TOKYO -- Mizuho Financial Group decided Tuesday to raise base wages for all employees by 0.5%, aiming to retain its best workers amid increasing international competition for talent.
The financial giant will officially notify unions on Wednesday, and implement the raises from November. About 30,000 group employees stand to benefit.
The three Japanese megabanks, of which Mizuho is one, raised base wages by 0.5% this spring for the first time in 19 years after negotiations with labor unions, thanks to a recovery in their performance.
Mizuho's second hike this year, which is an extremely unusual move, comes not in response to unions but as an independent decision by management. Top brass hopes to boost the morale of employees and improve customer service. The decision was also partly motivated by the fact that wage levels at Mizuho are about 10% lower than at its two rivals.
The group will also revise its employment structure for the first time. For example, it will consolidate internal certifications needed by branch managers and deputy managers starting in July 2015. This will allow younger employees in their late 30s to become branch managers.
Mizuho will also start offering a roughly 1 million yen ($9,050) bonus to exemplary workers.