Hairdressing allowance and free cafeteria... Japanese companies are working hard to provide welfare during the hiring crisis

Inflation also affects... It is cheaper than raising wages and can be operated flexibly.

(Seoul = Yonhap News) Reporter Kim Byeong-gyu = The Nippon Keizai Shimbun (Nikkei) reported on the 19th that an increasing number of Japanese companies are focusing on the welfare of their employees due to the labor shortage and inflation.

Line Digital Frontier, the operator of the webtoon service Line Manga, has made employee cafeteria free since last August.

Previously, early morning breakfast and lunch were provided free or at a low price, but recently, employees can use the temple cafeteria even in the evening for free.

Nikkei quoted an official from this company as saying, "It's a big advantage because you get three free meals when you come to work," and explained that it has the advantage of promoting employee communication, increasing satisfaction with the company, and controlling costs rather than raising wages.

Resource Creation, a social media (SNS) operating agency, has been paying a beauty allowance of up to 200,000 yen (approximately 1.7 million won) depending on job position and years of service since 2024 as part of company welfare.

If the purpose is beauty, there is no question as to where it will be used. An employee of this company said, “It motivates me to work because I can get beauty treatment with the company allowance,” and added, “I got Botox injections to improve wrinkles with the beauty allowance of 150,000 yen (about 1.28 million won).”

According to a survey conducted by the Ministry of Health, Labor and Welfare with credit information company Teikoku Databank, corporate welfare costs in 2025 increased by 4.8% compared to the previous year. Among the companies surveyed, 47.6% of companies were planning to expand welfare benefits.

The reason companies are focusing on expanding in-house welfare is to secure excellent employees in a situation where real wages are decreasing due to high inflation.

The consumer price index has continued to show inflation of more than 2% compared to the previous year for four consecutive years until last year, and on the other hand, as the low birth rate and aging population continue, the manpower shortage is serious.

Getaro Takada, president of Resource Creation, which pays beauty allowances, said, “If students applying for new jobs understand the company culture, feel good about the company, and join the company, it will have the effect of lowering the turnover rate.”

Koji Nishikubo, professor emeritus at Yamanashi University, said, “Compared to wage increases, which have high management risk, welfare expenses can be managed flexibly,” and added, “A company’s independent welfare system is easy to use in recruitment activities because it conveys the consideration of management.”