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Home --- Topics --- January 2023 3rd issue: Companies that cannot raise wages this year cannot survive

January 2023 3rd issue: Companies that cannot raise wages this year cannot survive

This year is likely to be a year in which the evaluation of companies will change dramatically depending on whether they raise wages or not. Companies that boldly raise wages are more likely to gain reputations, boost worker morale, and become more productive and competitive. Recruiting makes it easier to find quality people. On the other hand, companies that do not raise wages will lose the morale of their workers and cause excellent human resources to leave the company. Workers of companies that do not raise wages while prices are rising will find it difficult to live. Your reputation will suffer, your productivity will drop, your job offers will not attract good people, and you will lose your competitiveness. It may be fair to say that companies that cannot raise wages this year will not survive.

January 2023 3rd issue: Companies that cannot raise wages this year cannot survive

Rising prices put pressure on people's lives. Labor shortage is becoming chronic.
Japan, which is said to have had wages that have not risen for decades, is about to be left behind from the rest of the world.
Equal pay for equal work has been introduced, and the elimination of unreasonable differences in treatment between regular and non-regular employment is required.
There may be some non-regular workers who have been quiet and not self-assertive, and who have continued to work without complaining about unreasonable treatment. However, if they continue to work at unfairly low wages, there is no bright future for non-regular workers and for Japan as a whole.
From around the end of 2022, it is said that job openings for restaurants and tourism will increase. I'm sure there are many people who believe that the corona crisis is about to end.
It seems that the hourly wage of the job is gradually rising. It seems that there is a shortage of manpower, and it is difficult to attract people with low hourly wages.
Recruitment and recruitment activities are becoming DX and online, making it easier for working people to find jobs with higher hourly wages.
I also hear that more and more people are quitting in low-wage workplaces.
Under these circumstances, what should corporate managers think and how should they act? Should we continue to run a poor business with low prices and low wages while watching the excellent employees slip away?
Rather, shouldn't we try to escape from low-price competition through "value-added management"?
There is one way to build a company's reputation and competitive edge. That is a "bold wage increase."
Bold wage increases can improve your reputation inside and outside the company, increase the retention rate of excellent employees, and improve employee motivation.
In order to achieve a "bold wage increase," it is necessary to review the low-price competitive business that is slowly destitute and shift to a business with higher added value.
Companies that cannot raise wages this year are companies that cannot get out of low-price competition. It may be fair to say that a company that cannot escape from the low-price competition that is getting worse and worse will not survive.
Companies that dared to raise wages boldly will attract attention. It becomes popular and attracts people. In order to attract attention, it is important to "make a difference with rivals" in terms of wages.
This year, it seems that brand power improvement and value-added management are the direction that managers should aim for. It looks like it's going to be a year that will be questioned by the manager's decision.

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