The Nenko Promotion System

The Japanese system, in its business organisational structures, takes corporate governance seriously and inculcates a great part of its culture. One such principle is the so-called Nenko System. Under the Nenko System, promotion is based more on age or longevity in the company, or proximity to retirement, and less on actual merit.

Nenko System

This system is advantageous to older employees who can gain a higher income before retirement, and the system brings more experience to the executive levels. However, it may also overlook the talents of the younger ones. Thus, management must take care to keep a closer eye on the talents as well as the loyalty of service of its employees. If you seek to know more about human resource, information is easily accessible through the links we have listed below for your perusal.