World of HR: At Hitachi, it pays to embrace diversity…literally

While DE&I efforts in the US have become the target of right-wing politics, they’re full steam ahead in Japan, where one company will reward employees who foster a diverse workplace.

Where in the world? Hitachi, a Tokyo-based tech company, will include DE&I in its employee performance reviews starting in April 2025, Nikkei Asia news reported. The new initiative is part of the company’s effort to increase retention and decrease the potential for workplace cultural misunderstandings among its majority non-Japanese workers.

To start, some 40% of the company’s Japan-based workforce (around 50,000 employees) will be rated on their progress toward specific diversity goals as part of their twice yearly performance review. Goals could include helping colleagues with disabilities, or improving their understanding of other cultures, according to Nikkei’s reporting.

Japan has unique diversity and equity challenges, according to 2023 research published by Routledge Studies. The country has a wide gender gap, and fewer than half of women hold full-time jobs. Additionally, Japan has a large population over 65 and has a growing number of non-Japanese workers to compensate for its aging workforce,. Hitachi’s efforts may be enticing to the 97% of Gen Z workers in Japan who consider DE&I an important factor in their job search, according to the Japan Times.

Satellite view. Alternatively, some business leaders and politicians in the US are trying to dismantle DE&I, with several lawsuits being adjudicated and legislation introduced that limits DE&I in some educational institutions.

DE&I jobs are still growing, and many executives are doubling down on their diversity initiatives. Regardless of how some view DE&I, the programs are still important to a majority of millennial and Gen Z workers, who say they prefer to work for a company that focuses on diversity, Bloomberg Canada reported.