikkei.com/article/DGXZQOUC194QZ0Z10C24A3000000/
３.「81.2%の大企業の人事担当者が、出世や昇進する社員には「共通点がある」と回答 51.2%が、共通点に「学習習慣」と回答［ユームテクノロジージャパン］」（日経COMPASS）：https://www.nikkei.com/compass/content/PRTKDB000000010_000086740/preview
４.「OPINION 3 日本型「管理職」はもう通用しない グローバル市場で求められるビジネスリーダーの役割」（日本能率協会マネジメントセンター）：https://jhclub.jmam.co.jp/acv/magazine/content?content_id=3585
５.「「外国人管理職数ランキング」トップ100」（東洋経済オンライン）：https://toyokeizai.net/articles/-/17954
６.「ダイバーシティ・エクイティ・インクルージョン」（RAKUTEN）：https://corp.rakuten.co.jp/sustainability/diversity/
７.「言語を活用してメルカリのビジネスやD&Iをサポート！」（メルカリ）：https://careers.mercari.com/mercan/articles/37731/
８.「ダイバーシティ、エクイティ＆インクルージョン」（日立製作所）：https://www.hitachi.co.jp/sustainability/report/social/dei.html
９.「Works128号 第1特集 5カ国比較 “課長”の定義」（リクルートワークス）：https://www.works-i.com/works/item/w128_toku1.pdf
(Editor: Jelper Club Editorial Team)
Комментарии