The Essence of Management IT: How DX Talent Retention Reveals the Truth

The Decisive Difference Between Companies Where Young Talent Stays and Leaves

A survey by Infomart, reported by Construction Communications Newspaper Digital, has stirred the pot on HR challenges in the construction industry. The findings revealed that companies with more advanced DX (Digital Transformation) have higher retention rates for young employees, and over 50% of employees using generative AI responded that they are “confident about the future.”

In the construction industry, where labor shortages are becoming severe, this data holds significance beyond a mere trend. It presents a fundamental question for business owners, CTOs, and IT departments: “How should we position IT?”

The Difference Between “Being Able to Use IT” and “Creating Value with IT”

Many companies mistakenly believe that “introducing tools will lead to DX.” In reality, mastering IT tools and improving business value through IT are entirely different capabilities.

Behind the survey result that “over 50% of generative AI users are confident about the future” lies a gap between companies that have an environment where IT can be used for decision-making and creative work, and those that do not. This goes beyond mere tool operation skills.

Not limited to the construction industry, many Japanese companies tend to keep IT implementation within the realm of “management IT.” Simply improving the efficiency of administrative tasks like attendance management and expense reimbursement does not directly lead to higher employee engagement. Whether young employees can feel confident about the future depends on whether IT functions as “business IT” or “management IT.”

The Essence of the IT Environment Young Talent Seeks

Young employees don’t just “want to use the latest tools”; they want to “enhance the value of their own work.” If they can use generative AI to automatically create estimates or analyze on-site photos, they can be freed from routine tasks and dedicate more time to creative work.

In this regard, the Infomart survey offers important insights. In companies where DX is progressing, IT functions as a “means to change the quality of work.” Conversely, in companies where IT implementation remains at the level of “digitizing operations,” the low retention rate of young talent can be seen as the price of management failing to define IT.

The Structural Problem the Construction Industry’s DX Exposes

The construction industry is particularly notable for its lag in IT adoption. It has a structure centered on on-site work, making IT implementation difficult. However, as labor shortages worsen, this lag in IT adoption creates a vicious cycle that accelerates talent outflow.

This survey highlights a common challenge for business owners across all industries, not just construction. Companies that only view IT as a “cost-cutting tool” will inevitably fall behind in the competition for talent.

“An Environment Where You Can Use IT” vs. “An Environment Where You Can Grow with IT”

What is effective for retaining young talent is not just providing an environment where IT tools can be used, but creating an environment where they can feel a sense of growth through IT. Specifically, the following elements are important:

– Delegating authority to use generative AI for business decision-making
– Opportunities to propose new business processes using digital tools
– An evaluation system where improving IT skills directly links to career development

These elements are only realized when management defines IT as “business IT” or “management IT” and positions it strategically. Simply leaving tool implementation to the IT department will not create the growth environment that young talent seeks.

The Relationship Between Generative AI, Work Quality, and Confidence

What is particularly noteworthy in the survey results is that over 50% of generative AI users responded that they are “confident about the future.” This figure indicates that generative AI is not just an efficiency tool, but has the potential to change the very quality of work.

Specifically, using generative AI can bring about the following changes:

– The time required to create estimates and proposals is significantly reduced, increasing time for client interaction
– Analysis of on-site photos and drawings is automated, improving the accuracy of quality control
– AI analyzes past project data, enabling risk prediction and process optimization

These changes create an environment where young employees can easily feel that “I am doing valuable work.” This sense of self-worth, as someone who creates value by leveraging IT rather than just being a worker, leads to higher retention rates.

The Cost of Management Failing to Define IT

On the other hand, in companies that only view IT implementation within the framework of “management IT,” young employees remain with the feeling of “using convenient tools.” If it doesn’t lead to improved work quality or personal growth, it’s a natural progression for them to leave for a better environment in the job market.

As “labor shortages” are lamented across many industries, not just construction, the structure where a lag in IT adoption accelerates talent outflow is precisely the cost of management failing to define IT.

The IT Strategy Shift Required of Management

From this survey, what is required of management is to clearly define the “purpose of IT investment.” IT implementation aimed solely at cost reduction or operational efficiency cannot be expected to yield the effect of retaining young talent.

The turning points in IT strategy that management should consider are the following three:

Re-framing IT as “Human Resource Investment”

The effects of IT implementation should be evaluated not only from the perspective of “improving operational efficiency” but also from the perspectives of “talent growth” and “improving retention rates.” Creating an environment where young employees can feel a sense of growth through IT functions as a long-term talent strategy.

Positioning Generative AI as a “Means of Business Transformation”

It is important not to introduce generative AI as a mere convenient tool, but to position it as a means to transform business processes themselves. Creating an environment where young employees can use generative AI to generate new value leads to confidence in the future.

Changing the Evaluation Criteria for IT Implementation

The success of IT implementation should be evaluated not only by “number of units introduced” or “usage rate,” but also from the perspectives of “changes in work quality” and “improved employee engagement.” It should also be considered to set the retention rate of young talent or their degree of confidence in the future as KPIs for IT investment.

Conclusion: IT is the Core of Talent Strategy

While the Infomart survey data is from a specific industry—construction—it contains a message common to business owners in all industries.

IT implementation is not just a means of operational efficiency; it is a strategic investment for attracting and retaining talent. Creating an environment where young employees can be confident about the future and proactively engage in their work forms the foundation for sustainable corporate growth.

For management to redefine IT from “management IT” to “business IT” and “management IT,” and to link it with talent strategy—this is the most reliable way to survive the era of labor shortages.