Running a successful business requires sharp focus on cost control, maintaining quality, building the brand, staying alert to competitors, and appealing to stakeholders. However, a growing challenge in today's business world is managing people. In Japan, there’s a rising concern about attracting and retaining qualified staff. The once abundant pool of candidates is shrinking, with more industries facing staffing shortages. Employees now have multiple job options, making it essential for businesses to stand out and ensure they keep their employees satisfied.

People don't leave companies, they leave bosses. With the rise of online reviews, job seekers can easily evaluate potential employers before applying. A poor workplace culture or mistreatment by management can lead to high turnover. Engaged employees, on the other hand, feel valued and are less likely to leave. Middle managers play a crucial role in maintaining employee engagement and ensuring a positive work environment.

The leadership challenge is evolving, requiring middle managers to treat staff well, communicate effectively, and provide timely, specific praise. Flexible work arrangements and understanding personal needs, like family care, are becoming more important, as traditional HR models are evolving. Additionally, the importance of innovation and delegation is growing. Senior leaders should focus on coaching and developing their staff, fostering a culture where employees feel appreciated and motivated to contribute ideas.

To retain top talent, businesses must invest in creating a positive work culture. Leaders must recognize that their staff's well-being and engagement are as critical as business performance. Middle managers need to adapt to the changing expectations of the workforce, and companies must acknowledge the growing importance of people management for sustained success.