In today’s briefing:
- A Policy Shift from Simply Maintaining Corporate Performance to How to Raise Added Value Is Needed
A Policy Shift from Simply Maintaining Corporate Performance to How to Raise Added Value Is Needed
- OP margins for listed companies haven’t increased notably, with maximum of 5% since FY 2008. Meanwhile, real income has continued declining, and there has been trend to reduce labor costs.
- The negative aspect is illustrated by the low level of employee engagement in a company that has managed to maintain operating margin at current level by keeping labor costs low.
- Inadequate investment by both companies and employees has hindered the expansion of value-added. For expanding added value, shift to investment in human resources is needed along with wage increases.
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