Small Businesses Face Challenges of Employee Retention and Wage Disparities According to Recent CRAYONZ Survey

The Impact of Wage Disparities on Small Businesses: Insights from CRAYONZ Survey

A comprehensive survey conducted by CRAYONZ, a company based in Minato, Tokyo, shows alarming trends regarding employee retention among small businesses in Japan. With around 85% of small business operators expressing concern about losing talent due to expanding wage disparities, the study sheds light on complex dynamics shaped by large corporations. As wage demand rises under government initiatives and inflation pressures, smaller enterprises—responsible for approximately 70% of employment in Japan—are struggling to remain competitive in attracting and retaining talent.

Background

As the government pushes for wage increases amid soaring prices, larger companies are stepping up their pay offers significantly. However, many small and medium-sized enterprises (SMEs) are unable to keep pace due to limited financial capabilities. This disparity, known as