Human Resources Strategy and Development

Based on the idea of "autonomy and coexistence," YKK Group creates systems and environments in which each and every employee can demonstrate their full potential, regardless of age, gender, educational background, and so on. The goal is to create a "Forest Organization," a company in which every employee has a consciousness of being a manager, and grows strongly together as a group, like a forest that is made up of individual trees. To create value as such an organization, we work to develop human resources and achieve truly fair personnel systems.

We are implementing human resource strategies centered on well being management based on the Cycle of Goodness^®. We aim to be a company that is sought out by a wide variety of people by implementing policies from the following four perspectives: (1) making the workplace employee-friendly, (2) investing in talent, (3) providing growth opportunities, and (4) creating job opportunities.

In terms of (1), making the workplace employee-friendly, we are promoting varied work styles and diversity & inclusion by strengthening the efforts of the Work Style Reform Committee and the Workplace Improvement Committee. For (2), investing in talent, in addition to existing training programs, we are restructuring our education system to foster creativity and conceptual improvement and to develop global human resources. (3), providing growth opportunities, involves strengthening support for individual career formation and development. Finally, in terms of (4), creating job opportunities, we will improve our personnel system and operations, increase the take-up rate of annual paid leave, and implement measures to strengthen recruitment.

We have established employee engagement and other key items as indicators to measure the degree to which these goals have been achieved, and we perform regular progress checks accordingly.

We are further focusing on "performance-based meritocracy" in terms of roles, under the philosophy of "fairness," "job (role)," and "autonomy," while aiming for equality of roles, results, and treatment regardless of age, gender, educational background, or nationality. In the past, we operated a system for the rehiring of retired employees up to age 65, but we abolished the mandatory retirement age system in FY 2021. This makes it possible for individuals to work regardless of their age as long as they are able to fulfill the role required by the company. The company supports independent working styles by clarifying the expected working methods and the abilities and experience needed to perform roles, and provides opportunities for employees to forge their own careers and put forth their own intentions.

We are actively working towards achieving a competitive wage level on the market and have implemented policies such as government-driven wage increases, salary revisions taking into account factors like yen depreciation and inflation, and the provision of special bonuses. Furthermore, we have identified specific roles as "designated positions" that are particularly important or in need of strengthening in the course of our business operations. Employees engaged in these designated positions receive a "designated position allowance". In promoting the acquisition of qualifications, we are expanding the system by removing age restrictions on eligibility and increasing allowances for qualifications.

We are enhancing our training for employees in order toimprove their individual skills and develop human resourceswho can contribute to our business and organization. Inaddition to providing digital and IT literacy education for allemployees, the "Value Creation Academy" for developing future business leaders, and "level-stratified training" for newlyappointed managers and leaders, we also supportopportunities for self-development, such as 6-month onlineEnglish conversation training and e-learning for DX and ITrelatedknowledge and business skills.
Moreover, with the abolition of the mandatory retirement age system and the decision of when to retire being left to the individual, the company provides "career training" for employees to reflect on their own careers.

We hold "roundtable meetings," in which the president and other directors engage in direct dialogue with employees, as well as site visits and interviews, in which employees from headquarters and business units gather information on issues in various regions and workplaces. Employee feedback obtained through dialogue is being reflected in a variety of measures, including the establishment of a career consultation desk and the introduction of a "shared mentor system." In addition, the YKK Employee Stockholding Association holds a biannual meeting to report on business results and for employees to ask questions of the directors.

In order to develop new areas and fields that contribute to sustainable growth, under the leadership of the CHRO (Chief Human Resources Officer), we conduct internal calls for new business themes and the leaders who will be responsible for promoting them. Employees of all ages contribute ideas that are not confined to existing business fields, and leaders are selected from among them to work toward the commercialization of these ideas, further developing their proposals and searching for new business themes.

Aiming to develop the next generation of business leaders, we dispatch employees to graduate schools (PhD/master's programs) in Japan and overseas and provide support for MOT/ MBA study abroad. Research topics are not limited to our current business, and we also proactively recommend themes that will become even more critical in the future, such as robotics, AI/machine learning, DX, next-generation environmental response, etc. We aim for diversified ideas as an organization by helping employees to gain specialized knowledge and a multifaceted perspective that expand beyond the framework of the company.
Further, in addition to recommending the acquisition of doctorates, etc., we are implementing collaboration between recipients, with organizations within the company, and with universities and research institutes, and we operate the "AP PhD Holder Association" with the aim of further revitalization. By sharing each individual's technological assets and utilizing personal networks, we promote the establishment of an environment and human resources development to enhance competitiveness.