Japan’s Haken System
How temporary dispatch workers can help your business thrive in Japan’s market
A key aspect of establishing a successful business in Japan is ensuring the right personnel are in place to support operations, particularly during the early stages. However, there may not be an immediate need to recruit full-time permanent employees. For companies not yet prepared to hire full-time staff, Japan’s dispatch (派遣, haken) system offers a flexible solution.
The dispatch system provides access to specialized talent on a short-term basis without the long-term commitment associated with permanent hires. Whether assistance is needed in IT support, general affairs, accounting, or sales, dispatch workers can deliver critical expertise essential for successfully launching operations.
Understanding the dispatch (haken) system in Japan
Japan’s dispatch system allows companies to hire skilled workers from specialized agencies for specific roles temporarily. This flexibility is valuable during the initial phases of market entry or for projects requiring specialized expertise, as it allows businesses to be adaptle with their workforce based on changing needs.
The roots of Japan’s dispatch system can be traced back to the economic changes of the 1980s and 1990s, when companies sought greater labor flexibility amid evolving market conditions. This system emerged as a response to the need for adaptable workforce solutions, enabling businesses to respond quickly to fluctuations in demand.
In contrast to other countries, Japan’s dispatch system is heavily regulated.The Worker Dispatching Act (労働者派遣法) was established in 1986 to regulate this sector, setting forth guidelines to protect both workers and the companies utilizing these services. Over the years, the law has evolved, enhancing protections and rights for dispatch workers while ensuring companies can access necessary labor.
Types of dispatch in Japan
To fully understand how the dispatch system can work for your business, it’s important to know the types of dispatch arrangements available in Japan. There are two primary forms of dispatch work:
- General Dispatch (一般派遣, ippan haken)
This is the most common type of dispatch. The dispatch worker is temporarily assigned to a client company in this setup, typically for project-based or short-term work. The dispatch agency remains the official employer, while the client company directs the worker’s day-to-day tasks. The maximum period for dispatch to the same company is three years. - Temp-to-Perm Dispatch (紹介予定派遣, shōkai yotei shaken)
This type of dispatch allows companies to try out a worker temporarily with the potential for full-time employment. After a trial period (usually six months), the client company can hire the worker directly. This is an excellent option when looking to assess talent before making a long-term commitment.
When it comes to dispatch work, you can choose the option that best aligns with your company’s needs as you enter the Japanese market. Each offers different levels of flexibility and security, allowing you to access the talent required without the pressure of full-time hiring from the start.
Industry use of dispatch workers
The dispatch system in Japan continues to play a vital role across a wide range of industries, reflecting the flexibility and adaptability that this labor arrangement provides. According to the April 2024 report from the Japan Staffing Services Association (JASSA), the distribution of dispatch workers across different occupations in 2023 reveals a strong reliance on dispatch workers in both clerical and manufacturing roles.
How can dispatch workers fit into your market entry strategy?
When entering the Japanese market, choosing the right type of workforce is essential to ensure a smooth launch and long-term success. Dispatch workers can be a powerful tool in your market entry strategy, offering flexibility and expertise across various key roles. Depending on your business needs and the stage of your market entry, here are some areas where dispatch workers can make a significant impact:
IT Support
- In today’s tech-driven landscape, reliable IT support is crucial for setting up infrastructure and managing ongoing operations. Dispatch IT specialists can help you navigate local systems and ensure seamless functionality, allowing you to focus on growing your business.
Accounting and Financial Services
- Japan’s tax and financial regulations are complex, and dispatch workers with expertise in accounting and compliance can assist with payroll, financial reporting, and tax preparation. This ensures that your business remains compliant while reducing the administrative burden.
Administrative and Clerical Support
- During the initial phase of market entry, dispatch clerical workers can manage day-to-day administrative tasks, allowing your leadership to focus on strategic decisions and business development.
Sales and Marketing
- Dispatch workers experienced in Japan’s consumer landscape can provide valuable local insight, help establish sales pipelines, and create marketing strategies tailored to the Japanese market. This is particularly valuable when you’re looking to quickly build a strong market presence.
Human Resources and Recruitment
- If your business is expanding rapidly, dispatch HR specialists can assist with recruitment, onboarding, and navigating Japan’s labor laws. This helps ensure compliance and efficient employee management as your team grows.
Leveraging dispatch workers for these roles enables your business to remain flexible while testing the waters of the Japanese labor market. By bringing in workers for short-term projects, businesses can gauge demand, gain insights into local business practices, and make informed decisions about future staffing needs. This approach allows you to scale your workforce based on project requirements without the long-term commitment of full-time hires.
Discover how our services can help with your business
We offer tailored dispatch staffing solutions designed to meet the needs of companies entering the Japanese market. Whether you need temporary support during your market entry phase or specialized talent for immediate project needs, our expert team can help you build a strong and flexible workforce.
The dispatch system is particularly effective during the initial stages of market entry. However, as your business grows, transitioning to a combination of dispatch workers and permanent staff may offer the stability and consistency needed for sustained success. Beyond our dispatch staffing solutions, we also provide a range of recruitment and other talent-related services to address your long-term staffing needs, ensuring your workforce is well-equipped to support your growth.
With the right strategy, we can help you navigate the complexities of the Japanese market and establish a solid foundation for your future. For more insights on how we can assist your business with staffing solutions, talent acquisition services, and comprehensive support in Japan, contact us today to explore the possibilities!
Resources:
【2024年最新版】派遣法改正ポイントをわかりやすく解説！, Ministry of Health, Labour and Welfare
Ministry of Health, Labour and Welfare: 労働者派遣事業・職業紹介事業・応募情報等提供事業等
Ready to expand globally?
Let us guide you through cultural nuances,
regulations, and competitive landscapes.