Shukko

Shukko (出向, from 出る meaning 'to leave' and 向う meaning 'to go towards') is a form of job transfer occurring in Japanese companies. A shukko most often stands for a transfer of an employee from a main branch of a company to a branch office of the same company or an associated company. Rarely, it might be towards a non-affiliated company.Futagami , S., Waragai, T., & Westphal, T.　(June 1998).　Shukko in Japanese Companies and Its Economic and Managerial Effects , WZB SOCIAL SCIENCE RESEARCH CENTER BERLIN, FS IV 98 - 5 , 1-4 page. Retrieved July 17, 2014

The main characteristic of the so-called “Japanese style of business administration” is lifetime employment (or 終身雇用). Shukko has a key role in the support and sustainment of this Japanese style of long-term employment.

In Japan, Shukko has a negative reputation because it is often used as a way to reduce personnel expenses. However, Shukko has positive aspects – cases in which it is used as a way to give employees the chance to gather corporate experience and broaden their careers.Futagami et al., 1998

Types of Shukko

Each company makes their own conditions for Shukko.

Demotion

This type is the main reason for the negative reputation of Shukko, because of its effect on personnel expenses. The Nenko System (seniority-based compensation) is the opposite of the merit-based wage system. Because pay is based solely on seniority, employees' salaries may not correspond with their job performance or ability.

External links 弁護士として公認会計士として金融庁出向経験は Asahi Judiciary Retrieved March 24, 2014 リコー出向取り消しへ Nikkei.com Retrieved July 19, 2014 震災復興支援機構に出向して岩手県沿岸部で働いた経験　Journal of Law and Economics Retrieved April 21, 2014 出向という名の「追い出し部屋」　Asahi Shinbun Retrieved: July 14, 2013

References