Beyond Paychecks: Cultivating Meaning and Engagement in the Workplace

In this newsletter, we will look at the valuable insights gained from volunteer work and their relevance to improving workplace dynamics, with a focus on the notably low engagement scores within Japanese organizations. Despite achieving financial success, these organizations struggle with employee engagement rates that consistently fall below global averages. The 2023 Gallup "State of the Global Workplace" report sheds light on this issue, revealing that only 5% of Japanese workers felt engaged in their jobs in 2022. This figure is striking, especially when contrasted with the global average engagement rate of 23%.

Gallup defines an engaged employee as someone who is highly involved in and enthusiastic about their work and workplace. These employees are seen as ambassadors for their employers, driving performance and innovation and showing a greater willingness to stay with their company. The global average engagement rate of 23% signifies that nearly one in four employees worldwide exhibits these characteristics of commitment and motivation in their work.

In contrast, Japan's engagement rate has hovered consistently low, fluctuating between 4% and 8% since Gallup began its survey in 2009. This persistent gap between Japan and the rest of the world highlights a significant opportunity for improvement and raises questions about the unique challenges faced by Japanese organizations in fostering a more engaged and dynamic workforce.

Why Do We Need an Engaged Workforce More Than Ever?

An engaged workforce stands as the cornerstone of competitiveness, innovation, and sustainability within organizations. However, in Japan, companies encounter multifaceted challenges in nurturing such an environment. The advent of technologies like ChatGPT, which burst onto the global scene just over a year ago, has accelerated change, ushering in an era of rapid disruption. This fast-paced evolution demands a workforce that is not only skilled but also deeply engaged, ready to drive forward with resilience and adaptability in the face of continuous transformation.

Rapid Technological Advancement

Japanese companies are navigating a challenging terrain in the digital landscape. According to the IMD World Digital Competitive Ranking, Japan ranks 32nd out of 64 countries with an index of 75.43, lagging behind the United States (index 100) and many European nations. Surprisingly, despite Japan’s prominence in the electronics and high-tech sectors, its approach to work and digital progress appears to lag. To match the pace of global technological evolution, Japanese organizations need to accelerate and undergo deeper transformations. However, successful technology integration depends not only on infrastructure and investment but also on employees' readiness and ability to adapt and innovate. In a culture that values diligence, craftsmanship, and continual improvement, fostering a fully engaged workforce is crucial for seamlessly embracing new technologies. The relatively low engagement levels reported by Gallup (and confirmed by many MNCs we work with) suggest that the pace of embracing technological change and development might be hindered, underscoring the need for enhanced employee engagement in Japan’s journey toward digital excellence.

Increased Competition for Talent

Japan is confronting significant challenges with its labor force, projected to decrease by 20% from 2020 to 2040, intensifying the battle for skilled employees and leadership talent. In this competitive landscape, the role of engaged employees becomes critical in attracting and retaining talent. Organizations need to look into what drives individuals to join and stay, with a keen focus on the diverse needs and motivations of various demographic groups, including millennials and Gen Z. These younger workers tend to value work-life balance, career growth opportunities, and a nurturing work environment more than traditional incentives like salaries and benefits. Consequently, aspects like employer branding and creating a distinct organizational identity are becoming increasingly crucial for Japanese companies to maintain a competitive edge in the talent market.

Transforming Workplaces with Volunteer Spirit: Lessons in Engagement and Purpose

A recent engagement by Kay Group with volunteer leaders in Japan reveals that employment alone does not fulfill all employee needs and expectations. Research by Volunteer FDIP discovered that around 25% of Japanese people engage in volunteer work, a significant figure compared to other Asian countries. This underscores the importance of volunteerism and corporate social responsibility (CSR), which resonate with Japan's cultural values of community, harmony, and collective well-being. Organizations that integrate these principles not only nurture a sense of purpose and meaning among their employees but also make a positive societal impact.

Motivations identified during our work with volunteer leaders include:

• Make the world better: "I can complain about everything, but through volunteering, I can make things better" or "I want to do something helpful for other people and the world."
• Finding purpose and meaning: "Volunteering gives me self-confidence and meaning," or "I want to put smiles on people’s faces."
• Paying back and forward: "I want to give back to others who helped me."
• Gaining Experience: "As a volunteer, I can gain experience that I wouldn’t get elsewhere."

We believe that implementing meaningful CSR activities can lead to more engaged employees and enhanced organizational performance, illustrating the powerful role of volunteerism in enriching both work and society.

Here is our blog: Transforming Workplaces with Volunteer Spirit.?

Company Volunteering Examples

Successful initiatives like Toyota Motor Corporation's "Volunteer Day" and SoftBank Group Corporation's "SoftBank Vision Fund" illustrate the potential of volunteer activities to boost engagement and fulfill a broader societal role. These programs not only aid the community but also instill a sense of pride and teamwork among employees, enriching the corporate culture with purpose and a collaborative spirit.

Reflection and Call to Action

Imagine the transformative impact of doubling the engagement levels among your employees in Japan. What kind of dynamism would it inject into your organization? What innovative breakthroughs and transformative achievements could you realize?

Listening to employees and understanding their workplace needs is the first step toward fostering a motivating environment. It’s crucial to probe into what truly drives your workforce. While it's desirable to have intrinsically motivated employees, remember that the workplace environment plays a pivotal role in either nurturing or extinguishing that motivational flame. Consider how you can infuse your employees' roles with a deeper sense of purpose and create an environment where they feel empowered and valued.

To boost motivation, companies can engage in CSR activities that resonate with their employees' values and aspirations. For example, partnering with organizations like Hands-on-Tokyo for volunteer initiatives can provide meaningful experiences that not only contribute to societal good but also enhance employee engagement and satisfaction.

Let’s work towards building a better world through a committed and engaged workforce. For more conversation, I can be reached at [email protected]

Recent Client Engagement: High-Performing Sales Team

Our pharma client faced the intriguing challenge of blending Regional Sales Directors (RSD) from various companies into a unified, high-performing team. To tackle this, we orchestrated a Multi-Day RSD Summit, marking their inaugural collective meeting. This event became a dynamic arena for establishing company expectations and integrating 360-degree feedback, serving both individual growth and team development. The summit proved transformative: by its conclusion, the Directors not only fully grasped their roles and responsibilities but also forged new friendships and left with tailored personal development plans. This gathering was a pivotal step in morphing a group of individuals into a cohesive, goal-driven team.

Looking Ahead: Insightful Leadership Lessons

Keep an eye out for the upcoming case study and in-depth interview with Mari Matthews, the President and CEO of Bank of New York Tokyo (BONY). She will be sharing her invaluable leadership insights, embodying a style that perfectly balances the image of a strong woman with empathy. Don’t miss the chance to learn from such an exemplary leader!