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 essential to create an organization that enables continuous wage increases (investment in human capital). To maintain annual wage increases, continuous revenue and profit growth is indispensable. To make this a reality, it is crucial to embed profit generation and cash flow management within the organization. - Improving profitability and productivity through the penetration of management accounting (profit generation) management* within the organization (a framework for generating 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) management also encompasses the management of human capital investment and recovery. A 5% wage increase sustained over five years results 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 achieves continuous wage increases.

Management Seminar