The global insurance giant, Prudential, is reportedly taking steps to reassess its current merit-based approach. This announcement comes amid ongoing discussions about the pros and cons of performance-based systems in Japanese companies. While Prudential has not yet announced specific changes, this initiative indicates a significant shift in their corporate strategy.

In Japan, the merit system has been a controversial topic. On one hand, it is meant to stimulate employee performance by linking rewards to results. On the other, critics argue it leads to burnout and unhealthy competition. Prudential's move may reflect a shift in societal norms, with Japanese companies increasingly taking well-being into account in their performance reviews.

In the US and EU, performance-based systems are common, but there is a growing trend toward holistic reviews that consider factors other than mere performance, such as employee engagement and work-life balance. Like Japan, there's a reevaluation happening of how labor practices impact employee wellness.