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New employee retention rate in Japan is 70%. Nintendo’s is 98.8%

Together with Nintendo Switch, which has sold over 100 million units worldwide, Nintendo continues to lead the game industry by continuing to release various blockbuster software. It is one of the most popular large companies in Japan, but it is attracting attention that its new employee retention rate is "almost 100%".

So, we asked an expert about why Nintendo can be called a representative company where newcomers don't quit, and the importance of the new employee retention rate in the current job market.

In recent years, the “employee retention rate” has been increasingly used as one of the indicators of a company's attractiveness. Even in the "Youth Employment Sheet" that must be disclosed when recruiting new graduates, it is required to enter the number of hires and the number of quitters in the last three years. The rate is also an important indicator for students who are looking for a job and for those who want to change jobs.

Under such circumstances, Nintendo, a world-class game maker that Japan boasts to the world, and which is always ranked high in the ranking of popular companies to work for, has reached almost 100% retention rate of new employees, and it became a hot topic on SNS.

According to the "employee data" released by Nintendo, the retention rate of new employees in Japan (percentage of those enrolled in April 2022 among the number of new graduates joining in April 2019) is 98.8%. If there were 100 new employees, this means that only about one quit. We asked Mr. Hiroki Okamoto, CEO of UZUZ Co., Ltd., who provides employment support for young people in their 20s, about his opinion on this figure.

“The average retention rate for new employees is about 70%, which means that 30% of new graduates quit within three years. So I think Nintendo’s 98.8% is an amazing figure. In the first place, large companies often have high salaries and welfare programs, so the retention rate tends to be high.Among them, Nintendo is a popular company that represents Japan, and it is a narrow gate with few hiring slots. Because of this, there may be no reason for employees who have overcome the difficulties to join the company to quit.” (Mr. Okamoto)

Nintendo's average annual salary was 9.88 million yen last year. It makes sense that the better the treatment, the higher the retention rate.

“However, there are companies in the game industry with higher average annual salaries than Nintendo. Square Enix is in the 14 million yen range, and Bandai Namco Holdings is in the 11 million yen range. There are many companies, but when it comes to new employee retention rates, I don't think there are any other companies in the same industry that have achieved numbers like Nintendo's."

Even in game companies, creators tend to move or become independent for each work, and the turnover rate tends to be high. The same is true for Nintendo, but perhaps there is a "comfort" that goes beyond that.

"Of course, Nintendo's welfare program is substantial. The rate of using paid leave is high, and they are very generous with childcare. We give our employees unique points, and we use those points There are also systems that can be used for games, books, travel, etc. In addition, we have a deep understanding of diversity, and for employees with same-sex partners, we have introduced a partnership system that treats employees with same-sex partners in the same way as actual marriages. We are also making efforts to

In addition to these employment conditions, Mr. Okamoto points out that Nintendo's image has a great influence.
"Actually, this is the most important thing, and I think that the power of the Nintendo brand keeps employees engaged. The number of people who want to work in the game industry is increasing, but the number of people who want to work at Nintendo is not the other. I have a strong desire to work at Nintendo." In fact, many of Nintendo's games are ranked in rankings such as 'best-selling computer game software.' If you want people to have fun, I think you'll want to join Nintendo and continue working."

What kind of index is the "new employee retention rate" for recent job seekers?

“The current working generation tends to emphasize not only welfare benefits but also 'ease of work,' such as the degree of freedom and the way work is entrusted to them, so the employee retention rate can be used as data to understand the actual situation within the company. I think there are parts.

However, the question of whether it is better if the retention rate is high varies depending on the industry and corporate culture. For example, at Recruit Co., Ltd., the standard course is to work hard in your twenties, change jobs, or start your own company, so the turnover rate is high, and the company is also trying to keep the numbers up to that level. I do not care. I think that such a judgment should be made firmly.” (Same)

For companies as well, it seems like putting the cart before the horse to implement measures just to increase the retention rate of employees.

"Nintendo's welfare program is not the result of efforts to maintain employee retention rates. Nintendo's mission as a company is to pursue profits and make great games within that. I think that raising the motivation of employees to achieve their goals has resulted in a high employee retention rate. I think it is a number that is positioned as a reason not to go.” (Same)

A long time ago, it was often said that "you can't understand a company unless you enter it", but if you look closely at indicators such as the employee retention rate, you can get a sense of the company's culture and ease of work to some extent. It seems that it is.

Mind you that the contents of the original article is in Japanese and was auto-translated via Google to English.

Detailed Nintendo employee data for JP, NA, EU and AUS can be found below.
 
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Think on that before you call me and my brethren weebshits. Japanese games are the best!

They really are

someone everyone GIF

animedanceexe get GIF
 

Ozzie666

Member
Japanese companies definitely seem to take care of their employees better, especially the lower to mid tier doing the mjaority of the heavy lifting. Then you look at American CEO and executies pay rates and it's just bananas. I get the feeling Japan companies take failures more seriously at the management level. Once again in America, if something doesn't meet profits, cut some jobs to get your bonus. I am sure it's not utopia, but Nintendo seems like a really promising place to work. Would love to hear what Neo Gaf Japaneses members have to say about this.
 

hyperbertha

Member
Japanese companies definitely seem to take care of their employees better, especially the lower to mid tier doing the mjaority of the heavy lifting. Then you look at American CEO and executies pay rates and it's just bananas. I get the feeling Japan companies take failures more seriously at the management level. Once again in America, if something doesn't meet profits, cut some jobs to get your bonus. I am sure it's not utopia, but Nintendo seems like a really promising place to work. Would love to hear what Neo Gaf Japaneses members have to say about this.
You serious? Japan is the country of suicides from overwork. Possibly worst work life balance.
 

brian0057

Banned
You serious? Japan is the country of suicides from overwork. Possibly worst work life balance.
Just so we're clear. In general, suicide rates around the world have been on the decline. Japan used to have one of the highest rates. Now it's lower than the United States, which are on the rise.
South Korea surpassed Japan in Canadian Healthcare rates in 2002, just under South Africa. I don't know what happened that year but the jump is staggering.

kEFEOIL.png
 
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ArtHands

Thinks buying more servers can fix a bad patch
Nintendo sounds like a nice place to work at

This is in contrast with SAG-AFTRA gearing up to strike at studios such as EA, Take Two or Insomniac Games
 

StreetsofBeige

Gold Member
That study is based on Japan hires and limited to new employees.

What about veteran workers in other regions?

My buddy worked at Nintendo Canada during the Wii craze and he hated it and quit after 2 years. A lot of turnover. Very few employees were hired in total and had to cover multiple roles despite raking in the sales and profits.
 
That study is based on Japan hires and limited to new employees.

What about veteran workers in other regions?

My buddy worked at Nintendo Canada during the Wii craze and he hated it and quit after 2 years. A lot of turnover. Very few employees were hired in total and had to cover multiple roles despite raking in the sales and profits.
I’m assuming the North America branch has gotten worse under non-Japanese leadership, because they used to treat employees in North America really well back in the day (80s and 90s).
 

tmlDan

Member
Just so we're clear. In general, suicide rates around the world have been on the decline. Japan used to have one of the highest rates. Now it's lower than the United States, which are on the rise.
South Korea surpassed Japan in Canadian Healthcare rates in 2002, just under South Africa. I don't know what happened that year but the jump is staggering.

kEFEOIL.png
The US also has terrible work life balance and other issues that result in suicide, South Korea is top 5 in the world and Japan is top 25…..not sure you’re really proving anything. We need a study based on suicide rates as a result of work culture to prove anything.

Anyways, retention is always high in Japan because you’re expected to stay at one company your whole life, even if you get paid less or treated poorly, this is a known fact. If you leave a job every two years companies won’t hire you
 
Of course... I Japan you are bound to stay within the company.

Leaving by your own before your contract expires it will hurt your employability by a lot.
 
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Humdinger

Member
That's impressive. Must be a fun place to work. I'm sure they select for people who love Nintendo -- of which there would be no shortage. And I'm assuming there is a ton of competition for the jobs there, so anyone who has one does not want to leave.
 

Aenima

Member
If im not mistaken:
In japan they cant fire ppl for dumb reasons, like something you said on twittard. Thats why retention rate is so high. You dont even need to be good or know how to do ur job well. As long its not a serious reason they cant just fire ppl as most ppl get lifetime contracts. And i bet most ppl that leave they jobs is due to extreme stress cuz japanese crunch culture. As its commom to work overtime without being compensated.
 

NanaMiku

Member
Japanese companies definitely seem to take care of their employees better, especially the lower to mid tier doing the mjaority of the heavy lifting. Then you look at American CEO and executies pay rates and it's just bananas. I get the feeling Japan companies take failures more seriously at the management level. Once again in America, if something doesn't meet profits, cut some jobs to get your bonus. I am sure it's not utopia, but Nintendo seems like a really promising place to work. Would love to hear what Neo Gaf Japaneses members have to say about this.
I think it's because of this sytem: https://cotoacademy.com/japanese-business-etiquette-hourensou-japan-business-culture/

You serious? Japan is the country of suicides from overwork. Possibly worst work life balance.
Japan is famous for black company. But they made a big change when a new employee in ad company suicide and become big news.
 

Ozzie666

Member
Wow this thread escalated quickly, suicides, black companies and exploitation.

So is Nntendo being the good guy here or are they back to their old Yakuza ways, and no one dares leave? Partially kidding.

Good to know Japan hasn't gotten involved in the social media wars to fire people. Social media was a mistake.

The last time Bobby failed Activision, he laid off enough employees to qualify for massive bonus.
 
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Game development seems to require very specific abilities and experience. Unlike software development where you can find any good senior developer to create a business application and users will barely notice the difference between developers.

You'd figure retention would be important to game corporations. Nintendo seems to realize that and has found the secret to to keeping employees for along time.

But you look at most of the big western corporations, developing and taking care of their talent means very little to them. Game doesn't sell well? You're useless, out the door! All those years of knowledge and experience. Gone without hesitation. So why would employees stick around? There is no loyalty from the corp, why would developers feel loyalty? You jump ship when you don't feel appreciated.

Good on Nintendo for doing it their own way. Successfully.
 

kiphalfton

Member
Well yeah, if you work at a world class company why leave?

Most company's pay sucks, they have shitty benefits, have zero brand recognition, and going anywhere else would probably be an improvement.

I'd imagine it would be a downgrade if you left Nintendo to work anywhere else.
 
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Nintendo sounds like a nice place to work at

This is in contrast with SAG-AFTRA gearing up to strike at studios such as EA, Take Two or Insomniac Games

Those are all Western studios in the latter sentence.

Unfortunately, Nintendo games have mostly been non-union VO-wise.
 
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Hudo

Member
I wonder how Nintendo was under Yamauchi. The vibe I got from old interviews is that Nintendo was a lot more hierarchical and ruthless to employees during his reign.
 

Happosai

Hold onto your panties




Mind you that the contents of the original article is in Japanese and was auto-translated via Google to English.

Detailed Nintendo employee data for JP, NA, EU and AUS can be found below.

I work in marketing administration and have a hand in lowering employee churn. One that we've gotten the metrics of churn reduction we often struggle with is with temps or those under fixed-term contracts (or independent contracts). If these numbers are true...how did they retain temps? 93 and the U.S. with 2 (which I couldn't do much better). I can think of several other Japanese industries which could certainly benefit from such metrics.
 
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