Salary Negotiation Basics
Negotiating salary is not a taboo when trying to get a job in a Japanese company. However, the unique social and cultural background of Japan has a significant impact on the general practice of salary negotiation. This article explains the basics of salary negotiation with Japanese companies.
The influence of experience, qualifications, and age
Salaries can vary widely depending on the industry, job title, and geographic location. Taking into account the April 2024 exchange rate, the average annual salary in Japan is approximately 6,170,000 Japanese yen, equivalent to US $41,133. However, it's crucial to be aware of the market rate specific to your role before entering salary negotiations. Utilizing resources such as job sites, industry reports, and other tools can provide a comprehensive understanding of the potential salary range. In general, experience, qualifications, and age significantly impact salary levels. Due to Japan's ongoing DX and aging population, certain roles such as IT and medical professionals are in high demand, surpassing the available workforce.
Consider the entire package
Considering the entire package is also important. While base salary is important, consider the entire compensation package, including bonuses (which can constitute a significant portion of salary in Japan), allowances, insurance, and other benefits. Some companies may offer a lower base salary but provide considerable perks and benefits that enhance the overall package’s value. Long-term commitment is valued in Japan. Emphasize your dedication to the company and its goals during negotiation. Showing you're ready to ride the growth wave with the organization can positively impact your negotiation outcomes.
Exercise patience and respect
Use indirect communication style, such as saying “I was hoping for a compensation package that reflects my experience and skills.” instead of stating your salary expectation directly. This allows room for discussion without coming across as aggressive. It's important to recognize that patience and respect are fundamental in Japanese business culture. Despite the tight labor market in Japan, rushing the negotiation process may be viewed negatively. Express gratitude for the opportunity and maintain patience throughout the negotiation process.
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