NEW OPPORTUNITY UNDER THE ABE ADMINISTRATION

In 2017, Japanese companies will be in the global spotlight as never before. Japanese businesses are in a good position to restore the economy to good health—but only if leaders implement the workplace-oriented policies of the Abe government, particularly

Throughout the past several years, Japanese companies have focused on rebuilding balance sheets, boosting corporate profits and stockpiling internal reserves. However, they have only gradually allowed these profits to filter down to employees, which has stymied consumption. It is also one key reason the Japanese economy has been unable to fully shake off deflation.

Today, Japanese companies face the additional challenge of overcoming longstanding structural impediments to socioeconomic progress. Under Prime Minister Shinzo Abe, the current administration is taking a strong stance on altering the Japanese workplace, and is encouraging companies to evolve their customs and policies.

PM Abe has pledged to create a society where “women can shine”; this means that male-dominated companies will need to dismantle customs that have been in place since the reconstruction of the Japanese economy began at the end of WWII, and to nurture more female-friendly workplaces.

Forward-looking companies are already reducing punishingly long workdays and increasing the wages of female employees, so that they are on par with those of their male colleagues. Some are establishing inhouse childcare centers to better cater to the needs of working mothers.

True progressives realize that beyond helping working mothers, they must empower working fathers to be more present at home as well. Toward this end, Japan’s Ministry of Health, Labour and Welfare is promoting the Ikumen Project, a campaign launched in 2010 to encourage Japanese men to take a more active role in parenting. But today, the Abe government is encouraging Japanese companies to go one step further by promoting ikuboss, whereby company managers help their workers achieve a better work-life balance.

At the same time, despite rapidly changing demographics, Japanese society appears unable to depart from the traditional view that workers should retire at 60 to make way for fresh talent. However, new talent isn’t appearing fast enough, nor at the scale necessary to offset the numbers of skilled, experienced seniors leaving the workforce.

Thus those companies that realize the unique value of seniors and that have diverse hiring and retention policies will be better positioned moving into the future.

Furthermore, as the country prepares itself for a new era, Japanese business leaders agree that artificial intelligence (AI) and robotics will play an increasingly important role in productivity going forward. Undoubtedly, companies that harness the power of AI and robots—for everything from providing in-home help for working parents, to aiding seniors both at work and in retirement, to serving as interpreters for unskilled staff—will advance into the mid21st century as industry leaders.

Moving into 2017, Japanese companies stand ready to lead the world’s second-largest capitalist economy out of deflation and away from the low expectations of the last quarter century. But in order to move forward, they must work to eradicate deep-rooted customs. Those that are able to evolve their views on work-life balance and productivity overall will be best prepared for the future of global business.