Zuitt has provided Japanese language training for Filipino employees to Daito Precision and its subsidiary in the Philippines, where the company is growing its production base. We spoke with Mr. Hiroshi Saito, CEO of Daito Precision Co., Ltd., to discuss his perspectives on employing foreign workers and the significance and effects of Japanese language training.
(Interviewed by Hiroyuki Ohashi)
Philippines Factory Becomes a Core Production Hub
– Could you tell us about Daito Precision’s business?
Saito: Our company was established in 1977 in Miyagi Prefecture and is engaged in the production of precision mechanical components through injection molding. We primarily manufacture and assemble plastic and metal electric and electronic parts, design and manufacture mold tooling, and design and produce plastic optical elements. Our expertise is in precision parts, supplying customers with automotive parts, camera lenses for medical equipment, home appliance parts, and more.
– What are some unique aspects of your company?
Saito: Our main focus is on parts around automotive steering, such as instrument panels where audio and air conditioning controls are located. Recently, our production of smartphone parts has also been increasing.
– What do you think is the reason customers choose your products?
Saito: Our automotive steering parts and medical camera lenses, for example, have zero tolerance for defects as they are critical to safety. We believe that our commitment to high-quality control and our track record of delivering defect-free products lead to ongoing orders.
– In 1994, you established “DAITO PRECISIONS INC. (DPI)” in Cebu and “JAPLAS INJECTION MOULDERS CORP. (JIMC)” in Batangas, Luzon, in 2001. What led to your decision to set up a base in the Philippines?
Saito: A client we continue to work with today encouraged us to consider an overseas expansion, particularly to Cebu, where they were ramping up production at the time.
– How do you view the role of your Philippines factories?
Saito: When the factory first opened, it was a small facility. However, since 2000, Japanese companies have moved their mass production bases overseas, especially to ASEAN countries, and now overseas factories have become the center of manufacturing. Compared to the approximately 30 employees at the Japanese headquarters, DPI (Cebu factory) has about 200, and JIMC (Batangas factory) has around 400 (as of October 2024).
Bringing Filipino Employees to Japan as Part of Retention Strategy
– You’ve brought Filipino employees to work in Japan. What was the purpose behind this?
Saito: Since the 1990s, we have been bringing Filipino employees to our Miyagi factory in Japan. Initially, the goal was to teach them our Japanese quality philosophy. Over the years, this shifted to addressing Japan’s engineer shortage by utilizing talented engineers from the Philippines. In the last decade, we have also focused on reducing turnover, making this goal increasingly important.
– So, there is a high turnover rate among Filipino employees.
Saito: The turnover rate among employees in the Philippines is notably higher than in Japan, a trend supported by data from Think Tanks. The primary reason for this turnover is salary, as many employees seek better-paying opportunities in neighboring countries or abroad as Overseas Filipino Workers (OFWs). In response, our company offers Filipino employees the same salaries as Japanese workers to attract and retain talent, aiming to reduce turnover.)
– Is there a strong desire among Filipinos to work in Japan?
Saito: Yes, largely due to the salary. There’s also an admiration for Japan, often influenced by Japanese culture, including anime, which has led to a broader interest in the country.
Challenges in Creating Opportunities for Japanese Language Use
– Can you share the specific measures for bringing Filipino employees to Japan?
Saito: We have two types of programs. One is for resident employees who work as engineers in Japan for at least one year, and the other is a trainee program, where employees come on three-month rotations.
– Are there concerns that they might leave after returning with valuable experience from Japan?
Saito: Although it’s common elsewhere, we haven’t experienced this issue. If they do gain a sense of self-accomplishment and find a higher-paying job upon returning, that’s not necessarily a bad outcome, as we aim to support their growth in both Japan and the Philippines.
– What challenges does your company face?
Saito: While our training emphasizes adapting to Japanese culture, which they learn quickly, it remains a challenge to create opportunities for them to practice Japanese outside of work, as many live on company premises. We are working on addressing this gap.
Online Japanese Language Training: An Appealing Solution
– Why did you decide to implement Japanese language training for Filipino employees?
Saito: Many Filipinos who join Japanese companies genuinely like Japan and wish to learn Japanese. Additionally, Japanese language proficiency helps reduce communication barriers, which is a huge benefit. We previously tried in-person classes in Cebu, but these could only be conducted once a week, which was not sufficient for real language acquisition. Learning about Zuitt’s online training program, which offers substantial learning hours at a reasonable cost, made this program ideal for our needs.
Encouragement to Use Japanese Boosts Job Enthusiasm
– How have your employees responded to the Japanese language training?
Saito: The training is intense, with two-hour sessions every weekday for those stationed in Japan or those aspiring to be stationed here. Their enthusiasm for learning Japanese has grown, with some employees now setting goals for Japanese language certification.
– What other effects have you seen?
Saito: Communication has become smoother, and employees are more proactive in engaging with their Japanese colleagues, leading to fewer work-related issues. Their interest in Japanese culture and people has deepened, which we see as a primary benefit. Additionally, their positive attitude toward learning Japanese has translated into a broader enthusiasm for their work.
Conclusion
With its approach to fostering talent pipelines from its subsidiaries in the Philippines to its headquarters in Japan, Daito Precision offers a model for effectively integrating foreign talent. The company’s commitment to quality control and its skilled use of foreign workers are notable strengths, making it an exceptional company in this field.
(For more information on Zuitt’s Japanese language training and courses on utilizing foreign talent, please contact us here.)
