japan’s mitsubishi UFJ Bank suffers from manpower shortage
Pay up to 40% higher salary
Japan airlines lowers senior employee salaries to active duty level
Mitsubishi UFJ Bank, one of Japan’s three largest banks, has offered unprecedented conditions as an alternative to resolve the deepening manpower shortage.
According to the Nippon Keizai Shimbun (Nikkei) on the 13th, starting next year, Mitsubishi UFJ Bank will pay up to a 40% increase in salary to employees who are rehired after turning 60 and retiring. The goal is to increase the willingness of the elderly to work in a situation where there is a manpower shortage due to the low birth rate and aging population.
Accordingly, Mitsubishi UFJ Bank expanded the working days of rehired employees to 5 days, guaranteeing their income level while on active duty and allowing them to perform the same duties as during their active duty years, such as branch management positions. The bank expects that there will be senior employees with an annual salary of 10 million yen (about 93.46 million won) depending on the salary during active duty.
Japan Airlines (JAL) also increased the salaries of rehired senior employees to the same level as when they were in active service. Ground workers with excellent performance can receive an annual salary exceeding 10 million yen.
with approximately 5,800 JAL employees in their 50s and 60s, or 40% of the total, the task was to increase the work motivation of senior employees.
Japanese companies are abolishing or raising the retirement age. This is as, as the manpower shortage worsens, it is indeed essential to utilize experienced senior manpower.
The Japanese government implemented the revised Employment Security Act for the Elderly in 2021, stipulating that companies provide employment opportunities until the age of 70 as an ‘effort obligation’ (no sanctions for violations). According to a survey by Japan’s Ministry of Internal Affairs and Communications, the employment rate for those aged 65 to 69 last year was 52.0%, up 1.2 percentage points from the previous year and exceeding 50% for the third consecutive year.
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– How might Japan’s aging population impact future labor market trends and employment practices across various industries?
Interview with hiroshi Takeda, Economic Expert on Japan’s Workforce Trends
Time.news Editor: Welcome,Hiroshi! Thank you for joining us today to discuss the recent developments at Mitsubishi UFJ Bank in Japan. It’s intriguing to see a major bank addressing manpower shortages in such a bold manner.
Hiroshi Takeda: thank you for having me! Yes, it’s a important move that speaks volumes about the current demographic and economic challenges Japan is facing.
Time.news editor: Absolutely. The bank is now offering up to a 40% salary increase for employees who are rehired after retirement. What do you think prompted them to take such a drastic step?
Hiroshi Takeda: The decision comes directly from the reality of Japan’s low birth rate and aging population. Mitsubishi UFJ bank is grappling with a dwindling workforce, and as many industries feel this pinch, they need to entice seasoned professionals to return to the workforce. Offering higher salaries seems like a smart strategy to combat staff shortages while also valuing experienced workers.
Time.news Editor: That makes sense. It’s notable, however, that this innovation in employee compensation is happening alongside Japan Airlines’ decision to lower senior employee salaries to the active duty level. How do you see this contrasting approach affecting the broader labor market in Japan?
Hiroshi Takeda: It highlights a tension between different sectors. While Mitsubishi UFJ is looking to attract talent and leverage the experience of older workers, Japan Airlines appears to be tightening its belt. Such contrasts can create peak challenges; workers might opt for sectors that offer better compensation and job security. This fracturing could lead to a reshaping of the labor landscape, with some sectors thriving while others struggle.
Time.news Editor: Definitely a possibility. How does this fit into Japan’s long-term strategy for workforce sustainability, especially with baby boomer retirements on the horizon?
Hiroshi Takeda: Japan is at a crossroads. To maintain its economic stability and growth, it needs to create an inclusive habitat where older workers feel valued and necessary. The government is also introducing measures to encourage an increase in the retirement age and to support lifelong learning. Mitsubishi UFJ’s approach could serve as a model for other companies, promoting a culture where aging employees can contribute meaningfully.
Time.news Editor: It truly seems like a cultural shift is on the horizon as well. Do you think there’s potential for other industries to adopt similar measures to attract older employees?
Hiroshi Takeda: Absolutely. If successful, we could see a ripple effect across various industries. Companies may start to recognize the importance of retaining experienced workers and creating flexible job opportunities that cater to them. It’s all about adapting the workplace to provide an environment that values age and experience, rather than viewing retirement as a hard stop.
Time.news Editor: That’s a hopeful outlook! what advice would you give to other companies looking to address similar manpower shortages?
Hiroshi Takeda: they should first analyze their workforce demographics and understand their unique challenges. Secondly, investing in training programs to upskill older workers and redesigning roles to be more flexible can attract talent. Lastly,fostering an organizational culture that values diversity and experience will be key in retaining a balanced workforce.
Time.news Editor: Grate insights, Hiroshi! Thank you for sharing your expertise on this multifaceted issue. It’s clear that adapting to changing workforce dynamics will be crucial for Japan’s future.
Hiroshi Takeda: Thank you for having me! It’s always a pleasure to discuss thes important issues.