#Japan #Employee Engagement #Human Capital #Iidabashi #Labor Risk

A Vision for a Society without Resignation Services

In our modern workforce, the need for resignation services has seen a notable increase. This trend is not merely a passing phenomenon but a significant indicator of the changing relationship between employers and employees. Our goal is to foster a society where such services are rendered obsolete—a society where employees can leave their jobs without distress or dependence on resignation services.

Understanding the Shift in Employer-Employee Relations

Our belief is that the growing reliance on resignation services stems from deep-seated structural issues within organizations. These issues—such as unclear evaluation systems, inadequate management practices, and challenges in labor time management—cannot be resolved simply by adjusting wage levels. It is these underlying factors that have brought us to where we are today.

To explore these dynamics further, we conducted a survey entitled the “2026 Human Capital and Labor Risk Survey,” targeting companies with employee counts between 30 and 100. The findings shed light on the reality that nearly 49.8% of small and medium-sized enterprises (SMEs) lack effective evaluation systems.

Insights from the Survey

The survey revealed that about 40% of responding companies admitted that their evaluation systems are not functioning effectively. This statistic highlights a critical insight: satisfaction with evaluation systems is directly linked to employee retention. Specifically, in companies with ineffective evaluation systems, 62.6% of respondents felt these shortcomings contributed to higher turnover rates.

Regarding wage trends, many companies indicated plans for wage increases ranging from 3% to 6% in the upcoming fiscal year. However, businesses are grappling with the tension of balancing necessary wage adjustments with the potential impact on their bottom lines.

Furthermore, our findings indicated that over 60.2% of companies still employ outdated methods, such as Excel spreadsheets and self-reporting, for labor time management. These obsolete systems not only reflect a lack of objectivity but pose significant risks, including unpaid overtime claims, which can exacerbate labor issues.

The Core Issues Behind Employee Turnover

The research strongly indicates that organizations struggle with employee retention when they lack effective evaluation systems. This reality emphasizes that financial compensation alone cannot resolve fundamental concerns related to employee satisfaction and management effectiveness. Employees who lack clarity in their evaluations often demonstrate lower engagement levels, which subsequently heightens their risk of leaving.

Despite planned wage increases, many companies still find it challenging to attract and retain talent. This fact suggests that, in isolation, wage hikes are not sufficient to address the root causes of turnover.

Conversely, many companies also lack adequate labor time management processes, relying on subjective methods that fail to capture the full picture, further complicating their employee retention strategies. These intertwined issues suggest the problem of employee turnover is not merely about wages but is rather a complex interplay of evaluation, management practices, and organizational culture.

Our Commitment to Change

Recognizing these complexities, companies must adopt strategic human resource management approaches that extend beyond superficial solutions. We aim to provide practical consulting services focused on enhancing the credibility of evaluation systems and establishing effective labor management frameworks. By fostering an environment where employees feel secure in their jobs, we can contribute to eliminating the reasons that lead to the reliance on resignation services.

The Future We Envision

We strive for a workplace environment where employees can work with satisfaction and make career choices freely. By cultivating a culture based on trust between employers and employees, we aim to create a work atmosphere that addresses the very root causes of the need for resignation services.

As a firm of social insurance labor consultants, we will continue to rely on our expertise to support businesses in retaining their employees.

About Us

At Iidabashi-Kagurazaka Social Insurance Labor Office, we are dedicated to advancing our clients' growth and well-being. Our mission goes beyond traditional labor consultancy; we actively engage in the design of effective human resources systems and labor management practices to create a joyful working environment. For further information, please visit our website: IKS Iidabashi-Kagurazaka Social Insurance Labor Office