Management Game MG Series

Creating an organization that realizes sustainability through wage increases (human capital investment) (two approaches)

There is growing attention on achieving wage increases that exceed rising prices, but to ensure the sustainability of wage increases in the future, it is necessary to create an organization that enables continuous wage increases (investment in human capital). To continue wage increases every year, continuous revenue and profit growth is essential. To make this a reality, it is crucial to embed management practices that generate profits and cash flow within the organization. - Improving profitability and productivity through the penetration of management accounting (profit generation) practices within the organization (a framework that generates profit-generating activities from the ground up and a logic that can depict the management of human capital investment and recovery). - Creating corporate value through the penetration of management techniques that enhance capital efficiency and generate operating cash flow (embedding management techniques that continuously create cash flow, which serves as the source for wage increases). *The logic of management accounting (profit generation) also encompasses the management of human capital investment and recovery. A 5% wage increase sustained over five years will result in a 27% increase in labor costs. (1 × 1.05 × 1.05 × 1.05 × 1.05 × 1.05 = 1.276) Please use this as a reference for creating an organization that enables continuous wage increases.

Employee training