Fast Retailing Chairman and President Yanai Masa.

(Reuters)

[Financial Channel/Comprehensive Report] Fast Retailing, the parent company of the Japanese clothing brand Uniqlo, announced in January that it will increase the annual salary of full-time employees in Japan by up to 40%.

Fast Retailing President and President Yanai Masa said in an exclusive interview with Japanese media that the reason for the salary increase is that the company is becoming more closed under the epidemic. An awareness and organizational climate that wants to maintain the status quo.

Liu Jingzheng also believes that the salary level in Japan is still low compared with foreign countries, and further salary increases may be possible.

"Nikkei Chinese Network" reported that Yanai Masa said that under the epidemic, the employees of the Japanese headquarters in charge of business around the world have become only concerned about Japan, and the scale of the organization has become larger. Therefore, more and more employees are trying to figure out what their boss thinks. , creating a sense of crisis.

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Although Fast Retailing adopts a common personnel evaluation system around the world, Japan still retains a system that provides allowances based on positions, work locations, etc.

Liu Jingzheng said that it will be abolished completely, and will thoroughly implement the personnel system of strengthism, and said that as long as employees who are qualified for the job, no matter how old they are, they will be rewarded.

Fast Retailing will increase the salary of part-time employees in the autumn of 2022, with an average increase of about 20%. If the salary adjustment of the full-time job is included, it is estimated that Japan’s domestic labor expenditure will increase by about 15%. Foreign countries are still low, and further salary increases may be expected.

Yanai Masa believes that there are many situations in Japan where employees and companies cannot develop due to the lifetime employment system, and wages are rewards for work, so it is very important to raise wages based on the evaluation of everyone's work results.

However, the report also pointed out that Fast Retailing had problems with the high turnover rate of young employees in the past. Whether it can attract talents through this salary adjustment is still one of the issues that the company will face.

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