HR Consulting In Japan
Japanese Yen (JPY)
English
Working Days
Monday to Friday
Working Hours
40-48 hours/week
Types of Employment Contracts
Fixed & Indefinite Term Contracts
Probation Period
1 to 6 months
Payroll Cycle
Monthly
Payroll Tax
5% - 45%
Hire and pay employees across the globe
- A separate HR consulting unit for your company
- Strategic workforce planning with an unmatched talent management strategy
- Optimum performance management of employees
Choosing The Right HR Consultant In Japan
In the last few years, the HR consulting market in Japan has boomed significantly. This is mainly because more companies have realized that outsourcing critical HR functions (such as talent management, interviews, promotions, work environment, etc.) can save them a lot of money while maintaining the same efficacy as that of an in-house HR team.
These valuable resources can be redirected to more key business considerations of the companies, leading to faster growth and greater employee satisfaction.
However, this can only happen if the human capital strategy deployed by the HR consultants focuses on broader human capital issues. For instance, if a company’s major cause of low employee satisfaction stems from a lack of timely payroll distribution, the solution would not simply be outsourcing payroll to a third-party company. Rather, the company should choose human resource consulting, which provides integrated payroll services. This kind of approach can help in increasing the efficiency of human resources.
While choosing from a list of HR consultants, always consider the following:
- The track record of the HR consulting firms’ analysts – Reviews present in various online portals and from companies availing their services
- Focus on future human capital – Whether they prioritize skill-based learning for the employees
- Human capital expertise of the company – How well they understand the local people of Japan and their culture
- Advisory and implementation activities – The programs and schemes that the HR consultant runs within your company to promote productivity and employee satisfaction
The Best HR Consulting Services In Japan
Our human capital consultants focus on all internal company operations so that you can focus on improving your critical business functions. Apart from efficiently managing the core HR needs of your company, here’s what our human capital strategy includes:
Redesigning HR Processes
Our focus is to help you grow exponentially in the Japanese market while ensuring that your employees remain happy working for you. Our HR function area focuses on developing strong interpersonal skills that can help your employees bring better conversions and higher sales to the table. Our dedicated internal consulting department is available 24/7 to address all concerns and queries coming from the employees. Not just that, we offer the best solutions that create a win-win situation for both the employee and you.
New Talent Management Strategy
Talent management encompasses conducting fresh recruitment in the Japanese market for your company (via technical and non-technical interviews) and upgrading the skill set of the existing workforce. We believe that learning should never stop. The regular training sessions, seminars, and internal contests we offer aim to motivate the employees to learn more and prioritize personal growth. Our years of human capital expertise have taught us that the human capital spectrum should not just be limited to working as needed. A commitment to a job can work wonders.
State-of-the-art HR technology
Our advanced HR management software makes human resource consulting efficient and fast. We also offer integrated payroll management with our HR processes. It becomes easier for the HR department to manage payroll and access detailed insights into all employee issues.
At the back end, our technical team ensures that the HR analytics data is stored in an encrypted form on our servers and not shared with anyone. Safety and data privacy are two of the most important segments of the human capital domain, and we are committed to them.
Business Advisory And Local Expertise
Our HR analytics focuses on the overall growth of your business. We have professional advisors who are well-versed in business strategies that yield results in the Japanese market. After having worked with businesses spread across various industries for several years, our local distribution and marketing network has also strengthened considerably.
Our human resource consultants pass on these inputs to you as and when needed. To be the best human resource consultant contracted by a company, it is important to imagine being a part of the business and considering all avenues to upscale sustainably.
Regulatory Compliance And Government Mandates
Our human capital consultants always keep an eye out for any changes introduced by the government in work laws and business mandates. It is important to stay compliant with the laws of the Japanese government to prevent hefty penalties or cancellation of trade licenses. Our experts do the job for you, ensuring compliance with both tax regimes and work laws. As a matter of fact, we also do the time-consuming paperwork for tax filing and audit report submissions, if needed.
Work Laws In Japan
Payroll Cycle – The typical payroll structure involves distributing salaries every month (usually on the 25th of every month). Some international companies might also choose a 12-month pay period set up for their operations.
Minimum wages – The Japanese government does not have a standard national minimum wage. It is dependent on many factors, such as the city of work, job designation, and local rules.
For example, the minimum wages for formal positions are locally set as follows:
Tokyo: ¥985 per hour,
Osaka: ¥936 per hour,
Kyoto: ¥882 per hour
Annual Work Leave – There are provisions for annual and parental leave in Japan. Employees who have completed 6 months of service are entitled to a minimum of 10 paid annual leave days. This increases by 1 day per year for the following 2 years and by 2 days per year thereafter, up to a maximum of 20 days per year. Unused annual leave expires after 2 years if unused.
Maternity leave – Female employees are entitled to 6 weeks (14 weeks in case of multiple births) of paid leave before and 8 weeks after childbirth. They receive 60% of their average salary in general during this period.
Paternity leave – As of now, no statutory paternity leave exists in Japan, but a new law is expected to come into force soon, granting fathers the right to take up to 4 weeks of paid paternity leave within the first 8 weeks after birth.
Sick Leave – There are no specific provisions for sick leave in Japan. However, companies can offer them as an additional benefit in their employment contracts.
Overtime Compensation Rules – For the first 60 hours of overtime in a month, a 25% wage supplement is assigned. Overtime work exceeding 60 hours requires a special type of agreement with the employee.
Severance Pay – If employees are terminated without fault after serving for a minimum of one year, they are eligible for severance pay. Typically, the severance amount equates to 2 months’ salary per year of service, capped at 12 months.
Termination of Employment Contract – Both the employer and the employee hold the authority to initiate terminations. Both parties are obligated to adhere to precise procedures and notice periods mandated by law. The length of service and the grounds for termination determine the duration of the notice periods, which vary accordingly.
More Services Available in Japan
Employer of Record in Japan
Payroll Outsourcing in Japan
Hire the right way
Let our team handle all of the compliance and payroll on your behalf
Frequently Asked Questions
How much do HR consulting firms charge companies on average in Japan?
Various factors affect the price charged by a human resource consultant company. These include the complexity of services and processing power needed for HR management, consultant expertise and experience, location, firm reputation in the market, available pricing options, and demand for the particular HR consultant in the market.
In an attempt to serve large and small businesses alike, HR consultants work with flexible price offerings that include the ability to upscale or downsize operations anytime. This offers businesses peace of mind and enough room to focus initially on core business functions. You can always increase the scale of HR services and make additional offerings once key business considerations are taken care of.
Why are new-age Japanese businesses and companies more likely to recruit an outsourced HR consultation firm?
There are several reasons why many fresh companies in Japan are looking to outsource their HR services to a reliable partner.
- Complexity of HR requirements: Some industries have intricate rules and regulations related to human resources. Additionally, industries with diverse workforces may find it challenging to manage HR internally. Therefore, they are more inclined to outsource HR tasks to specialized firms that can navigate these complexities effectively.
- Focus on core business: Companies often have specific areas of focus such as research and development (R&D) or marketing, which require significant attention and resources. By outsourcing HR functions, companies can allocate more time and effort to their core business activities, thus improving efficiency and productivity.
- Cost sensitivity: Budget constraints play a crucial role in decision-making. Outsourcing non-core functions like HR can be cost-effective for companies, as it allows them to avoid the expenses associated with hiring and training HR personnel, maintaining HR systems, and ensuring compliance with regulations. Therefore, industries may opt for outsourcing to manage costs efficiently while still maintaining operational effectiveness.
Based on these factors, companies can choose to either outsource HR separately or integrate their payroll management and HR functions into one capable service provider. Bringing both these crucial services under one umbrella significantly enhances the efficiency of operations.
Which industries in the Japanese market outsource HR consultants more than others?
Although the need to outsource HR management can be felt by any company, some industries, in particular, are more inclined to them due to the nature of their work and convenience.
- Retail and Hospitality Services – Streamlining HR and payroll simplifies administrative work and guarantees more customer satisfaction. Also, the hospitality sector often needs efficient recruitment and onboarding processes to deal with frequent staff changes and contract terminations.
- Tech and IT Companies – The main focus of these companies is to attract top market talent and retain them. They need an experienced HR consultant to look after their onboarding process and improve their retention metrics through activities. An outsourced HR firm is also more likely to navigate employee relocation and international hiring needs as the company expands to more countries.
- AI-Based Start-ups and Other Fast-Growing Companies – These companies need to dedicate a lot of their resources to continuous R&D (research and development) and experimental breakthroughs. Hiring a reliable human resource consultant can ease the HR management issues for them. They look for ways to get rid of the administrative burden and focus on their main product. They also need expertise in talent acquisition, onboarding, and retention during rapid growth.