Addressing High Turnover Rates: Key Strategies for Small Businesses to Retain Young Talent

In today's competitive job market, many companies are struggling with employee retention, particularly when it comes to fresh graduates. Reports indicate that approximately 30% of new college graduates resign within three years, with turnover rates in small businesses exceeding 60%. In response to this alarming trend, the Japan Association for Employment Support (JAES), based in Chiyoda, Tokyo, is taking proactive steps to assist companies in combating this issue.

The Scholarship Repayment Program

One innovative approach gaining traction among small businesses is the Corporate Scholarship Repayment Program. This initiative allows employers to take on the financial burden of repaying student loans for their employees, who have secured scholarship funding from the Japan Student Services Organization (JASSO). Launched in 2023, the program has already seen adoption by over 3,000 companies. By alleviating the financial pressure of student debt, companies can significantly reduce turnover rates while simultaneously benefiting from tax advantages, as the repayment support qualifies as deductible business expenses.

Key Benefits for Employers

- Employee Retention: By engaging in the repayment of scholarships, businesses can show their commitment to their employees' financial wellbeing, ultimately fostering a more dedicated workforce.
- Tax Incentives: Companies that implement this program can enjoy tax benefits, making it financially advantageous to support their staff in this way.

Harassment Prevention: A Critical Factor

Amidst high turnover rates, another key focus area is harassment prevention. Studies indicate a troubling correlation between workplace harassment and the desire among young employees to leave their positions. Addressing these critical workplace issues is essential for retaining young talent. To this end, JAES emphasizes the importance of creating a harassment-free work environment through workshops and training programs aimed at HR professionals and business leaders.

Upcoming Seminar and Individual Inquiry Sessions

To further explore these pressing topics, JAES will be hosting a seminar on June 26, 2026, specifically designed for media and business representatives. During this event, attendees will receive a detailed overview of the scholarship repayment program and harassment prevention strategies.

Key Information:

- Date and Time: June 26, 2026, starting at 12:00 PM (flexible scheduling available for individual inquiries).
- Format: Phone or online consultations are available.
- Cost: Free of charge for participants.

For those interested, inquiries can be sent to the JAES desk at [email protected].

Topics of Discussion

Participants can expect to have their questions answered regarding:

- The alarming statistics around young employees leaving within three years.
- The mechanics of the Corporate Scholarship Repayment Program and its benefits.
- The significance of this program in boosting employee retention and recruitment efforts.
- Tax benefits related to the implementation of these initiatives.
- The dire consequences of harassment and its impact on turnover rates.
- Strategies for fostering a clean and supportive work environment using the 'Employment Clean Planner' methodology.

Featured Speaker: Jun Ono

Mr. Jun Ono, a certified labor and social security attorney, will lead the seminar. He brings a wealth of experience with over 400 workforce management workshops focused on practical strategies to translate legal knowledge into workplace action. He is also a recognized instructor for the Employment Clean Planner qualification.

About Japan Association for Employment Support

Established in 2023 as part of the SA Group, JAES focuses on qualifications and training related to employment, labor issues, and harassment prevention. With over 750 certified Employment Clean Planners across the country, JAES is making significant strides in creating safer and more equitable working environments in various sectors, including corporate, governmental, and educational institutions.

For more information, visit: JAES Official Website