Labor Practices

Policy on Labor Practices

The SG Holdings Group aims to be a corporate group in which all employees act autonomously and their respective abilities and individuality can be utilized by enhancing engagement (connection between the company and employees) through initiatives for creating a friendly work environment and empowerment based on respect for human rights.

Personnel Vision

The Personnel Vision established in 2012 describes clearly an organizational culture aimed at developing human resources and diversity of work styles and emphasizes the importance of each employee working with autonomy.

Personnel Vision

Goals and Results Related to Labor Practices

Medium- to Long-term Goals

Boundary Medium- to Long-term Goals
SG Holdings Group (Japan)
  • Creating a friendly work environment
  • By improving the ways we use employee engagement surveys, we are working to create a vibrant organization with a "flat" corporate culture.

Fiscal Year Goals

Boundary FY 2021 FY 2020
Base Year Goal Deadline Base Year Goal Deadline Result
SG Holdings Group (Japan) FY 2020 Reduction of overtime hours Drivers: -2.1% March 31, 2022 FY 2019 Reduction of overtime hours Drivers: -3.3% March 31, 2021 -3.4%
Reduction of overtime hours Employees other than drivers: -2.1% Reduction of overtime hours Employees other than drivers: -7.8% -9.5%
FY 2020 60% affirmative response rate for "employee engagement" questions (up 1.0% year-on-year) March 31, 2022 FY 2019 57% affirmative response rate for "employee engagement" questions (no change year-on-year) March 31, 2021 59.0% (+2.0% year on year)
55% affirmative response rate for "creating an environment that makes good use of employees" questions (up 1.0% year-on-year) 51% affirmative response rate for "creating an environment that makes good use of employees" questions (no change year-on-year) 54.0% (+3.0% year on year)
Results Related to Labor Practices


Provision of a Friendly and Fair Working Environment

Group-wide Human Resources Systems

The SG Holdings Group has initiated the following Group-wide human resources systems aimed at leveraging human resources across the Group’s companies in Japan. The goal is to train highly competitive human resources by effectively promoting employees in a way that leads to maximum self-development.

Group-wide Human Resources Systems (in Japan)

  • Function-based grade level system
  • M/M/A (Manager/Associate) promotion evaluation system
  • GM (Group Manager) human resources system
  • GS (Group Staff) skills development system
  • Rotation system

Impartial Appraisal Systems

We have introduced an appraisal system for the purpose of properly evaluating employees based on their contribution to our business and their performance of the role and action required of their function-based grade level. In addition, we have introduced a results-based bonus system for some employees.

Employee Benefit Systems

We offer a variety of employee benefit systems over and above the social welfare insurance required by law. The SGH Mutual Aid Society, a general incorporated foundation, has offered benefit services to employees of Group companies in Japan. At the same time, we operate retirement pay systems, including a defined contribution pension system, as well as an employee stock ownership system. The Mutual Aid Society operates with three concepts: (1) create a workplace where people feel secure, (2) promote healthy environments, and (3) create opportunities for people to enjoy living -- in three categories: benefits & insurance services, discounts & information, and experiences & participatory events. This creates greater loyalty on the part of employees and their families, creating an environment where employees find greater satisfaction in their work and stronger support for their lives. For retirees and commissioned employees (Shokutaku), the Society also supports OB/OG clubs, publishes club bulletins, and hosts gatherings.

SGH Mutual Aid Society

Systems to Support Work-life Management

We have instituted systems to support employees who are working in various stages of their lives.

Overview of Our Systems (As of March 31, 2021)
Systems Marriage Pregnancy Birth Childcare Nursing care
Leave before birth
Six weeks before due date
Leave after birth
Eight weeks after birth
Childcare leave
Until the day before child's third birthday
Leave for nursing care
Up to 180 days
Seven days marriage holiday Birth leave
Three days for men
Care leave
10 days per year per child*
(Can be taken in one-hour units)
Care leave
10 days per year
(Can be taken in one-hour units)
Reduced working hours Reduced working hours
Until the end of fourth grade
Reduced working hours
Three years, from date of initiation
Treatment of various conditions Exemption from late-night work hours Exemption from late-night work hours
Adjustment of break time Less overtime work Less overtime work
Going to hospital during work hours Exemption from overtime work Exemption from overtime work
Wedding gift (cash) Relaxation of commuting
Adjustment of up to one hour per day, up or down
Birth gift SGH Kids Garden
Nursery school at workplace
SGH Kids Garden

*Maximum of 20 days per year for two or more children

Supporting Childcare

Distribution of Childcare Support Guidebooks

We have published the "Working Papa and Mama Guide," our guidebook for supporting childcare (one version for employees, another for managers), detailing the support systems the company offers for childbirth and child-rearing. We want to create an environment where people are comfortable continuing to work. In recent years, to encourage male employees to take time off for child-rearing, we added pages dedicated to supporting childcare by male employees

Working Papa and Mama Guide

"SGH Kids Garden" In-house Nursery School

The SG Holdings Group has established the "SGH Kids Garden" In-house Nursery School for the purpose of supporting early reinstatement of female employees after taking maternity leave or childcare leave and supporting the balance of employees work and home lives. At the nursery school, we provide a safe environment and education at the same level as a licensed nursery school, to support Group employees returning to work, and to help support the spouses of employees who also wish to return to work.

In-house Nursery School

Initiatives to Address Changing Corporate Culture

Communication within the Group

Information is communicated on a daily basis using the "SG HEAD LINE" internal web media for the purpose of coordinating information and promoting understanding within the Group. We aim to create a flat and open organization by establishing a platform that communicates messages from management and a wide range of articles on topics such as business information about each company and welfare benefits. Employees can view the articles not only on PCs but also mobile devices such as smartphones, enabling even employees in busy workplaces to gather information efficiently during moments of spare time


Raising the Efficiency of Back-office Operations

The SG Holdings Group is promoting more efficient back-office operations and expanding the scope of efficiency-enhancement initiatives, which include RPA*1, AI-OCR*2, voice recognition, Chatbot and other technologies. SG Systems, the operating company managing IT for the Group, is spearheading the efforts.

*1RPA: Robotic Process Automation, where software robots automate operations/processes.

*2OCR: Optical Character Recognition. Technology for reading written and printed text with a scanner and converting this into digital text.

Results of Improving Efficiency of Operations through the Introduction of IT (as of March 31, 2021)

Scope Measure Time reduction
Entire SG Holdings Group Introduction of technologies such as RPA, AI-OCR, voice recognition and Chatbots into operations 29,447 hours per month

*Period tallied: FY 2018 - FY 2020

Initiatives to Support Employee Engagement

Dialogue between Management and Employees in the Workplace

The SG Holdings Group is engaged in initiatives to reflect opinions from the workplace in management, ensure management goals and strategies are understood by employees, and enable each person to do their work with a positive awareness of goals.

Sagawa Official Communications (SOC)

Sagawa Express is implementing Sagawa Official Communications (SOC), which refers to efforts to achieve direct exchanges of opinions between executives and employees in working locations. Through this dialogue, we deepen mutual understanding, by communicating the company's management strategy to the front-line workers, and engaging in dialogue that helps dispel employees' questions and anxieties about work.

Initiative FY 2020 Results Remarks
Sagawa Express Sagawa Official Communications (SOC) 18 branch offices and 428 sales offices nationwide
Dialogue with 944 people
Implemented online in fiscal 2020

Personnel Training Initiatives

Building an Organization of Diversity and Inclusion