Kansai METI Announces Visualization and Results of SME 'Employee Happiness-Centered' Management

Press Release Overview Since FY2022, the Kansai Bureau of Economy, Trade and Industry (METI) has been promoting the 'BE THE LOVED COMPANY PROJECT,' which investigates corporate management practices that view people as the source of value creation and prioritize employee happiness as the primary goal.

In FY2025, to capture the reality of 'management centered on employee happiness'—which had previously remained tacit knowledge—from both qualitative and quantitative perspectives, the bureau worked on developing a 'Human Capital Correlation Visualization Tool (ver.1.0).'

Investigation of 10 model companies using this tool revealed correlations between indicators that constitute a 'good state' of people and organizations. Furthermore, management output indicators suggest the possibility of overcoming structural challenges such as declining labor productivity and recruitment difficulties.

1. Background and Project Overview To respond to environmental changes surrounding regional mid-sized and small-to-medium-sized enterprises (SMEs), such as chronic labor shortages, enhancing a company's 'earning power' is indispensable. The Ministry of Economy, Trade and Industry is promoting the spread of 'Human Capital Management.' The Kansai Bureau has conducted the 'BE THE LOVED COMPANY PROJECT' with the cooperation of over 70 mid-sized and SMEs.

In FY2025, the bureau developed the Human Capital Correlation Visualization Tool (ver.1.0), which allows companies to capture their own 'state,' and conducted research and analysis on 10 model companies, summarizing the results in 'BE THE LOVED COMPANY REPORT 4.0.'

2. Key Points of the Results (REPORT 4.0) Using the tool, research and analysis were conducted on 10 model companies from both qualitative and quantitative perspectives. - Survey results confirmed that 'Organizational State' and 'Work State' show broad positive correlations with many indicators related to individual happiness and growth. - Output indicators exceeded the average values for general SMEs in terms of economic capital and human capital. - Case studies of 4 model companies were presented.

3. Future Initiatives The Kansai Bureau aims to update the tool and expand its use as a management benchmark to more companies and support sites. Furthermore, the bureau will continue to realize the practice and penetration of human capital management in Japan's mid-sized and SMEs, starting from the Kansai region.