Blogs and Articles from Third Way Forum Membrs


Dec 16, 2021

What types of incentives (carrot) would be most effective to motivate Japanese employees today?

Blogs from The Third Way Working Group

・ Mercai recent

・ At another company, in order to provide more flexibility to factory workers who are physically required at site, the flex time was implemented with limited core time. Flexibility of working hours could be also an important incentive for Japanese people to join and stay in the company.

・ According to a survey, what incentivize younger people such as Generation Z are as follows: 1. Impact they can give 2. Learning opportunities 3. More time to spend with family. They are different from older people such as Generation X who were incentivized more by money and status/prestige.

・ Having said that, money is still important even for young people. If you see what those successful young Youtubers are doing, they seem to be extremely materialistic with private jet, brand goods and fancy dinners and entertainment etc. Also, as many Japanese young employees are kept at a pretty low salary, their living standard is very modest. Their natural longing for a more luxurious life makes money still a very important incentive for them to join or stay in a company.

・ When one has a clear personal purpose of life, it is easier for the person to understand what he/she needs and wants. They want more money and/or more free time etc to achieve their individual purposes. As they clearly communicate what they want, it is easier for the companies to understand how to incentivize them.

・ In Japan, many people do not have their personal purposes as they are more used to the idea that the purpose is something that is given to them from the state or the company or the family. Once a noble purpose or cause is given, they will work hard to achieve their assigned purpose.

・ The own purpose is differently shown and shared in Western and Japanese cultures. Usually, the „me and my purpose“ is shown more aggressively in Western, whereas in Japan the own purpose is sometimes not communicated at all. The reason for the difference can be found already in early education.

・ Because most Japanese have not clarified their personal purpose, they do not know or do not communicate what they want. Therefore, it is difficult for companies to understand how to incentivize them.

・ It is important to align one’s own purpose and the company’s purpose. But first the individual employee also needs to have a purpose. For this reason, to help each employee to build one’s own career roadmap could be the critical first step. For companies it is also a chance to guide and support young professionals to align on their purpose.

・ Motivation is not something that is given one-sidedly from the company to employees. It is something to be co-created together between the company and each employee. Individual employees also need to meet half way by clarifying their wish, being enthusiastic and proactively contributing to the effective work environment etc.

・ If you are a business owner, you understand that it is risky to depend on only one client for the big portion of your revenue. When you are an employee, you often forget the fact that you depend on only one company for your entire income. So employees should take more initiatives to motivate themselves to do something for their own success rather than just expecting to be motivated by the company.

・ Many Japanese companies have limitations in raising salaries and offering promotions. So if they can not incentivize and motivate employees so much, they should absolutely do their best not to demotivate people any further. If they can not feed a horse with a carrot, at least be nice to the horse. Do not whip it as it will weaken the hose further. Things like having a good manager who can provide a proper evaluation and support, a healthy corporate culture and good team work are the must items for employees to stay in the company at least for now.

・ The absolutely essential element of incentives and motivation for anybody is hope for a better future. When employees have lost hope for any better future at the current company, they quit for sure. Even if company leaders can not offer money and promotion to their employees, they should constantly offer hope and strive together with them to actualize that hope.



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