The way Japan treats its senior workers is something US companies should seriously consider
Today's word of the day is Madogiwa-zoku. It denotes a Japanese tradition called the 'Window tribe', which allows senior workers in their late fifties and sixties to continue working for their respective company despite having been rendered redundant, as per an article featured on Fortune. They are assigned desk jobs by a window that involve a lot less work and operate through another Japanese principle known as Shushin koyo, a hiring commitment that allows for lifelong employment.
The irony of the situation is not completely lost when compared to the headspace that the Western world is moving towards, where CEOs emphasize increased productivity and efficiency with the advent and rapid integration of AI that is actively slashing headcounts and taking over the workforce. This Japanese trend is turning heads for going against the tide. Some even call it counterproductive, but our Japanese counterparts have their own reasons for this move.
Japan's culture places its elderly on a high pedestal with respect at its foundation. But going so far as to employ people even beyond their retirement years seems a little far-fetched to most. Here is why they beg to differ. Letting them handle menial tasks like shuffling papers or sending occasional email responses, rather than putting them at the forefront of an organization's progress, is a quiet affirmation that everyone needs at this point, even across the world. That one bad quarter or one bad performance isn't going leave anyone in the building high and dry. The Japanese can get creative when solving problems - a well-known fact.
Multiple surveys show that 80% of Japan's workforce prefer to work past their retirement age and that 70% prefer to stick with their long term employer, showcasing loyalty as an attribute that guarantees stability within firms. As of 2022, roughly a quarter of the workforce consisted of employees over 60 years of age, which is a stark contrast to the U.S., where one in five people above the age of 60 continues to be employed. Even worse is the UK, where barely one in ten people above 60 years of age continues to work. The cause in Japan is further boosted by the government, which offers subsidies and stimulus to organizations that allow senior workers to continue to be employed until they are 70 with a comfortable seniority-based pay system.
As much as this is an admirable concept, another survey conducted among Gen-Z and millennial employees brings out a sense of annoyance. Out of 300 people surveyed between the ages of 20 and 39, 42.9% admitted that there is that one old guy in the office who doesn't really do anything, and nine out of ten employees find that it has a negative impact on the motivation of the company's entire workforce, even for a country that has respect ingrained into every aspect of life. When asked what these senior workers do all day, the responses ranged from exceptionally long smoke breaks, snack breaks, to just staring at a wall.
A famous Japanese TikToker who goes by the username @papafromjapan elaborated on the concept, saying, “[While]Trump says, ‘You’re fired,’ in Japan, we don’t say, ‘You’re fired. If someone is not doing a good job, we put him near the window, let them do paperwork. Those people we call madogiwazoku.” The 74-year-old went on to explain that these workers are not troublemakers; they're passive, non-confrontational people who have just been outskilled. Their loyalty and experience can often be tapped into for training purposes.
According to a research paper titled 'Elderly Workers in Japan: The Need for a New Approach' by Philippe Debroux, Jacques Jaussaud, and Julien Martine, there is a shift that is now being seen in HR practices in major companies in the country, where roles for the 'Window tribe' are being made flexible and they are placed in mixed age teams to enforce inclusivity. Retraining is also being explored despite the persisting challenges of skill gaps, productivity issues, and wage reductions. But this contrasting concept is gaining traction. It has induced considerable interest from across the globe, with some considering experiencing it for themselves. As with any work in progress, Japan still needs to build sustainable solutions for the longevity of this approach.
More on Marketrealist:
Expert warns AI’s biggest issue isn’t the mass layoffs — but something way more dangerous
Unemployed Americans are continuing to struggle despite strong January jobs report
Jack Dorsey fires 4,000 people from his firm — and then says something even more alarming
