Outplacement firms provide counselling, CV and interview preparation, an office or online base, and introductions to employers. In Japan the market grew in the late 1990s and 2000s alongside the first large waves of voluntary early retirement at major manufacturers and banks, and both independent firms and the outplacement arms of large staffing groups now compete for the work. Packages are usually priced per person and include a fixed support period, with fees falling as competition has grown.
The service plays a particular role in Japanese restructuring. Because the law makes redundancy dismissals so hard, companies cut headcount by asking for volunteers, and courts look at what the employer did to avoid dismissal and to soften the impact. A credible package of extra severance plus outplacement makes it easier for employees to say yes and easier for the employer to show that its process was fair. Government policy supports it too. An employer that files a re-employment assistance plan with Hello Work for employees leaving because of downsizing can claim a subsidy towards outplacement costs, now called the Early Re-employment Support Subsidy.
For older employees there is also a statutory element. When an employee aged between 45 and 70 leaves because of dismissal or other employer reasons, the employer must, if the employee wishes, prepare a document setting out their experience and skills to support the job search.
What it means for a foreign employer
- Include it in any exit package. It costs far less than the severance, signals good faith and often settles the decision for an employee who is undecided.
- Choose a firm that knows senior bilingual roles. Generic programmes built for large domestic cohorts may not fit an executive who needs a regional or gaishikei role.
- Expect experienced candidates to arrive this way. After large restructuring announcements, outplacement firms actively place candidates. Some are excellent and in no hurry.
- Check the subsidy before you start. The re-employment assistance plan has to be filed before employees leave.
Sources
- Act on Stabilisation of Employment of Elderly Persons, Article 17 (job search support document for employees aged 45 to 70 leaving for employer reasons).
- Ministry of Health, Labour and Welfare, Labour Mobility Support Subsidy guidebook (Re-employment Support Course), renamed Early Re-employment Support Subsidy from April 2024.