Naturally, several years elapse until these new employees become efficient. Upon retirement, they receive a lump-sum payment and a company pension. When business is depressed, regular employees are dismissed only as a last resort. In most Japanese companies, wage increases and promotions are primarily governed by the employee's age and the length of service in the company. Japanese companies typically provide fringe benefits that enable employees to enjoy recreation and leisure activities, such as athletic competitions, employee excursions, and so on.
Employees have access to the facilities for hobbies, including sports, reading, and board games.
As for other benefits, companies offer special allowances in addition to the basic salary, company-owned housing, dormitories for single workers, and various health and welfare benefits. The system is not universal, however. It applies mainly to the employees of large enterprises. In the framework of the lifetime employment system, workers in general have found it to their own advantage as well as to that of their families, to demonstrate loyalty to their company. In addition to this, they have given precedence to company considerations over those of their family and personal life.