For many years, Japan’s work culture has been considered one of the most rigorous, with the ‘karoshi' or 'death from overwork,' being a commonly used term.
However, in recent years employee expectations have evolved: with a growing emphasis on work-life balance, career development, and financial security. Companies operating in Japan today must now ensure they offer attractive benefits in order to recruit and retain top talent.
Here’s a look at four of Japan’s most valued benefits.
1. Corporate Housing Support
Japan’s urban centers suffer from extremely high housing costs, which has led many companies to offer corporate housing schemes to assist employees with accommodation expenses. Currently, over 40% of large Japanese organizations provide some form of housing support.
In addition to easing financial burdens, employer-sponsored housing solutions help attract skilled professionals from across Japan and beyond, especially in industries that require specialized expertise. This type of benefit can range from fully covering an employee’s rent to paying relocation costs when employees move from different cities or countries.
2. Flexible Working
Traditionally, Japanese workplaces have followed strict working hours, with employees staying at the office long after the official workday ends. However, Japanese employees have recently been demanding working hours that are less strict and more flexible.
More organizations are introducing 'flextime system' benefits that allow employees to follow a less strict working schedule. For instance, the Japanese government recently passed legislation requiring employers to offer flexible working options to employees with young children. Similarly, Tokyo’s government is introducing a four-day work week in 2025 to encourage a healthier work-life balance and potentially increase Japan's low birth rate.
To compete in Japan’s war for talent, organizations should be proactive in offering flexible working benefits that accommodate employees’ needs.
3. Learning and Development Programs
65% of employees in Japan prioritize learning new skills, with basic digital skills being their top priority. Upskilling and professional development are highly valued by Japanese employees, as many are actively looking for opportunities to enhance their expertise. To support this demand, companies frequently offer benefits such as educational reimbursement, certification programs, and in-house training courses to equip their workforce with essential skills.
By providing continuous learning opportunities, organizations can not only enhance their team’s capabilities and sense of fulfillment but also improve retention and encourage internal career progression.
4. Public Transport Allowance
Public transportation is the backbone of daily life in Japan, with millions of workers commuting via trains and buses each day. To ease the financial strain this may put on workers, many companies provide a public transport allowance.
This benefit is particularly valuable in busy metropolitan areas like Tokyo and Osaka, where transport costs can add up. For companies located in these areas, considering offering transportation cards or direct reimbursements, to ensure that employees can travel to work without worrying about high travel expenses.
Want to Learn More About the Japanese Benefits Market?
No matter where you’re based, it’s important to offer benefits that align with what employees want most. This is especially true in Japan, as more balanced ways of working are becoming more popular than ever before. By embracing flexible work models, investing in skills development, and providing comprehensive compensation packages, companies can stay ahead in attracting and retaining talent in one of the world’s most competitive job markets.
Want to optimize your employee benefits strategy in Japan and around the globe? Read our Global Benefits Playbook and discover what rewards offerings are most popular worldwide.
