Respect for Diversity

Introduction

The Ryohin Keikaku Group respects the individuality of each of its employees around the world, and one of its main goals is to provide lasting happiness to its employees. We strive to provide an environment in which diverse human resources can thrive, balance work and life events, and remain motivated, regardless of gender, age, nationality, or other characteristics.

Diversity Committee

In FY2022/8, we launched the Diversity Committee as a Company-wide committee. Chaired by the director in charge of the Human Resource Development Division, the committee is composed of executive officers, managers and deputy managers, and select employees from relevant divisions, including the Sales & Marketing Division, which has the largest number of employees, and the Corporate Communication & ESG Management Development Division. More than half of the committee members are women. The committee is tasked with promoting change, including by advancing discussions on policies and systems for building an organization and corporate culture that can make the most of diversity in terms of people, values and lifestyles, and by proposing ideas for transformation.
To promote the success of all employees, we are working on action plans that take into account the various lifestyle changes our employees might encounter, such as nursing care and medical treatment. Through these action plans, we make sure our employees can work with us for a long time with peace of mind. In addition, we encourage our employees to take on new challenges from the early stages of their career, by providing opportunities to gain challenging experiences. To support the success of female employees, who tend to be more affected by changes in life stages, we will reinforce career development training programs that help them to explore their career and work-life balance and promote awareness-raising initiatives for managers.

Promotion of Participation and Advancement of Women in the Workplace

Promoting the participation and advancement of women in the workplace is a topic of high priority. In September 2021, when we launched our Second Founding, we began year-round recruitment in which we opened doors to hiring new university graduates at any time, regardless of the job-seeking season. Since then, we have hired more than 100 new university graduates each year, about 70% of whom are women. However, female employees have had a higher turnover rate than male employees, and as a result, the percentage of women in managerial positions is low. While just under 60% of our regular employees are women, the ratio of female managers at the deputy manager level and above is only 33.2%.
In order to ensure that all employees have an equal opportunity to succeed, we believe it is urgent that we become a company where women are encouraged to have a long career and thrive with a sense of security. That is why we are creating an environment that takes into account various lifestyle changes, and the need to balance work with childcare, nursing care, medical treatment and other life events. In FY2024/8, we conducted a questionnaire survey to determine how best to create such an environment, and held a roundtable discussion involving female employees. They discussed the factors that could lead them to leave the Company, and we are now developing personnel measures based on the results.
We will continue to provide fulfilling educational opportunities regardless of gender, fostering growth while maintaining a positive work environment. Through these efforts, we will strive to cultivate talent capable of leading the company.

Key indicators related to promoting the success of women

Until FY2022/8, only employees with executive titles such as “deputy manager” or “general manager” were considered as managers. As of FY2023/8, employees whose job description and level of responsibility are equivalent to that of “deputy manager” are also counted as managers, regardless of their job title or number of people in their team.

Gender Pay Gap

We conduct evaluations and make appointments based on an individual’s abilities, regardless of social categories such as gender, by adopting the grade system in which the required ability for each grade is defined. We have established a fair salary system that ensures no gender gap for grade evaluation and payment of wages. However, we do recognize a difference between the average wages of male and female employees. This is due to the increased recruitment of female new graduates in recent years, and the tendency to have fewer female managers in higher management positions. We will regularly monitor the gender composition ratio in promotions and in each grade and reinforce initiatives to increase the ratio of female employees in management positions and to eradicate gender pay gap.

Gender pay gap: The average wage of women as a percentage of the average wage of men.

Wages include base salary, overtime pay and bonuses, and exclude retirement allowance and transportation expenses.

Percentage of Eligible Employees Taking Childcare Leave

We provide systems that enable diverse work styles in order to enable employees to pursue fulfillment in both life events and work, including the childcare leave system, to our employees regardless of gender. As of the end of August 2024, the childcare leave utilization rate for female full-time employees was 81.3% (calculated based on the formula specified by the Ministry of Health, Labour and Welfare), while the rate for male full-time employees was 42.2%. We believe the main reason for this is that internal education and the fostering of corporate culture to understand and reduce the gender gap is yet insufficient. We will reinforce our internal education activities, which are mainly implemented by the D&I Committee, and promote awareness raising campaigns especially among managers. We will also work to create a corporate culture that encourages diverse work styles and enables every employee to achieve a balance between life events and work.

Percentage of eligible employees taking childcare leave (Regular and partner employees)

The percentage of eligible employees taking childcare leave is calculated in accordance with the new calculation method (introduced in 2023) of the Ministry of Health, Labour and Welfare.

Employment of Diverse Talent

We seek human resources who deeply resonate with our corporate purpose and two missions, and who are committed to helping us realize those ambitions. We proactively recruit new graduates and local employees, promote the hiring of professionals, and offer career advancement opportunities to current store staff.
In September 2021, we began year-round recruitment in which we opened doors to hiring new university graduates at any time, regardless of the job-seeking season. In addition, we also welcome first- and second-year university students and recent graduates with a few years of work experience.
We are also focusing on recruiting professional mid-career employees, and since FY2021/8, the ratio has exceeded 50%.
Through the recruitment of university graduates, as well as people who have worked one or two years after graduation and local employees, we aim to achieve an annual hiring target of 560 people. To this end, we have focused on expanding the pool of prospective candidates by conducting internships and holding information sessions throughout Japan, and approaching students who work part time at MUJI. In addition, we have established a fast and efficient recruitment process centered on online selection.
Furthermore, we are actively working to attract high-level talent with knowledge and experience in a wide range of specialty fields, such as product development, supply chain management, store development and CRM/e-commerce. We want these people to help drive the Company’s global business growth.
To ensure sufficient staffing at stores, we identify the required number of staff for each store, and then regularly monitor staffing levels. We are strengthening recruitment through wage increases suited to the characteristics of each region and by utilizing a flexible hiring system that accommodates diverse backgrounds, including high school students, seniors, foreign nationals, temporary workers and dispatch workers.

Maintaining a Positive Work Environment

We have various systems in place so that every employee can balance work with life events such as childbirth, childcare and family care, and achieve a work style that aligns with their values and ideal way of working.

Heartful Project (for Individuals with Disabilities)

Ryohin Keikaku began hiring individuals with disabilities in Japan in 2000. In 2009, we launched the Heartful Project to promote the “sustainable happiness of co-workers,” “self-development through mutual trust and cooperation” and “expansion and stabilization of employment at stores” for those with disabilities. The project promotes their employment as “Heartful Staff.” We have also developed an employment management and guidance approach tailored to the characteristics and individuality of each person and an evaluation-based step-up system to help Heartful Staff reach their full potential. In July 2024, we established the Heartful Consultation Window, and are strengthening support systems for Heartful Staff.

Moreover, in MUJI HF NEWS, an in-house newsletter, we highlight the efforts of Heartful Staff working throughout Japan, showcasing their strengths. We also hold regular information sessions on the recruitment of Heartful Staff, aiming to foster understanding by sharing knowledge and case studies related to disabilities as well as specific tools and organizations that support hiring and development.

Policy for the Development of Global Talent and Local Recruitment

In our overseas business, we are not only expanding store openings but are also engaging in local product development, region-specific planning, brand marketing promotion and supply chain management to support global manufacturing. These efforts contribute to Ryohin Keikaku’s growth as a global company. To enhance our business promotion capabilities in each country/region and play a useful role in local communities, our policy is to gain an accurate understanding of needs and then meet those needs, assign upper and middle management personnel who have deep knowledge of each area, and strengthen the hiring of local employees.

Hiring of Refugees in Stores

Since 2022, our stores in Japan have been hiring refugees displaced from Ukraine who have received recognition from the Japanese government. We are offering employment opportunities at MUJI stores along with temporary housing (employee dormitories), and employed nearly 20 refugees as of the end of February 2025.