Fast Retailing, the parent company of Uniqlo, has said it will be revising employee remuneration, starting with upping the wages of its Japanese employees by as much as 40 percent.
The move will cover employees from its headquarters and corporate departments, as well as employees working in stores, and comes as the group looks to remunerate each employee “appropriately for their ambition and talents”.
While Fast Retailing noted it had been advancing this revision in a number of its global markets, it stated that in Japan, where remuneration levels have remained low, the company intends to “significantly” increase the table, alongside reexamining its HR system to better compensate employees.
The country’s issue with pay has been arguably one of the top areas of discussion in recent years, with its prime minister Fumio Kishida regularly requesting companies to increase wages, particularly as prices continue to surge.
According to Doda, the yearly average salary in Japan in 2021 was 4.53 million Yen, the equivalent of around 41,000 dollars.
As part of its regulatory filing, Fast Retailing provided an example of its planned pay rise, which would see the likes of a graduate employee increase by around 18 percent, while a second year store manager would potentially receive a 36 percent increase in pay.
The decisions will be made through grade criteria, considering factors like work performance, contribution, ambition and evaluations from leadership and supervisors, while continuing to follow through with its structure of supporting staff through to higher roles within the company.
Fast Retailing added that it is further looking to develop a flat organisational structure, with high manoeuvrability and a problem solving-based corporate layout.