Winter Bonuses Remain Flat

TOKYO, Dec 09 (News On Japan) - Winter bonuses in Japan this year are largely unchanged from last year, with a growing number of companies reporting no increase in average payouts.

According to a survey conducted by Teikoku Databank, 12.8% of companies nationwide indicated they would not provide winter bonuses, while 43.3% said bonuses would remain at last year’s level, an increase from previous years. Despite rising costs of living, take-home pay for many employees has not improved.

In response, some companies are adopting innovative measures to boost employee motivation and take-home pay. A system known as "Engagement Stock" offers virtual shares to high-performing employees, which can be converted into cash. This approach aims to align employee efforts with company performance, creating a mutually beneficial dynamic.

The system is gaining traction among companies like Ichino Group, which operates chiropractic and osteopathic clinics nationwide. Employees earn virtual shares based on their contributions, and those who stay with the company for a specified period can cash out their accumulated shares for substantial payouts. The company anticipates payouts of up to 2 million yen for full-time employees over five years.

Though the system increases upfront costs for businesses, proponents argue it helps retain talent and reduces turnover expenses, which are estimated to cost companies around 5 million yen per departing employee. By tying compensation to performance and long-term commitment, companies hope to secure both employee satisfaction and business growth.

Source: ANN

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