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Research & Reports
2000
4th Survey on Changes in the Japanese-style Personnel System
(January 23, 2001)
 
This survey on changes in the Japanese-style personnel system was conducted following upon that of 1997, 1998, and 1999. It targeted people in the personnel departments of 2,568 listed companies (valid responses from 301 companies; response rate 11.7%). The following is an overview of the findings.
 
1.Annual salary system
(1) Approximately 25% of companies have introduced the annual salary system
   
(2) Over 70% of those companies apply the annual salary system to all management-level personnel (manager (kacho)-level or higher)
   
(3) Of the annual salary amount, the portion that is variable according to assessments is 30% at present, but will ideally be 40%.
   
2. Employees are promoted to managerial positions at younger ages. Promotion to manager (kacho) can be achieved at an age of 34.6 years at the earliest.
   
3. Department performance is reflected in the salaries of approximately 30% of managerial personnel and approximately 20% of non-managerial personnel.
   
4. Traditional discretionary labor system and the new discretionary labor system
(1) The rate of introduction of the traditional discretionary labor system is approaching 20%.
   
(2) The rate of introduction of the new discretionary labor system is 3.0%, but including those who are considering its introduction, the percentage is over 60%.
   
5. Employment after the age of 60
(1) 70% of respondents answered that continuous employment for employees over 60 “needs to be considered.” Over 20% were for the extension of the retirement age to 65.
   
(2) 44.8% would consider a separate wage system for employees over 60—i.e., a job-oriented wage based on job content.
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