Recruitment and Training in Japanese SMEs: A Case Study Concerning Lifelong Learning in the Manufacturing Industry at the Tokyo Metropolitan Area

Abstract

Japan is an aging society facing a demographic problem because of the low birth rate. Therefore, the workforce in Japanese companies is getting older. As a high-tech country with rapidly changing technical and organizational requirements, the demand for lifelong learning is higher and getting more important. Small and medium-sized enterprises (SMEs) play an important role in the Japanese labor market and economic system; however, in contrast to large companies, very little is known about recruitment, training, and lifelong learning in Japanese SMEs. This study, therefore, examines recruitment, training, and lifelong learning in Japanese SMEs. As a first step, the transition from school to work in Japan is presented. This is important because Japan has a very high proportion of academically educated young people compared to other countries. At the same time, the recruitment processes in Japan are very special, which is discussed with existing literature in the field. As a second step, the paper focuses on the Japanese SMEs. Existing research results about recruitment, training, and lifelong learning in these companies are collected and presented. As a third step, we introduce our own research. Interviews were conducted with those responsible for recruitment and training in ten SMEs in the manufacturing sector in the Tokyo area, using an interview structure developed on the basis of the outcomes of the previous literature review in the field. The innovative approach of our study is the use of a mixed-method approach, including expert-interviews combined with observations during a company visit. The analysis of the interviews by using the method of Qualitative Content Analysis indicated that recruitment is more problematic for small than medium-sized enterprises. As a fourth step, we show that small enterprises often have to resort to employing people in mid-career who have little or no further employment opportunities in large enterprises. This finding largely aligns with existing studies. With regard to training and lifelong learning, however, significant deviations from literature can be found. In contrast to large companies, hardly any formally structured training takes place in SMEs; rather, training takes place in an informal way. In this author’s opinion, the term “On the Job Training” (OJT), which is often used in Japan, cannot be used here. Against this background, we advocate the introduction of the construct of “informal learning” into the scientific discourse of Japan. Informal learning describes these unplanned and unconscious learning processes, and can be found in various professional contexts, including research on lifelong learning, worldwide.