What Companies Where Young Employees Don’t Quit Have in Common
In today’s era of labor shortages, one of the biggest concerns for business owners is likely “youth retention.” Even after investing heavily in recruitment, many young employees leave within a few years. This is a common headache for many managers.
Amidst this, a survey published by Infomart offers intriguing insights. It shows that companies with more advanced DX (Digital Transformation) tend to have higher retention rates for young employees. Furthermore, over 50% of young employees who use generative AI reported feeling “confident about the future.” This carries significance beyond mere numbers.
This article uses these survey results as a starting point to reconsider the relationship between management and IT. We’ll explain how IT adoption can help prevent youth turnover and what strategies managers should adopt, backed by specific data.
The Causal Relationship Between DX Progress and Youth Retention
The most important point the survey reveals is a clear correlation between the degree of DX progress and youth retention rates. Companies with advanced DX tend to have lower turnover rates among young employees, while those lagging in DX tend to have higher turnover.
This is related to the high IT literacy of the younger generation. They are “digital natives” who have grown up surrounded by digital environments. They feel uncomfortable with paper-based tasks and inefficient analog processes, which leads to dissatisfaction at work.
Let’s look at a specific example. In one small-to-medium manufacturing company, ordering and receiving operations were handled entirely by fax and phone. When a young employee suggested, “We could improve efficiency by introducing a cloud system,” management rejected the idea, saying, “Our current method works fine.” As a result, the talented young employee quit and moved to a competitor.
In contrast, another company in the same industry introduced a cloud-based ordering system, achieving process visualization and efficiency. A culture has taken root where young employees proactively suggest improvements, and their ideas are adopted. This company’s turnover rate is less than half the industry average.
The “Confidence in the Future” Brought by Generative AI
What is particularly noteworthy in the survey is that over 50% of young employees using generative AI said they are “confident about the future.” This shows that generative AI provides value beyond simple operational efficiency.
Generative AI gives young employees a sense that “I can master the latest technology” and “I’m acquiring highly marketable skills.” This leads to significant confidence in their career development.
Moreover, by mastering generative AI, they can take on tasks that were previously only possible for senior employees. Examples include creating marketing materials, data analysis, and drafting proposals for clients. This allows young employees to feel like they are “contributing” early on.
However, there are points to be cautious about. Simply introducing generative AI only yields half the effect. It is essential for management to clearly define *why* AI is being introduced and create an environment where young employees can use it with confidence. For example, instead of using AI output directly, design a process where humans judge and correct it. This is the essence of “management IT.”
If Management Doesn’t Define IT, Young People Will Leave
What this survey drives home is the fact that managers should not leave IT to the specialists but should define it directly as a management resource.
In many small and medium-sized enterprises, decisions about IT adoption are left to the front lines. All too often, tools are introduced for passive reasons like “a young employee suggested it” or “there’s a subsidy available.” In such cases, IT becomes nothing more than a “cost” and doesn’t contribute to the growth or retention of young employees.
For management to define IT means clarifying the following three points.
First, link the purpose of IT adoption to business strategy. Set specific goals, such as “digitize the sales process to increase revenue by 20%.”
Second, clarify the expected output. Instead of “improve operational efficiency,” set quantitative targets like “reduce monthly overtime by 10 hours.”
Third, position IT as a growth opportunity for young employees. Design the IT tool introduction process itself as a project led by young employees. This gives them a sense that “our opinions are changing the company,” boosting their sense of belonging.
Specific Case Study: A DX Success Story in the Construction Industry
The aforementioned Infomart survey targeted the construction industry, so let’s introduce a specific example here. A mid-sized construction company digitized its ordering and receiving operations and also introduced a site progress management system.
Previously, site supervisors communicated using paper blueprints and phone calls. Young employees were frustrated, wondering, “Why don’t we share this on the cloud?” So, management launched a company-wide DX project and appointed young employees as leaders.
As a result, operational efficiency improved by 30%, and monthly overtime was reduced by 20 hours. Most importantly, the young employees who led the project gained confidence that “my proposal changed the company” and decided not to quit. This case shows that IT adoption is not just about efficiency but is directly linked to talent development and retention.
Three Actions Managers Should Take Right Now
Based on the analysis so far, here are three specific actions managers can start implementing today.
First, assess your company’s internal IT literacy. Conduct interviews to find out what tools young employees are interested in and what frustrations they have. You might be surprised by what you discover.
Second, build small successes. Instead of a large-scale DX project, start by digitizing just one business process. For example, simply moving expense reporting to the cloud can significantly reduce stress for young employees.
Third, consider a trial introduction of generative AI. Try tools like ChatGPT or Microsoft Copilot in one department first. The introduction cost can start from just a few thousand yen per month. Young employees will likely learn how to use them on their own and come up with ideas for business improvement.
Conclusion: IT is the Ultimate Tool for Youth Retention
The fact revealed by the Infomart survey—”companies with more advanced DX retain more young employees”—is a message managers cannot afford to ignore. Young employees want to grow through IT, gain confidence, and contribute to the company.
For management to view IT as an “investment” rather than a “cost” and define it strategically—this is the ultimate recruitment and retention strategy in an era of labor shortages. IT adoption can no longer be left to the “specialists.” It’s time for managers themselves to take the helm.
Are the young employees in your company satisfied with their current work environment? If you have any doubts, why not start reviewing your IT strategy today? It could be the decision that determines your future growth.
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