Japan Banks Moving Away from Seniority-Based Personnel System

   Tokyo, Aug. 21 (Jiji Press)--Major Japanese banks are moving away from seniority-based systems for setting salaries and promoting employees, with competition for talent intensifying as banks' operations diversify due to factors such as digitalization.
   Banks are shifting the focus of their personnel systems from the number of years that employees worked for them to the roles that they perform. The banks are significantly expanding midcareer recruitment.
   Japanese bank employees have been typically viewed as people who aim to become branch manager just after joining their banks and are seconded or transferred to other companies around the age of 50. This traditional image is collapsing.
   Mizuho Financial Group Inc. revamped its personnel system in July, streamlining its salaries into "role-based pay" awarded based on the grade assigned to each post and making promotions and salary increases possible regardless of age or number of years in the company.
   It also eliminated the difference in pay and benefits among group companies, such as its banking and securities units, to help employees develop their desired careers.

(2024/08/21-15:20)

To read a full story, please click here to find out how to subscribe.