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Japan’s Uniqlo mulls paying star employees S$379,000 annually after 3 years

SINGAPORE/TOKYO — Japanese retail giant Uniqlo is considering offering a S$379,000 annual salary and managerial title to its top employees, in an attempt to woo talent.

Uniqlo’s owner, Fast Retailing, said that the salary and title, which will be paid and given to the chosen employees after three years, is still under review by Chief Executive Officer Tadashi Yanai.

Uniqlo’s owner, Fast Retailing, said that the salary and title, which will be paid and given to the chosen employees after three years, is still under review by Chief Executive Officer Tadashi Yanai.

SINGAPORE/TOKYO — Japanese retail giant Uniqlo is considering offering a S$379,000 annual salary and managerial title to its top employees, in an attempt to woo talent.

Uniqlo’s owner, Fast Retailing, said that the salary and title, which will be paid and given to the chosen employees after three years, is still under review by chief executive officer Tadashi Yanai.

Japanese news agency Nikkei, in an interview with Mr Yanai, reported that employees sent to the US or Europe can expect salaries of 20 to 30 million yen (S$379,000) a year while those in Japan can expect more than 10 million yen a year.

That amount would be more than three times the average pay of a regular Uniqlo employee, and nearly 10 times Japan’s national average for employees who have served the same tenure.

The move by Fast Retailing — expected to take effect next spring (March to May 2020) — comes amid Japan’s struggle with a lack of young workers, which has pushed firms to reassess employee compensation and promotions.

Bloomberg reported that the shortage has forced even Japanese tech companies to offer million-dollar salaries and raise starting pay by 20 per cent for top candidates.

According to Fast Retailing’s filings, its employees’ average annual salary was estimated to be 8.77 million yen as of August 2018.

Nikkei also reported that the company’s recruiting website stated that the lowest annual salary at the company was about four million yen. This is still higher than the salary of an average worker with four years of experience — 3.1 million yen in 2017— according to Japan’s National Tax Agency.

Fresh Retailing is also considering sending most of its new recruits to specialised departments that will suit their skills, such as information technology and design, Nikkei reported.

This is reportedly a major shift from the company’s previous system, which assigns most new staff to work in Uniqlo stores first. AGENCIES

Related topics

Japan salary Fast Retailing business and finance careers industries Uniqlo

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