Fair Compensation, Benefits and Evaluations Sustainability

We revised our HR system in FY 2022. The new HR system is based on the concepts of being a simple and compelling framework for producing human resources to drive business growth as well as to activate and pass down Goldwin DNA. As a job-type HR system, it focuses on having the company clearly present to employees what is expected of them, and presenting career paths based on this.

The new HR system comprises three core HR systems. These are the grade system, which defines the job duties, competencies, experience and other attributes expected of each grade, the evaluation system defining the evaluation criteria, and the compensation system that determines compensation from the results of the grade-based evaluation of job performance. As a job-type HR system, the HR system is based on the job duties that make up the assigned work and roles. We define the grades, evaluation criteria and compensation scheme based on the three pillars of 1) quality and difficulty of the job duties, 2) sphere and scope of the job duties, and 3) collaboration, management and instruction.

Revising the HR system allows us to clearly define the roles for job duties and conduct evaluations that earn employee support as well as enable strategic HR rotations and HR development. Furthermore, rehired employees aged 60 years or older were previously paid a uniform wage, but with the shift to a job-type HR system, they are now evaluated according to their duties. The system complies with equal pay for equal work without any discrimination based on gender or age.

In FY 2023, we held face-to-face evaluator briefings and feedback interview briefings to share the evaluation axes. All eligible employees attended, with follow-up also conducted later in an archived session. These evaluator briefings will continue to be held annually. We have also established a system that backs up the career development of employees by increasing the number of interviews employees have with their supervisors each year from two to four. From FY 2024 onward, we will identify any areas of concern in the HR system revealed through employee satisfaction surveys, and we will implement specific measures to increase the transparency and acceptability of evaluations, with the aim of achieving stable operation of the system.

We prohibit all forms of discrimination based on the Goldwin Group Policy on Human Rights. In our wage system as well, sex-based discrimination is prohibited, with compensation determined in compliance with laws related to equal pay for equal work. Compensation and benefits are determined not only in terms of compliance with legally mandated minimum wages. The trends in labor wages in each region and the wage levels of competitors in the same industry are fully understood, and decisions are made while taking into account our business performance, to provide competitive pay above the level of living wages. Under the HR system, basic salary is linked to the results of individual evaluations of the previous fiscal year, and summer bonuses are linked to companywide and departmental performance of the previous fiscal year with the aim of fostering a sense of unity within the organization (varies depending on the employee’s position). We strive for fairness in the evaluation of individual employees while deepening our understanding of them through interviews with their supervisors, who are the evaluators, four times a year. This is part of our efforts to narrow the gender gap in wages.

Our Group operates a corporate pension plan with the aim of ensuring a stable lifestyle for employees after retirement. The plan consists of a defined benefit (DB) pension plan and a defined contribution (DC) pension plan, with monthly contributions being made according to the grade of each employee. With respect to the defined contribution (DC) pension plan, we have adopted a matching contribution plan (employee contributions) up to an amount equivalent to our contribution.