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.[1]

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.[2]

Types of Shukko

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Each company makes their own conditions for Shukko.

Demotion

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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.

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References

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  1. ^ 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
  2. ^ Futagami et al., 1998