Japan is Going English

At Rakuten, we strive to make English our official language. Not only in official meetings with our global partners and business units, but we are using English as our everyday language. We’re having success. Even The Wall Street Journal is writing about it.

Learning English is a challenge for a Japanese company, but one I am committed to, not just for myself, but for a larger goal. Englishnization is, in my opinion, not just a strategy for Rakuten, but a global strategy for Japan. Other Japanese companies are taking note. In fact, Honda announced this week that English will become its official language.

Let’s look at success stories in Asia. I believe Singapore is so successful because English is one of its official languages. It is a strategy that allows it to attract and employ the best workers from all over the world. I believe if Japan were to make English one of its official languages, it would make Japan a real economic powerhouse, creating a powerful edge over China and South Korea.

At Rakuten, we have already seen the benefits of Englishnization. As of April, the average employee score on the Test of English for International Communication, or TOEIC, reached 802.6 out of a possible 990 points. A score above 800 indicates advanced proficiency. This is helpful because today, more than 10% of employees in our Tokyo offices are foreign nationals. Back in 2010, that number was only about 2%. Within engineering, the numbers are even more dramatic; about 70% of our new hires come from outside Japan. And we are attracting graduates of the best foreign universities such as Harvard, Yale, Stanford, Cambridge, Peking University and the Indian Institute of Technology.

Englishnization has not been an easy process for Rakuten but we are already seeing the positive impact – our ability to recruit and retain talent from around the world. This is a process any company – or country—can copy for global business success.