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Anonymous ID: 047033 April 14, 2019, 9:48 p.m. No.6182184   🗄️.is 🔗kun

Japan's bankers unhappy about their bonuses despite higher payouts

Carlos Ghosn fiasco adds to country's image as stingy employers

TOKYO – Just 19% of Japanese bankers are satisfied with their bonus payments despite more than 40% receiving higher or significantly higher payouts last year, according to a recent survey.

 

The results of the survey – conducted by Morgan McKinley on 289 finance professionals – is a wake-up call for companies, as experts warn that corporate Japan will lose out on both talent and investment if it does not shed its reputation as a stingy employer.

 

Japan has been trying to attract fund managers and financial startups from around the world as part of an effort to turn Tokyo into the world's premier financial center, a vision unveiled by Tokyo Gov. Yuriko Koike.

 

But the Japanese capital faces stiff competition for talent from other financial centers, including Hong Kong – known as the gateway to China – as well as Shanghai, the hub for Chinese equity trading, and Singapore, the region's established financial hub.

 

The survey found that 48% of the employees received bonuses equal to 10% to 40% of their annual salary, with 24% receiving over 40% of their annual salary.

 

Many financial professionals feel their employers are not being as generous as they could be, according to the report.

 

"They feel banks and financial institutions have been reluctant to offer higher bonuses because of 'global uncertainty,'" the report said. The number of respondents who felt positive about the economic outlook for Japan dropped to 22% this year from 43% last year.

 

Geopolitical issues such as U.S.-China trade tensions and Brexit have disrupted the global economy and offset the positive factors within Japan, namely its hosting of the Rugby World Cup in 2019 and the Olympic Games in 2020.

 

The survey also comes at a time of turmoil for the financial industry, with digital technology turning the traditional banking business upside down. Mizuho Financial Group last month took a $6 billion charge to write down the value of its retail assets, while Japan's largest bank, MUFG, is set to slash its new graduate hiring by 45%. Nomura Holdings said on April 4 it will shut down 20% of its domestic branches as part of a shift to digital service.

 

There is also increasing competition from other industries that are stepping up efforts to attract talent in fields such as robotics and artificial intelligence.

 

Japanese organizations overall have become "more proactive to retain their employees," Morgan McKinley noted, "offering more growth and promotion opportunities as well as finding better ways to recognize and reward individual performance."

 

According to a separate survey by Morgan McKinley, the number of overall job vacancies increased 11.5% year on year, but that of job seekers fell 14%.

 

To fill the talent gap, some businesses are hiring more foreigners.

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https://asia.nikkei.com/Business/Business-trends/Japan-s-bankers-unhappy-about-their-bonuses-despite-higher-payouts