When employees feel safe in their jobs they are free to let their minds roam to, and focus on, their more creative work.
When employees feel safe they are more inclined to embrace change.
Long-term employment also helps companies to feel safe enough to invest resources in employee ideas and projects without the fear of them leaving.
Example: Fujio Mitarai, Chairman of Canon stresses this point in stating that lifetime employment as well as a competitive internal labour market are keys to Canon’s success.
Example: Studies of Japanese and U.S. electronics manufacturers suggest this.
Source: Daly (1991). ; Westney, D.E. and Sakakibara, K. (1986). Designing the designers: computer R&D in the United States and Japan. Technology Review, April, pp. 24-31, 68-69. ; Xu, F. and Rickards, T. (2007). Creative management: a predicted development from research into creativity and management. Creativity and Innovation Management 16(3), pp.216-228.