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Research & Reports
2002
Overview of Results of the 6th Survey on Changes in the Japanese Personnel System
(January 17, 2003)
 
The JPC-SED has been conducting a series of surveys on changes in the Japanese personnel system, targeting major companies as subjects. The 6th survey was conducted this year (valid responses received from 303 companies; response rate 11.9%). The following is an overview of the findings.
 
1. Over 40% of the companies surveyed have already installed the annual salary system
The introduction of an annual salary system had been steadily increasing over the years, and reached 40.9% in this survey (34.8% in 2001 survey).
   
A breakdown by industry shows a high rate of introduction in the manufacturing sector, especially in steel works (47.1%), machinery (46.2%), precision machinery (41.2%), and electrical equipment (40.0%), and in tertiary industries such as wholesale and retail trade (44.7%) and finance (30.4%).

2. Approximately 30% of companies value the process of achieving results
Companies are now gradually tending to appraise not only results per se, but also the process by which the results are achieved. The survey indicated that more than 40% of companies, accounting for the largest percentage, regard processes as merely supplementary factors for evaluation. However, approximately 30% responded that they value results and process at about the same level. This tendency was more conspicuous in companies with larger numbers of employees.

3. The introduction of competency assessment is increasing yearly
Competency assessment is a new tool for human resources development and evaluation that is gaining widespread attention. It was adopted at a rate of 5.7% in 1999, but has steadily increased each year to 15.8% in this year’s survey.

4. Progress is being made in the establishment of a support system for career development
An in-house staff recruitment system was first introduced in the latter half of the 1990s as a system to support employees’ self-motivated career development by offering them opportunities to work in the area of their choosing. Today, this system is implemented in about 30% of the companies.
   
Career counseling, another system that supports career development, is implemented by 7.9% of all companies. However, in terms of companies with more than 5,000 employees, close to 30% offered this system. This implies that larger companies have higher implementation rates.

5. Diversifying recruitment systems
Recruitment systems are becoming increasingly diversified. Many more companies are now introducing year-round recruitment, recruitment by occupation, and the temp-to-hire system. The introduction rate for internship programs is especially high, reaching more than 40% (40.3%) for all companies, and close to 80% (79.4%) in companies with more than 5,000 employees.
   
Over 20% of all companies and almost 40% of tertiary industry companies have a system for promoting part-time employees to regular employee status.
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