Hello,

This week, I’d like to explore an interesting topic: how Japan and the United States compare when it comes to investing in employee development.

According to a survey by the Sanro Research Institute, Japanese companies spent an average of ¥34,606 (approximately $230) per employee on training during fiscal year 2023.

And that figure has been increasing every year!

However, when compared with annual salaries, training expenditures still account for less than 1% of employee compensation. The average annual salary in Japan for fiscal year 2025 was ¥4.55 million.

Now, let’s look at the United States.

The average annual salary in the U.S. was reportedly $97,400 (approximately ¥13.19 million) in 2023!

Using the 2021 average annual training expenditure of $2,020 per employee, American companies invested approximately 2.1% of annual salary costs in employee training.

In other words, salaries are higher in the United States, but companies also invest considerably more in developing their employees.

The idea is simple: When companies invest in their people, employees develop stronger skills, become more valuable professionals, and gain the potential to earn higher salaries.

Let’s invest more in our people!

By doing so, we can build stronger, more competitive companies that are capable of paying their employees better wages.

How Are American Companies Addressing Labor Shortages?

With labor shortages continuing to affect businesses across the United States, what strategies are American companies using to address the problem?

Skillsoft, a leading provider of e-learning and corporate training solutions, conducted a survey examining how organizations are responding to skills gaps and talent shortages in 2025.

The findings demonstrate that American companies remain strongly committed to employee training and workforce development.

Like companies in Japan, U.S. businesses are struggling to find enough qualified workers.

So how are they planning to close these skills gaps?

According to the survey:

76% plan to provide additional training to existing employees.

48% plan to hire new employees who hold professional certifications.

32% plan to outsource work to address talent shortages.

31% plan to use artificial intelligence to help compensate for workforce shortages.

One particularly interesting trend is the growing emphasis on hiring professionals with recognized certifications.

Companies are also increasingly turning to AI as part of their workforce strategies.

These findings show just how seriously American businesses are taking the challenge of talent shortages—and how willing they are to explore different solutions.

Investing in Employees Is the Shortcut to Solving Labor Shortages

At first glance, investing in employee training may seem like a slower way to address workforce shortages.

After all, training takes time, money, and effort.

But developing the skills of existing employees can reduce the need to recruit externally, improve productivity, and strengthen an organization’s long-term competitiveness.

What appears to be the longer route may actually be the most effective shortcut.

By investing in our employees today, we can build the skilled workforce—and the stronger companies—we need for tomorrow.