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What average employee tenure tells you about companies in Japan

Article Retention
その他のお役立ちじょう When evaluating a potential employer, one metric that often goes overlooked is average employee tenure—how long people typically stay at the company. While not the only indicator of workplace quality, it can give you clues about the company’s culture, stability, and employee experience.

What is average tenure and why does it matter?

In Japan, the national average tenure is around 12.5 years, but that varies significantly by industry and company size. A higher-than-average tenure may indicate strong retention, job satisfaction, and a stable environment. But a short tenure isn’t always a red flag—it can also reflect a younger workforce, a growing company, or a fast-moving industry. That’s why context is key. Source: National Tax Agency, Japan. Survey on Private Sector Salaries

What long tenure says about a company

If employees tend to stay with a company for many years, it’s usually for a reason. Here are some common signs of a company where people want to stay: The business is stable Consistent performance and profits often mean better job security, regular raises, and less fear of layoffs—all things that make people stay. The company’s been around a while Established companies usually have solid internal systems, clear career paths, and mentors to learn from. That kind of structure can be reassuring. Pay and perks are competitive Good base pay, bonuses, housing or family allowances, and strong retirement plans can make it easier for people to settle in for the long haul. There’s room to grow Whether it’s training programs, job rotations, or internal promotions, companies that support career growth give employees more reasons to stay.

What a short tenure says about a company

A short average tenure doesn’t automatically mean a company is a bad place to work. It might reflect where the company is in its journey—or the type of work it does. It’s a startup Newer companies haven’t been around long enough for anyone to have a long tenure yet. That’s completely normal. They’re growing fast If a company is expanding rapidly, most employees will naturally be newer—so average tenure will be lower. The team skews young Companies hiring lots of grads or junior staff will usually have shorter average tenure, especially in smaller organizations. It’s a high-turnover industry Tech, consulting, and advertising are fast-moving, high-skill industries where people often switch jobs or go freelance. Short tenure here could just mean people are ambitious and in demand.

Use tenure as a clue—not the whole picture

Tenure is a helpful starting point, but it’s just that—a start. When researching a company, be sure to also look at: Employee reviews and feedback Opportunities for career development Flexibility and work-life balance Company stability and leadership style Whether it aligns with your goals
At Robert Half, we work with bilingual professionals across Japan to help them find roles that match not just their skills, but their values too. We offer behind-the-scenes insights into company culture, team dynamics, and more.   Thinking about your next move? Let’s talk—we’re here to help you make the right one. Submit your resume.   Hiring and want to improve retention? We can help you attract talent that sticks—starting with the right hiring strategy. Get in touch with us.