Study on the Correlation Between Municipal Employee Engagement and Turnover/Leave Rates (FY2025)
Link and Motivation surveyed approximately 20,000 employees across seven Japanese municipalities. The findings reveal that higher organizational engagement correlates with lower turnover and leave rates, proving that human capital investment is a rational economic decision to prevent future fiscal losses.
📋 Article Processing Timeline
- 📰 Published: May 27, 2026 at 01:00
- 🔍 Collected: May 26, 2026 at 16:31
- 🤖 AI Analyzed: May 27, 2026 at 05:29 (12h 57m after Collected)
Link and Motivation Inc. has conducted a survey of 19,641 employees across seven municipalities in Japan to analyze the correlation between municipal employee engagement and rates of resignation and leave of absence. In recent years, the increase in turnover and leave of absence, particularly among younger civil servants, has become a critical challenge for local government administration. This study statistically confirmed that organizations with higher engagement levels exhibit lower combined rates of turnover and leave of absence.
Specifically, the turnover and leave rate in the high-engagement group (scores of 60 or higher) was 1.95%, compared to 4.54% in the low-engagement group (scores below 40), representing a significant gap of 2.59 percentage points. These results substantiate that investing in employee engagement is a rational management decision that prevents future attrition and stabilizes the organization.
Analysis revealed that regardless of the organization's engagement level, 'understanding and support from supervisors' is a common strength, while shortages in resources (personnel, equipment, and compensation) remain a common challenge across all levels. Furthermore, the tipping points for improvement were identified: building positive relationships is key for moving from low to medium engagement, while sharing a future vision and driving change are crucial for moving from medium to high engagement.
An economic simulation indicates that a local government with 3,000 employees could potentially reduce attrition-related costs by approximately 100 million yen annually by improving their engagement score. Based on these findings, Link and Motivation aims to accelerate its support for organizational management within local governments.
Specifically, the turnover and leave rate in the high-engagement group (scores of 60 or higher) was 1.95%, compared to 4.54% in the low-engagement group (scores below 40), representing a significant gap of 2.59 percentage points. These results substantiate that investing in employee engagement is a rational management decision that prevents future attrition and stabilizes the organization.
Analysis revealed that regardless of the organization's engagement level, 'understanding and support from supervisors' is a common strength, while shortages in resources (personnel, equipment, and compensation) remain a common challenge across all levels. Furthermore, the tipping points for improvement were identified: building positive relationships is key for moving from low to medium engagement, while sharing a future vision and driving change are crucial for moving from medium to high engagement.
An economic simulation indicates that a local government with 3,000 employees could potentially reduce attrition-related costs by approximately 100 million yen annually by improving their engagement score. Based on these findings, Link and Motivation aims to accelerate its support for organizational management within local governments.
FAQ
Why is it important to conduct engagement surveys in local governments?
It quantifies turnover and leave rates, identifies priority issues for improvement, and clarifies the return on investment for organizational initiatives.
What is the key difference between low and high engagement groups?
Differences lie in workplace relationships, communication with superiors, and the sharing of a vision for the future, varying by organizational maturity.
How reliable is the study's methodology?
It is based on a large-scale data set of 19,641 employees across 7 municipalities, utilizing statistical methods such as the chi-squared test.