Human Capital Strategy

Introduction

We want each and every employee to play a part in creating “a truthful and sustainable life for all” by conducting proper business activities in collaboration with members of society, based on our core value of “contributing to society and people.”
We believe that in the years ahead, society will be truly enriched when the environment, economy and culture are in balance. We aim to create a society where the beauty and richness of nature and the environment are preserved, the economy is enriched by bringing out each individual’s unique abilities, and people enjoy a cultural life supported by connections with others.
We want to be a company that balances the public good and profit in a sustainable way by generating earnings through business activities that benefit society.
For a company with such ideals, the greatest form of capital is human resources. We value employees who embrace our core value of “contributing to society and people” and are driven by passion and ambition to make their dreams come true while acting independently on their own initiative in communities and stores. This is what we call “public interest and people-centered management,” and the development of human resources and reinforcement of our organization is the foundation of our management strategy.

The Qualities We Seek in Employees

Each employee works together with customers and the people in their communities to help create the desired lifestyle and society of the future. As a result, the products, services and stores we have created through these connections have come to be enjoyed, trusted and appreciated by many people. Employees can experience personal growth and find happiness by creating products and services, which then becomes motivation to take on the next challenge. This is the story we envision, and our goal is to gradually move society and communities in a better direction by promoting these activities throughout the world.

1. Passion and ambition to contribute to society and people

Being thankful, humble, considerate, conscientious and sincere toward others based on the understanding that we need each other’s support. The passion and ambition that comes as a result help us contribute to society and people and resolve social issues.

2. Empathy and sense of ownership

Respecting the people close to you, customers and others with diverse values while envisioning their daily lives, experiences and feelings. The ability to empathize with and have a sense of ownership regarding those lives and values.

3. Professional mindset

The mindset to keep working to improve conditions and create new value, with the belief that generating profit by contributing and bringing joy to customers and the region is a worthwhile endeavor.

4. Inquisitive mind and intellectual curiosity

An inquisitive mind that continues to envision the ideal future life and society from the perspective of those who live the most considerate everyday life. Intellectual curiosity and the mindset to continue thinking based on actively gathering insights from newspapers, books and art, and by exploring each neighborhood or connecting with others.

5. Creativity and conceptual ability

The ability to observe things closely, recognize gaps between the current and ideal situation, and discover elements that surprise. The creativity to give shape to the ideas generated from those realizations and findings. The conceptual ability to design business models and frameworks to resolve current issues and contradictions while creating sustainable value.

6. Teamwork and collaboration skills

The teamwork to build collaborative relationships with people inside and outside of the Company based on the ability to share values and awareness of issues. The ability to achieve great things that could not be accomplished alone and the skills to create new ideas.

7. Vitality and thoroughness

The vitality to put ideas into practice by oneself. The thoroughness required to continue making improvements until one achieves success.

8. Spirit of taking on challenges and a positive attitude

A spirit of taking on challenges and the confidence to face unknown challenges and difficulties without fear. The positive attitude to enjoy every situation.

The Six Pillars of Our Human Resource Development

Our human resource development policy for achieving “public interest and people-centered management” is as follows.

1. Recruit and develop employees who have the ambition to embody Ryohin Keikaku’s philosophy and values
2. Foster a healthy corporate culture in which diverse employees can show their individuality, think independently and act on their own initiative
3. Create a working environment where employees can be themselves, realize physical and mental well-being and continue to work with peace of mind
4. Train and assign leaders capable of bringing out the individuality and potential of diverse employees and maximizing organizational performance
5. Develop and establish education and training systems to support the needs of employees who want to learn and grow through their careers
6. Establish and operate a personnel system to support employees’ sense of participation and willingness to take on challenges

The Six Pillars of Our Human Resource Development and Main Initiatives

1. Recruit and develop employees who have the ambition to embody Ryohin Keikaku’s philosophy and values

We recruit employees who share Ryohin Keikaku’s philosophy and have the ambition to embody it, and provide them with training on our ideology, philosophy and values. Through that training, we foster empathy and a sense of ownership toward the issues of communities and society and develop employees who are motivated to help resolve social issues and make a positive impact.

Main Initiatives

• In conjunction with our Second Founding, redefine and conduct training on our ideology, philosophy and values
• Promote internal understanding of our philosophy, create ongoing opportunities for dialogue and motivate employees

2. Foster a healthy corporate culture in which diverse employees can show their individuality, think independently and act on their own initiative

We create the conditions for fostering a healthy corporate culture, where employees with diverse personalities respect each other and have open discussions in an environment of psychological safety; where every employee can think independently and show initiative; and where people enjoy working positively toward the achievement of goals.

Main Initiatives

• Visualize the corporate culture through the Culture & Engagement Survey, and continue to implement improvement activities
• Redefine and conduct training on the behavioral guidelines for embodying our philosophy and values for the Second Founding

3. Create a working environment where employees can be themselves, realize physical and mental well-being and continue to work with peace of mind

We provide working environments where employees can be themselves, realize physical and mental well-being and continue to work with peace of mind, regardless of their nationality, birthplace, age, gender, disability, current environment or life stage.

Main Initiatives

• Enhance human resource management system to accelerate store openings throughout Japan
• Introduce expanded systems to accommodate diverse work styles (challenge-work system, balanced four-day workweek system, return-to-work system, internal job posting, etc.)
• Adopt systems that support employees continuing to work through each stage of life (childcare leave, nursing care leave, benefit programs, etc.)
• Establish systems and support for maintaining and improving the mental and physical health of employees

4. Train and assign leaders capable of bringing out the individuality and potential of diverse employees and maximizing organizational performance

We continually develop leaders who can bring out the individuality and potential of our diverse employees, direct them toward achievement of the Company’s goals and maximize the organization’s performance. We also manage human resources by assigning such leaders to the right jobs.

Main Initiatives

• Improve education to strengthen management skills for leader development
• Provide opportunities for development through on- and off-the-job training for store managers and community managers, who lead independent store management and community activities
• Reinforce external collaboration and personnel exchanges

5. Develop education and training systems to support the needs of employees who want to learn and grow through their careers

We have established education and training systems and a self-development support program to enable employees to learn the basic hard and soft skills necessary as a businessperson as well as the practical skills required for various positions and levels. With these programs, we maintain an environment in which motivated employees can continue to learn according to their needs throughout their career.

Main Initiatives

• Maintain and create training programs to fit the needs of different positions and levels in store and headquarters operations
• Improve problem-solving skills and foster independence through quality control and industrial engineering education and project promotion
• Reinforce external collaboration by connecting with specialists, and provide opportunities to grow

6. Establish and operate a personnel system to support employees’ sense of participation and willingness to take on challenges

We have introduced a personnel system in which employees who act independently and spontaneously to achieve goals, and employees who take risks and set difficult targets and achieve results are praised and rewarded. We create and maintain an environment in which employees experience growth through their work and feel rewarded and happy.

Main Initiatives

• Introduce a grade system and evaluation system to assess each employee’s ability, willingness to take on new challenges, and contribution to their organization, the Company and society
• Expand the employee stock ownership plan to foster the idea of “co-owned management”
• Introduce stock incentive plan to encourage employees to set higher goals
• Develop an internal recruiting system that encourages employees to take on new challenges and build their careers
• Review systems for personnel exchanges and dual employment to promote community activities and sense of contribution

Quantitative data on human capital management