Are you working in a Purple Company? A new type of Japanese company has appeared
Key Points
“Soft black companies” and “purple companies” are new terms for workplace environments where opportunities for growth are structurally limited.
Purple companies have three structural characteristics: evaluation systems based on time rather than results, a gap between official vacation policies and actual vacation usage, and work that depends too heavily on specific individuals rather than systems.
Japanese IT companies become purple companies due to multilayered subcontracting structures.
Have you heard the term “soft black company” or “purple company”?
Originally, these terms were referred to companies between “black companies” and “white companies.”
That has changed.
They are now used to describe workplace environments where compliance and ease of work are traded off against growth opportunities and market value.
Just as companies ask if you plan to work with them long term, employees are also asking whether a company is a place where they can build a long-term career in Japan.
This is due to the decline of lifetime employment and growing talent mobility.
In this article, we will unpack the idea of “purple companies”
Let’s get started. :)
What Are Soft Black Companies and Purple Companies?
Purple companies are companies where long-term career growth is difficult.
Three Structural Characteristics of Purple Companies
Vague evaluation criteria, often based on working hours or attitude
Work that depends heavily on individuals
Low use of paid leave
Here, we compare “purple companies,” also known as “soft black companies,” with genuinely black companies.
Comparison: Purple Companies vs. Black Companies
| Category | Purple Company / Soft Black Company | Black Company |
|---|---|---|
| Legality | Legal | Illegal |
| Working Hours | Moderate to relatively long | Long hours and illegal labor practices |
| Growth Opportunities | Low | Low |
| Reproducibility of Growth | Low | Low |
Why Do Purple Companies Emerge?
You can assess how likely a company is to become a purple company by looking at the following three checkpoints.
Time-based evaluation: Overtime is valued, while improving work efficiency can actually put you at a disadvantage.
Vacation usage: If managers do not take time off, a team culture where people find it difficult to take leave can develop.
Work depending on individuals: If there are no manuals or shared progress updates, handovers between team members and collaboration across departments become difficult. As a result, specific employees become tied to certain tasks.
When these three factors interact, they accelerate a negative cycle of individual-dependent work and poor efficiency.
Example: work becomes dependent on individuals → vacation usage decreases → time-based evaluation becomes stronger → long working hours become normalized
Differences Between Japanese Companies, Foreign Companies, and Startups
From here, let’s look at the factors that cause companies in the IT industry to become purple companies, divided into Japanese companies, foreign companies, and startups.
How Japanese Companies Can Become Purple Companies
Structure: Multilayered subcontracting and person-month business models, where time equals revenue
Points to watch: Whether evaluation is based on working hours, whether work depends on specific individuals, and how often projects become chaotic or “go up in flames”
How Foreign Companies Handle Performance Pressure
Structure: Performance-based evaluation and clearly defined job responsibilities
Points to watch: Vacation usage, work depending on individuals, and how the team handles performance pressure, including systems such as PIPs
Internal Structure at Startups
Structure: Lack of people and undefined roles
Points to watch: Work depending on individuals, the degree of change in business strategy and direction, and how clearly internal systems and rules are documented
Here is a simple comparison.
Comparison Summary
| Category | Japanese Companies | Foreign Companies | Startups |
|---|---|---|---|
| Work Evaluation Axis | Time | Business results | Time and business results |
| Work Depending on Individuals | High | Low | High |
| Vacation Usage | Generally low, though improving in recent years | Generally high | Varies greatly by company |
| Factors That Can Lead to Becoming a Purple Company | Labor structure | Pressure to deliver business results | Degree of internal rule development |
Which Environment Fits You?
From here, let’s look at the types of people who are needed in each environment and the types of people who feel comfortable there.
Which one sounds most like you?
People Who Fit Japanese Companies
Characteristics:
In Japanese companies, it is difficult to build portable skills or a career that transfers across companies.
On the other hand, if you adapt to one company’s environment, it may be an environment where you can maximize the cost performance of skill development and self-improvement.
It is good fit for people who want to reduce environmental change and prioritize work-life balance and stability.
Career change advice:
In Japanese companies, each company has its own skill sets, ways of working, and internal rules, covering hard and soft skills.
Before and after changing jobs, it is important to take stock of the work you did and the internal rules you followed at your previous company, while also being ready to relearn the rules of your new company.
From the interview stage, it is recommended that you pay attention to differences from your previous role, including how reproducible your skills will be in the new environment.
People Who Fit Foreign Companies
Characteristics:
Foreign companies are places where you can make use of your expertise and previous experience.
They are recommended for people who want to be evaluated based on their ability while fully applying their skills and experience.
Career advice:
Foreign companies have attractive features, such as interesting work and high salary levels, including performance-based compensation.
However, compared to Japanese companies, talent mobility is higher, and performance carries more weight in evaluations.
Especially immediately after joining, it is helpful to confirm what kind of support system is available if you are not yet producing results.
This helps you settle into the role more smoothly.
People Who Fit Startups
Characteristics:
Startups are training grounds where you can use your expertise while constantly updating yourself on the latest skill trends.
Because talent mobility is high and business development moves quickly, you can aim to gain experience in skill development, management, and decision-making that comes from building something from scratch. T
hey are especially recommended for people who have a clear area of expertise, a clear goal they want to pursue, and the resilience to step into unknown territory.
Career change advice:
At startups, you can expect faster change and faster decision-making than at Japanese companies or foreign companies.
It is important to regularly and carefully review your self-analysis, including your expertise and the environment where you can make best use of it, your career axis, including the new skills and experience you want to gain, and your value in the job market.
For those considering a move to a startup:
Even though we use the single word “startup,” the atmosphere can change dramatically depending on the stability of the business. It is recommended that you research the company’s business development stage from perspectives such as IPO plans, profitability, and overseas expansion.
Build+ also explains the growth stages of startups in an English-language blog. A Japanese version will also be published soon, so please check that as well.
Recommended Questions to Ask in Interviews
Because purple companies are characterized by time-based evaluation, low paid-leave usage, and work that depends too heavily on specific individuals, it is recommended that you ask questions about these areas during interviews.
Below are some points to check and sample questions you can ask.
Time-Based Evaluation
Point to check:
Try to confirm whether evaluation metrics and KPIs exist, and what kind of working style is common among employees who are producing results.
This can help you understand how management evaluates people.
Sample question 1:
“What do people who are highly evaluated at your company have in common?”
This helps you check tendencies in employee evaluation.
Sample question 2:
“How do the top performers in the department use their time?”
This helps you check the working style and internal culture that the company encourages.
Paid Leave Usage
Point to check:
Do not only check the paid-leave system defined by the company. The actual rate of paid-leave usage in the team you would join is also an important clue for understanding team culture.
Sample question 1:
“Could you tell me how people in the team take paid leave, including timing and process?”
This helps you check the actual vacation usage in the team you may join.
Sample question 2:
“Do managers take time off?”
This helps you understand the overall atmosphere of the team by looking at the behavior of management.
Work Depending on Individuals
Point to check:
Try to confirm whether there are manuals for the role or tasks, and how knowledge is shared between team members.
Sample question 1:
“How are handovers and knowledge sharing handled?”
This helps you check the state of team knowledge sharing and whether tools are being used.
Sample question 2:
“How well developed is the backup system for roles within the team?”
This helps you check how work is distributed within the team you may join.
Summary
“Soft black companies” and “purple companies” are structural workplace models created by the interaction of three factors: internal evaluation systems, the vacation usage rate of the team you may join, and work that depends too heavily on specific individuals.
Your career is strongly influenced by your environment and the opportunities you encounter.
What kind of environment do you want to grow your career in?
At Build+, our specialist agents come from a wide range of industries and more than 20 countries. We provide thorough support, including resume preparation and interview preparation. We would be happy to help you take the next step in your career.
See you next time!
