Abstract
Japanese companies are beginning to recognize the importance of employee engagement. However, many companies have not been able to leverage employee engagement to increase their corporate value. This is possibly because it is difficult to determine and utilize the factors affecting employee engagement. To clarify the relationship between engagement and its influencing factors, we constructed a multiple indicator model and performed a covariance structure analysis. Data for the analyses were obtained from the 2019 “Survey on Work Styles and the Current Conditions Related to Labor Shortage,” conducted by the Japan Institute for Labour Policy and Training. We then extracted four factors to create an "engagement model". The study identified two factors that influence engagement: empowerment and loyalty. The results can be used to inform policies on improving employee engagement by leveraging these factors.
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