Japan's Efforts to Retain Skilled Foreign Labor Amidst Workforce Shortages
As Japan grapples with a significant labor shortage exacerbated by a rising departure of skilled foreign workers, various companies are implementing measures to improve retention rates. Among these is Eat & Holdings Inc., a company specializing in frozen food production, which has recognized the value of its foreign employees and is taking proactive steps to create a supportive working environment.
To foster a sense of belonging and security, the company offers furnished accommodations, Japanese language support, and subsidized meals. These initiatives aim to make foreign employees feel safe and comfortable, thereby encouraging them to remain with the organization for the long term.
A representative from the human resources team, who is originally from Vietnam, highlighted the importance of addressing any issues that foreign workers may encounter, whether they relate to health care, finances, or workplace integration. This approach is deemed crucial for creating a positive initial experience for new employees.
Currently, the company employs over 370 foreign workers from seven different countries, including those participating in a technical training program and individuals holding the Specified Skilled Worker visa, which was introduced in 2019 to streamline employment in certain sectors.
In addition to providing financial incentives such as monthly allowances for passing Japanese language examinations, the company also supports housing and food costs to mitigate the impacts of inflation. The firm encourages foreign workers to advance their skills and pursue higher visa categories, which offer extended residency options and the ability to bring family members to Japan.
The efforts appear to be yielding positive results, as evidenced by the recent success of 16 out of 18 foreign employees who passed the required examinations to upgrade their visa status within the food and beverage sector.
One of the employees, a 32-year-old woman from Vietnam, expressed her determination to contribute to the company and highlighted the support she has received since her arrival in Japan. She is currently preparing for the challenging N1 level of the Japanese Language Proficiency Test, demonstrating her commitment to professional growth.
In response to ongoing labor shortages, Japan has begun transitioning away from the controversial foreign trainee program. A legislative change enacted in June 2024 aims to replace this program with a new framework designed to better support foreign workers and facilitate their integration into the Japanese economy.
The former trainee program had faced significant criticism due to allegations of exploitation and poor working conditions. The new initiative is expected to provide a clearer pathway for trainees to transition into specified skilled worker roles, allowing them to change jobs after a period of employment.
Recent expansions to the specified skilled worker visa program have opened up additional sectors for foreign employment, with Japan planning to admit up to 820,000 skilled workers over the next five fiscal years, more than double the previously estimated figure.
Motoki Yuzuriha, president of Mynavi Global Corp., which supports foreign skilled workers, emphasized the need for companies to adapt to the changing landscape of foreign labor. A study conducted by the organization revealed that the primary reasons for skilled foreign workers leaving their positions vary by nationality and industry.
Wage dissatisfaction emerged as a predominant factor for Vietnamese workers, while interpersonal relationships were more significant for employees from Indonesia and Myanmar. The survey indicated that retention rates improve dramatically after the first year of employment, suggesting that focused support during initial employment can lead to longer-term employment relationships.
Additionally, family-related issues, such as marriage and childcare, were cited as common reasons for resignations, highlighting the need for broader community support and resources to assist foreign workers.
