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Employment of senior workers in Japan

Employment of senior workers in Japan The Japanese HRM practices and policies resulting from the compromises between labor, management, and the state emerged after WWII and coalesced in the 1960s. The subsequent emergence of a very cohesive, stable, and dynamic employment system is largely credited with playing an important role in Japan’s economic success and the stability of Japanese society in the postwar period. The treatment of senior workers after mandatory retirement occupied a specific place in this system. A mix of institutional, socio-cultural, economic, and demographic factors created a virtuous circle, and Japan was considered a model of management of those retired workers. Companies were able to maintain employment for many of them in relatively good social and economic conditions beneficial for both parties, even after mandatory retirement, and this assured a good transition to definitive retirement. However, despite Japan’s relative success in this regard, this paper exposes why the traditional HRM policies and practices are now considered socially and economically unsustainable in the treatment of retired senior workers. It argues that Japan cannot afford under-utilizing senior workers during the pre- and post-retirement periods of their career in the way that traditional policies and practices have institutionalized. Not only does Japan’s economy need senior workers, but not giving them the opportunity to maintain decent standards of living would have dire social and economic consequences. This calls for revamping the HRM system, so that the talent of senior workers can be used for their own benefit, while contributing to their employers and to society at large. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Contemporary Japan Taylor & Francis

Employment of senior workers in Japan

Contemporary Japan , Volume 34 (1): 29 – Jan 2, 2022

Employment of senior workers in Japan

Abstract

The Japanese HRM practices and policies resulting from the compromises between labor, management, and the state emerged after WWII and coalesced in the 1960s. The subsequent emergence of a very cohesive, stable, and dynamic employment system is largely credited with playing an important role in Japan’s economic success and the stability of Japanese society in the postwar period. The treatment of senior workers after mandatory retirement occupied a specific place in this system. A mix...
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Publisher
Taylor & Francis
Copyright
© 2022 German Institute for Japanese Studies
ISSN
1869-2737
eISSN
1869-2729
DOI
10.1080/18692729.2022.2028228
Publisher site
See Article on Publisher Site

Abstract

The Japanese HRM practices and policies resulting from the compromises between labor, management, and the state emerged after WWII and coalesced in the 1960s. The subsequent emergence of a very cohesive, stable, and dynamic employment system is largely credited with playing an important role in Japan’s economic success and the stability of Japanese society in the postwar period. The treatment of senior workers after mandatory retirement occupied a specific place in this system. A mix of institutional, socio-cultural, economic, and demographic factors created a virtuous circle, and Japan was considered a model of management of those retired workers. Companies were able to maintain employment for many of them in relatively good social and economic conditions beneficial for both parties, even after mandatory retirement, and this assured a good transition to definitive retirement. However, despite Japan’s relative success in this regard, this paper exposes why the traditional HRM policies and practices are now considered socially and economically unsustainable in the treatment of retired senior workers. It argues that Japan cannot afford under-utilizing senior workers during the pre- and post-retirement periods of their career in the way that traditional policies and practices have institutionalized. Not only does Japan’s economy need senior workers, but not giving them the opportunity to maintain decent standards of living would have dire social and economic consequences. This calls for revamping the HRM system, so that the talent of senior workers can be used for their own benefit, while contributing to their employers and to society at large.

Journal

Contemporary JapanTaylor & Francis

Published: Jan 2, 2022

Keywords: Aging society; neo-liberalism; pension eligibility; psychological contract; dual labor market; life-cycle contracts

References