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Are You Choosing the Right Company to Work For?

When job hunting, it goes without saying that choosing the right company is extremely important. If you are aiming to work for a Japanese company from overseas, this choice becomes even more critical. Equally important is what type of job you choose.

This is because the scope of career options, including job changes, differs depending on your residence status (visa type). With most standard work visas, job changes are relatively flexible, as long as the actual job duties fall within the activities permitted under your visa status.

For example, if you are employed as an engineer under the Engineer / Specialist in Humanities / International Services visa, you cannot change jobs to become a driver. Visa eligibility is judged not by the job title, but by the actual work content. On the other hand, changing to roles such as technical sales or marketing is often more easily approved.

Under the Specified Skilled Worker status, you cannot change jobs freely. You may only transfer to companies that are authorized to accept Specified Skilled Workers, and even within the same field, procedures such as a change of residence status or notification of a change in affiliated organization are generally required.

For the Technical Intern Training Program, job changes are generally not allowed. Under the new system scheduled to start in April 2027, the Employment for Skill Development Program (ESDP), job changes are expected to be permitted after a certain period of employment (approximately two years), based on the individual’s wishes.

So, how can you choose a company wisely in Japan, where such restrictions exist, and avoid future regret?

There are three key points you should carefully review when selecting a company.

If a company does not clearly present these points, or avoids answering questions about them, it may be best to proceed with caution.

Compensation and Benefits

In Japan, many companies set relatively low base salaries. Therefore, it is important to carefully confirm the following points.

Bonuses

Companies are not legally required to pay bonuses, so you should always confirm whether bonuses are offered. The presence or absence of bonuses can make a difference of ¥800,000 to ¥1,000,000 per year, roughly equivalent to one year’s rent. If bonuses are paid, twice a year is common, but some companies pay once a year or use performance-based systems. You can ask the company how many months’ worth of base salary was paid as a bonus in the previous year.

Retirement Allowance

There is also no obligation for companies to provide a retirement allowance. If you plan to work long-term, this system can significantly affect your future financial security. If a retirement allowance exists, check the eligibility conditions, such as a minimum number of years of service. Recently, some companies have replaced traditional retirement allowances with stock ownership plans or defined contribution pension schemes.

Overtime Pay Structure

Many Japanese companies include a fixed amount of overtime pay in the base salary (known as fixed overtime). Thirty hours per month is a common benchmark. Be sure to confirm how many hours of overtime are included. Any overtime exceeding that amount must be paid separately by law.

When asking about overtime, a softer approach works well, such as: “Do employees generally work a lot of overtime? About how many hours per month?”

Allowances

Some companies offer a variety of allowances beyond base pay. These can be important factors when choosing a company, especially in urban areas with high living costs. Common examples include housing allowances, family allowances, commuting allowances, and qualification allowances.

Work Environment and Flexibility

The working environment strongly affects whether you can stay with a company long-term.

Annual Holidays

Companies offering 120 or more days off per year are generally considered to provide adequate rest. This usually means weekends off, national holidays, and summer and year-end vacations.

Paid Leave Usage

While Japan has a generous paid leave system on paper, usage rates can be low in some companies. Low usage often indicates a workplace culture where taking leave feels difficult. You can ask directly, for example:

“I would like to contribute to the company long-term. May I ask what the paid leave usage rate is like?”

Turnover Rate and Average Tenure

Although it varies by industry, high turnover may indicate a heavy workload or unstable environment. A turnover rate below 10% generally suggests good retention and a healthy workplace. Rates exceeding 20% are usually a warning sign.

However, numbers alone do not tell the full story. In IT, for example, turnover rates of 15–20% are common due to frequent job changes for skill development. This information is not always disclosed, so try to confirm it naturally as the selection process progresses.

Flexibility in Work Style

Check whether the company supports flexible working styles, such as remote work, flextime systems, or side jobs.

Future Prospects and Company Culture

Research whether the industry itself is growing or shrinking, and whether the company has unique technologies or services that differentiate it from competitors.

It is also important to understand how much career growth is possible within the company. What is required to increase your salary or advance your position? Are there systems in place to support skill development, such as certification assistance?

Company culture is often the hardest aspect to understand without direct communication. If your values do not align with the company culture, long-term employment can be difficult. Consider whether you resonate with the company’s philosophy, whether the workplace atmosphere is highly competitive or more logical and calm, and whether the workforce is mainly young or more experienced.

If possible, try to negotiate a workplace visit to better understand the environment.

Information about compensation and working conditions is often publicly available and openly shared by companies. However, insights into future prospects and company culture can only be gained through direct communication.

Recruitment agencies that thoroughly interview companies and actively work to reduce information gaps between candidates and employers tend to be more trustworthy.

I hope you find a company that allows you to start a fulfilling and stable life in Japan.

By Hajime Saito

X: @hajimesaitoYJC