"THE CHANGING WORKPLACE--A VIEW FROM THE STAFFINGINDUSTRY" (GRACE Co., Ltd)

JFS Newsletter No.15 (November 2003)
"TOWARD A SUSTAINABLE JAPAN - CORPORATIONS AT WORK" ARTICLE SERIES Article No. 7
http://www.grace-e.co.jp (Japanese only)

Changing Employment and work styles and Growth in Japan's Staffing Industry

Employment and work styles are undergoing a transformation in Japan. As more and more companies are inclined to outsourcing in the labor market, the rate of non-permanent employees, including part-time and casual workers, is rising (1 out of 4 workers was a non-permanent employee, according to a 2001 survey by Ministry of Public Management, Home Affairs, Posts and Telecommunications). The number of temporary staff in the workforce coming from staff placement agencies more than doubled in 5 years to the year 2000, from 540,000 to 1.25 million (According to Ministry of Health, Labour and Welfare).

It is often said that beneath this change is a breakdown of Japan's lifetime employment system of large corporations during the last 10 years of recession. But one major internal driving force should not be ignored--the fact that people are trying to change their work styles. For example, there is an increasing tendency among younger workers to be less dependent on a specific company and to see companies simply as the "infrastructure" for them to work as free agents. Furthermore, it is easy to expect that as baby boomers, many now in their fifties, reach retirement age in the coming years, employment and work styles will become even more diverse.

GRACE: A Staffing Agency with "Environment" as the Keyword

Founded in 1995, GRACE is a Japanese company proposing a new work style by offering staffing and human resource development services with the environment as the keyword. With approximately 5,000 persons registered, including a much higher proportion of personnel, researchers, and specialists with environment-related qualifications than its competitors, the company now has 18 of its own employees, and annual sales reached 1 billion yen (about U.S.$ 9 million) in fiscal 2002.

But when the company was first established and started promoting itself as a specialist in environment-related staffing, there was only limited demand for such workers. However, demand for environment-related research and development staffing surged after a government ban affecting personnel from staffing agencies for R&D was lifted in 1996. Demand started to take off around 1999 and 2000, as corporate attitudes toward environmental issues shifted from passively "responding" to regulations, to actively "strategizing" to take advantage of business opportunities and improve information disclosure.

Statistics tell the story. The number of companies in Japan with ISO 14001 certification for environmental management systems rose from only 140 in 1996, to 1,000 in 1998, 5,075 in 2000, and then to 10,952 in 2002. Also, the number of companies that issue environmental reports as a communication tool has increased from less than 100 in 1998 to over 400 in 2000, and almost 700 in 2002. Along with this growth, demand for the environment-related personnel registered at GRACE increased and eventually exceeded demand for general administrative personnel. By 2003, of 980 persons actively employed, almost 70% were engaged in environment-related work.

The content of the environment-related work has changed over time. In the beginning, almost all demand was for environmental analysis (e.g., for people with certification in environmental metrics and measurement), but current demand has shifted to persons that can be directly involved in R&D, such as analytical technicians for food and drugs, as well as researchers with a biology background. Also, environment-related work was dominated by science majors in the past, but today there is greater demand for social science majors, including persons with knowledge of environmental management, translation, and sales, and for ISO-certified auditors.

Teaming Up with Its Own Personnel

As GRACE interacted with its clients, many of them ISO 14001-certified companies, it learned more about management systems, and started to ask what environmental initiatives and management should be expected of the staffing industry. It was clear that it would not be enough just to reduce the use of paper and electricity and the generation of waste. GRACE asked itself what a staffing agency could do to promote sustainable society. The company then realized that if it could educate and inspire its more than 3,000 (at that time) registered personnel and change the way they work, the effects may be as important as the environmental efforts of large corporations. Based on this hypothesis, GRACE intensified its environmental initiatives and became Japan's first staffing agency to acquire ISO 14001 certification.

In what way does GRACE educate and inspire its registered personnel? First of all, the company educates newly-registered personnel on the environmental policies of the company and urges them to actively get involved in environmental initiatives at the company. It also provides a place for learning and skill improvement in ways that span the gaps between persons educated in science and social science majors. It is often the case that an environmental technician fails to have a wide perspective for environmental management and business, or a social science major with keen concern for the environment does not have enough skills and knowledge in chemistry.

To address this, GRACE offers a series of sessions called "Eco-knowledge Seminars" and provides opportunities for science majors, such as researchers and technicians, to learn about environmental management system and business, and for social science majors such as editors and consultants to learn knowledge and skills in chemistry. For example, the company has offered "Seminars on the Environment, Medicine, and Health" and "Seminars on the Environment and Business Skills." In addition, a newsletter that covers such activities is delivered monthly to personnel along with their salary statements.

Regarding the kinds of persons demanded in the market, Etsuko Yasui, president of the company, writes in her report, "Environment-related staffing services and green employment," as follows: "An environmentally advanced company usually has its environmental department or headquarters and a company- or group-wide environmental strategy. The company conducts environmental reporting, environmental accounting, and stakeholder relations through that department, but responses to today's environmental issues require the participation of not only a few specific departments but all departments in the company." Be it sales, accounting, or planning, an understanding of the essence of environmental issues is a must in any field, and "there are a number of actions required, from highly-specialized fields such as adjusting to regulations, development of environmentally-friendly products and environmental technologies, to more day-to-day operations such as green purchasing, waste reduction, and communication with stakeholders. Also, in order to check the environmental consciousness of a company's suppliers, one must have a certain level of knowledge on environmental issues."

Fumiyo Ogawa, Executive Director of GRACE, and Kazuya Aoki, Matching Director (responsible for matching corporate and human resources) confirm this trend. For example, they say that there is a growing need for personnel well-versed in both public relations and the environment. Or for product developers with an understanding of the effects of certain material on the human body. Or for personnel who can conduct an environmental analysis, develop products, promote sales, and even write copy for key messages. Or for "housing advisors" with knowledge in biology on such health issues as what is being called the "sick house syndrome." For Ogawa and Aoki, these are the kinds of human resources demanded by today's market.

Toward Work Styles for a Sustainable Society--The Challenge for Green Employment

GRACE has been promoting the concept of "Green Employment" since the beginning of 2003. The company uses the words to include non-environmental elements, and the concept could be defined as "empowering and enjoyable employment and work styles move us toward a sustainable society. If we think about it, it is clear that sustainable society is something made, supported, and developed first and foremost by human beings, not just by technology and social systems. GRACE's efforts in the staffing industry remind us of the importance of adjusting our own working styles to be compatible with sustainable society.