Decrease in the working population
As is said daily in all media, japan's birthrate is declining and the population is aging at a rapid pace.
According to the " decline in the working population " released by the ministry of health, labor and welfare, the "Working population," which represents those who are old enough and willing to work, peaked at about 68 million in 2000 and is expected to decline to about 62 million by 2030. As the working population is expected to decline by approximately 6 million over the next 30 years, many industries and business sectors are likely to face serious shortages of human resources. As human resource shortages become more serious, the burden on existing employees will increase, and the importance of companies' efforts to improve productivity will become even greater.
Change in employees' attitudes toward labor
In recent years, the government's call for "Work style reform" has been gaining momentum among companies. As a result, an increasing number of workers want to work for companies that offer work-life balance, such as "Less overtime," "Easy access to paid vacations," and "Remote work. They want talented people to stay with the company longer, and to improve productivity in order to attract even more talented people.
Decline in japan's international competitiveness
According to the " international comparison of labor productivity 2023 " published by the japan productivity center, japan's hourly labor productivity was $52.3, ranking 30th out of 38 oecd member countries. From an international perspective, japan's productivity has been deteriorating every year since 1970. As japan continues to shrink due to its declining birthrate and aging population, efforts to improve productivity will be essential if the country is to prevail in the global environment.
Five benefits of productivity initiatives russian whatsapp number for companies
Employees working in unison.
Cost reduction
Productivity improvements can lead to various cost reductions in a company.
For example, ai and it tools can reduce human costs by reducing the number of employees and overtime hours. Also, by mainly using remote work, material costs can be reduced through office downsizing.
Increase profits and customer satisfaction
The cost savings from productivity improvements can be used to invest in r&d and value-added improvements to existing products, leading to further profit growth and increased customer satisfaction.
Wasteful and inefficient work significantly reduces employee motivation.
Freeing employees from such tasks and allowing them to engage in creative and essential work that leads to business growth will lead to increased employee motivation. Increased employee productivity due to increased motivation will ultimately contribute to increased business performance. If a portion of the increased performance can be returned in the form of bonuses and salary increases, this will further increase motivation and create a positive cycle in the management of the company.
Reduction of labor shortage
Once productivity gains are realized, the quality and quantity of work per person will improve.
This will help solve the manpower shortage problem, and will enable the company to achieve more efficient results even with limited human resources. While increasing manpower is important, improving the performance of existing employees is also an important concept when aiming to improve productivity.
Improved work-life balance
Increased productivity per employee will result in lower overtime hours and easier access to paid work.
As a result, the work-life balance of employees will improve. An improved work-life balance will also help prevent turnover and, in the long run, lower recruitment costs.