For Japanese Companies: Redefining Career Development by Generation ~ Journey to Skill-Based HR 

Global Trend ― From Jobs to Skills 

Regardless of the HR system adopted, jobs are always the foundation. Yet the current global trend is the shift from job-centric systems to skill-based HR. 
Leading global companies such as Unilever, IBM, and Novartis are redesigning careers, assignments, and compensation around employees’ skills and capabilities. 

At the same time, in recruitment, “skills-first” approaches are rapidly replacing academic pedigree. What a person can do has become the core of talent evaluation. 

From an educational perspective, many countries adopt career-oriented education systems. Students often decide their future career paths during their school years and acquire the relevant knowledge and skills through universities or vocational education before entering the workforce. 
For example, in Denmark, career-oriented education begins as early as high school, where academic learning is directly connected to future occupational choices. Competing with such talent, Japanese companies can no longer rely solely on the traditional approach of developing generalists through job rotations after hiring. 

Challenges for Japanese Companies 

As job-based HR spreads rapidly, many Japanese companies are facing challenges. 
A complicated issue is when career goals and assignments are determined solely based on employees’ preferences. While respecting individual aspirations is important, HR initiatives disconnected from organizational strategy fail to contribute to either personal career development or business outcomes. 

This is why the central challenge today is how to balance individual career aspirations with organizational needs. The overlapping area of these two circles — the “Sweet Spot” of talent development — is where education and growth opportunities should be concentrated. Moreover, linking skill development and recurrent education to performance evaluation is the key to building sustainable careers that both organizations and individuals can embrace. 

Skill and Recurrent Education by Generation 

20s: Laying the Foundation 

• A decisive stage for exploring personal strengths 

• Organizations should provide cross-skilling (breadth) and upskilling (depth) opportunities 

• Recurrent education is not yet essential, but awareness of “lifelong learning” should begin here 

30s: Identifying Strengths and Weaknesses 

• Use accumulated achievements to analyze strengths and weaknesses 

• Support upskilling to deepen strengths and reskilling to complement weaknesses 

• The most effective period for recurrent education — new learning can be directly applied to practice 

40s: Integrating Expertise and Versatility 

• Consolidate broad experience into a clear career “core” 

• Reskill in emerging areas such as digital and AI 

• Practical programs such as executive training, leadership development, and organizational development are highly effective 

• Global networking and cross-cultural management training expand international perspectives 

50s and Beyond: Knowledge Transfer and Second Careers 

• Play a crucial role in mentoring and passing on accumulated expertise 

• Prepare for second careers through recurrent education 

• Lifelong learning becomes the bridge to new career stages 

Conclusion ― Building Competitiveness in the Global Arena 

The most critical factor in shifting toward a skill-based HR model is to link talent development with performance evaluation. This ensures sustainable career formation that satisfies both organizations and individuals. 

Globally, talent often enters the workforce after years of career-oriented education. Therefore, Japanese companies must strengthen skill development and recurrent learning opportunities after hiring and establish mechanisms to create the career “Sweet Spot” where organizational objectives and individual aspirations overlap. 

By integrating these efforts with Japan’s traditional strengths — collaboration, adaptability, and long-term investment in people — Japanese companies can secure a distinctive competitive edge in the increasingly fierce global talent race. 

About the Author’s Book 

“The Seven Myths and Truths of Job-Based HR: The Real Reason Why It Doesn’t Work in Your Company” is now available on Amazon: 
https://amzn.asia/d/4LtJtq0