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Research & Reports
2001
Overview of Results from the Fifth Survey on Changes in the Japanese-style Personnel System
(January 31, 2002)
 
The “Survey on Changes in the Japanese-style Personnel System” targeting listed companies has been conducted each year from 1997. The 5th survey was conducted this year (responses received from 339 companies). The following is an overview of the findings.
 
1. Concepts of the personnel system
Approximately 60% of the companies surveyed see the personnel system of management-level employees as being “results and performance-oriented.” These companies showed high rates of introducing the annual salary system, complaint processing system, and competency-based system.
   
2. Annual salary system
Introduction of the annual salary system steadily increased, and reached 34.8% in this survey (25.2% in the 2000 survey).
   
A breakdown by industry shows conspicuously high introduction rates in such manufacturing industries as electrics (57.1%), iron and steel (43.8%), and machinery (42.9%), and in such tertiary industries as services (45.8%) and finance (40.9%).
   

 

Approximately 10% of companies that have adopted the annual salary system are now applying it to employees at the manager and chief levels. The gradual introduction of the system to nonsupervisory positions is progressing.
   
In determining the amount of annual salary, 35.6% of companies surveyed currently refer to external market rates, and 40.7% plan to do the same. As the annual salary system spreads, a cross-sectional market for annual salary amounts may be formed.
   
3. Complaint processing system
The introduction of a system for processing complaints regarding performance evaluations is increasing yearly. This survey revealed a rate of 36.6%.
   
However, 46.0% of those companies feel that usability of the system employed by their company is poor.
   
4. Competency
11.2% of companies surveyed include “competency” in their personnel system. Compared to the result of the previous survey (5.6%), the introduction rate doubled.
   
As the reason for applying competency, 40.2% answered that “it clarifies the points of evaluation and increases acceptance and objectivity of the evaluation.”
   
5. Recruitment
Increases were seen in the introduction rates of various systems related to recruitment, such as year-round recruitment, internships, temp-to-perm system, and occupation-specific recruitment.
   
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