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Human Capital

Human Capital

The PERSOL Group aims to become an organization driving value creation where diverse human resources, including Associates, achieve Workplace Well-being, so that we can achieve the Group Vision "Work and Smile."

Under the Mid-term Management Plan, we position human capital as one of the business growth engines. We will accelerate initiatives by setting three components of (1) achieving Workplace Well-being, (2) enhancing technology-oriented human resources, and (3) building the foundations for diverse human resources to lead active roles.

Business growth engines: Human capital

Governance

At the PERSOL Group, we have set up the Human Resources Committee, Gender Diversity Committee, and Staff Well-being Committee under the Headquarters Management Committee (HMC), aiming to maximize the value of human capital.
The Human Resources Committee deliberates on the Group's human resources strategies and succession planning for key human resources. The Gender Diversity Committee deliberates on the Group’s strategies to promote the active participation of women and related key matters. The Staff Well-being Committee deliberates on important matters for maximizing the human capital value of Associates from the Group.

Indicators and targets

At the PERSOL Group, to evaluate the effects of our human capital initiatives based on the Mid-term Management Plan, we have set quantitative targets for 2025 and 2030.
As we pursue our initiatives, we will revise the set targets flexibly in accordance with changes in the external environment and progress in human capital measures.

Indicators and targets related to human capital (Note 1) FY3/26 FY3/31
Indicators related to human resource development Number of leaders who have been developed (Note 2)
Technology-oriented human resources (Note 3)
7,000 people
2,000 people

Indicators related to the improvement of internal environment (1) Indicator on "Work and Smile" (employee engagement indicator)
(2) Percentage of women in managerial positions (Note 4)
(3) Number of employees with disabilities (Note 5)
(4) Percentage of men taking (one day or longer) parental leave (Note 6)
(1) 75.0%
(2) 30.8%
(3) 4,000 people
(4)100%
(1) ―
(2) 37.0%
(3) ―
(4) 100%

(Notes)
1. Targets have been set to clarify the direction and level of achievement of the strategy, but some items are still under consideration due to high uncertainty and are marked with "-".
2. The number of leaders who have been developed indicates the total number of those who received the training for managers provided across Group companies in Japan. It does not include the number of those who received training for managers that is provided individually at each
3. Technology-oriented human resources refers to those who are tasked with utilizing specialized knowledge of data, digital technologies, and IT to transform products, business, and infrastructure (including recruited and internally trained human resources).
4. Targets are set for employees of domestic group companies, and actual results are tabulated. However, some companies that have not yet completed the introduction of a common human resource management system for domestic group companies are excluded. Targets for the fiscal year ending March 2026 are as of April 1, 2026, and targets for the fiscal year ending March 2031 are as of April 1, 2031.
5. The number is included in the report on employment of people with disabilities by the Group in accordance with procedures under the special subsidiary system. The target value may be revised in the future in consideration of changes in the number of companies covered in the statistics (22 companies as of May 2023), changes in the number of employees of the overall Group, and changes in the statutory employment rate.
6. The target percentage of men taking parental leave is the percentage among employees of Group companies in Japan.

Risk management

Regarding human capital (utilization of diverse human resources), we manage risks by positioning it as one of the issues of materiality of the PERSOL Group.
In implementing human capital strategies, each Committee under HMC has identified and is addressing the following risks and opportunities in the three components of human capital.

Risks Opportunities
(1) Achieving Workplace Well-being - Risk of worsening of labor productivity and employee turnover rate that may result from a decline in employee engagement
- Risk of worsening of Associates' continuation rate and the completion rate that may result from a decline in the well-being of such staff
- Improvement in labor productivity and employee retention rate that may result from improved employee engagement
- Improvement in Associates’ continuation rate and completion rate that may result from the improved well-being of such staff
(2) Enhancing Technology-oriented Human Resources - Risk that recruitment does not progress as expected regarding human resources for whom competition is especially fierce, such as those for product design and data analysis
- Risk that skilled human resources in the temporary staffing/outsourced contracting business may leave the Group for better-paid employment
- Acquiring and developing technology-oriented human resources as planned will support the branding of PERSOL as a technology-driven HR company and lead to the improved ability to recruit technology-oriented human resources.
- The retention rate and billing rates of staff in the temporary staffing/outsourced contracting business will be improved by achieving client company satisfaction
(3) Building the Foundations for Diverse Human Resources to Lead Active Roles - Risk of a decline in hiring competitiveness and corporate competitiveness that may result from a delay in building the foundation for diverse human resources to play active roles
- Risk of a shortage of next-generation business leaders and a slowdown in the personal development of all managers that may result from a delay in talent management measures
- Acquisition of more human resources and the creation of new value enabled by building the foundation for diverse human resources to play active roles
- Well-planned development of next senior executives and improvement in all managers' ability to lead an organization, which will be enabled by talent management measures

Engagement

At the PERSOL Group, we have positioned employee engagement and the well-being of Associates as key indicators in driving initiatives to build an environment in which diverse human resources can play active roles.

For employees, we have identified five engagement drivers as important elements for enhancing engagement: health, autonomy, relationships, self-efficacy, and shared Group Vision. We take effective measures by checking the situation over time through our unique engagement survey.

engagement drivers

Promoting diversity by understanding employees' attributes, accepting their value, and taking advantage of their capabilities is essential for the continuous improvement of employee engagement.
At the PERSOL Group, we have set the Group's common policy on Diversity, Equity & Inclusion (DEI), under which we will work to improve the percentage of women in managerial positions and the percentage of men taking parental leave.
(Our DEI website)

Support for employees' career ownership

We attach great importance to employees' career ownership, as set forth in the Group Vision that states “we need to make our own choices from a range of diversified work opportunities.”
We take diverse measures to encourage employees to build careers on their own and help them take actions voluntarily and proactively.

Career Challenge program/Job Trial program

The Career Challenge program of open recruitment for job transfers within the Group is used widely as an opportunity for employees to try jobs in which they are interested.
The Job Trial program permits employees to spend part of their working hours experiencing different jobs at different divisions within the Group, with an upper limit of eight hours per month for a period of up to three months.

@ (atto) Training

The @Training stands for Adventure Training (AT) program and also means training that astonishes (atto iwaseru in Japanese) the world.
With two courses to choose from -- a workshop course and the cross-boundary learning course -- @Training offers unique advanced programs, including a half-day workshop, in which trainees review what/how they want to be through extraordinary experiences, as well as activities to solve local issues, collaborations with social ventures, and industry-academia collaborations.
Based on the experience of solving social issues, we develop employees' career ownership by having them reflect on themselves and dialogue with them, through experience and perspectives that are unlike anything they experience in everyday life.

Smyle, a career design training program

Smyle is a training program aimed at having employees think about their own career design.
Employees look back on their life (career) in the workshop and verbalize what they will do, what they can do, and what they must do. Support is provided to them so that they can work actively with future prospects.
A cumulative total of more than 1,000 employees have participated in this program, which was launched in 2018. It has become one of the leading measures at the PERSOL Group.
For managers, in order to support career ownership by their subordinates, we incorporate content based on this program into training for new managers, providing them with opportunities to learn the stance and methods of dealing with their subordinates' career design.

PALMS

PALMS is an e-learning system that is available for PERSOL Group employees.
We have consolidated e-learning content on our internal platform under the theme, "anytime, anywhere, and anyone" and devised creative measures to permit self-paced learning by employees.

*For data on human resource development and training, see the Human Resource Data section.

Systems and programs that encourage employees to work autonomously

At the PERSOL Group, we are building an environment that will permit each employee to select their place of work and work style on their own.
Under the side-job system, which leads to employees' self-actualization and social contribution, we approve more than 1,000 requests for approval of side jobs.
In addition, approx. 90% of Group companies have introduced flextime.
We have introduced various other work style options, such as telework and effectively no dress code, in our efforts to improve employee engagement.

Human Resource Development

At the PERSOL Group, we regard all working individuals as sources of our corporate value.
We also offer a wide variety of learning programs, which are appropriate for the roles, capabilities, and other aspects of each employee, so that all employees can continue to grow independently and play active roles even in a highly uncertain business environment.

Talent management

The development of next-generation business leaders is essential for the PERSOL Group to continue contributing to society sustainably.
For this purpose, at the PERSOL Group, we have formulated PERSOL Leadership Competency, which clearly states what is required of Group Senior Executives.
Based on this, we will implement a succession plan for the current management members and drive talent management measures aimed at enabling all managerial employees to play active roles as the Best Leaders.

Mirai Shijuku and Mirai Gijuku

To produce business leaders over the medium to long term, we provide training for selected managerial employees.
Mirai Shijuku provides learning support under a wide range of themes, with a focus on liberal arts, targeting candidates for the next-generation Group Senior Executives.
It provides training on thinking beyond one's viewpoint, view, or perspective to develop trainees into human resources who can manage the Group.

Mirai Gijuku operates training programs for managerial employees, from section managers to department heads. They include a program for learning key points in management for improving organizational engagement and one for learning leadership for solving social issues.

Training for new managers

We operate a one-year joint training program for newly appointed managers at each company, crossing the boundaries between companies.
Immediately after the appointment, we provide new managers with startup training, in which they acquire the knowledge, skills, and ways of thinking needed for daily management operations. Six months later, we provide follow-up training to review the current status and verbalize what sort of managers they aim to be. And one year after the appointment, we provide training needed for subordinates' career design and step-up training for reviewing one's behaviors through a 360-degree survey, thus helping them to play active roles as the Group's managers.

Team Performance Program

We provide action learning training aimed at reinforcing relationships in a team and thus bringing out the autonomy that is intrinsic to the team.
Employees participate in this training in teams and start by determining an action plan for creating the future of each team.
This is followed by a three-month period for practical training, when an internal organizational development facilitator supports managers' practices.
Specifically, support is given in participants' self-reflection and development of their questioning ability through four manager sessions and assessments.
Participants gave such comments as "(The training) led to the reinforcement of relationships in the team" and "I have acquired the ability to approach management based on the members' characteristics."
We aim to have all managers to complete this training by 2030, thus supporting them in creating organizations in which learning can be done in teams.

Enhancing technology-oriented human resources

As a technology-driven HR service company, we will enhance digital-platform-based business models while attaching importance to the value of people, with recruitment of technology-oriented human resources and development of technology-oriented human resources as two core initiatives, aiming to be an HR service company that is capable of creating new value.

Recruitment of technology-oriented human resources

Technology-oriented human resources are essential for giving a company a competitive advantage.
Therefore, competition for DX human resources has been fierce among many companies due to a shortage of such human resources.
In recruitment activities at the PERSOL Group, we will secure technology-oriented human resources by seeking to take an outside-the-box approach in initiatives such as clarifying the required technology skills, building a comfortable work environment for technology-oriented human resources, and offering appropriate compensation.

Development of technology-oriented human resources (reskilling and upskilling)

The recruitment of a large number of technology-oriented human resources is expected to involve difficulties.
Therefore, we will include development (reskilling) among the portfolio of important initiatives for enhancing technology-oriented human resources.
At the same time, we will drive skills improvement (upskilling) of technology-utilizing human resources, which we define as human resources who understand the latest technologies and work closely with technology-oriented human resources to accelerate digitalization.

We have defined the fields of skills to develop that we value, planned initiatives and training programs that will enable employees to master the skills in the short term through continuous career design and improvements in their motivation, and planned investments related to these initiatives.

Personnel System

Personnel Evaluation and Compensation

Each PERSOL Group company complies with all laws and regulations concerning minimum wages and equal pay for equal work to ensure that employees are fairly compensated.
In our personnel evaluations, the evaluation criteria, procedures, and points to note are clearly specified in order to ensure fair evaluations. We have also introduced a competitive compensation system that is linked to the business performance of each company and the performance of each individual employee.

Stock Compensation Scheme for Officers and Employees

The PERSOL Group has introduced the trust-type share-based compensation scheme (BIP/ESOP) and the restricted stock compensation scheme.
The number of eligible employees has grown with the introduction of the restricted stock compensation scheme in fiscal 2021, bringing the total number of eligible officers and employees* under the overall stock compensation scheme to 2,238 in fiscal year ended March 2022 (of which 2,182 are eligible employees).

*Officers and all managerial level employees of the Group

Employee Shareholding Plan

The PERSOL Group has introduced an employee shareholding plan to encourage employee participation in the management of the Company and elevate motivation to contribute to growth in corporate value over the mid- to long-term.
Employees who join the Employee Shareholders' Association are able to purchase the Company's shares by contributing a voluntary amount from their salary or bonus, starting from as little as 1,000 yen per month.
In addition, employees enrolled in the Employee Shareholders Association receive an incentive payment (15%) against their contribution from the company they belong to.
The participation rate in the Employee Shareholders’ Association in fiscal year ended March 2022 was 12%.

Labor Practices

Fostering Awareness of Labor Standards

The PERSOL Group has established the “PERSOL Group Code of Conduct”, which outlines the values, mindset, and actions to be taken by all officers and employees, both in and outside Japan, during their work. The PERSOL Group Code of Conduct has been published in both Japanese and English.
Based on this Code of Conduct, we have established a range of systems to ensure that appropriate labor practices are promoted. In addition to publishing information on labor standards, such as wages and working hours, on the intranet of each of our group companies, we also ensure that employees accurately understand company policy related to labor standards, such as work rules, personnel systems, and employee benefits, by thoroughly explaining these areas when they join the company.

There were no violations of the Labor Standards Act by the PERSOL Group in Japan in fiscal 2021.

Labor Relations

Labor unions have been formed at certain consolidated subsidiaries in the PERSOL Group. Regardless of whether or not respective sites have labor unions, we respect the freedom of association and the right to collective bargaining as employee rights, and allow employees to exercise these rights effectively.

Strikes/Lockouts

There have been no strikes or lockouts at any of our sites in the past three years.

For data on labor practices, see the Human Resource Data section.