Data

The Link and Motivation Group strives to practice Management with Integrity (i.e., management with no illegality or dishonesty with regard to any of its stakeholders, including customers, business partners, employees and shareholders). As a corporate entity, we abide by laws, regulations, corporate ethics and social norms, and understand that individual employees must also make efforts to avoid transgressions.
At the Link and Motivation Group, we believe that our emphasis on engagement helps to strengthen compliance, and see our high performance in compliance and ethics-related metrics to be a result of our high level of employee engagement.

• *1The number of consultations with the hotline that is open to all employees.
  Calculated based on total workforce (Group company employees, part-time staff and ALTs).
• *2Calculated based on total workforce (Group company employees, part-time staff and ALTs).
• *3All training content completed by employees.
• *4The number of findings in external audits by the Labor Standards Inspection Office, etc., that are still unresolved.

The Link and Motivation Group believes that investing in its organization, starting with investment in communication, is essential for fostering the motivation, knowledge and brand image that will lead to business results, even though they may not be immediately apparent. We base our determination of the necessity of each of our costs on this premise. In addition, we consider expenditures for recruiting to be an investment rather than a cost. This is because we emphasize investing money and time in attracting the talent we want to hire, based on the idea that recruitment creates a company’s future five to ten years ahead.

• *1Total costs the Group paid directly to employees. Defined to include total costs for the external workforce in addition to people the Group employs directly.
• *2Total costs paid to outsourcers, temporary staff and other workers the Group does not employ directly.
• *3The sum of all taxable payments for salaries and allowances.
• *4Calculated as salary plus bonuses paid four times a year.
• *5Calculated as total of executive compensation as a percentage of total compensation of all employees.
• *6Total costs incurred in employment. Defined to include costs that indirectly benefit employees (training costs, benefit expenses, etc.).
• *7Calculated by dividing recruiting costs for the relevant year by the number of hires. Recruiting costs for new university graduates are not calculated because the amount invested in the relevant year is not directly linked to the number of hires.
• *8Total recruiting related costs recorded in the relevant year.

The Link and Motivation Group conducts hiring, evaluation, promotion and other corporate functions based on each individual’s performance and growth, irrespective of attributes such as gender, nationality or age. Although we increased the number of employees with disabilities in 2023 compared with the previous year, the Link and Motivation Group overall still fell short of the legally mandated employment rate for people with disabilities. We will continue to step up recruiting to address this management issue.

• *1Excludes non-responses
• *2Tabulated based on the content of the Report on the Status of Employment of People with Disabilities submitted to the Ministry of Health, Labour and Welfare each year. The results shown are as of June 1, in accordance with the aforementioned report.

The Link and Motivation Group believes that managers play an important role as a junction point in their organizations between employees above and below them in rank, between departments, and in other relationships. We therefore proactively conduct initiatives to develop the leadership of managers, including manager training and surveys of individuals.
In 2024, results for all five metrics remained at 4.0 or higher (of a maximum of 5), so we feel that the managers of the Link and Motivation Group are functioning well as junction points between those above and below them in their organizations.
Productivity is improving, and the numerical results of engagement and manager role surveys have been high, so we consider the ratio between the number of personnel at each level to be appropriate.

• *1Numerical results for overall satisfaction as measured in a role survey on managers (Lincoln Survey). Satisfaction for each item is evaluated on a scale from a low of 1 to a high of 5 by subordinates and superiors of the subject managers. The figures above are the averages for all managers.
• *2As hierarchy names differ depending on Group company, figures are calculated by classifying positions within the hierarchy based on certain criteria. Outside directors, part-time staff and ALTs are not included in the number of people for each level.

The Link and Motivation Group emphasizes diversity not just in terms of each individual but also in terms of relationships among diverse individuals. We believe that this is the same thing as engagement, and that a high level of engagement enables each individual employee to play an active role and generate innovation. We pay close attention to engagement across a variety of attributes and take pride in the high level that each employee has achieved.

• *1Results from the Engagement Survey conducted each February

To increase human resource capabilities and engagement, the Link and Motivation Group promotes the creation of workplaces where it is easy for individuals to work by upgrading facilities, establishing systems and other methods.

• *1Calculated based on total workforce (executives, Group company employees, part-time staff and ALTs).
• *2Calculated based on participation rate in annual stress checks.

The Link and Motivation Group emphasizes productivity (human capital ROI) and gross profit per employee as KGIs for its organizational strategy. Productivity is a core metric for promoting human capital management and for realizing the Group’s mission.

• *1Calculated based on the number of employees when their hours are converted to full time (40 hours a week).
• *2Human capital ROI = Adjusted operating income ÷ Investment in human capital
  Adjusted operating income is a profit indicator that measures operating results. It excludes temporary factors such as goodwill, right-of-use assets, and impairment of fixed assets from operating income.
  Investment in human capital reflects total expenditures, including employee salaries and bonuses, statutory internal and external welfare expenses, commuting expenses and other executive compensation.

The Link and Motivation Group works to create organizations that emphasize a relationship of mutual selection, in which companies and individuals choose each other as they deem appropriate, rather than a mutually binding relationship based on lifetime employment.

The Link and Motivation Group focuses on how long an individual is assigned to the same field, and takes the individual’s wishes into consideration in conducting transfers once every four years as a rough guideline. To foster a spirit of being proactive and independent, the Group also emphasizes acquiring portable skills and capabilities regardless of business field or job type through appropriate transfers.

Looking at specific reasons employees gave for leaving, there were few resignations due to our philosophy, which the Group emphasizes above all, or the corporate culture, indicating that we have been able to create an organization unified by its philosophy, as has been our aim. However, resignations due to the work itself or treatment/pay have increased. In order to be an organization that individuals choose (a Motivation Company), in addition to instilling the philosophy that is our strong point, our efforts will include optimizing roles according to individual wishes and upgrading systems in line with the external environment.

• *1The six months after joining the company are a probation period. After the probation period ends, employees are evaluated on a scale of 2-18, with 10 meaning met expectations.
• *2Total number of days required to hire employees who joined the Group in the relevant year. Calculated based on the number of days from the application date to the offer acceptance date. Recruiting of midcareer applicants is not calculated because some Group companies hire throughout the year.
• *3Critical positions are defined as directors (except outside directors), managing directors and corporate officers, including those of Group companies. However, when a vacancy arises, we either appoint an immediate replacement or eliminate that position, so positions are never left vacant.
• *4Calculated as the number of vacant positions filled through internal recruiting divided by the total number of vacant positions filled through internal plus external recruiting.
• *5Percentage of critical positions that opened up during the year that were filled through internal recruiting. All critical positions have been filled by internal human resources.
• *6Calculated as the number of critical positions divided by the total number of positions.
• *7Group businesses are categorized into specified fields, and the period an individual spends in each field is calculated.
• *8Transfers among occupations and the fields (as noted above), as well as changes in roles due to promotions or emotions, are defined as internal transfers for the purpose of calculating the internal mobility rate for the year.
• *9The annual (12-month period) sum total of the monthly turnover rate (monthly number of leavers ÷ monthly average number of employees)
• *10The annual (12-month period) sum total of the monthly turnover rate of defined category of employees (monthly number of leavers ÷ monthly average number of employees)

The Link and Motivation Group uses its unique human resource development apparatus to provide opportunities for individuals to develop their careers independently and proactively. We work to instill the ideas and frameworks that should be shared among Group employees, improve their basic capabilities and skills, and enhance their specialized knowledge.

• *Calculated by dividing the total hours by the number of employees at the end of the year.

The Link and Motivation Group works to develop management personnel who are able to adapt to the product, labor and capital markets, and to think from a Group-wide perspective.

• *Percentage of critical positions filled through internal recruiting as of the end of the year.

Based on its belief that human resources are our greatest, most powerful type of capital, the Link and Motivation Group secures human resources with the high level of skill it seeks and strong motivation to achieve the Group’s mission. We believe that the high level of engagement in the Group has also led to a reduction in absenteeism.

• *1Total of directors, managing directors and corporate officers, including outside directors.
• *2ALT: Assistant Language Teacher
• *3Contractual working time of at least 40 hours a week is considered “full-time” and less than 40 hours a week is considered “part-time,” regardless of the form of employment. (Excludes ALTs.)
• Number of employees when converted to full-time (40 hours a week). Calculated by dividing total working hours per week of all employees by 40 hours. (Excludes ALTs.)

Fewer women than men are employed in positions on a management track, and women take maternity and childrearing leave at a higher rate and for longer periods. We believe these are the reasons women take a comparatively longer time to promotion to a managerial position.
The main factor in the differentials is the high 80% proportion of women whose salaries have been reduced due to leave and / or shortened working hours for childcare or other purposes.

• *1The percentage of women in all management positions (excluding executives) based on the definition set by the Ministry of Health, Labour and Welfare.
• *2To align the perspectives of all Group employees, we have employees take a test or submit a report each year to promote understanding of our DNA Book, which sets forth the Group’s unique concepts and philosophy.
• *3There are no female part-time or fixed-term employees.
• *4Excluding OpenWork Inc., Link Japan Careers America and Link Japan Careers Euro