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English as the Official Language in Japanese Businesses

Japanese businesses, English as official language, Lingua franca, Fast Retailing Co., Rakuten Group Inc., Language transition, Specialized departments, Digital technicians, Communication in English, Language shift, Engineers shortfall, Language support programs, IT professionals, Digitization, Tech industry, Recruitment, Language compensation, Communication challenges, Global business growth, Cultural and communication barriers
An increasing number of Japanese businesses are adopting English as their official language within specialized departments, marking a significant shift from the past when it was implemented company-wide. Fast Retailing Co., the operator of the Uniqlo clothing store chain, and e-commerce marketplace giant Rakuten Group Inc. made headlines a decade ago when they announced plans to designate English as their lingua franca. However, the second wave of this language transition has just recently begun, according to Masuyo Ando, chair of Progos Inc., a Tokyo-based company offering English education support programs for businesses.

Phased Implementation

At the Tokyo headquarters of cloud service provider Money Forward Inc., a digital technologist from India, and his Japanese coworker, conversed in English. They were discussing a programming problem that had caused a malfunction in a prototype system. This digital technologist, who hails from India and graduated from a local engineering college, found his interest piqued in Money Forward after hearing at a career fair that the company did not require Japanese language proficiency.

Recognizing the need for more engineers, Money Forward gradually implemented a policy requiring computer engineers in their division to communicate in English starting last fall. The transition is expected to be completed by the end of 2024. English will be utilized during departmental meetings that involve at least one non-Japanese speaker. To support Japanese employees in improving their English skills, Money Forward offers free weekly one-hour English lessons at an outside school. Additionally, employees are allowed to complete their homework during work hours.

The decision to adopt English was driven by the company's struggle to secure a sufficient number of Japanese engineers. Even coding experts from Japan frequently rely on English-written documents from the United States for the latest information. A public relations representative from Money Forward attributed the success of their language transition to narrowing the goal exclusively to those who need to communicate in English. However, the company has no current plans to make English the company-wide language.

Japanese businesses, English as official language, Lingua franca, Fast Retailing Co., Rakuten Group Inc., Language transition, Specialized departments, Digital technicians, Communication in English, Language shift, Engineers shortfall, Language support programs, IT professionals, Digitization, Tech industry, Recruitment, Language compensation, Communication challenges, Global business growth, Cultural and communication barriers
Expanding the Reach

The shortage of tech professionals, combined with the increasing digitization of businesses, has become a pressing concern for enterprises. According to Doda, a recruitment site operator, the ratio of job openings to job seekers for mid-career engineers in the information and communications technology community exceeded 10-to-1 last fall, compared to over 5-to-1 before the COVID-19 pandemic.

IT firm Cybozu Inc. established a new section last autumn that operates using English as the lingua franca. The division focuses on developing new services with the intention of expanding its sales network overseas. Cybozu received applications from 500 individuals worldwide when soliciting software engineers.

According to a public relations official from Cybozu, these applicants possess exceptional skills, as computer science education outside of Japan has become more widespread. Out of the 15 employees in the newly established section, 10 are involved in computer engineering, and five of them do not have Japanese as their mother tongue.

Sapporo Breweries Ltd. plans to require the 50 members of its international business department to use English for work-related activities starting in 2024. A public relations representative from Sapporo Breweries stated that as the company's global business growth becomes increasingly important, they anticipate more opportunities for communication in English, both within and outside the company.

Japanese businesses, English as official language, Lingua franca, Fast Retailing Co., Rakuten Group Inc., Language transition, Specialized departments, Digital technicians, Communication in English, Language shift, Engineers shortfall, Language support programs, IT professionals, Digitization, Tech industry, Recruitment, Language compensation, Communication challenges, Global business growth, Cultural and communication barriers
LIMITED SCOPE

Many employers are now considering English as their official language, particularly as they expand their business operations and embark on new projects following the global COVID-19 pandemic. In the first wave of this trend a decade ago, companies expected employees in all departments and divisions to communicate in English, which faced strong criticism. A public relations official from a leading IT firm deemed it inappropriate to enforce the English-only rule on personnel or units that do not rely on English.

In the second wave, however, employers typically limit the use of English to international business departments, units requiring specialized IT skills that are difficult to find locally, and similar divisions. According to Ando, businesses are now more aware of the labor shortage compared to ten years ago. They face the urgent need to expand their international operations to achieve growth amidst Japan's shrinking population and declining birthrate. Taking these factors into account, Ando predicts that this latest shift will likely gain considerable momentum.

Japanese businesses, English as official language, Lingua franca, Fast Retailing Co., Rakuten Group Inc., Language transition, Specialized departments, Digital technicians, Communication in English, Language shift, Engineers shortfall, Language support programs, IT professionals, Digitization, Tech industry, Recruitment, Language compensation, Communication challenges, Global business growth, Cultural and communication barriers
CHALLENGES AHEAD

While some companies have successfully replaced Japanese with English, there are both drawbacks and benefits to this language transition. In 2016, IT firm Hennge KK designated English as its in-house language for all employees in an effort to secure computer scientists, as finding Japanese engineers became increasingly difficult. As a result, the company saw a significant increase in the employment of foreign nationals, with their ratio exceeding 20 percent compared to just 1 percent in 2014.

However, the policy change created challenges in finding Japanese engineers, as some employees were hesitant to communicate in English. In fact, a few individuals even left the company due to the language transition. To motivate Japanese employees to learn English, Hennge implemented language compensation allowances based on employees' language skills. Despite these efforts, communication speed within the company slowed down. A public relations representative from Hennge explained that conveying a message that takes only three minutes in Japanese would require nearly 30 minutes in English. Nuances also became difficult to express, making information sharing a challenge.

Professor Nagai, a linguistics at Aoyama Gakuin University, expressed concerns about potential communication issues. He pointed out that Japanese individuals typically cannot compete with native English speakers in English discussions. Professor Nagai emphasized that if foreign nationals are appointed as bosses or executives, their opinions may be more readily accepted within companies, regardless of the validity of their views.

Japanese businesses, English as official language, Lingua franca, Fast Retailing Co., Rakuten Group Inc., Language transition, Specialized departments, Digital technicians, Communication in English, Language shift, Engineers shortfall, Language support programs, IT professionals, Digitization, Tech industry, Recruitment, Language compensation, Communication challenges, Global business growth, Cultural and communication barriers
Despite these challenges, Hennge increased its language compensation allowance ceiling to 1.08 million yen ($7,600) per year in an attempt to encourage Japanese employees to embrace English communication. The company's public relations division stated that abandoning English as the in-house language is not an option, considering the advantages of utilizing English as an international auxiliary language. A Hennge representative highlighted that resorting to an in-house interpreter may be cheaper than offering such an expensive allowance, but the direct communication between Japanese and non-Japanese employees can generate excellent business ideas and solutions to problems, resulting in greater benefits than drawbacks. Therefore, the company intends to continue adhering to this approach.

In a world that grows increasingly interconnected, the adoption of English as an in-house language by Japanese businesses marks a significant shift in their approach to international expansion. As the second wave of this linguistic transformation gains momentum, challenges and benefits emerge. Will this language transition truly bridge cultural and communication gaps, or will it inadvertently create new obstacles within the corporate landscape? How will the embrace of English shape the future of Japanese business, and what does it mean for the global business landscape as a whole? Only time will reveal the true impact of this linguistic revolution.

Japanese businesses, English as official language, Lingua franca, Fast Retailing Co., Rakuten Group Inc., Language transition, Specialized departments, Digital technicians, Communication in English, Language shift, Engineers shortfall, Language support programs, IT professionals, Digitization, Tech industry, Recruitment, Language compensation, Communication challenges, Global business growth, Cultural and communication barriers
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