JILPT Research Eye

A series of labor-related information (evidence) that contributes to the formation of labor policies.

October 18, 2016 updated

Valuing Internal Human Resource Development in the U.S. Companies

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Ken YAMAZAKI

Project Researcher

Signs of a shift to internal human resource development

Should companies develop and foster internal human resources, on the assumption of long-term employment? Or should they hire external human resources already equipped with the necessary skills when needed? These two conflicting approaches have been discussed as ways of improving corporate competitiveness.

The ways in which companies utilize human resources are an important element in boosting their market competitiveness. The superiority of US-based multinationals in making flexible use of external human resources has often been pointed out, in contrast to the internal human resource training practiced by Japanese companies. On the other hand, there have also been calls for a re-appraisal of Japanese-style human resource development through in-house career development premised on long-term employment.

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