大企業、初任給引き上げで人材獲得 気ままなリライト190
In response to economic and labor market challenges, many major Japanese companies are raising starting salaries for college graduate employees as a tactical adjustment to the seniority-based system. While this strategy underscores their acknowledgment of human capital as their most valuable asset worth investing in, competitive pay alone is not enough to attract and retain the most motivated, innovative, or loyal employees. To compete effectively in today’s recruitment landscape, companies must also focus on providing meaningful work, opportunities for growth, and a dynamic, engaging workplace culture, blending merit-based rewards with the traditional seniority-based system.
Under pressure from Japan’s aging population and shrinking workforce, Japanese major companies have offered higher pay upfront for new recruits, disproportionately rewarded young talents based on their potential. This trend, which began in 2022, was initially driven by major industries such as gaming and IT, which faced severe shortages of specialized talent. Since then, the push to secure top-tier talent has spread across a wide range of industries, including retail, construction, and railways. A survey by Nikkei Newspaper revealed that the average starting salary at major companies for fiscal 2024 was approximately 240,800 yen, an 8.8% increase from fiscal 2021, outpacing overall wage growth by 1.4 percentage points. Similarly, data from the Labor Administration Research Institute showed that 81% of major companies raised starting salaries for all educational backgrounds in fiscal 2024, a significant jump from just 20% in fiscal 2021.
A growing number of companies are embracing the common assumption that high salaries are effective in attracting attention and applications from top-tier students amid the intensified seller’s market, with prominent examples including Fast Retailing, Sumitomo Mitsui Banking Corporation, East Japan Railway Company (JR East), and Taisei Corporation. Fast Retailing, for instance, plans to raise the starting monthly salary for new college graduates from 300,000 yen to 330,000 yen beginning in March 2025. This represents a 10% increase, bringing annual earnings for new hires to just over 5 million yen. Sumitomo Mitsui Banking Corporation is adopting a similar strategy, boosting starting pay for college graduates from 255,000 yen to 300,000 yen starting in April 2026. Meanwhile, JR East and Taisei Corporation are also following suit, planning to raise starting salaries for college graduates in general positions by 5% to 7% in Spring 2025.
Recent moves by Japanese major companies to raise starting wages reflect efforts to adapt to a shifting economic and demographic landscape, such as rising prices and intensifying competition for talent. These moves also suggest a gradual transition away from the traditional seniority-based pay system. According to data from the 2024 Basic Survey on Wage Structure, the wage gap between workers in their early 20s and mid-career workers in their early 40s has narrowed. The difference in average monthly wages between these groups was 118,000 yen, down by 9,000 yen from 2014, when the gap stood at 127,000 yen. This shrinking gap is due to starting wages rising faster than the overall pace of wage growth, even as wage increases for middle-aged and senior employees remain in place. As a result, the traditional differential maintained by seniority-based systems is gradually eroding. By prioritizing the potential and capabilities of younger employees, companies are shifting away from rewards based primarily on age and tenure. For instance, companies like Fast Retailing have openly stressed the importance of aligning with “global standards” in their workforce and compensation strategies. This signals a growing preference for a meritocratic approach, where wages are increasingly tied to individual performance, skills, and the ability to thrive in a globalized market.
While casting a wide net with high salaries is an effective way to attract talent in an era when AI has heightened the need for human expertise in innovation, leadership, and complex problem-solving, higher wages alone are insufficient to secure and retain top candidates. While competitive pay may appeal to those motivated primarily by financial gains, it risks overlooking the deeper motivations of truly exceptional talent. Outstanding candidates seek more than monetary rewards. These individuals are drawn to workplaces that provide meaningful work, opportunities to grow, experiment and innovate, and a culture that supports creativity. Equally important is an environment that aligns with their personal values and offers a sense of purpose, making their contributions feel impactful and fulfilling.