Dyed hair and nail art ok! More Japanese firms relax rules in tussle for workers

Highlights:

• Retail firms doing away with restrictions on hair colour, nail polish
• Labour crunch means Japan Inc needs to do more to attract workers
• Some big listed companies also relaxing dress codes

When 22-year-old Hinako Mori moved to Tokyo last year, she chose to work part-time at Don Quijote, a major discount retailer, for one main reason - it doesn't care what colour her hair is.

Sporting ash blonde locks with light and dark blue streaks when interviewed, Mori likes to dye her hair different colours every six weeks.

It was very different when she worked at a major Japanese convenience store chain that mandated black or dark brown hair.

"One time, I dared to dye my hair blonde. But the next day, I was told to either wear a wig or use spray-on colour," said Mori. "It was very stressful."

Retailers relax rules

Squeezed by Japan's tight labour market, more companies are this year following in the footsteps of Don Quijote, a Pan Pacific International group company. It relaxed its rules around hair and nail polish three years ago and says nearly a quarter of its employees now have brightly coloured hair. When brown is included, 55% of its employees have non-black hair.

Drugstore chain Fuji Yakuhin, for example, has done away with a plethora of rules for non-pharmacist employees. It now allows any hair colour, nail art, heavy makeup, as well as all kinds of rings, whereas previously only wedding rings were permitted. Similarly, the operator of Tokyu Store supermarkets has dialled back restrictions on hair colours, hair styles, accessories, nail polish and piercings.

Japan Inc has been gradually relaxing its dress codes over the past two decades. The catalyst was a 2005 Ministry of Environment "Cool Biz" campaign that encouraged the ditching of jackets and ties to cut down on air conditioning costs during summer.

Since then, summer dress codes have become more casual, uniforms are no longer mandated for many department store employees and white gloves for taxi drivers were made optional.

The newest changes around hair colour, nail polish and accessories are predominantly taking place at smaller companies facing more acute labour shortages than bigger firms and don't have as much leeway to offer competitive wages.

But some big listed firms have relaxed dress codes this year. Japan Airlines last week joined subway operator Tokyo Metro and domestic budget carrier Skymark Airlines  in allowing staff to wear sneakers to work.

Labour crunch pressure

Japan, a rapidly ageing country with limited immigration, has seen its working-age population tumble 16% since a peak in 1995, according to OECD data. That's set off fierce competition for staff.

Two-thirds of Japanese firms have said the labour shortage is having a serious business impact, a Reuters survey shows. It was the leading cause of Japanese bankruptcies in 1 April-30 September, with the number of failures hitting their highest level in 12 years for a first-half period, according to Tokyo Shoko Research.

That's given young people more power, at least with regard to part-time work.

Two-thirds of students believe they should be able to choose their appearance when working part-time, according to an April survey by job information and recruitment firm Mynavi. One-third said they had withdrawn job applications because of dress codes at potential employers.

"Students aren't just looking for work experience or to earn money; they seem to be seeking something more in their jobs – a sense of freedom or comfort," said Shota Miyamoto, a researcher at Mynavi. But he added they did not expect the same of full-time work.

While Japan may be loosening up, some aspects of personal appearance that have become common in the West, like multiple or facial piercings, are still a bridge too far for many companies. Workers with tattoos - art traditionally associated with the yakuza in Japan - are generally asked to conceal them so as not to intimidate customers.

The latest changes have also yet to permeate many traditional big-name Japanese companies. Sumitomo Mitsui Banking Corp, for example, says it doesn't have policies about hair or nail polish, but it's generally understood among employees that their personal appearance shouldn't create waves.