“You will be paid based on performance. We don’t use a seniority-based system here.”
I have said that phrase so many times in the new-hire orientation sessions I led for foreign firms over the years here in Japan. But what if Gen Z no longer wants that?
According to the 2025 Company Life Survey (SANNO Institute), 56.3% of new hires now prefer seniority-based promotion. That’s the first time since 2006 this mindset has taken the lead.
And that’s not all:
- 69.4% desire lifetime employment
- 89.2% want to stay with the same company long-term
- A majority are choosing security over speed in their careers
As the article on these results in The Mainichi mentions mentions, ‘Despite it being an era where job-hopping among young people is not uncommon, this survey revealed an unexpected situation where Japanese-style employment is increasingly preferred among new employees.’
This shift runs counter to the trend toward performance-based pay reported by Ministry of Health, Labour and Welfare. It also challenges many of the assumptions foreign firms bring to Japan. Going back to the familiar does have its consequences however: employee engagement.
My experience with both systems
A key element in a seniority-based system is job rotation to develop well-rounded employees, foster organizational understanding, and enhance communication across departments. I worked for a Japanese firm where job rotation was standard practice. Every year, transfers were decided behind closed doors in what my colleague at the firm called “horse-trading.”
You can imagine how apprehensive everyone was. Some were excited, while others were devastated once the decisions were made. A teammate of mine who loved his role lost practically all of his motivation to work after being reassigned to something that didn’t suit him. He stayed loyal to the company until he retired.
Meanwhile, in foreign firms, we push for autonomy, capability, and contribution to build careers. But what if those values don’t resonate anymore?
Rethinking Engagement
If the trend for Gen Z is prioritizing stability and predictability, our engagement models might need to change due to the fundamental nature of work in Japan. How we engage our teams and conduct our 1:1s, etc. will need to take this shift into consideration.
I often hear about employee’s passion and how that is a motivating force for their engagement. What if engagement in Japan is less about “passion” and more about shared responsibility or fulfilling your duty?
What Do You Think?
Have you noticed a similar trend in your workplace?
Are your younger team members signaling a return to tradition or moving in a new direction?
I’d love to hear your perspective.
