Exploring the Principles of Employee Well-Being for Retention in Organizations

Understanding Organizations That Retain Employees

In an era of rapid change in the workforce landscape, quitting rates are rising across industries. Lumission, a Tokyo-based company, has published a comprehensive article titled "Establishing Organizations That Retain Employees: The Principles of Employee Well-Being," which focuses on a crucial aspect of organizational dynamics.
This article is grounded in Lumission's unique management philosophy known as the "5 Goodness Management Principles" (good for the company, employees, customers, society, and future generations). Notably, it emphasizes the importance of the "Employee Well-Being" aspect, which is closely tied to employee retention, stability, and development.

Why Do Employees Leave?

Recent studies indicate that approximately 80% of employee turnover can be attributed to structural issues within organizations rather than individual failings. Common reasons for resignations include:

- Perception of unfair evaluation
- Lack of communication
- Misalignment between corporate strategies and personal values
- Absence of fulfillment or growth opportunities
- Lack of overwhelming support for the organization’s core values

Lumission's evaluation highlights that many resignations stem from flaws in organizational design rather than personal inadequacies. By addressing these systemic issues, companies can create a more favorable environment for their workforce.

The Five Principles of Employee Well-Being

The special feature articulates five essential structural elements shared by organizations with low turnover rates:

1. Alignment of Decision-Making Criteria
Organizations with clear decision-making criteria experience lower turnover. When evaluation systems lack transparency, employees may feel undervalued, propagating distrust. Making leadership's decision-making criteria visible is a vital first step in preventing turnover.
- More on Making Decision Criteria Visible

2. Minimizing Misalignment of Values and Beliefs
Companies with strong value systems experience fewer emotional conflicts. When recruitment, training, and evaluation standards are unified, employees have consistent behavioral models, significantly reducing the potential for disagreement.
- Learn More About Values and Philosophy

3. Providing Opportunities for Personal Growth
Organizations that present challenges and opportunities for skill enhancement foster an environment where employees feel they can grow. This encourages retention significantly.

4. Fostering Psychological Safety
In workplaces lacking psychological safety, employees may be reluctant to learn or express their views, leading to lower productivity levels. Such security measures are crucial for maintaining high efficiency.
- Explore Psychological Safety in Organizations

5. Investing in Employees for Future Generations
The way a company treats its employees fosters cultural legacies that endure over time. Organizations aiming for long-term success should invest in their workforce, considering this a strategic necessity.
- The Future of Corporate Culture

The Social Importance of Employee Well-Being

With the increasing obligation to disclose human capital, escalating turnover rates, difficulties in recruitment, and a rise in mental health issues among employees, as well as diverse value systems complicating management, organizations must rethink their frameworks. By reorganizing around the principles of "Employee Well-Being," companies that prioritize these efforts ultimately create a stronger and more resilient workplace for the long term.

Upcoming Initiatives

- Enhanced Goodness Management Seminars

Online seminars will soon offer detailed insights into values, organizational effectiveness, recruitment, and future strategies, providing free access to participants. Free Seminar Schedule

- Collaboration with Leadership Reflection Services

Services that visualize a leader’s values are crucial in minimizing organizational decision-making discrepancies. Register for Leadership Services

- Expanding Employee Well-Being Media Articles

Lumission plans to publish further articles focusing explicitly on Employee Well-Being principles, fostering greater awareness and understanding within organizations. Explore More Media Content