Human resource management

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I read a book related to human resources last week. It was published in 2014, and the content is not old. Or rather, the external environment surrounding the human resource(HR) management is growing the complexity.


Society in Japan is facing a serious problem of aging. The workforce rate is rapidly reducing from 66.5 million in 2016 to less than 40 million in 2040. The rate of aging 65-year-old and more is about 28% now, and is going to rise at 36% in 2040.


The labor supply shortage is tight. Many companies work hard to fulfill the demand. Big companies manage to fulfill the target number of newly graduated students due to the brand values. In case of medium and small companies, it’s almost impossible to fulfill the number.


On the other hand, the way of working has diversified. People can select variety of work styles including temporary worker and freelance. Even if new graduated students began to work at a company, no one can say that they would keep working at the same company.


Moreover, the companies offering the stock in public need to give satisfaction to the stock holders. The HR management plays an important role as a part of business management.


However, the current HR management can’t specifically measure the impact to the corporate performance. The intuitive and qualitative HR management can’t talk into business managers about importance of the HR management. Therefor the measurement of the impact is necessary for the HR management.