New Toyota CEO Joins Merit-Based Pay Argument as Inflation Rises
- Carmaker is implementing biggest wage hike in decades
- Japanese companies are also dealing inflationary environment
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Toyota Motor Corp. will adopt a more flexible and merit-based approach to rewarding and promoting employees, as the return of inflation in Japan triggers a wider reckoning around long-stagnant wages.
With Toyota becoming a mobility company that offers a wide range of products and services to transport people and goods — rather than just manufacturing cars — it needs be more innovative with its labor force, not just efficient, incoming Chief Executive Officer Koji Sato said a briefing Wednesday.