Episode #171: Employees As Number One

Why Should Executives Prioritize Employees Before Customers or Shareholders?

Many CEOs claim “people are our most important asset,” yet their actions often tell another story. Simon Sinek highlights how growth, shareholder value, and customers often outrank employees on leadership priority lists. Even when customers come first, staff end up second. Richard Branson and other global leaders advocate reversing that order — because motivated, empowered employees naturally deliver exceptional customer experiences.

Mini-summary: Prioritizing employees isn’t altruism — it’s a business advantage.

Japan’s traditional business culture historically placed workers first, followed by customers, and finally shareholders. This model thrived during the era of lifetime employment, interlocking shareholdings, and stable markets. However, as globalization and foreign investment increased, the focus shifted toward financial returns. Despite this evolution, Japanese companies have maintained an unwavering cultural commitment to high customer expectations — rooted in respect for both employee craftsmanship and consumer trust.

Mini-summary: Japan’s long-term employment culture shows that valuing workers builds enduring customer trust and quality.

The nenko joretsu (seniority-based promotion) system worked in the past, but today’s talent-driven economy demands agility. Waiting decades to promote emerging leaders creates opportunity costs that no modern business can afford. Companies relying solely on OJT (on-the-job training) risk falling behind global competitors investing in world-class leadership development and soft skills training.

Mini-summary: Relying on age or tenure over performance stifles innovation and discourages high-potential talent.

Technology is transforming productivity, not destroying jobs. As Oracle Japan’s President Sugihara notes, AI and digital tools enhance workforce output rather than replace it. Meanwhile, Abenomics reforms aim to close wage gaps between full-time and part-time workers, promoting fairer employment practices. With Japan’s aging population and declining youth workforce, companies must increasingly rely on women and older employees — not mass immigration — to fill talent shortages.

Mini-summary: Technology and policy reform are reshaping Japan’s employment landscape toward equality and efficiency.

As competition for skilled professionals intensifies, retention depends on middle managers’ ability to engage, motivate, and develop people effectively. Seniority is no longer enough; performance evaluation, empowerment, and continuous coaching are essential. Dale Carnegie Training emphasizes that soft skills — communication, leadership, empathy — drive engagement and long-term retention.

Mini-summary: In the new era of worker mobility, leadership soft skills will define who wins the talent war.

• Global leaders like Simon Sinek and Richard Branson reinforce a universal truth: employees come first.

• Japan’s worker-centered model offers enduring lessons in loyalty, quality, and respect.

• Seniority systems must give way to merit-based, skill-focused leadership development.

• Technology and inclusive labor reform will define Japan’s future competitiveness.

Founded in the U.S. in 1912, Dale Carnegie Training has supported individuals and organizations around the world for more than a century in the areas of leadership, sales, presentation, executive coaching, and DEI.
Our Tokyo office, established in 1963, continues to empower both Japanese and multinational companies through customized leadership, sales, presentation, and executive coaching programs designed for modern professionals navigating Japan’s evolving business environment.