DEVELOPING SKILLS AND PAY THROUGH CAREER LADDERS - LESSONS FROM JAPANESE AND US COMPANIES

U.S, companies' adaptations of Japanese training practices typically h ave been concerned with increasing formal classroom training for incum bent workers. Research in large companies in Japan and the U.S. indica tes that Japanese training systems primarily take the form of structur ed on-the-job training, embedded in long career ladders that simultane ously increase skill and pay for Japanese workers over their careers. Meanwhile, training in U.S, companies tends to be informal and sporadi c and is embedded in short job ladders. U.S, firms can improve the eff iciency of their training for non-exempt employees by providing struct ured on-the-job-training and creating career ladders that improve skil ls and pay over their employees' tenure. Such reforms can increase pro ductivity, lengthen careers and increase pay for front-line workers wi thout relying upon employment security policies or massive increases i n firm or government expenditures.