SGH

Labor Practices

Policies, Systems and Initiatives

Policies, systems and initiatives related to labor practices

Goals and Results

Fiscal Year Goals and Results

Boundary Medium- to Long-term Goal FY2024 Targets FY2023 Results
SG Holdings Group (Japan) Creating a friendly work environment Overtime hours redution target for drivers
YoY±0%
Overtime hours redution target for drivers
YoY-1.2%
Overtime hours redution target for non-drivers
YoY-0.6%
Overtime hours redution target for non-drivers
YoY-5.9%
By improving the ways we use employee engagement surveys, we are working to create a vibrant organization with a "flat" corporate culture. Percentage of positive responses in "Employee engagement" question
57% (YoY+1%)
Percentage of positive responses in "Employee engagement" question
56% (YoY-1%)
Percentage of positive responses in "An environment that leverages employees" question
55% (YoY+1%)
Percentage of positive responses in "An environment that leverages employees" question
54% (YoY-1%)*

*The actual figure is YoY -0.8%, but the decimal point is rounded off to -1%.

Initiatives to Improve Employee Engagement

Employee Engagement Survey

We see improving employee engagement is essential for the Group to continue to grow sustainably and create and provide new value in the future.

The purpose of this survey is to measure whether employees correctly understand the company's policies and organizational mission, and whether they are able to work independently with a sense of conviction, and to improve organizational capabilities by promoting improvements in the people and organization issues identified in the survey, leading to improved performance and business expansion.

The results of this survey are analyzed by group companies and organizations in terms of strengths and improvement issues. A feedback is provided to employees by the president and general managers of each Group company, leading to action plans and organizational improvement activities at each company. As improvement activities progress, a comfortable work environment is created, and the number of motivated and proactive employees increases, it is expected to lead to higher productivity and organizational strength, such as higher employee retention rates, and ultimately, better business performance.

Framework for this survey

The survey consists of two categories of outcome indicators positioned as the two key indicators: "employee engagement" and "an environment that leverages employees," as well as 12 categories of causal indicators to identify factors that have strong correlations with the outcomes of the two key indicators.

What is employee engagement?

An indicator to measure whether "employees correctly understand the company's policies and organizational mission, and whether they are able to work independently with a sense of satisfaction"

What is an environment that leverages employees?

An indicator to measure "whether there are opportunities for each employee to utilize their skills and abilities, and whether a comfortable working environment is in place"

<Framework>

Framework

<Details of each category>

Details of each category

Survey Overview

Survey Period
January 10 - February 7, 2024
Survey population
Approx. 65,000 employees of domestic group companies
Response rate
97% (97% in the previous year)

Survey Results

<Two Key indicators>

Two Key indicators

<By Category>

By Category

Strengths of the Group

High awareness of corporate ethics and compliance

Our employees have an extremely high awareness of the company's social responsibility (corporate ethics and compliance), and their awareness of harassment prevention is improving year by year.

Streamlined Organizational Structure

The Group has a highly efficient organizational structure with highly productive business processes and cooperative systems.

Promotion of Improvement Activities

The Group as a whole is 7% higher than the Japanese average in the category of "Initiatives since the last survey," and its ability to promote improvement activities is one of its strengths.

Efforts to Improve Engagement

Strengthening the understanding of the connection between management goals and the work of those in charge, and the implementation of feedback

We are working to strengthen the connection between the company and individuals by conducting evaluator training for heads of organizations and managers, and by reaffirming the importance of individual interviews.
For example, goal-setting interviews are held to ensure that each employee understands how his or her individual responsibilities are related to and contribute to the company's policies and organizational goals, and evaluation and feedback interviews are held to confirm future issues and points for growth. We will also strengthen the bond between the company and the individual through evaluation and feedback interviews.

Fostering a Culture of Challenge

We encourage our employees to propose new ideas and better methods, and to take on challenges without fear of failure.
To support these efforts, we have various systems such as "Group Open Recruitment System" that allows employees to challenge job openings at Group companies of their own volition. Also a "Challenge System" that allows employees to challenge for early promotion to a position two levels above them, and a "Career Interview" for employees who report their future career aspirations through a "Self-Assessment System."

Communication between management and employees

It is very important for management to send out messages and engage in dialogue with employees, not only by explaining company policies (management goals, strategies, etc.) but also by providing feedback on the results of employee engagement.Having a common understanding of goals, objectives, and challenges and working toward the same vector will lead to the growth of individuals and the company.
The Group has established "Official Communication," a forum for dialogue between management and front-line employees, to promote communication, and is working to deepen mutual understanding by, for example, posting such communication programs through the internal newsletter website "SgHEADLINE." We will continue to promote this initiative to convey the real voices of both parties.

Training for Human Resource Development

In our training functions at SG Holdings Group, we view all of our personnel as an irreplaceable resource. We are striving to develop "problem-solving-typed leaders" who can create new value while solving the problems of customers and society as a whole. More specifically, our aim is to promote growth through hands-on OJT training, while also providing opportunities for individuals to add to their skills and knowledge through OFF-JT. By helping them grow, we are developing leaders who can take responsibility for the future of our business.

We strive to develop both individuals and organizations by maintaining high levels of motivation among all employees and promoting work environments in which employees can thrive with a self of fulfillment. To this end, we have strategically developed systems for reward and commendation to support an atmosphere in which employees are praised, recognized and thanked for their hard work.

Major Groupwide Training Programs

Major Groupwide Training Programs
Training Title Details
SGH University SG Holdings Group's corporate university established in March 2017 with the aim of creating an environment where employees who are eager to learn and want to forge their own careers can learn voluntarily and support their growth. The university supports career development from new employees to executive candidates by expanding its content as a place for learning that combines online training and e-learning.
SGH Group Organizational Culture Reform Training To build an organizational culture with a high level of psychological safety in which employees learn from challenges and failures, and to remain a company that can survive the competition in the age of VUCA, the program will be implemented from FY2021 with the aim of changing the behavior of managers and above, which is necessary for reforms to take place.
Bright Future Vision Committee Began in FY2013 as an initiative to enhance the corporate value of the SG Holdings Group in the long term by presenting and embodying what young employees should become and reflecting the perspective of employees in management.
Women's Career Support Training In order to change the homogeneous corporate culture and foster a culture that accepts and takes advantage of diversity, training for female employees who are candidates for management positions to acquire the skills and mindset necessary to be promoted to decision-making positions will be implemented starting in FY2021. The training program will be implemented over a period of three years.
Training in Asia A practical training program that allows participants to experience dramatic environmental changes overseas and to develop strategic thinking skills, future insight, and other skills necessary for global business.
Seminar for New GM Qualification Holders With the aim of developing the next generation of management personnel, this program is designed for new GM qualification holders to cultivate organizational management skills to establish the skills required of GMs and create synergy throughout the group from the perspective of group optimization and company-wide optimization.
Management Development Program A training program designed to develop the successors of the directors and officers of our group, in which they systematically learn the knowledge required of managers and practice actions to achieve sustainable growth of our group and transform it for the future.
Education required for each project Training and education to acquire the knowledge and skills required for each entity.

Training expenses, hours of training and total number of trainees for human resource development

Item Boundary Unit FY2019 FY2020 FY2021 FY2022 FY2023
Training expenses Group Thousand yen - 803,482 980,446 984,633 1,010,275
Total hours of training Hours 237,607 280,347 279,227 207,665 239,234
Total number of trainees Persons 6,251 35,283 37,013 40,990 37,002

*The total hours of training and the total number of trainees are calculated for the entire Group using figures disclosed for FY2020. Note that training expenses have been calculated by adding the labor expenses for the trainees from FY2020.

*We postponed overseas training to help prevent the spread of COVID-19.

*The increase in training expenses was due to the establishment and enhancement of training programs for management-level employees.