Japan HR Leaders’ Response to Current Risks in Japan

Foreign media outlets have been reporting on Japan and the ongoing risk of a nuclear incident around the clock, and this is putting enormous pressure on multinationals to be seen to be reacting accordingly. Regional HR Directors and business leaders have come to us to try and concentrate on hearing the ‘real’ information from practitioners themselves, rather than through the filter of either the international or Japanese press. The Chapman Consulting Group recently put the following eight key questions to those, able to answer, in HR in Japan:

1. What is your current policy on repatriating expats in your organisation? Has this changed in the last two days? What were the reasons for your decision?
2. If you are repatriating expats, is your company paying for them and their families? Has this changed in the last two days? What were the reasons for your decision?
3. If you have already repatriated expats, how has this affected the remaining employees? What was your communication strategy?
4. Until now, many companies have made no distinction between locally-employed foreigners and Japanese employees. However, now with individual embassies issuing their own evacuation warnings, some foreign nationals are pointing out their direct contradiction with company policy. How are you now dealing with non-Japanese employees on local contracts?
5. Have you made any full evacuation plans for your entire office? If so, what are the triggers that will set this plan in motion?
6. Do you have any separate procedures for the safety of the senior leadership team? Are they still working from your office? Are they still in Japan?
7. What extra measures are you providing for employees’ families? For example, do you already have an in-house nursery, and if not, are you setting one up?
8. Have you put into place any other security measures that you would be willing to share?

• Questionnaires were sent to approximately 400 HR Heads of multinational companies in Japan. This is the same network of Japan HR leaders that we ordinarily communicate with for the purposes of our specialist HR headhunting business.
• Respondents represent a diverse mix of company sizes, from under 100 to over 5,000. They are also across all industries, including financial services, professional services, industrial and manufacturing, technology, media, healthcare, retail and FMCG.
• Recipients of the questionnaire should only respond if they have time, since the welfare of their own employees was of utmost importance.
• The organisation stopped collecting information after receiving 100 replies to enable rpaid publishing of inofmration. Therefore, although not a statistically representative audience, the finidgs give guidance for Japanese and Regional HR Heads to assist with the on-going management of employee safety in Japan.
• Respondents were asked to be as open as possible, and responses have been edited to avoid potential breaches of company confidentiality.
• Information about the nature of respondents is also provided to facilitate easier usage on a case-by-case basis.

• North America HQ’ed Technology company with 500-1000 employees in Japan: No repatriation is being done.
• North America HQ’ed Technology company with 1000+ employees in Japan: We respect their personal decision. No change for the last two days.
• Europe HQ’ed Financial Services company with <100 employees in Japan: To prioritise expats or foreigners would have caused a certain mistrust to our head office in Europe. So head office has decided to offer all expats and locals the same support, and have offered to relocate anyone who wants to leave. Parallel to this, we have already arranged to send some staff to Singapore and Osaka to ensure continuity of the business.
• Europe HQ’ed Healthcare company with <100 employees in Japan:  We have one expat who happened to be in Australia on business at the time of the earthquake. He has since flown directly back to his home country in Europe and is staying there.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: We have just changed our policy. All expats except the company leadership team are now to evacuate Japan ASAP.
• North America HQ’ed Media company with 1000+ employees in Japan: Our policy has not changed. All are still working towards the resumption of the business with local leaders. We found that there are a lot of differences in information and tone between the Japanese press and foreign press. We think it very important to stay calm and to balance out this information.
• Europe HQ’ed Industrial company with 200-500 employees in Japan: Our policy has not changed. Regardless of nationality, they can decide to leave the Tokyo area at the company's expense.
• Europe HQ’ed Financial Services company with 1000+ employees in Japan: No change. It is business as usual. So if they want to leave temporarily, they need to pay for themselves. It’s the same for their family.
• North America HQ’ed Financial Services company with 100-200 employees in Japan: One non-Japanese employee evacuated outside Tokyo due to the order of their embassy. One trainee is leaving for their home country soon after a discussion and mutual agreement with line management. Besides them, non-Japanese employees are being treated (and are behaving) the same as Japanese employees.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: We have communicated clearly to all our expatriates that if they wish to repatriate their families or they wish to leave Japan themselves, it is their right to make that decision and we will support them (including financial support). A few people decided to send their families back home.
• North America HQ’ed Retail company with 1000+ employees in Japan: There is not a policy per se at this time, other than to care for all of our employees. We have allowed some employees (including expats) to leave or relocate to other places in Japan.
• North America HQ’ed Technology company with 100-200 employees in Japan: No, we haven’t repatriated any expats and there are no plans to do so at this moment.
• North America HQ’ed Industrial company with 500-1000 employees in Japan: Policies regarding expats are administered by the regional headquarters, and we have no bearing on their decision.  I do not know the contents of this plan, however there is an expat still working here in Tokyo, and there is no special treatment given to this person.
• North America HQ’ed Retail company with 1000+ employees in Japan: The Japan entity itself does not have specific policies. We are following the direction of the government.

• North America HQ’ed Media company with 100-200 employees in Japan: We allow foreign employees to evacuate to other country based on their request. But it is personal cost, not reimbursed.
• North America HQ’ed Technology company with 1000+ employees in Japan: The company is paying.
• North America HQ’ed Technology company with 100-200 employees in Japan: We have only been repatriating expats when close family or relatives are in a critical situation. In these circumstances, this is done at the company’s expense.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: The company will pay. This is no change to our previous policy.
• Europe HQ’ed Industrial company with 500-100 employees in Japan: All costs will be covered by the company.
• North America HQ’ed Media company with 1000+ employees in Japan: Some foreigners have evacuated with their family to countries outside of Japan. We provided no payment for evacuation.
• Europe HQ’ed Industrial company with 200-500 employees in Japan: Yes, if the employee decides to evacuate from the East Japan area, the company is covering the cost.
• Europe HQ’ed Financial Services company with 1000+ employees in Japan: No, they pay the cost by themselves. The financial services market in Japan is open and it is business as usual.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: If there was a repatriation, all reasonable costs are paid by the company.
• North America HQ’ed Retail company with 1000+ employees in Japan: Those who have left our Tokyo locations are paying their own way for now and using annual paid leave time or home leave time.

• North America HQ’ed Technology company with 1000+ employees in Japan: We do not communicate to employees about people who have been repatriated.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: Obviously, the impact has not been good. However, we have been able to say that it has been done by order of the CEO, which has helped.
• Europe HQ’ed Industrial company with 500-100 employees in Japan: In our case it wasn’t their own decision, it was a corporate decision. They wanted to stay here with us, but they cannot do so.
• North America HQ’ed Media company with 1000+ employees in Japan: We will not communicate those issues to employees.
• Europe HQ’ed Industrial company with 200-500 employees in Japan: The remaining employees have not really been affected.
• Europe HQ’ed Financial Services company with 1000+ employees in Japan: There were questions raised by local staff. However, objections were minimal because the Japanese employees themselves were also able to work from home if they wanted to, and we have some local staff heading to the west of Japan right now trying to stay away from Tokyo.
• North America HQ’ed Retail company with 1000+ employees in Japan: Some locals know about their leaving, but realise they are using vacation or home leave. It was not formally communicated. We formally communicated to all employees that they need to act in the interested of the safety of their families and loved ones, and we urged them to take time to
• go where they needed to in order to feel comfortable and safe.

• Europe HQ’ed Industrial company with 100-200 employees in Japan: Our policy is to treat them the same as the Japanese. But if they want to leave, there’s no justification to stop them. The leave at their own cost.
• North America HQ’ed Technology company with 1000+ employees in Japan: We are still treating them the same as Japanese employees.
• North America HQ’ed Healthcare company with 1000+ employees in Japan: Our company is making no distinction between Japanese and locally contract foreign employees.
• North America HQ’ed Technology company with 100-200 employees in Japan: We cannot differentiate them based on only the nationality.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: We allowed them to evacuate by either talking holidays or working form other location office outside of Japan at their own cost.
• Europe HQ’ed Industrial company with 500-100 employees in Japan: All of the people in this category with us have Japanese husbands or wives, so they view Japan almost the same as their home country.
• North America HQ’ed Financial Services company with 1000+ employees in Japan:  We make no distinction.
• North America HQ’ed Media company with 1000+ employees in Japan: We treat them the same.
• Europe HQ’ed Industrial company with 200-500 employees in Japan: No matter what their nationality or contract status, if the employee feels the necessity to evacuate, then the company supports their decision.
• North America HQ’ed Industrial company with 500-1000 employees in Japan: We have one local hire American, and we treat this person completely the same as a Japanese employee.
• Europe HQ’ed Financial Services company with 1000+ employees in Japan: We are still treating both categories of staff the same. If expats or non-Japanese local staff want to take temporary leave, it is at their cost. For local staff wanting to move out of Tokyo and head to the west, it is at their cost.
• North America HQ’ed Retail company with 1000+ employees in Japan: This has been heavily debated. We are treating everyone the same at this point, but allowing all employees to take time to be with loved ones, family and be as comfortable and safe as possible.
• North America HQ’ed Healthcare company with 500-1000 employees in Japan: For locally payrolled foreigners, we respect and support their decision if they prefer to take leave and depart.
• North America HQ’ed Retail company with 1000+ employees in Japan: It will be treated as their personal decision.

• North America HQ’ed Technology company with 500-1000 employees in Japan: No.
• North America HQ’ed Technology company with 1000+ employees in Japan: No.
• North America HQ’ed Financial Services company with <100 employees in Japan: No. We are watching how the situation evolves.
• North America HQ’ed Technology company with 100-200 employees in Japan: Key will be the nuclear crisis level. Now they say it’s Level 4. If it goes to Level 5, or if Level 5 becomes a high probability, we may close down the office.
• North America HQ’ed Technology company with 100-200 employees in Japan: We have no such plan in place, but are making it now just in case it becomes necessary.
• Europe HQ’ed Financial Services company with <100 employees in Japan:  If the radiation contamination gets more serious, we might move our HQ to Nagoya or Osaka. If such a case happens, we would recommend our employees to go back their home town if they have family outside of the affected areas.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: Not yet.
• Europe HQ’ed Industrial company with 500-100 employees in Japan: I'm trying to make some scenarios and possibly action plans. The trigger will be the nuclear power plant issue.  If it gets significantly worse, we will implement these actions.
• North America HQ’ed Media company with 1000+ employees in Japan: No. We do think it necessary.
• North America HQ’ed Industrial company with 500-1000 employees in Japan: No
• Europe HQ’ed Financial Services company with 1000+ employees in Japan: If the government makes an announcement that residents in Tokyo need to either evacuate or stay at home, or if the financial market (Tokyo Stock Exchange) is shut down, then we will evacuate.
• North America HQ’ed Financial Services company with 100-200 employees in Japan: One of the business units set up a satellite office outside Tokyo. We do not have a solid policy, but we approve/support each business request on a case by case basis.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: As part of our crisis management procedure we have evacuation plans in place as a contingency, but we are not activating those plans yet. Since we have business operations across the country, we took different measures depending on how badly the areas were affected. In some areas (e.g.
• Western Japan) it is business as usual. In some other areas (including Tokyo) we have asked people to stay at home and work remotely.
• North America HQ’ed Retail company with 1000+ employees in Japan: We've suspended business in our Tokyo locations only until late next week. We have built further disruption plans in the event another quake, tsunami or otherwise.

• North America HQ’ed Technology company with 500-1000 employees in Japan: No.
• North America HQ’ed Media company with 100-200 employees in Japan: We have closed the Tokyo office for the time being. We are now starting to consider moving the management team to Osaka, not as as a special safety measure but just to ensure business can continue.
• North America HQ’ed Healthcare company with 100-200 employees in Japan: No.
• North America HQ’ed Technology company with 1000+ employees in Japan: No
• North America HQ’ed Healthcare company with 1000+ employees in Japan: No, and everyone is still working from the office in Tokyo.
• North America HQ’ed Financial Services company with <100 employees in Japan: No. Our office head, who is also the APAC head and is not Japanese, works from this office and has no plan to evacuate.
• Europe HQ’ed Healthcare company with <100 employees in Japan:  Our HQ in Europe did request our CEO/COO to evacuate Tokyo, but we cannot because we have to keep our business here in Japan.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: The top leadership team is all in Japan and mostly are working in the office. Some are working from home.
• North America HQ’ed Financial Services company with 1000+ employees in Japan:  We make no distinction.
• North America HQ’ed Media company with 1000+ employees in Japan: We think the situation has been improving and appears controllable. Whether foreigners or Japanese, the most important thing for leaders is to be here to protect employees and business.
• Europe HQ’ed Financial Services company with 1000+ employees in Japan: All the senior leaders including the Japan country head, business heads, and heads of all support functions are all working in the office to protect the franchise.
• North America HQ’ed Financial Services company with 100-200 employees in Japan: There is no distinction between senior leaders and others in term of safety procedures.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: A business critical group of senior managers (including locals and expats) moved to Osaka temporarily.
• North America HQ’ed Retail company with 1000+ employees in Japan: At this time, procedures remain the same. All senior management members are in Japan, working from home or one of our locations.
• North America HQ’ed Healthcare company with 500-1000 employees in Japan: For the senior team we do still operates mainly from Tokyo, either at the office or at home. However we have some key positions already based in our plant in the south of Japan. In case things change, we have plans to divide them up between the plants and the Osaka office.

• North America HQ’ed Technology company with 500-1000 employees in Japan: No.
• Europe HQ’ed Life Sciences company with 100-200 employees in Japan: we provided hotel rooms for employees and their family in Tohoku area.
• North America HQ’ed Financial Services company with <100 employees in Japan: We are being flexible for staff members with children in day-care by allowing them to work from home.
• Europe HQ’ed FMCG company with 500-100 employees in Japan: We are providing laptop PCs so that people can work from home.
• North America HQ’ed Media company with 1000+ employees in Japan: We communicated with employees and their families quite a lot about the ongoing situation, and we were sure to confirm that their salary will be paid during their period of staying at home.
• Europe HQ’ed Financial Services company with 1000+ employees in Japan: No we do not have any in-house nursery. For those employees who need to support their family and children, we allow them to stay at home.
• North America HQ’ed Financial Services company with 100-200 employees in Japan: No extra measures for employee' families are planned.

• North America HQ’ed Technology company with 500-1000 employees in Japan: Basically, we are back to a normal working schedule now that the transportation system is somewhat operational. We have assigned someone internally to keep constant watch of the news in order to be well-informed and act accordingly if there is a need for further action.
• North America HQ’ed Media company with 100-200 employees in Japan: We have extended our head office’s EAP programme to employees in Japan, translated into Japanese.
• Europe HQ’ed Healthcare company with <100 employees in Japan:  We have provided our employees and their families in Sendai area with free hotel accommodation in Yamagata-prefecture.
• North America HQ’ed Industrial company with 500-1000 employees in Japan: We are continuing to tell employees that they can work from him, so long as they report their status to their manager on daily basis, and that manager reports it to the HR Head thereafter. So it’s the HR Head who knows the whole office situation.
• Europe HQ’ed Financial Services company with 1000+ employees in Japan: A web-page has been created where any update on the status of Japan can been watched from anywhere globally. Also, as phones did not work during the earthquake last Friday, we encouraged staff to use the ‘emergency message function’ of their mobile carrier, which they can access
• from their private mobile phone’s specific internet interface. For iPhone users, we encouraged staff to download a free application called ‘Viber’, since among iPhone users, calling each other using Viber was still functioning on Friday while all other phone lines were down. Also, Facebook and Twitter were also functioning last Friday, so we informed staff with smartphones that this might be another way to communicate with each other during the crisis.