#Japan #Tokyo #Cloud Services #Toyokumo #bonus survey

Toyokumo Excels in Winter Bonus Survey

Toyokumo, a cloud service provider based in Shinagawa, Tokyo, has demonstrated exceptional performance by ranking first among companies with an average employee age under 35 in the Nikkei’s 2025 winter bonus survey. It also ranked fifth in the information and communications industry and seventh in companies with fewer than 500 union members, placing 24th overall.

How Did Toyokumo Achieve This?

Despite being a small SaaS company with fewer than 100 employees, Toyokumo has managed to surpass many large corporate competitors in delivering high bonuses to its employees. This success is not by chance; it stems from three critical transformations that underpin their business model.

1. Knowledge-based Business Model

Unlike traditional labor-intensive business models that rely on selling hours, Toyokumo has opted for a knowledge-intensive stock-based model. As contracts accumulate, the base for revenue solidifies, promoting a sustainable profit structure. The profits gained post-breach of the break-even point directly contribute to the company’s growth potential, providing a robust foundation for continuous wage increases and future investment.

2. Transparent Distribution Rules

In a market where many companies exhaust energy in negotiation and performance evaluation, Toyokumo prides itself on its transparency. They publish the growth and achievement goals for all employees, eliminating the need for internal politics over how individuals are perceived. The evaluation criteria are crystal clear, aligning compensation directly with profits, thereby keeping the focus on enhancing market value.

3. Shift from Benefits to Salary

Toyokumo has embraced a philosophy that prioritizes salary over excess benefits. Their stance is simple: if there is a choice between offering coffee in the office or providing greater salaries, they would choose the latter. By avoiding excessive benefits intended to 'protect' employees, the company focuses on rewarding results-driven professionals with competitive pay benchmarks. This approach not only nurtures commitment from employees but creates a positive cycle of high productivity.

Commitment to Salary Growth

Toyokumo's strategic goal is to continuously elevate average salaries. With Japan facing a declining workforce, securing top talent has become increasingly critical. The looming challenges in attracting skilled individuals only emphasize the importance of innovative productivity-enhancing technologies like generative AI, heating up the competition for outstanding talent.

Foreseeing these trends, Toyokumo underlines the importance of enhancing competitiveness in recruitment as a vital component for sustained growth. Their projections, assuming current rates and stability in workforce averages, predict an average salary in the 14 million yen range by 2035. This marks a benchmark for their ongoing efforts to boost recruitment competitiveness.

As bonuses rise alongside salaries, the company emphasizes that success in attracting new employees hinges directly on these efforts.

The Future of Toyokumo

Yuuji Yamamoto, president of Toyokumo, shared his vision, stating, "To build a company that can compete globally, our compensation must meet world standards." With the reduction in Japan's labor pool, fostering individual productivity is becoming indispensable for continuous growth. Toyokumo is setting its sights on achieving an average salary of 14 million yen by 2035, indicating a comprehensive strategy to convert costs not contributing to productivity into rewards for those who do.

They invite ambitious individuals seeking an environment where achievements are justly rewarded to join their team. With a focus on performance rather than tenure or age, the working environment promises equitable evaluation and compensation based on results.

For those interested in becoming part of this thriving and innovative company, more information can be found on their careers page.

About Toyokumo

Established in August 2010, Toyokumo, Inc. specializes in providing user-friendly cloud services, aiming to support crucial steps in corporate information management. With over 20,000 contracts (as of May 2025), the company continues to advance by offering innovative services with simple functionalities and an intuitive user interface that accommodates all user levels, including those not familiar with technology.

For further details on user cases, product information, and events, visit Toyokumo's official pages.