What deserves to be evaluated should be evaluated—regardless of whether the person is young or middle-aged or older.
Read the original article (in Japanese):
Introduction | “¥15 Million in the First Year After Graduation” Is a Media Misdirection
“¥15 million in annual pay for a first-year graduate”—this headline guides readers to a conclusion before they have even begun reading.
“It’s new-graduate favoritism gone too far.” “An entry-level salary bubble.” “Japanese employment is collapsing.”
Such reactions are understandable—but they are reflexes to the headline, not an understanding of reality.
A careful reading of the original article shows that what companies are evaluating is not the attribute of being a “new graduate.” What is being assessed is the level of completeness required to actually run the job. It merely appears excessive because the person who possesses that capability happens to be a student.
In that sense, this is an example of what job-based employment has always aimed to do: put a price tag on jobs and abilities, successfully implemented at the hiring entry point.
At the same time, the very same term—“job-based employment”—has been used elsewhere with the opposite meaning. In 2023, a subsidiary of Olympus made headlines for mass demotions concentrated in a specific age group.
The same word produced two extremes: proper high compensation in one case, and de facto restructuring in another. This contrast exposes how job-based employment is being misunderstood and misused in Japan. This article compares these two poles.
Chapter 1 | The “¥15 Million Graduate” Is Not About Age-Based Evaluation
“Raising starting salaries because we want young graduates.” This kind of move has become more common in recent years, but assigning high value to people with no track record based on attributes alone is speculative at best.
The individuals receiving high offers in the article, however, are not “22-year-old, inexperienced graduates.” They are people with advanced research backgrounds, substantial internship achievements, international experience, English proficiency, and expertise in AI, M&A, or financial analysis. These are profiles that would command far higher salaries—and recruitment fees—if sourced from the mid-career market.
Corporate logic here is strikingly simple and rational:
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What companies want is not “new graduates” but people who can actually move the job forward
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Hiring equivalent talent mid-career would cost even more
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Therefore, securing already-capable talent earlier—while still students—is more efficient
High compensation is not youth worship. It reflects the market value of the job.
The essence here is not “expensive new graduates,” but the shift of hiring criteria from attributes to market value.
Chapter 2 | Job-Based Employment as Investment Rationality
“Don’t companies still prefer younger people?” This question remains. The answer is yes—sometimes. But only if the correct order is respected.
With equal ability and job fit, younger employees offer longer recovery periods, greater learning capacity, and more flexibility. This is not discrimination; it is investment logic. The sequence must always be:
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The job is defined
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The ability to perform the job exists
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The person happens to be young (and perhaps a new graduate)
As long as this order holds, “¥15 million for a new graduate” is a success case for job-based employment.
The moment age is prioritized over capability, the system begins to distort.
Chapter 3 | When Job-Based Employment Is “Abused”: Mass Demotions at Olympus Marketing
In 2023, Olympus Marketing reportedly carried out mass demotions and pay cuts following a transition to job-based employment. The problem is not the system itself, but that its basic conditions were not met.
From an institutional standpoint, several critical flaws were evident:
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No job descriptions; jobs were not defined
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Evaluation and demotion reasons were not explained
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“Principles remain unchanged” rhetoric masked demotions as a foregone conclusion
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Managers themselves did not understand the system
Job-based employment is a mechanism designed to eliminate arbitrariness through explicit definition and explanation. Changing treatment without this foundation turns the system into an abuse of managerial power.
Chapter 4 | The Moment Outcomes Skew by Age, Job-Based Employment Becomes Sophistry
If evaluations are truly based on ability and job fit, outcomes will naturally disperse across generations. There are strong employees in their 20s and strong employees in their 50s. That is how evaluation works.
When negative outcomes concentrate among people in their 40s and 50s, the evaluation axis has likely shifted to age. This is especially troubling because this cohort—Japan’s employment ice-age generation—is numerically smaller. A concentrated impact on a smaller population is unlikely to be accidental.
Externally, the process looks like this:
Dismissals are difficult → demotions and pay cuts make roles untenable → voluntary resignations follow
→ “job-based employment” is used as the justification label
Skill obsolescence and business change do happen. But a proper job-based process follows this order:
Job redefinition → transition criteria → reskilling → consensual redeployment.
Age-skewed, across-the-board demotions look less like adaptation and more like cost adjustment.
Chapter 5 | The Watershed: “Reason for Hiring” or “Excuse for Exclusion”
Job-based employment is fundamentally a system for explaining why someone is hired.
The moment it is repurposed to explain why someone is pushed out, it becomes misuse.
| Perspective | Proper Job-Based Employment | Abused Job-Based Employment |
|---|---|---|
| Starting point | A job exists | People are to be reduced |
| Evaluation axis | Job × Ability | Age / Cost |
| Age distribution | Naturally dispersed | Concentrated in one cohort |
| Institutional purpose | Reason for hiring | Reason for exclusion |
The word may be the same, but the philosophy is opposite. What is being tested is not the制度, but the attitude of those who operate it.
Chapter 6 | The Essentials of Proper Job-Based Employment: Pay Evaluates the Job
Proper job-based employment is brutally clear:
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Evaluate ability, not age
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Define the job first
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Pay is for the job
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Raises come from job-level progression, not tenure
That is why “¥15 million for a new graduate” is not about youth. It is about ability that can already deliver on a defined job.
When fit is lost, what should occur is not exclusion but talent mobility. As people move, knowledge circulates, and the learning speed of the entire economy increases.
Conclusion | Job-Based Employment Is a System for Seeing People
Job-based employment is not a system for cutting people. It is a system for seeing them accurately.
When it functions properly, even high graduate compensation can be rationally explained. When age-skewed demotions are branded as job-based employment, that is not a system—it is violence by the employer.
The problem is not the system. It is organizations that want to use job-based employment conveniently.
The future of Japanese employment depends on whether this single point is misunderstood or upheld.
Read in Japanese ↓(For Japanese learners!)↓
「新卒1500万円」とオリンパス子会社のジョブ型解雇は真逆だ(2026.2.3)
Read more articles (in Japanese)↓

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