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An increasing number of foreigners are being transferred from their home countries to foreign-affiliated companies in Japan or are being posted to Japan to work.
In the case of intra-company transfers or postings, you will have to return to your home country after a few years. However, for those who want to continue working in Japan, there has been an increase in job offers for people of all nationalities in order to transfer to a Japanese company.
There are people who are actively looking to change jobs to work at a Japanese company, but unfortunately, the reality is that it is very difficult to transfer from a foreign company to a Japanese company.
Even if the applicant has a lot of experience and skills, and has a Japanese language level equivalent to JLPT N2, Japanese companies will not hire them.
It’s not that they won’t hire you, it’s that they can’t hire you.
In this lesson, we’ll learn in detail why it’s so difficult to transfer from a foreign company to a Japanese company.
Why is it difficult to change jobs from a foreign company to a Japanese company?
The bottom line is that even if they are able to transfer to a Japanese company, the salary and other conditions do not suit them.
Even if a company offers a job, there are many cases where the applicant declines the offer because they are not satisfied with the conditions.
In the first place, the standard salary range for foreign companies and Japanese companies is different, so it is difficult for Japanese companies that want to hire foreigners to offer the current salary.
There are two main reasons for this:
① Prices in Japan and overseas are different.
For example, in North America, people earn twice as much as they do in Japan.
This is because prices are twice as high in America than in Japan.
In Japan, a bowl of ramen costs about 700 yen, but in America it is quite expensive at 4,000 yen.
If prices are high, you cannot live if your salary is not high as well.
The salary you receive at your current job is a salary for living in America, and even if you want the same salary in Japan as you do at your current job, because prices are different, Japanese companies will offer you a salary that matches the prices in Japan.
So, even if I end up getting a job offer, I would like to decline it because I feel the salary is too low.
② I receive a salary from both my home country company and a Japanese company.
If you are posted to Japan, you will receive a salary from both your home country company and the company you are posted to.
However, if you transfer to a Japanese company, you will obviously only be able to receive a salary from the Japanese company.
Even if you offer the salary of your current job and the salary of your new posting as your desired annual salary, that amount is not based on the applicant’s original market value (experience and skills), but on your market value + the salary of your new posting, so Japanese companies will offer you a salary that matches your market value.
So, you will also feel that the salary is too low and will decline.
Because of the above two factors, many people are unable to come to an agreement on salary and other conditions and are forced to decline.
If we compare the market rates for each salary, we get the following:
Average annual salary at a foreign company is 5 million yen or more (monthly salary of 450,000 yen or more)
Average annual salary at a Japanese company is 4.3 million yen (monthly salary of 300,000 yen)
*For those with 3-5 years of experience
The average annual salary in Japan is said to be 4.7 million yen, and in reality there aren’t that many Japanese people who earn 5 million yen a year.
The average salary for new graduates at Japanese companies is about 230,000 yen (annual salary 3.5 million yen or more), so if you are moving from a foreign company to a Japanese company, you will need to be prepared for a certain amount of salary reduction.
If you don’t want to take a cut from your current salary, your only options are to move to another foreign company, stay in your current company, or return to your home country.
How to get a high annual salary at a Japanese company?
In Japan, there is a seniority-based system.
You can’t expect a high salary in your first year after joining a company, but if you work there for more than five years, your salary will increase as you work.
Recently, more and more companies have abolished the seniority system and pay high salaries to people who have high skills and produce results in their work.
So, by working hard and contributing to the company’s sales, your salary will increase.
Instead of increasing your salary when you change jobs, try to think of it as increasing your salary by producing results after joining the company. If you want a high salary, the only way is to increase your sales.
Furthermore, Japanese companies offer bonuses.
Bonuses are paid based on the company’s performance, so if you can transfer to a large company with high sales, you can receive a bonus of four months’ monthly salary twice a year.
To sum up, there are three ways to increase your annual salary at a Japanese company.
Work for one company for more than five years
Work hard and contribute to the company’s sales
Transfer to a large company with high sales and receive a bonus
Another benefit is that Japanese companies do not allow employees to be fired easily, so you won’t lose your job tomorrow, and they offer excellent employee benefits, so you can work with peace of mind in the long term.
If you still hope to earn a high annual salary at a Japanese company, during the interview, be sure to clearly communicate how much you can contribute to the company in return for your desired annual salary, and how hiring you will benefit the company.
Lesson Summary
If you are a foreigner who has been transferred within a company or has been posted to Japan and would like to continue working in Japan, we recommend that you change jobs to a Japanese company even if it means taking a temporary reduction in your annual salary.
If you work hard at a Japanese company and keep producing results, your salary will steadily increase.
In addition, there are a certain number of foreigners who receive high salaries at Japanese companies.
However, if you want to receive such a high salary, you need to be prepared to make some trade-offs with your annual salary, such as working very hard and having to work a lot of overtime, and sacrificing your private life.
Unfortunately, there are no jobs in Japan where you can earn a lot of money easily.
If you want a high annual salary, be sure to clearly communicate the compensation and the reasons for it.
During the interview, if the interviewer can imagine that your joining the company will increase the company’s sales and that you will make a great contribution to the company, you can expect to see an increase in your annual salary even if you change jobs to a Japanese company.
However, if you have financial problems and cannot change jobs, you should apply for a job at another foreign company in Japan.