#Japan #Minimum Wage #Shibuya #Labor Management #Employment Reform

Introduction

In light of recent legal reforms relating to part-time and temporary employment, a comprehensive survey conducted by Venture Support Tax Corporation has shed light on the pressing issues business owners face. The survey signifies an escalating acknowledgment of the necessity to increase minimum wages, underscored by the responses of 86.8% of the entrepreneurs surveyed who expressed the need for such hikes.

Overview of the Survey

The survey targeted entrepreneurs employing at least ten part-time or temporary workers. It was meticulously carried out utilizing an online questionnaire from PRIZMA Research, gathering responses from 1,001 participants over the three-day period from April 24 to April 26, 2025.

Key Findings

Mandatory Wage Hikes

The survey's results reveal that over half of the respondents initiated wage increases from below minimum wage levels, and nearly 40% proactively raised wages even when they were already compliant. This reflects a forward-thinking approach to retain talent and curb turnover, as businesses are gradually shifting towards more aggressive personnel management strategies.

Efficiency Through Digital Transformation (DX)

Among methods utilized to absorb increased labor costs, nearly half (49%) indicated they relied on operational efficiencies through digital transformation, emphasizing a preference for internal restructuring over external cost-passing strategies such as raising prices, demonstrating a proactive cultural shift within companies.

Acknowledgement of Wage Revisions

An impressive 86.8% of entrepreneurs believe that wage hikes are essential for the Japanese economy, transcending mere compliance with regulations. This positive outlook is crucial for fostering improved working environments and attracting talent in an increasingly competitive labor market.

Impact on Workforce Engagement and Retention

When asked about the potential positive outcomes of optimizing wage levels and revisiting the 1,030,000 yen employment threshold, 83.8% of executives affirmed that such measures could indeed facilitate talent acquisition. Enhanced engagement is evident, with over half of part-time workers expressing a desire to increase working hours or transition to social insurance plans.

Concerns Over Business Viability

Despite the optimistic sentiment towards wage reform, 73.2% of business owners feel that these changes pressure financial stability, highlighting an underlying tension between idealistic goals and pragmatic constraints. The reality that almost 80% expect their labor costs to increase further complicates the matter, with many experiencing disruptions from elevated social insurance contributions.

Shifting Focus Towards Full-Time Employment

The response to this changing landscape has prompted many businesses to prioritize full-time candidates and enhance treatment packages, with over 30% directing efforts towards improving remuneration and converting part-time roles to permanent positions. This trend marks a significant departure from previous hiring strategies, reflecting a broader commitment to securing dependable workforces.

Integration of Expert Consultation and Systems

In addressing the complexities of labor management fueled by legal reforms, businesses are increasingly turning to specialists such as social security and payroll consultants (39.4%) and implementing labor management systems (39.2%). This dual strategy underlines a growing recognition of the significance of professional insights in navigating compliance complexities.

Conclusion

As the landscape of employment law continues to evolve, business owners must adopt flexible, innovative strategies to not only comply with regulations but also build a sustainable workforce. The findings from this survey illuminate a dynamic yet challenging path forward, emphasizing the importance of proactive engagement in reforming labor practices to align them effectively with the changing socio-economic climate. For in-depth analysis and practical guidance on navigating these challenges, please refer to our complete guide.

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About Venture Support Tax Corporation

Venture Support Tax Corporation stands as a leading firm within the Venture Support Group, comprising over 51 offices nationwide. Our vast blend of expertise in various legal fields enables us to deliver comprehensive, one-stop services that cater to diverse client needs, based on our core belief that legal practice is fundamentally a service industry.