Integrated Report 2021
PERSOL Grouphttps://www.persol-group.co.jp/

PERSOL HOLDINGS CO., LTD.
2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, Japan
Tel: +81-3-3375-2220“Piece of Peace—All we need is …—” inclusion IT team (winner of the Paralym Art World Cup 2020)

Group Vision

Introduction

Group Vision StructureGroup vision structure for realizing

Working life is a journey of growth and creation.

“Work, and Smile”

We all have big dreams,
and there are many different paths to success.

Value Story

Thus, we need to make our own choicesfrom a range of diversified work opportunities.
GROUP VISIONOur vision is to enrich society
so that all work leads to lives of happiness.

Value Strategy

FIVE CORE PRINCIPLESAuthentic

Customer-Focus Professional
Teamwork Innovative

CORPORATE PHILOSOPHY

Individual Growth

Governance

Providing Opportunity

Social Contribution

CONTENTS

Introduction1235Group Vision
Group Vision Structure
History of the PERSOL GroupTop Message

Value Story
9 Value Creation Story
11 Three Group Key Strategies to Deal with Reforms in
the Current Work Environment
13 Concept of Sustainability
14 CHRO Interview
16 Initiatives to Visualize “Work, and Smile”
17 Initiatives for Value Creation

1

PERSOL Group Integrated Report 2021

Value Strategy
23
26
27
29
31

Mid-term Management Plan 2023
CIO Interview
CFO Interview
At a Glance
Business Overview by SBU
31 Staffing SBU
32 Career SBU
33 Professional Outsourcing SBU
34 Solution SBU
35 Asia Pacific SBU

Governance
36
37
39
41
43
45
47

History of and Basic Policy on Governance at the PERSOL Group
Panel Discussion with Independent Directors
Corporate Governance Structure
Director and Officer Compensation and Succession of CEO, etc.
Directors and Executive Officers
Risk Management
Compliance and Crisis Management

49 Financial and Non-Financial Data
51 Corporate Profile/Stock Information

PERSOL Group Integrated Report 2021

2

Introduction

April 2020

History of the PERSOL Group

Shifted to a five SBU (Strategic Business Unit) structure

July 2017

Renew the Tempstaff Brand logo

Career SBU

Solution SBU

Asia Pacific SBU

Professional
Outsourcing SBU
Specialized
Services

August 2020

October 2018

Formulated the Group Mid-term Management Plan 2023,
based on the Value Creation Story for 2030 (mid- to long-term
strategic policy)

Renew the doda Brand logo

The roots of the PERSOL Group go back to Tempstaff Co., Ltd., which was founded in 1973. The company was

Staffing SBU

born at a time when the concept of temporary staffing had not arrived in Japan, and we have led the industry byproviding our services as a new work style to a large number of people. Since then, as a comprehensive humanresource services provider, we have worked with many companies and expanded our businesses in line with thewishes of working individuals and the needs of the times.

January 2019
Avanti Staff Corporation becomes a consolidated subsidiary of PERSOL TEMPSTAFF CO., LTD.
July 2019
FUJI XEROX LEARNING INSTITUTE INC. becomes a wholly owned subsidiary and changes its
name to PERSOL LEARNING INSTITUTE CO., LTD.

1993
Tempstaff Co., Ltd. starts global expansion

Carrying on the aspirations of Yoshiko Shinohara, we at
the PERSOL Group aim to realize a society in which all people
can continue to work enthusiastically and live happily.

Announce the brand tag line, “Work, and Smile”

December 2018
Establish PERSOL INNOVATION CO., LTD.

October 2019
May 1996
Tempstaff Co., Ltd. announces its Corporate Philosophy of“Providing Opportunity, Individual Growth and Social Contribution”

April 2017
JAPAN TECSEED CO., LTD. and DRD CO., LTD. merge to become
PERSOL RESEARCH & DEVELOPMENT CO., LTD.

Change the Group Vision to“Work, and Smile”

Value Story

July 2017
Temp Holdings Co., Ltd. changes to PERSOL HOLDINGS CO., LTD., andseveral of our core Group companies undergo a name change
October 2017
Programmed Maintenance Services Limited becomes a consolidated subsidiary

January 1989
Launch DODA (currently doda), a careerchange information magazine

950.7

July 2015
Corporate Philosophy, Group Vision “Create social infrastructure for people andorganizations that catalyzes growth and innovation” and Five Core Principles are announced

October 2008
Tempstaff Co., Ltd. and Tempstaff People Co., Ltd. merge andjointly establish Temp Holdings Co., Ltd.

Net salesbillion yen

Value Strategy

When our founder Shinohara graduatedfrom high school and began working, there
were still few women joining the workforce.
Shinohara founded Tempstaff Co., Ltd. in 1973
with the aim of creating a society in which
every woman who wanted to work could play
an active role. Since then, we have contributed
to society by providing many people with opportunities to play an activerole in line with the times. In addition, the growth of our temporary staff isessential for them to have further opportunities to work. Our employees andtemporary staff have grown synergistically based on the idea that the growthof our temporary staff must be supported by the growth of our employees.
We have taken initiatives in the belief that the purpose of our existence is toexpand our business to benefit society through the growth of our employees
and temporary staff.

December 2019
Establish PERSOL Professional Outsourcing Co., Ltd.
Establish PERSOL Asia Pacific Pte. Ltd.

Announce the newGroup brand, “PERSOL”

Tempstaff Co., Ltd.
(currently PERSOL TEMPSTAFF CO., LTD.) is established

Introduction

July 2016

May 1973

April 2013
Intelligence Holdings, Ltd. becomes a consolidated subsidiary
May 2010
Share of Kelly Services Ltd. is acquired

3

1980

1990

2000

Governance

1970

Changes in net sales over the past ten years

March 2006
Tempstaff Co., Ltd. is listed on the First Section of the Tokyo Stock Exchange

1986
Tempstaff Co., Ltd. starts a temporary staffing business

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY20201970s to 1980s

1990s to 2000s

2010s

2020s onward

Infancy of temporary staffing services

Period of expansion of workers’ rights and temporary staffing services

Era of diversification of work styles

Era of new possibilities for work styles

1972
Industrial Safety and Health Act and Working Women’s Welfare Law(changed to the Equal Employment Opportunity Act for Men and
Women in 1986) enacted

1993
The central government ministries designated Wednesdays as a day forleaving the office at the scheduled time in response to the widespread useof a weekly no-overtime day

2018
Act on the Arrangement of Related Acts to Promote Work Style Reform
enacted, came into effect gradually from April 1, 2019

1979
Convention on the Elimination of All Forms of Discrimination against
Women adopted by the United Nations General Assembly

1996
The Worker Dispatching Act revised to expand target businesses eligible
for worker dispatching to 26 specialized businesses

1985
The Worker Dispatching Act enacted, enabling worker dispatching for
only 13 specialized businesses

1997
Ordinance for Enforcement of the Employment Security Act revised to
expand the scope of charged employment placement businesses

2020
Act on Improvement of Personnel Management and Conversion of Employment Status forPart-Time Workers and Fixed-Term Workers (Part-Time and Fixed-Term Employment
Act)* and the Act for Securing the Proper Operation of Worker Dispatching Undertakingsand Protection of Dispatched Workers (The Worker Dispatching Act) revised to prohibit
the establishment of unreasonable differences in treatment between regular and temporary
workers in the same company with respect to all aspects of treatment, including basic wages
and bonuses (equal pay for equal work). *From April 1, 2021 for small and medium enterprises
Due to the COVID-19 pandemic, transition to new work styles such as remote work, online
meetings and remote sales made progress, as new lifestyles (the “new normal”) by suchmeasures as reducing the risk of infection and maintaining social distance took hold1987
Amendments to the Labor Standards Act enacted major reforms to theworking hour system, including the gradual implementation of a 40hour workweek, and the establishment of flextime

1998
Labor Standards Act revised to establish a discretionary working system
for managing-related work

PERSOL Group Integrated Report 2021

1999
The Worker Dispatching Act revised to liberalize the target business inprinciple

2002
Percentage of companies implementing employment adjustments peaked
2004
The Worker Dispatching Act revised to lift the ban on dispatching to the
manufacturing industry
2006
The Equal Employment Opportunity Act for Men and Women revised toprohibit discrimination of both men and women and disadvantageous
treatment on the grounds of pregnancy and childbirth
2007
Labor Contracts Act enacted
Charter for Work-life Balance adopted

2019
Act on Promotion of Women’s Participation and Advancement in the
Workplace and the Act on Comprehensive Promotion of Labor Policies,
Stability of Employment of Workers and Enhancement of OccupationalLife revised to strengthen measures to prevent power harassment andsexual harassment

2008
The global financial crisis

PERSOL Group Integrated Report 2021

4

Introduction

Top Message

We aim to be a reliable corporate groupthat will exist well into the future through realizing“Work, and Smile” for everyone
to recover. From this experience, many customers

Operational improvement, in other words, the digitalemphasized maintaining employment. This can be seentransformation (DX) of businesses, to improve working

as evidence that the clearer positioning of customers’

people’s lives. By raising productivity, we will support theown employees and temporary staff within their human

growth of not only companies but also of the people who

resource portfolios, and more than 100,000 employed

work in them. By continuously providing society with new

temporary staff, are essential to their businesses. In

value through personal and organizational growth, we will

addition, the outsourcing field including COVID-19 support

meet the expectations of society, enabling the PERSOL

and operations at government offices achieved double-

Group to take special pride in being one of the leading

digit growth, leading to record profits for the Staffing SBU.
Value Story

companies among human resource service providers.

Introduction

The PERSOL Group is pursuing Work × Technology ×

These results give us confidence that we have laid astrong foundation for achieving the Mid-term Management

Representative Director,
President and CEO

The fiscal year ended March 2021 was the first year underwork styles are occurring as a result. Even companies that

the Mid-term Management Plan 2023, but with uncertainty

had not done so previously quickly introduced remote work

due to the significant effects of COVID-19 we could haveand other measures related to work style reform. Prompt

faced adverse impacts on results similar in degree to those

responses to these changes are also expanding the range ofof the 2008 financial crisis. Using our experience from thatareas where we can provide support.

The shift to a new normal as a result of the COVID-19
pandemic has caused both companies and workers to change
their mind and awareness about work, and major changes in

Going forward, we can expect more companies thanchanges, while also engaging in dialogue and coordinating

ever before to think about how to increase operationalwith industry associations and the rest of the industry to

productivity and efficiency, how to make their employees

began working with a variety of companies and started

determine what was needed to lessen the reputational riskhappier, what contributes to greater engagement and howoffering a broad range of services. I feel that different

to the human resource services industry as a whole fromto provide true value to customers. Providing services

cultures and diverse values have since spread rapidly.

large reductions in the number of temporary staff and whatto address these new needs gives us major business

Having people with diverse ways of thinking and abilities

was needed to reduce contract terminations by companies.

opportunities. Despite uncertain social conditions, we will

It has been over 30 years since I first had the chance

working together while working individually with customers

The Group reported lower sales and profits comparedfind opportunities and resolve to work together as a groupto learn about temporary staffing services. Sensing

makes it possible to work together as a team to resolvewith those of the previous year, but both net sales andtoward achieving the Mid-term Management Plan 2023

the attractiveness and possibilities of that businessissues and take action to provide the customer with new

operating profit were above our initial forecasts.

targets, while flexibly responding to environmental changes.

model, in 1991, I decided to join Tempstaff (now PERSOL

value. I consider this the PERSOL Group’s strength.
I took office as President and CEO of PERSOL HOLDINGSThe Staffing SBU contributed much to our businessresults, with extremely solid performances in the

Accelerating various initiatives at each SBU
to increase our social value

company’s sole business, but I continuously wantedin April 2021 and feel a strong sense of responsibility

temporary staffing and BPO fields. I believe this was due

to provide various services related to “work” beyond

to steer the Group toward even further growth. Humanin part to a sense of emergency among our customers.

temporary staffing.

resources are our business’s driving force. Aging

Following the 2008 financial crisis, companies drastically

The PERSOL Group has formulated a “value creation

populations and decreasing birthrates are major

shrank human resources, which created major obstacles

story” with a view toward 2030 and is pursuingsocial issues in Japan and other developed countries.

in business operations when the economy began

corporate activities that aim for a society that has

When we became a listed company in 2006, we embarked
on a business strategy based on M&As. As a result, we

PERSOL Group Integrated Report 2021

Governancetime, we were therefore paying close attention to market

Taking to heart our founding vision,
pursuing the challenge of addressingchanging times by providing new value

TEMPSTAFF). At that time, temporary staffing was the5Plan 2023, despite the effects of COVID-19.

Value Strategy

Takao Wada

Overcoming uncertainty andmaking steady progress to facean unpredictable future

PERSOL Group Integrated Report 2021

6

realized “Work, and Smile” in 2030. The Mid-termManagement Plan 2023 lays out five overall strategies:
increasing social value; increasing economic value;
shifting to a strategic business unit (SBU) structure;

The PERSOL Group is pursuing the twin aims of enhancing

identifying growth areas; and strengthening businesssocial value to maximize “Work, and Smile” and enhancing

with technology. Each SBU is spearheading various

economic value to achieve business growth and expansion.

initiatives in accordance with these strategies.

As a representative initiative to enhance social value,

The Staffing SBU is responding flexibly to requests for

PERSOL is participating in the Gallup World Poll, theworld’s largest public opinion survey, which carried out

in which it can provide services to both clients and staff.

a poll of roughly 120,000 people in 116 countries thatIn the continuously growing BPO field, coordination ismeasured the degree to which “Work, and Smile” has been

being strengthened by both the Staffing SBU and therealized among workers around the world.
The survey asked three questions, including one

changes in customer demand. Using our BPO service torelated to “self-determination in work,” which had an

address operations previously handled by employees, andextremely high correlation with the enhancement of work

also outsourcing entire operations in human resource

engagement. One of our roles is to provide workers withmanagement to PERSOL, will lead to even higher

many choices of work. We make it possible for them toproductivity for customers.

exercise self-determination in both their type and style

Value Story

Professional Outsourcing SBU to address accurately

Introduction

staff who work from home and is creating an environment

At the Career SBU, the market is expected to recover inof work by selecting from varieties of choices. We believethat this enhances work engagement and leads to “Work,(ESG) issues and the UN’s Sustainable Development

We will quickly shift our services according to the change

opportunity to refine the unit’s existing business model for

and Smile.”

Goals (SDGs), areas in which social awareness is rapidlyof demands of the market and customers as well as theincreasing. Building on our basic businesses of creatingchange of work styles for workers, by continuing to pursue

higher profitability. The SBU is also proactively resolved toGoing forward, the PERSOL Group will use similar

making investments in digital areas. It has already engaged

questions on surveys conducted among the users of ouremployment and developing and supporting human

the challenge of proactively creating job opportunities andinternal engineers to promote DX and built a solid foundation

various services, to be sure to give rise to indicators

resources, we are working to address various social issues

diverse work styles. In addition, with regard to “work,” Ithrough overlapping initiatives to improve operations andrelated to “Work, and Smile” in our business activities. In

as our key strategic policies, with the aim of contributing

believe we should take the initiative to reform as a partner

increase productivity. The Professional Outsourcing SBU is

addition, by spreading this concept and resonating withto a sustainable society.

in the business growth of our customers and of the users of

also cooperating and further strengthening efforts tied tosociety, we will make serious efforts to realize “Work, andthe IoT, MaaS, robotics and factory automation. The Solution

Smile” throughout the world.

our services.

Partnering with customers andcontinuously providing value, based ona spirit of “Fueki Ryuko (being eternal andopen to new changes)”and teamwork

Since our founding in 1973, we believe our core value isto sincerely engage in providing the best services to ourcustomers. The trust we have gained from our customers

begun developing a “reskilling” business, an area that has

Smile” to achieve our Group Vision. With more than 50,000

recently become a focus of attention, and other learning-Group employees, we focus on promoting better use of therelated areas in addition to its human resource assessment

diverse pool of human resources. In addition to creating

matching and platform for the short-term human resource

an environment in which everyone finds work rewarding

Following our corporate philosophy of “Providing

wanting to contribute to society. During the current

utilization businesses.

and works with enthusiasm, regardless of gender or age,

Opportunity,” “Individual Growth” and “Social Contribution,”

COVID-19 pandemic, our role has expanded and deepened

in September 2021, we established the Gender Diversity

the PERSOL Group shares with its employees the five coreby the big reformation of our lifestyle. In this sense, theintegrated operations across 12 countries through theCommittee to promote the active participation of theprinciples of “Authentic,” “Customer-Focus,” “Professional,”PERSOL Group is engaged in a very social business. To

establishment of the Asia-Pacific regional management

roughly half of our employees who are women. Our first“Teamwork” and “Innovative,” and together we resolved

continue to fulfill that responsibility, I believe we need tocompany PERSOL Asia Pacific. In countries and regions

goal is to increase the percentage of women in managerial

to steadfastly pursue the realization of our Group Visioncontinue to be a reliable company that will exist well intolike China, Singapore and Australia, which have seen

positions, for which we are planning and carrying out“Work, and Smile.”

the future.

The Asia Pacific SBU is steadily strengthening its

earlier recoveries from the effects of COVID-19, we will

specific initiatives.

Going forward, I intend to work to introduce the concept offor close to 50 years is an irreplaceable asset, and weare proud to have produced a succession of employees

We will make every effort to improve people’s lives andincrease our marketing force as appropriate to address

Along with these initiatives to increase and strengthen“Fueki Ryuko” into the PERSOL Group’s management. This

support growth of the market. Therefore, I would like tothe rapid growth in human resource demand and continue

our human capital, the PERSOL Group is also acceleratingmeans pursuing new challenges while emphasizing absolute

ask for the continued understanding and support of ourto record sales growth and improved profitability.

its response to Environmental, Social and Governancevalues such as our Group Vision and Corporate Philosophy.

stakeholders.

PERSOL Group Integrated Report 2021

GovernanceWe also aim for our employees to realize “Work, andValue Strategy

the fiscal year ending March 2022, which we view as an

SBU, whose role is to create new business fields, has

7

Initiatives beyond those of the SBUs torealize “Work, and Smile”

PERSOL Group Integrated Report 2021

8

Value Story

Value Creation Story

Business targets
Social value

Economic value• Create “Work, and Smile” index and implement measures that willcontribute to improvement of component indicators to achieve the• Shift from the management focusing on single year P/L to the
management that realizes sustainable growth of corporate value• Introduce ROIC and other indicators of return on capital to
improve the corporate value of the entire Group

Group Vision• Promote ESG-related initiatives and disclose them in the
Integrated Report

Imagining the kind of world we hope will exist in 2030, we formulated a Value Creation Story. We are focusing on five SDGs
to help achieve a sustainable society and are actively working with diverse stakeholders to find solutions to social issues.

Value Creation Story for period through 2030
The PERSOL Group is working to realize our Group Vision“Work, and Smile” by creating new value andthereby meeting expectations in society.

Realize a sustainable society

OUTCOMES

SDGs

Society that PERSOL envisions

Introduction

Career SBU

PERSOL’s promise to society

BUSINESS ACTIVITIESHuman capitalGroup key strategy
1Social relations capital

2
Innovating through technologies

3
Extending our value globally

Financial capital

Career SBU

Authentic
Customer-Focus
Professional
Teamwork
Innovative

Individuals’ working styles changewith the advancement oftechnologies in various industries.

Corporate Philosophy
Providing Opportunity
Individual GrowthSocial Contribution

Offer the cutting-edge services in society
to expand personnel’s potentials

Solution SBU
Connect personnel with organizations
optimally in the Asia-Pacific region

Asia Pacific SBU

Professional Outsourcing SBU
Customers/staff members
Staff members of both customer companies andPERSOL work in a way they can be themselves.

Governance

Professional Outsourcing SBU
Five Core Principles

Career SBU
Use PERSOL’s services and act on their own to“grab work chances.”

Staffing SBU

Corporate strategies

Healthy financial basis forbusiness growthFeel satisfied with and appreciation for
PERSOL’s services, and support PERSOL.

Service users (including job seekers)

Connect personnel withorganizations optimally

Contribute to realization of prosperous
society based on the power of
personnel and technologies

Staff

Economic value

Abundant information on personnel
and human resources collected bystaff and companies

Staffing SBUPERSOL’s staff membersIntellectual capitalSet the vision “Work, and Smile,” make assessments and improvements

Value Strategy

Deep, wide and abundant connections
with customers formed throughpersonal interactions

Business domain

People live and work longer
all over the world.

Social value

Focusing on each individualSocial trust built by
providing value forsociety over many years

Work environmentchanges PERSOL sees

Business targets
Value Story

Personnel who have been honestly
helping working individuals

OUTPUTS
Business activities results

SBU business strategies

We will propose new working andworkforce styles in this era wheremore people live to be 100 years old,and help improve work engagement of
every individual so our vision“Work, and Smile” can be realized.

INPUTS
Sources of value creation

Solution SBU
Service users
It is possible for as many individuals as
possible to build more affluent, enriched careers
in the changing and altering society.

Asia Pacific SBUPERSOL’s capital
Human capitalSocial relations capitalIntellectual capital (results for 2020)• Number of Group employees: 54,760 (As of March 31, 2021)• Number of operating bases: 468 domestic, 179 overseas• Number of job postings: Approx. 150,000 (As of March 2021)• Hours of employee training (per person): 19• Number of research papers published: 15• Number of bulletins published: Three* Includes contingent employees• Number of dispatched temporary staff: Approx. 102,400(As of January 1, 2021)

9

PERSOL Group Integrated Report 2021

(As of March 31, 2021)• Number of client companies: Approx. 35,500 (As of March 2021)

Financial capital (As of March 31, 2021)• Shareholders’ equity: 161,022 million yen• Rating: A according to the Japan Credit Rating Agency (JCR)• Equity ratio: 41.0%

PERSOL Group Integrated Report 2021

10

Value Story

Three Group Key Strategies to Deal with Reforms in the Current Work Environment

INTERVIEW

hours of operations annually by introducing robotic

Increasing our presence in the Asia-Pacificregion in pursuit of further synergies

their careers to help them realize

process automation (RPA) within the Group, a change that

Our business seeks to realize “Work, and Smile” not only

has made it possible to shift our employees to higher-

in Japan but also in the Asia-Pacific region, and we are“Work, and Smile”

value-added operations. We have pursued digitalization inenhancing our presence in these countries. Expecting

our existing core businesses such as temporary staffing

this market to continue to expand on demand for humanand placement, and have thus upgraded the quality ofresources in tandem with the region’s economic growth, we

those businesses. However, to become a lifelong partnerare exploring possibilities to improve our value. First, weof our customers, we need to make even greater use

recognize the importance of raising profitability and haveof technology. This means connecting the dots of each

therefore established a regional management company as aservice to analyze and make use of the huge amountsingle SBU responsible for PERSOLKELLY and Programmed.

of both corporate and personal data related to human

We are also strengthening our unified management

resources that we have accumulated, to provide workby consolidating our staffing/placement brands underopportunities that conform to each stage of an individual’s

PERSOLKELLY. Since we are offering the same temporary

career and to the suitability and abilities of workers, while

staffing and placement services in the Asia-Pacific region

achieving optimal matching. Going forward, we will createthat we offer in Japan, we are able to make mutual use of

new businesses from the perspective of using the latest

technological knowledge and expertise to create additional

technologies to improve our social value.

synergies for the Group as a whole.

We support all workers throughout

Hirotoshi Takahashi
Representative Director and Deputy President

DX of society to leap forward. In addition to improving
the productivity of workers, organizations and society,

The PERSOL Group has formulated three Group key

by technology.

I believe that technological advances have revealed theimportance of measuring work that can never be replaced1

We will promote initiatives to enhance work engagement from thestyles, we will provide various opportunities as a partner throughout

environment in the era of the 100-year lifespan andGroup Key Strategy 1: Focusing on each individual

advances in technology, with the aim of achieving our

Supporting careers as a lifelong partner
as work values diversify

Continuously help individuals recognize their potential and options
Interviews,
personal records

by providing diverse work style choices and learning

reality, values such as job satisfaction, diverse work

opportunities at all stages of life, as a partner that stays

styles and job “reskilling” are undergoing major changes.

close to workers throughout their lives. To make it possible

Companies are also changing how they approach humanfor each individual to choose a career independently fromresources, including a shift from traditional membership-various options, we are pursuing the “Future Vision oftype employment to job-based employment. These

Work” as a framework that links data and services acrosscreate new businesses toward the future from the perspective of using thechanges have made it increasingly important for workers

different HR services. Our aim is to provide opportunities

latest technologies.

to be retrained to acquire new skills and knowledge thatfor all workers that suit them, to realize their “Work, andwill be useful outside their company in addition to the

Smile” on their own terms.

2

Innovating through technologies

Community

Coaching

Createnew work styles
and workforce styles

We will pursue digital transformation to maximize the use of technology.

Create new businesses
through digital innovation

This will involve building an infrastructure for the analysis and use of
the huge amount of personal and corporate data we have accumulated,and digitalizing existing businesses to further upgrade them. We will also

3

Introduce more advanced corebusinesses via digitalization

Utilize corporate data

Utilize
personal data

Develop foundation for data use

Extending our value globallyorganization, to empower them to choose the job and work

Group Key Strategy 2: Innovating through technologies

We will establish a management system to provide the Asia-Pacificstyle that match their own values.

region with values from Japan, which, ahead of other nations, is alreadythe COVID-19 pandemic has accelerated the necessity of

Maximizing the use of technology to support
workers as a partner throughout all stages of
their careers

taking advantage of AI and other digital technologies, for

We are proactively pursuing the use of technology ininstance, the adoption of work from home, causing thethree areas: increasing productivity, advancing existing

PERSOL Group Integrated Report 2021

Learning

We believe that our mission is to support people’s careers

experience and expertise they acquire in their current

11

Support individuals’ work style at each stage of life

their careers.

100-year lifespan looking increasingly like an obtainable

Furthermore, in addition to advances in technology,

Types of jobs,
employment

GovernanceWith the extension of healthy lives and the era of theWork-life style(time, place)

Career, work style

Provide various “work” options in line with individuals’ personal preferences

perspective of all the workers we support. By creating diverse working

strategies in response to reforms in the current work

Group Vision “Work, and Smile.”

Focusing on each individual

Value Strategy

Reforming the current work environment

Reforms in the current work environment in
the era of a 100-year lifespan andtechnological advances

Value Story

Group Key Strategy 3: Extending our value globally

increased productivity by automating more than 300,000

Introduction

businesses and creating new businesses. We haveStrengthen business andmanagement base in
the Asia-Pacific region

Improve local businessin the Asia-PacificregionProvide greater value forareas outside the AsiaPacific region

facing many work-related challenges.
We will contribute to meeting social challenges around the world to

2023

2030

realize our Group Vision “Work, and Smile.”PERSOL Group Integrated Report 2021

12

Value Story

Concept of Sustainability

INTERVIEW

Imagining the kind of world we hope will exist in 2030, we formulated a Value Creation Story. We are focusing
on five SDGs to help achieve a sustainable society and are actively working with diverse stakeholders to find

Visualize the situation, set indicators andsolutions to social issues.

develop policies.
Repeating this process will lead to

Sustainability Policy

the realization of “Work, and Smile.”

Seeking to underpin the development of a sustainable society reinforced by its corporate philosophy that highlights

Introduction“Providing Opportunity, Individual Growth and Social Contribution,” the PERSOL Group connects withdiverse stakeholders and actively addresses social issues. With 2030 as our destination year, we are promoting

Hirotaka Minobusiness activities designed to realize the Group Vision “Work, and Smile” and contribute to achieving SDGs.

Executive Officer CHRO

Five priority issues identified by PERSOL
We emphasize five SDGs as priority issues, and we also contribute to achieving

SDGs 8.2

SDGs 8.3

Sustainableeconomic growthHigher economic
productivity

Create jobs
that motivate

Society overall

SDGs 8.5

SDGs 8.6

SDGs 8.8

Motivating jobs
for everyone

Higher employment
rate of young people

Ensureworkers’ rights“Work, and Smile”
Thoughts behind the global survey and a vision
for the futurecompanies and researchers in addition to the PERSOLAs the Executive Officer responsible for human resources,

learn from each other and exchange information, and if

my mission is to enhance employee engagement, promote

other companies implemented surveys using these three

diversity, handle labor-management issues and realize

questions, we would be able to compare the scores. In“Work, and Smile” for each and every employee of theaddition, by linking the survey results with research into

PERSOL Group. We are also working to instill the concept

happiness and work engagement being carried out by our“Work, and Smile” throughout society.

Group think tank, PERSOL RESEARCH AND CONSULTING,

We believe that to instill the concept “Work, andSDGs 5.5

Develop resilient
infrastructure

Empower women

Create next-generation work styles and jobs
SDGs 9.5

SDGs 5.bPromote industrial
development

Utilize technology
to enhancecapabilities of
women

Individual customers
Corporate customers
Build a foundation for economic activity
and promote innovation

Encourage greater participation of
women in the workplace
SDGs 10.2
Promote social,economic andpolitical inclusion

PERSOL employees
SDGs 4.4

SDGs 10.7

Improve skills forsecuring jobs
that motivate

Well-managed
policies for humanresources
overseas

Providing Opportunity
Individual GrowthSocial Contribution
Provide learning opportunities

13

PERSOL Group Integrated Report 2021

Provide job opportunities for everyone

around the world work and smile. We want to be able to

we would be able to gain new insights and provide
information on how companies and individuals view “work.”

individuals are already working and smiling. This quest

We are also using the survey to visualize “Work, andgave us the opportunity to work with U.S.-based Gallup,

Smile” for PERSOL employees. We have previously carried

Inc.*, the world’s largest research and polling company,out engagement surveys of employees to confirm whether

to conduct a global survey measuring the situation of

they find their work rewarding and feel attached to their“Work, and Smile.” The PERSOL Group currently conducts

work, and we found a strong correlation between thosebusiness in Japan and the Asia-Pacific region, but

results and the answers to the three questions in theconsidering the possibility of expanding beyond thesesurvey with Gallup. Going forward, we will apply and verify

regions in the future and thinking that we would be able

these findings with users of our various services, including

to learn more from a broader survey, we conducted thetemporary staff and persons looking to change careers.

survey in 116 countries around the world, beyond theregions in which we do business.

We intend to conduct this global survey next fiscal year
and beyond, indexing “Work, and Smile,” measuring it and

The survey measured the level of “Work, and Smile”

conveying its importance to society. We are confident thatwith three questions: Do you enjoy the work you do in yourthese initiatives will lead to “enhanced workplace well-job every day, or not? Does your work have significance?

being” more broadly in society as a whole, in addition toand Do you select your work and work style from a variety

enhancing the PERSOL Group’s corporate value.

of choices? We proactively disclosed the results of thesurvey, making them available for a range of uses by other

Governance

SDGs 9.1

Smile,” we first needed to visualize the degree to whichGroup. We alone cannot achieve a situation where people

Value Strategy

SDGs 8.1

Value Story

all 17 SDGs through supporting the growth of people and creating jobs.

* Gallup, Inc.: U.S.-based company that conducts opinion polls and offers strategic consulting
services worldwide through co-creation with a huge pool of experts

PERSOL Group Integrated Report 2021

14

Value Story

Initiatives to Visualize “Work, and Smile”

Five themes to enhance the work engagement ofeach employee
For PERSOL Group employees, another way of saying“Work, and Smile” is “enhanced work engagement.” Our

introduced in 2019 that has been used by approximately 360“Work, and Smile” global survey

employees.

In collaboration with the Well-being for Planet Earth

In terms of “relationships,” we are steadily working to
set up a structure and implement measures based on

Foundation, the PERSOL Group in 2020 launched a survey
1

related to well-being* in the area of work (“workplace wellbeing”) as part of the Gallup World Poll* , the world’s largest

five themes of “autonomy,” “self-efficacy,” “relationships,”

also strengthening team relationships through programs

public opinion poll.

“health” and “shared Group Vision” contribute to thisincluding Organization Development (OD) for section

realization.

managers. We believe that these initiatives to enhance“Autonomy” can be understood as “We need to make our“self-efficacy.”

as included in the Group Vision. To provide an opportunity

With regard to “health,” we are able to carry out andfor building on this capability, in 2017, we launched theanalyze stress checks on an integrated Groupwide basis.

Career Challenge program of open recruitment for job

Going forward, we also hope to integrate data for things liketransfers within the Group. To date, roughly 900 employees

medical checkups, and cross-reference this physical andhave applied for transfers across Group companies undermental data with the results of our engagement surveys

sustainable corporate management, we believe we need to

We believe that visualizing and enhancing subjectivethat employees will be afraid to throw themselves into a

top management and recognition programs like the PERSOL

well-being for our service users and employees, we are

new workplace and realize that mismatches can occur.

Group Award.

making the data available to the general public with the hope

Roughly 100 positions have already been filled through thisinitiatives through annual engagement surveys, we areprogram, and we expect it to contribute to employees taking

using interviews to extrapolate common behavior of highly

on challenges for their own future careers as well. We also

engaged organizations and working to instill it throughout

have a variety of programs to support career autonomy

the Group to take the Group to an even higher level.
We believe that three axes are required for personalcalled Smyle, which is held roughly 30 times annually andgrowth. “What” indicates abilities for performing well andis designed to have each and every employee think about

producing results, while “how” refers to superior knowledge

his or her own career design, and a parallel work systemand skills. Many companies tend to evaluate employees withthose two components, but the PERSOL Group adds a third—

work style

We conduct an engagement survey of employees to maximize the Group Vision “Work, and Smile” of the PERSOL Group. Thereis a strong correlation between the outcome of the engagement survey and the three questions in the survey with Gallup. The
results will be used for “enhanced workplace well-being” for society as a whole.

1. Engagement survey
At PERSOL, engagement is defined as employees’ motivation to

Key figures

Engagement index

Vision empathy index

is difficult to quantify, but we would like our employees toof work and organization. To improve engagement, the Company will

Average values for motivation contributing
to “work” and motivation contributing to“organization”

Can you empathize with the PERSOLGroup Vision “Work, and Smile”?

support employees by helping them achieve personal growth and selfrealization, and build relationships that encourage mutual trust and63%

contributions.

We believe the value of a person is represented by the sum

Relationships
Being
accepted by
the organization

drivers, are closely related to the improvement of the “why”
capability.
No one person is perfect. That is why it is important toaccept differences in capabilities and values. On this basis,

Health and work
Having both a healthy mind anda healthy body

Measuring the “Work, and Smile” of employees (engagement survey)

conducted once each year to measure engagement from the aspectsof these three axes. The five themes, which are engagement
SharedGroup Visionand the World Happiness Report.

contribute to “work” and “organization.” The engagement survey ishe or she is said to be a good person who can be trusted.

growing through one’s work

Choosing*2 The world’s largest public opinion poll, carried out annually by the U.S. company Gallup, Inc.
since 2005. The report is used for basic data of the UN’s Sustainable Development Goals“why”—that refers to a person’s attitude and integrity. “Why”
grow not only in capabilities and skills but also in a way thatone’s work and*1 The word well-being originates from “benessere,” a 16th-century Italian term that
expresses the concept of “being well” or “living well.”Governancein different ways, including an original training program

their human resource management.

Value Strategy

In addition to tracking the results of these various

Autonomy

Objective: Formulate, survey and research indexes to measure“Work, and Smile”
Partner: Well-being for Planet Earth Foundation
Target:Approximately 1,000 individuals × 116 countries
Period:February 2020 through March 2021
Approach: Adding three new questions on “Work, and Smile” to the
Gallup World Pollit will be used by a variety of organizations and companies inof their monthly work hours for a maximum of three months.

Self-efficacy

In addition to using the survey data to enhance workplace

31st

65.3%

OECD average

having each employee embody the five themes will definitely
lead to the growth of the organization as a whole and theValue Storyand Smile” brings to society.

“shared Group Vision” through proactive messaging fromdifferent divisions and test their abilities for up to eight hours

73.5%

Japan

world, including regions where we do not provide services.

they aspire. At the same time, we recognize the possibility

Making a contribution andyou can do in your life?

Vision “Work, and Smile.” This survey covers the entire
We are using this survey to highlight the value that “Work,

Five themes for enhancing employee work
engagement (subjective well-being)

Q3 Do you, personally, have many choices regarding the type of work

elements of work will lead to the realization of the Groupenhancing work engagement. We are also cultivating a

Synergies between individual growth andorganizational growth will lead to the realizationof our vision

75.3%

OECD averageand status.

5th

87.1%

Japan

work, in addition to objective rewards such as compensation

challenges of jobs in which they are interested or to which

the Group. This program allows employees to interact withlives of other people outside of your own household, or not?

individuals to derive pleasure and satisfaction from theirto discover clues for improving employees’ health andoffering trial postings to jobs at different divisions within

Q2 Do you think the work you do in your job significantly improves theplace greater emphasis on subjective factors that enable

this structure, taking advantage of the chance to pursue the

In response, in 2020, we launched the Job Trial program,

85.6%

OECD averageWith the growing importance of human capital for

95th

77.1%

Japan

Introduction

own choices from a range of diversified work opportunities,”“autonomy” and “relationships” will enable us to improve

Q1 Do you enjoy the work you do in your job every day, or not?

2

the concept Diversity, Inclusion & Equality (DI&E), while

human resources strategy reflects the hypothesis that thePercentage of respondents replying “Yes” andglobal ranking of Japan76%

2. Results of the “Work, and Smile” survey of employees
Q1 I enjoy the work I do in my job every day.

Q3 I, personally, have many choices regarding the type of work I can

Percentage of respondents
who answered “Yes”

do in my life.

74%

Percentage of respondents
who answered “Yes”

Q2 I think the work I do in my job significantly improves the lives of62%

other people outside of my own household.
Percentage of respondents
who answered “Yes”

89%

realization of “Work, and Smile.” We will continue to pursue
our human resources strategy with this thinking in mind.

15

PERSOL Group Integrated Report 2021

PERSOL Group Integrated Report 2021

16

Value Story

Initiatives for Value Creation

Diversity, Inclusion & Equality

Providing Opportunities to All Individuals* Excluding certain employees of PERSOL THANKS and PERSOL TECHNOLOGY STAFF, andemployees of Singular currently in the program

PERSOL DI＆E SPIRAL
Recognize unconscious bias in oneself
By enabling teams and organizations torecognize the existence of latent
unconscious bias, we will turnawareness into a common approach toeliminate the bias.

Understand diversity correctly
Through literacy training that provides
a basis for understanding diversity in
attributes, we will enhance the level ofbasic knowledge of teams andorganizations.

Employees of PERSOL CHALLENGE, which supports employment of persons with disabilities

Promoting employment of human resources with specified skills
Create opportunities
We will improve the work atmosphere, add
diverse capabilities, create environmentsthat easily generate synergy andNurture new
invigorate the corporate culture.
wisdom

Accept diversity ina sense of values

Strengthen
existing services

Utilize diverse
capabilities

Promote individuality
We will support our employees
in their constant growth by continuing
to refine their personal skills throughtheir own development.

Entering the business of recruiting and developing
overseas human resources with specified skills, and theplacement of non-Japanese persons

Create new services

Realize vision
Embody corporate
philosophy

Gender Diversity Committee

Note: DI&E: Diversity, Inclusion & Equality

Monthly seminars and events to instill DI&E
As a leader in advocating equality and diversity, Programmed
offers comprehensive human resource services in Australia
and New Zealand with a workforce of more than 25,000 people,
and engages in many forms of employment support, employee
training and cultural formation.
In addition to internal seminars and events related toDiversity, Inclusion & Equality (DI&E) held monthly, another
Programmed activity uses internal and external news feeds
to disseminate various types of information including policies
to instill and education about DI&E. The company has also
introduced the Open Door anonymous reporting tool andprovides appropriate support to ensure workplace safety andraise awareness of sexual harassment and inappropriate
behavior.

PERSOL Group Integrated Report 2021

In April 2019, the Japanese government launched the newSpecified Skilled Worker Program with new residence statuses
to secure workers in 14 industries, including nursing care andrestaurants, where human resource shortages are becoming
increasingly critical.
PERSOL Global Workforce has established Japanese
language training centers overseas to train human resources
with specified skills for three to six months to pass Japanese
language proficiency and other accreditation tests. Given the
COVID-19 pandemic, as of August 2021, the company had
trained and preliminarily placed more than 100 nursing-care
workers, who are waiting for immigration restrictions onentering Japan to be eased.
PERSOL Global Workforce is currently working with partnercompanies in five countries, including Indonesia and Nepal, totrain and place human resources with specified skills. Goingforward, we aim to alleviate human resource shortages while

also realizing “Work, and Smile” for non-Japanese workers
by training and placing non-Japanese human resources withJapanese language ability and skills to immediately contributeto companies struggling with human resource shortages, whileat the same time promoting changes in awareness about nonJapanese workers at the companies where they work andwithin Japanese society.

GovernanceInitiatives at overseas subsidiary Programmed

17

Special subsidiary PERSOL CHALLENGE opened Neuro Dive,employment transfer support offices in Akihabara, Tokyo and
Yokohama, Kanagawa Prefecture focusing on cutting-edge IT tooffer services to persons with disabilities.
Neuro Dive’s special feature is online instruction thatincorporates aspects like job details, current market value
and demand in cutting-edge IT fields including AI, machinelearning and data science, incorporating individualized
support ranging from job seeking to job retention. By providing
specialist training for persons with developmental disabilities,
psychological disabilities and intractable diseases, Neuro
Dive is helping alleviate the shortage of workers in the area of
cutting-edge IT.

Value Strategy

Understanddiversity in
attributes

Neuro Dive offices in Akihabara and Yokohama support
employment transfers focusing on the IT field

Value Story

We believe that for the realization of a society in which all
people truly feel “Work, and Smile,” it is important for us tounderstand and be receptive to diversity, while also engaging
highly diverse employees. We have therefore positioned
Diversity, Inclusion & Equality (DI&E) as an important way
to support the realization of “Work, and Smile” and areaccelerating our initiatives.
The PERSOL Group’s DI&E considers diversity from various
perspectives including attributes, a sense of values andcapabilities. Our operation policy is to create a corporate
culture that gives rise to a positive environment by promoting acorrect understanding of diversity, stimulating self-awarenessof unconscious biases and providing opportunities and support
that enable employees’ own capabilities to grow. We also
believe that all employees who work within the Group need toPromoting employment of persons with disabilities

Introduction

have basic knowledge and understanding of the DI&E way of
thinking, and we hold literacy training. During the fiscal year
ending March 2022, we carried out an e-learning program for
26,730* employees at 35 domestic Group companies. After
employees took part in the program, the percentage of thoseshowing a correct understanding of DI&E exceeded 95% (as ofAugust 18, 2021).
We also established the Gender Diversity Committee in
September 2021 under the Headquarters Management
Committee (HMC) to further promote active participation
by women, and we plan to accelerate human resource
development and support for balancing work and home
across the Group. In addition, we consider it necessary to havecommon policies that include overseas Group companies tocoordinate and promote DI&E across the entire PERSOL Group,
and we are formulating a common Group DI&E policy.

Initiatives in Diversity, Inclusion & Equality tosupport the realization of “Work, and Smile”

Support for training and hiring of non-Japanese human resources, focusing on thespecified skill of “nursing care”

Initiatives to enable work near home
Operation of places to “work close to home” and also
make possible child care or nursing care

Initiating various programs related to DI&E

PERSOL TEMPSTAFF operates four Job Share Centers acrossJapan as places for people who want to “work close to home”
so that they can also attend to things like child care or nursing
care. As part of a public-private partnership with the cityof Kobe, we operate the Kobe Myodani Work Lab AOZORA /Job Share Center Kobe Myodani, which utilizes the site of akindergarten to facilitate local exchanges and community
revitalization, and create employment. Providing a place where
people who would otherwise be unable to work because of timeor location constraints and who can commute on foot or bybicycle creates new work opportunities.

Kobe Myodani Work Lab AOZORA / Job Share Center Kobe Myodani

PERSOL Group Integrated Report 2021

18

Providing Opportunities for Learning
Fact-finding survey on online group training
Training programs for independent growth
Various study programs for employees’ growth
and achievement

Total number of participants*1 and average
number of hours of training per employee
45,45245,166FY201919 hours

FY2020

Average number of hours of training per employee
Total number of participants

75.0%

(979)

100 to 299

61.0%

(236)

300 to 1,999

75.6%

(386)

2,000 or more

83.5%

(357)
* Figures in parentheses = n

Percentage of companies that hope to movetraining online going forward

90.0%

80.4%

65.2%
Value Story

FY201819 hours

Total

Introduction

18 hours

45,071PERSOL RESEARCH AND CONSULTING conducted a fact-finding
survey on companies’ online group training and released theresults in July 2021.
The survey found that since the outbreak of COVID-19, 75%of companies have moved their training for large numbers of
employees online and carried out programs for large groupsof employees, with a trend of more proactive shifts to online
training as the size of the company increases. In addition,
80.4% of all companies that have implemented online grouptraining, and even 65.2% of those companies that have notreported success with online group training, replied that theywould like to move existing training online, suggesting thatonline group training will increase going forward.
When asked about the degree of achievement of learning
objectives by training format, 46.5% of persons in charge oftraining at companies reported that online group training
achieved at least 80% of its objectives, surpassing in-persongroup training. A checklist based on the survey results was
published to increase the success of online group training.
PERSOL RESEARCH AND CONSULTING has also begun offering
corporate online group training services.

By number of employees

The PERSOL Group considers all the individuals who work for
the Group the source of its corporate value. One of our basic
policies is that “people themselves” are the agent of growth,and we have prepared and operate various study programs toencourage and support growth according to diverse values inline with employees’ various roles and abilities.
In terms of manager training, we offer selective courses
for senior managers to create a stable group of management
executives for the medium to long term. For newly appointed
managers, we hold mandatory training programs to impart
the knowledge, skills and mind-set needed for management
operations. The program has a satisfaction rate of more than90%.
For general employees, we provide training programs thatallow them to continue to grow independently and flourish in ahighly uncertain business environment. We have consolidated
various types of e-learning content on our internal platform,
allowing employees to study at any time and at their own pace.
We also offer open-type active learning to support career
independence, in which more than 1,000 employees havealready participated.

Percentage of companies that
increased online group training over the past year

During the COVID-19 pandemic, 75% of companies have
implemented online group training

Total
(179)

Those thathave reported
success (110)Those thathave not reported
success (69)

Basis: Companies that have implemented online group training (excluding those reporting
uncertain success)* Figures in parentheses = n*1 Total number of participants for all courses

Value Strategy

Training for temporary staff
PERSOLKELLY’s Asia-Pacific learning platform
Learning platform for all employees
in Asia-Pacific region

The PERSOL Group has more than 100,000 temporary staff
in Japan. We provide training programs to enhance their
specialist skills and we are expanding our online training to
make training by e-learning easier to receive. Training leads
to an increase in the quality of work performed on the job andalso helps in the pursuit of different occupations, supporting
temporary staff’s independent career formation.
We also offer services that provide integrated support fromskill enhancement through training to employment. PERSOLTEMPSTAFF offers services including “funtable,” an unlimited
term staffing service with career support for persons without
experience who want to move into clerical positions, and
RPA Associates, which dispatches staff who have acquired
knowledge and skills in robotic process automation (RPA)
that will lead to increased corporate productivity. We will
create employment that meets the needs of companies, while
expanding the choices available to working individuals.

GovernanceIn the belief that “our employees are our greatest assets,”
PERSOLKELLY has developed the “PSK Learning Journey
training platform” for all employees. Besides raising the level of
employees’ specialization so they can provide customers witheven better service, the platform provides opportunities for
growth by offering regular learning opportunities to employees.
PERSOLKELLY is developing a wide range of unique andpractical programs with the aim of becoming Asia’s largest andmost comprehensive training platform.
Specific learning modules cover a wide range of topics frombasic knowledge like legal issues and IT to areas including
social intelligence and logical thinking. In addition to webinars,
live events and other virtual sessions as well as group
discussions, the platform has self-study materials to provide
diverse and continuous learning opportunities.

Various initiatives to enhance skills and support careersof temporary staff

Temporary staff taking online training

Diagram of skill enhancement plan with experience and skills
3rd yeartraining
2nd yeartraining

Career formation skills

1st yeartraining

Business andinterpersonal skills
Technical andspecialist skills

Upon joining
the Company

19

PERSOL Group Integrated Report 2021

1st year

2nd year

3rd yearPERSOL Group Integrated Report 2021

20

Creating a Foundation for Economic Activity
and Promoting Innovation

Environmental Initiatives

Social implementation research for disaster-response drones
Commencing joint research with NIED toward social
implementation of drones for firefighting and disasterprevention

GEORIS accurately evaluates situations for all types of disaster-response strategies

Aerial photography(drone)Photographic surveying(orthorectification)

On-site activity information
Input, consolidation

SkillsMain initiatives

Operation of drones and effective acquisitionof information when disaster strikes
Scientific knowledge training for spatial
information and interpretation

Decarbonized society

Forest protection

Climate change• Promoting paperless operations• Encouraging purchases of recyclable
equipment• Promoting remote work

• Promoting paperless operations• Use of FSC® certified paper• Use of environmentally friendly products• Participation in environmental events• Encouraging casual office attire• Thorough energy conservation
measures• Promoting remote work

Environmental considerations in
office design

Promoting remote work

Promoting paperless operations

We are building remote work environments
through the proactive use of ICT, including
providing employees with laptop computers andintroducing chat tools. At PERSOL HOLDINGS
and some Group companies, Wednesdays aredesignated “no overtime” days, and efforts are
made to finish operations by 6:00 p.m. These
measures help reduce the number of commutesand lessen the amount of electricity used in
offices, with the dual aims of work style reformand reduction of CO2 emissions.

The Group is promoting paperless operations bydiscontinuing the sending of printed New Yearcards and introducing tools for electronic contracts.
PERSOL HOLDINGS and some Group companies arealso cutting back on the use of printed materials
for internal meetings and thoroughly sorting andrecycling paper resources to reduce the use of paper.
Going forward, we will monitor the amount of paper
used and promote measures that can be expected to
produce even greater results as we strive to preserve
resources and reduce CO2 emissions.

Use of FSC® certified paper

Participation in environmental
eventsTechnology
Selection and effective coordination of
optimal tools
Mapping support system for disasters

Effective acquisitionof information

SfM tools

Cloud

Mapping tools

Operation of drones
when disaster strikes

WEB-GIS

Basic spatial
information

sharing

Disastermechanisms
Interpretation

Focus of attention
when disaster strikes

Recruitment support platform

At the office design stage, we strive to reduce
waste by using to the extent possible uniform
specifications for furniture and fixtures. We arealso taking steps including switching to LED
lighting and consolidating trash collection at single
locations to create environmentally friendly offices.

Support for nationwide recruitment of electricalconstruction technicians for 32,000 member companiesof the Federation of Electrical Engineering Contractors
Cooperatives of Japan

3

Explanation of how to use andregister on MIIDAS recruitment
support site

Federation’s
member companies

Taking on services to support development of advanced
driver assistance system (ADAS)PERSOL RESEARCH & DEVELOPMENT, which carries out
the Group’s technical engineering operations, has begun
subcontracted testing services of an ADAS. This service uses ahigh-precision measuring system to arrange tests according tocustomer specifications to provide functional testing and legallycompliant evaluation. Automakers are currently accelerating
their ADAS development. As a company that provides one-stop
human resource-based solutions from technical consulting
to design and development support, PERSOL RESEARCH &DEVELOPMENT is contributing to realizing a society with safe
and comfortable mobility.

21

PERSOL Group Integrated Report 2021

1

Consultation on hiring issues facing
member companies, desire to use
MIIDAS recruitment support service

Introduction ofmember companies

Respective
cooperatives

Environmental considerations in
office life
We are pursuing the following initiatives toconserve energy and resources in office life:

We consider forests, which are the sourceof paper, important resources, and take into
consideration both environmental protection
and cost reductions. When purchasing paper forcopier/printer use, business cards and otheruses, we encourage that priority be given toenvironmentally friendly products like thosecertified with the Eco Mark.

• Liberalizing the work dress code, in principle• Ensuring appropriate temperature settings of air
conditioners• Encouraging required approval for after-hours airconditioning• Encouraging the use of personal, reusable water bottles• Using PLA straws• Setting up recycle bins for stationery and file folders• Promoting recycling• Posting electricity and energy conservation flyers• Encouraging purchases of recyclable equipment• Reusing company-use mobile phones

Reducing CO2 emissions by 5.9 tons annually with digitalization ofcontracts and other documents

PERSOL AVC TECHNOLOGY is participating in citizenled environmental activities* to clean up areas along
rivers and beaches in Hokkaido. Events during the
fiscal year ended March 2021 were canceled becauseof the COVID-19 pandemic but, going forward, we will
strive to contribute to local communities and carryout environmental protection activities.

Governance

Subcontracted testing of advanced driver assistance system

2

Value Strategy

In cooperation with the Federation of Electrical Engineering
Contractors Cooperatives of Japan, PERSOL HOLDINGS
has launched a recruitment support service for electricalconstruction technicians for the federation’s 32,000
member companies. With growing construction demand
related to equipment in areas like next-generation energy,
telecommunications and energy conservation, human resource
shortages related to electrical construction, including electricalconstruction technicians, are becoming increasingly severe.
This initiative allows local companies having difficulty securing
human resources to use the “MIIDAS” recruitment support
platform for integrated support for their hiring needs fromhuman resource analysis, search and recruitment to evaluationand hiring. This service is helping alleviate the nationwide
shortage of electrical construction technicians.

Value Story

DronesInformation

Analysis
Information sharing

Introduction

In January 2021, PERSOL PROCESS & TECHNOLOGY began
working with the National Research Institute for Earth Scienceand Disaster Resilience (NIED) to develop a disaster-response
drone solution service called GEORIS.
This research aims to create a solution that uses drones andmapping systems to collect information for fire departments
when disasters strike, leading to accurate and prompt on-sightdecision-making.

Following the Group Vision “Work, and Smile,” the PERSOL Group is contributing to the realization of asustainable society by creating a society in which all people can work safely and securely. To achieve this, werecognize environmental preservation as one of the Company’s management issues and carry out corporate
activities that take into account environmental considerations to reduce our environmental impact. Goingforward, we will continue to strive to ensure that all employees at all Group companies understand theimportance and value of environmental issues, and act accordingly.

* Results of citizen-led environmental activity“Love Earth Clean Up in Hokkaido 2019”
Collected 900 kilograms of burnable waste, 450 kilogramsof non-burnable waste, 1,050 kilograms of waste thatshould not be burned and 450 kilograms of large items“Cleanup of Kotonihassamu River”
Participation by 12 employees

Paper documents

Digitalization

The Staffing SBU has installed a large backbone system called GENESIS for centralized management ofthings including staff salaries, paid vacations, year-end payroll tax adjustments and customer contracts andinvoices, and is stepping up efforts to digitalize other documents.
PERSOL TEMPSTAFF projects that 1.15 million pages of documents will be digitalized during 2022,
reducing CO2 emissions by 5.9 tons, which is equivalent to the amount absorbed by 382 cedar trees.

PERSOL Group Integrated Report 2021

22

Value Strategy

Mid-term Management Plan 2023

1 Overview of Mid-term Management Plan 2023
The PERSOL Group formulated the Value Creation Story for2030 (mid- to long-term strategic policy) to provide evengreater value, achieve further growth and contribute to asustainable society, given various environmental changes
likely to occur going forward. The Mid-term Management Plan
2023 is the first three-year plan under the vision for 2030.

4 Numerical Targets

The Mid-term Management Plan positions these three years
as a time for establishing the foundations for future growth bysophisticating the business and improving the operation baseto provide value to society through the realization of “Work,and Smile.”

2024–2026

2027–2030

Establish the foundations for growth bysophisticating the business andimproving the operation baseDramatic growth investments andbusiness expansion

Realize “Work, and Smile”
in Japan and APAC

2 Overall Strategies in Mid-term Management Plan 2023
Increase economic value• Shift from the management focusing on single year P/L to the management that realizes sustainable growth of corporate value• Introduce ROIC and other indicators of return on capital to improve the corporate value of the entire Group

Shift to a strategic business
unit (SBU) structure• Position Professional Outsourcing SBU as third pillar of operations while continuing to strengthen Staffing SBU and Career
SBU, which underpin the PERSOL Group profitability• Consolidate management under Asia Pacific SBU and improve profitability through enhanced cost synergy

Identify growth areas• Actively pursue investment opportunities, including M&A, to cement Professional Outsourcing SBU as the PERSOL Group’s third
pillar of operations• Actively promote creation of new business in Solution SBU

Strengthen business withtechnology• Boost productivity and customer satisfaction through investments in digital transformation (DX)In April 2020, we reorganized our business segments underan SBU structure. As part of this reorganization, we havetransferred authority to each SBU to expedite decisionmaking and execution related to operational execution.
Under the Mid-term Management Plan 2023, we are also

23

proactively investing in the Professional Outsourcing SBU tomake it the third pillar of operations. The Asia Pacific SBU isgiving top priority to increasing profitability and intends to
put large-scale M&As on hold for the time being.

Group• Shift to the SBU structure, and realize a new form of management by focusing on return on capital, using ROIC and other indexes• Aggressively invest in the Professional Outsourcing SBU and Solution SBU for future growthStaffing• Establish a basis as the steadfast top company in Japan• Increase profitability even further

Career• Redefine the growth model to enhance the strength of data-driven business improvement to the level of competitive advantage• Will ensure compatibility between high growth rate and profitability after the market recovery

Professional Outsourcing• Address activities to create synergy within the SBU and expand business scale remarkably through M&A

Solution• Monetize new businesses and promote new business development activities• Ensure a high growth rate and making profit in FY2022

Asia Pacific• Increase profitability through back-office integration of PERSOLKELLY and Programmed and other meansPERSOL Group Integrated Report 2021

1,000 billion yen

Operating profit

26.4 billion yen (2.8%)

45 billion yen (4.5%)

EBITDA (EBITDA margin)43.9 billion yen (4.6%)

61 billion yen (6.1%)(Operating profit margin)

5 Financial Strategy
For improving corporate value, return on capital will be
introduced as an important indicator, and a capital costoriented management system will be realized with thetarget of at least “ROIC of 10%.” The IFRS is scheduled for
introduction in the fiscal year ending March 2024, and theadjusted EPS will be constantly released for each term basedon the net profit prior to amortization of goodwill. With regard

to shareholder return, in view of the future introduction of
IFRS, the basic policy changed to a dividend payout ratio of
25% based on the adjusted EPS. In addition, the acquisitionof treasury stock will be judged, considering the situation
where the stock price is below the appropriate level and theinvestment execution status comprehensively.

Introduction of returnon capital for increasing
corporate value• From a viewpoint of increasing corporate value, shift to a policy focusing on return on capital from the existing one focusing on
P/L.
• In view of future introduction of IFRS, PERSOL’s ROIC will be calculated based on the net operating profit after tax prior toamortization of goodwill divided by invested capital (=liabilities with interest + shareholder’s equity).
• A rate over 10% is set as a minimum standard for the fiscal year ending March 2023.

IFRS introduction in
the future• IFRS is planned to be applied in the fiscal year ending March 2024 which has been put off due to acquisitions overseas.
• In view of future introduction of IFRS, adjusted EPS based on net profit prior to amortization of goodwill will be continuously disclosed.

Shareholder returns• Basic policy is a dividend payout ratio of 25% of the adjusted EPS.
• Adjusted EPS is based on net profit before amortization of goodwill excluding effects of extraordinary income/loss.
It is therefore expected to be able to provide dividend at a relatively stable level.

Cash position• The optimum cash position is defined as net cash/debt within 1.0 time of EBITDA.
• In case of excessive cash as a result of investments not implemented as planned or excessive debts as a result of implemented
investments, the policy is as follows:- If net cash exceeds 1.0 time of consolidated EBITDA, measures of strengthening shareholder return such as acquisition oftreasury stock will be considered.
- If net debt exceeds 1.0 time of consolidated EBITDA, measures to strengthen capital such as equity finance will be considered.

Governance

3 Strategies of the Group and Each SBU

950.7 billion yen

Net sales

Value Strategy

Increase social value• Create “Work, and Smile” index and implement measures that will contribute to improvement of component indicators toachieve the Group Vision• Promote ESG-related initiatives and disclose them in the Integrated Report

Estimates for the fiscal year
ending March 2023

Value Story

We have five overall strategies for the three years covered by the Mid-term Management Plan 2023: increase social value, increase
economic value, shift to a strategic business unit (SBU) structure, identify growth areas and strengthen business with technology.

Results for the fiscal year
ended March 2021

Introduction

2020–2023

The impact of COVID-19 appears unavoidable, but in accordance with the overall strategies set in the Mid-term Management
Plan 2023, the PERSOL Group will recover the profitability to build foundations for dramatic growth in and beyond 2023.
We also plan to recover to pre-pandemic levels at an early date, while maintaining necessary investment.

6 Basic Policy on Governance
The PERSOL Group will exert continued efforts for the
improvement of its corporate governance as the foundation
for all efforts to realize sustainable corporate growth and theincrease of corporate value over the mid-to long-term andsolve social issues through its businesses. We are promoting
governance with policies of a “strengthened the monitoring
function of the Board,” “accelerated management decisionmaking” and “establishment of HMC.”PERSOL Group Integrated Report 2021

24

INTERVIEW

7 Progress under Mid-term Management Plan 2023
Integrated Report, and throughout the year we carried out
sustainability activities and various initiatives related to “work”
including the promotion of new work styles, with the aim ofrealizing “Work, and Smile.”
To enhance our economic value further, the Board andother management bodies have deliberated and monitored
ROIC. Although ROIC fell temporarily in the fiscal year ended
March 2021 from the effects of COVID-19, we anticipate arecovery in the fiscal year ending March 2022.

• In cooperation with Gallup, Inc., the U.S. based company, conducted a survey to measure the level of accomplishment of “Work, andSmile” in 116 countries in the world as well as a survey of engagement of PERSOL’s employees• Promoted ESG-related initiatives and disclosed them in the Integrated Report

Increase economic value• Carrying out discussion and monitoring based on ROIC at BOD meetings

Shift to a strategic business
unit (SBU) structure• As optimum organizational restructure, PERSOLKELLY’s business in Australia was transferred to Programmed and the businessturned into surplus• Established Investment Committee and other committees to increase the effectiveness of corporate governance

Identify growth areas• Through drastic business review reflecting the world after COVID-19, we will start establishing next Mid-term Management Plan

Strengthen business withtechnology• Established a technological strategy and strengthen investment in technologies which promotes building foundations for utilizing
personal data beyond the borders of SBU

other services to provide new ways ofworking and employment
Masayuki Furukawa
Executive Officer CIO

Promoting DX by redefining from a technologicalperspective the value provided up to now by the
PERSOL GroupStrengthening technological governance andimplementing DX measures to envision andrealize the “Future Vision of Work”

One of the overall strategies in the Mid-term Management

During the fiscal year ended March 2021, the first year under

Plan 2023 is to “strengthen business with technology.”

the Mid-term Management Plan 2023, we strengthened our

We are moving forward at full strength with digital

investment in the fields of IT and DX and implemented atransformation (DX) that cuts across SBUs and collaborates

variety of measures based on our technology strategy.

human resource services with other services.

and train technological human resources.
During the fiscal year ended March 2021, we announced
the “Future Vision of Work Initiative,” which is intended to link
data and services across human resource services and workwith outside partners to support the ability to work in waysthat suit all individuals and to draw up their own future. In
addition, we are proactively promoting building a foundation
for utilizing personal data across SBUs and investing invarious technologies at each SBU.

The more continue to use it, the more enable toprovide the experience value suitable for that user.

Job

Study

Environment

Job matching

Learning

Environment surrounding work

(Job change, side work,
staffing, etc.)(Lecture-style learning, PBL,
etc.)

(Finance, health, childrearing, etc.)

Sharing data oflearning history
and skills

New service(Under development)
Labor market data

working individuals and based on an analysis of labor market

labor markets with optimal “wisdom” from employees’

data and individual data. The key to realizing this will be toand other users’ skills and careers. This “wisdom” isstrengthen coordination across the services provided bydramatically increasing in value through digitalization, which

respective SBUs, which we are working hard to achieve.

I believe is very compatible with DX. Creating value from theand security with strong governance functions will be

accumulated within the Group up to now, and using this toimportant for realizing the “Future Vision of Work.” With

create new employment, is the core of the PERSOL Group’s

regard to the use of personal data in particular, in the belief

technology strategy.

that simply meeting legal requirements is not enough, we are

Sharing data ofinterest andconcern, etc.

Can envision
ideal future ofworking

introducing risk management that includes the increasingly

throughout the Group, I believe my role is to manage asimportant element of reputational risk. As part of thisefficiently as possible the Group’s personal data, information

effort, in January 2021, we created an oversight function bysystems, human resources, investments and otherestablishing the Personal Data Utilization Council.

contribute to businesses and create economic value.
Can get closer toenvisioned futureof working

We recognize that building and reconfiguring infrastructure

personal data representing the huge amount of “wisdom”

technological assets, and to use digital means to further

Collaboration with other companies’ andpartners’ services

Sharing resume
and application

work, learning and peripheral environments, focusing ondeliver the “wisdom” of people. Our business is to provide

As the person responsible for promoting DX and IT

Future Vision of Work Initiative

In-house service

provided by the PERSOL Group to represent a calling toGovernance

The PERSOL Group’s Value Creation Story for 2030 includes
three Group key strategies, one of which is “Innovating
through technologies.” By making the maximum use oftechnology, we aim to make our core businesses moreadvanced and create new businesses, and we are investing indigital transformation (DX) to increase both productivity andcustomer satisfaction.
Specifically, the core of our strategy is to use digitalization
to raise profitability, use the latest technologies to overhaul
operations and create new businesses and services, and hire

We are currently envisioning frameworks to draw up a
future of work for individuals through services provided in
Value Strategy

8 PERSOL Group’s Technology Strategy

I consider the comprehensive human resource services

Value Story

Increase social value

collaborates human resource services with

Introduction

During the fiscal year ended March 2021, the first year under
the Mid-term Management Plan 2023, we worked with U.S.based Gallup, Inc., the world’s largest opinion poll-conducting
company, on a survey to measure the degree of realization of“Work, and Smile” among 120,000 people in 116 countries asa way to enhance PERSOL’s social value. Going forward, weplan to use this data to carry out research on the value that“Work, and Smile” gives to society.
In November 2020, the PERSOL Group also released its first

Implementing DX that cuts across SBUs andDX is just one method for accomplishing goals. We hope
to develop and implement these initiatives in ways that do

We established the Technology Committee under the

not make users think about DX. Comprehensive human

Headquarters Management Committee (HMC). We consider

resource services provided by the PERSOL Group and theits main role is to draw up and execute a mid- to long-term

data it accumulates are huge and useful. We can create newroad map through close discussion and coordination withbusinesses by reexamining from the latest technologicalthe managers of each SBU, who are thoroughly familiar

perspective the value provided to date. This means that aswith their respective businesses and improvement plans

we go forward, it will be essential to develop DX humanincluding mid- to long-term technology strategy and humanresources who are able to coordinate between IT divisions

resources.

and respective SBUs and Group companies, and we will also
proactively hire and develop experienced human resourcesfrom outside the Group.

25

PERSOL Group Integrated Report 2021

PERSOL Group Integrated Report 2021

26

Value Strategy

CFO Interview

INTERVIEW
We will proactively implement our strategies
to achieve sustainable growth,
despite the uncertain environment.

the urgency of having many discussions that go beyond
conventional frameworks, with the aims of raising capitalefficiency and enhancing corporate value.

Proactive investment focusing on M&As andtechnology
Under the Mid-term Management Plan 2023, we aim toInvestment Committee meetings and major
subjects discussed during the fiscal year ended
March 2021
Number of meetings held

Major subjects discussed

10 meetings• Investment Committee structure

5 regular meetings• Introduction of business portfolio• WACC• M&A strategy at each SBU• Evaluation of M&A candidates

recover quickly to pre-COVID-19 pandemic levels while

Executive Officer CFO

continuing to make necessary investment. The plan

• Investments (2 approved / 1 opposed)

forecasts that business growth will be able to generate

Introduction

Kiyoshi Sekimanagement

5 extraordinary meetings

Of which, 1 acquisition (approved by
Investment Committee) completed• Pipeline• Evaluation of cross-shareholdings

cash flow of more than 130.0 billion yen (cumulative for thethree-year period), of which approximately 110.0 billion yen
will be earmarked for flexible growth investment. M&As
and technology have been designated as the main areas
for this growth investment. For M&As, we will consider
new businesses. At existing businesses, we will work tofrom 24. With regard to investment, our comprehensive,

expand our market share in existing business fields such as

flexible deliberation facilitates accurate feedback to and

the Professional Outsourcing SBU and achieve integrated

regular monitoring of each SBU and has the added benefit ofconducting regular monitoring to visualize return on capitaldevelopment with BPO fields, which we have positioned as aadopting experts’ perspectives in discussions of investment

and incorporating ROIC and related indicators in the Group’s

growth driver going forward. In terms of new businesses, wein cutting-edge technologies and solutions that cannot be

As a provider of human resource services, the PERSOL

management decision-making and business activities.

will invest proactively to expand and accelerate new services,

determined by traditional expertise alone.

time, the Group’s healthy growth and definite existence are

Regarding technological investment issues, the PERSOL

Achieving closer dialogue with shareholders andinvestors, and appropriate returns

needed if we are to contribute to resolving social issues

In April 2020, the PERSOL Group shifted its businessGroup has a database of customer information and job

I have many opportunities to talk directly with shareholders

through our businesses, and for that, it is important tosegment structure to a Strategic Business Unit (SBU)

information built up over many years. We believe we need toand investors. Although I feel that they evaluate various

generate and secure funds for the medium- and long-term

structure. This change will lead to expedited decision-

make targeted, proactive investment in technological fields

activities of the PERSOL Group, I also recognize thatenhancement of corporate value. To this end, the Group ismaking and execution, and also expand Group synergies.

to effectively use this data. In addition, it will be important toour disclosure of information that accurately conveys

working to maintain a solid financial base.

In addition to strengthening the client base and marketinginvest in advanced technologies and solutions like HR Tech

our strategies is insufficient for their understanding. In

structure for growth in existing businesses at each(human resource technology) in both Japan and overseas,

addition to corporate management that gains the trust ofenhancement of corporate value, we are repositioning our

SBU, we will proactively work to develop new markets.

and in human resource development to drive businesses.

shareholders and investors, I see the proactive pursuit

financial strategy from the traditional profit and loss-based

Meanwhile, improving earnings at overseas businesses isAt the core businesses represented by the Staffing SBU andof appropriate information disclosure and constructive

evaluation to business management that emphasizes returna critical issue for the Group. With structural contraction

the Career SBU, we will invest in technology to increase

dialogue as ongoing issues. For return to shareholders, ouron capital with an awareness of the cost of capital. With

forecast for the Japanese labor market, we not only needproductivity while also providing added value. We will also

approach is to increase returns through steady growth. In

existing businesses generating cash flow through earnings

to make overseas businesses profitable but also must

invest in technology for BPO fields to demonstrate theanticipation of future disclosure based on IFRS, the Mid-growth, we are making optimal allocations of overall

improve earnings further, and will put even greater effort

strengths of the PERSOL Group even further.

term Management Plan 2023 sets a dividend payout ratio

To achieve medium- and long-term growth for the

resources including investment in marketing and human

into overseas businesses through continuous improvement

resources on the basis of return on investment. In addition,and optimization.

To make these investments appropriately and flexibly,

benchmark of 25% of adjusted EPS, which is similar to

we established the Investment Committee in the fiscal year

profits calculated under IFRS. If we are able to achieve theoperating targets under the Mid-term Management Plan,

we will actively promote digital transformation to increase

We are currently conducting various discussions to add

ended March 2021. The Investment Committee, an advisory

return on capital and have set a target of ROIC* of at least

depth to the management of the PERSOL Group’s businessbody to the Headquarters Management Committee (HMC),

we expect to pay a record-high dividend for the fiscal year

10% for the fiscal year ending March 2023, the final year of

portfolio. This approach includes examining our businessinvites outside experts to facilitate multifaceted deliberation

ending March 2023.

portfolio to achieve sustainable growth, while at the sameon topics like strategies related to M&As and investment,time discussing business areas from which we should

business portfolio management and the evaluation ofrealizing the Value Creation Story for 2030, with thewithdraw or businesses we should sell. We recognize

cross-shareholdings on a groupwide basis. In principle,

ongoing aim of sustainable growth by creating both social

we are selling cross-shareholdings and during the pastvalue and economic value.

the Mid-term Management Plan 2023.
Recognizing the importance of quantifying andunderstanding return on capital, Group management is* Anticipating introduction of International Financial Reporting Standards (IFRS) in the future, the PERSOL Group calculates ROIC as “net operating profit after tax before amortization of goodwill /invested capital (= interest-bearing liabilities + equity capital).”PERSOL Group Integrated Report 2021

Governancevalue in ways that go beyond our existing business models.

Value Strategy

with the aims of creating new value and enhancing customer

Forward-looking discussion of
portfolio management

making based on each fiscal year’s results. At the same

Value Story

year reduced the number of issuing companies held to 18

Steadily implementing financial strategies toachieve sustainable growthGroup absolutely requires swift management decision-27

transactions to both expand existing businesses and create

The PERSOL Group will continue to work toward

PERSOL Group Integrated Report 2021

28

Value Strategy

At a Glance

The PERSOL Group is engaged in a wide
range of services aimed at realizing “Work,

Staffing SBU

Career SBU

and Smile” in various business domains,

Recent composition of sales

Recent composition of sales

5%

9%

61%

70%

by sincerely and closely assisting working
individuals and with the customer contacts

6%and trust that have been created with ourpeople as the starting point.

16%

FY202021%

Professional Outsourcing SBU

Solution SBU

Asia Pacific SBU

Recent composition of sales

Recent composition of sales

Recent composition of sales

FY2020

FY2020100%

FY202072%

25%
ClericalBPO

R&D

MarketingPPG*

FY2020

Permanent placement

IT

Career change media

Temporary staffing (IT, engineering)Engineering

PERSOLKELLY

SolutionsIntroduction

12%

28%

41%

35%

Programmed

OthersServices

Features/Business Models

We offer highly specialized services uniqueto the PERSOL Group, including PERSOLRESEARCH AND CONSULTING, which

Job applications

Features/Business Models

Features/Business Models

Provision of career transition (outplacement)
support services

Job applications

Advertisement listing applications/advertisement listing services

Client companies

disabled.

Permanent placement
Career change media
Career transition (outplacement) support

Work instructions

Client companies
Corporate clients

Introduction

A wide range of services that go
beyond existing domains

Equipment/facility maintenance services

Corporate clients

Service usage fees
(Subscription, pay-as-you-go, pay-for-performance, etc.)

Temporary staffing of engineers, etc.

Service usage fees
Outsourcing contracts
Labor supply contracts/staffing fee payments
Hiring applications/recruitment fees (when a contract is entered)

Outsourcing contracts

Career transition (outplacement) support outsourcing contracts

Employment contracts/salary payments

Outsourcing

Hiring companies

Governance

Hiring applications/recruitment fees
(when a contract is entered)

Job seekers in eachcountry and region

Digital solutions in the HR field

Provision of labor

Employment
contracts/salary
payments

Features/Business Models

Employment contracts
Provision of laborwhich provide employment services for the

Temporary staffing
Outsourcing
Permanent placement

Features/Business Models

Temporary staffing
Permanent placement
Equipment/facility maintenanceOutsourcing
Human resource management
consulting
Education/training
Home care

Work instructions

Outsourcing contracts

Introduction

Employment
relationships

PERSOL CHALLENGE and PERSOL THANKS,

Digital solutions (employment, humanresources management, education)
Incubation programs

Service users
Temporary engineers
Applying for jobs

Hiring applications/recruitment fees (when a contract is entered)

Services

Labor supply contracts/staffing fee payments

Job seekers

Employment contracts

Employment contracts

Labor supply contracts/
staffing fee payments

Provision of labororganizations and management; andOutsourcing (IT, business)
Digital solutions, system development
Business consulting
Engineering (design and experiment)
Temporary staffing (IT, engineering)

Provision of information over the Internet

Work instructions

Introduction

provides consulting and training services
centered on the development of people,

Permanent placement (mid-career,
new grad recruitment)
Career change media, direct recruiting
Executive and advisory placement
Outplacement support
Career training

Job applications

conducts surveys and research related toorganizations and human resources, andTemporary staff

Employment contracts/salary payments

Services

Value Strategy

Providing high-level human resource
and organizational consulting as wellas education and training

Services

Value Story

Specialized Services

Temporary staffing (clerical work, research,clinical development, sales, light work)
Outsourcing (clerical work, government
office contract business, call centers,
helpdesks, CRO, manufacturing)Temporary job placement ahead of
permanent employment/permanent
placement

Services

Temporary staffing/permanent placement
Outsourcing
Equipment/facility maintenance services

Corporateclients/clientcompanies

Services“Think tank” services
Human resource/organizational consulting
Education/training
Employment of the disabled
Corporate venture capital
Global human resource placement
Core Company/Representative Companies

SBU Core Company/Representative Companies/
Examples of Handled Brands• PERSOL TEMPSTAFF• PERSOL EXCEL HR PARTNERS*• PERSOL FACTORY PARTNERS*• PERSOL MARKETING• PERSOL WORKS DESIGNSBU Core Company/Representative Companies/
Examples of Handled Brands• PERSOL CAREER• PERSOL CAREER CONSULTING• Benesse i-Career** Benesse i-Career is a non-consolidated company.

SBU Core Company/Representative Companies/
Examples of Handled Brands• PERSOL Professional Outsourcing• PERSOL PROCESS & TECHNOLOGY• PERSOL RESEARCH & DEVELOPMENT• PERSOL TECHNOLOGY STAFF• PERSOL AVC TECHNOLOGYSBU Core Company/Representative Companies/
Examples of Handled Brands• PERSOL INNOVATIONSBU Core Company/Representative Companies/
Examples of Handled Brands• PERSOL Asia Pacific• PERSOLKELLY• Programmed Maintenance Services* The above two companies are referred to as PPG,
for convenience.

PERSOL RESEARCH AND CONSULTING,PERSOL CHALLENGE, PERSOL THANKS,PERSOL FACILITY MANAGEMENT,PERSOL INNOVATION FUND, PERSOL Global
Workforce

29

PERSOL Group Integrated Report 2021

PERSOL Group Integrated Report 2021

30

Value Strategy

Business Overview by SBU

Staffing SBU

Career SBU

Net sales and operating profit

Net sales and operating profit(Billions of yen)(Billions of yen)

530.2

510.1

473.2

29.1
23.8

21.4

85.8

Net sales

83.4

Net sales

Operating profit

Operating profit

59.5
15.5

13.2

0.3

FY2018FY2019FY2020Taro Mineo

Executive Officer,
Staffing SBU Lead

Executive Officer,
Career SBU Lead

Opportunities

FY2019FY2020Introduction

Kazunari Kimura

Opportunities and risks

Opportunities and risks
Risks

Opportunities

Risks• More interest in mid-career recruitment by companies as economy recovers• Increased awareness of career formation among individuals in era of 100-year lifespan• Development of work styles independent of formal employment such as
freelance work and side jobs

• Delayed recovery in corporate hiring demand from prolonged effects
of COVID-19• Digital technologies leading to rapid deterioration and replacement ofexisting business models

Competitive Advantage and Strategic Direction

Results for Fiscal Year Ended March 2021

Expanding employment opportunities andstrengthening engagement with temporary staff toincrease reliability and a sense of attachment from
temporary staff

Achieving significant growth in the BPO field while
maintaining employment despite COVID-19

Increasing productivity through appropriate andbalanced investment, stronger marketing processes
and use of technology

Sales declines at both the permanent placement businessand the advertising business from effects of COVID-19,
but operating profit remaining in the black

The Career SBU’s main businesses are in the field of regular
employees, comprising the operation of the “doda” recruiting
media, a permanent placement business and an outplacement
support business. To meet a recovery in hiring demand when theeconomy rebounds from the effects of COVID-19, in addition toincreasing headcount through mid-career recruitment, we will
strengthen our ability to attract individual customers throughincreased investment in marketing and pursue coordination acrossservices, while maintaining appropriate efficiency. We will also
accelerate the digitalization of our businesses by using technology
to increase matching precision and strengthen online response
capabilities to enhance our medium-term competitiveness. We
will support even more companies and working individuals using
the brand power of “doda,” which has a solid corporate client baseof more than 29,000 counterparty companies and more than 6
million registered users (as of February 2021), and the higher-end
career support service “iX.”

Companies remain cautious about hiring because of the spreadof COVID-19, and although sales for the fiscal year ended
March 2021 declined from those of the previous year, both thepermanent placement business and the job advertising businesshave been gradually recovering through the end of the fiscal year
after bottoming out in the second quarter, when the COVID-19
effects were the greatest. Initiatives included adjusting marketingcosts to make them more appropriate and efficient, and optimal
employee allocation that achieved a final operating profit.
Despite the decline in net sales after the failure to recover to prepandemic levels, orders are recovering at both the permanent
placement business and the job advertising business. In addition, agreater-than-anticipated market recovery has led to an increasing
trend in low-unit-priced projects including hiring persons without
experience. Opportunities for making contracts are expanding,
and we will work to achieve both a gradual rise in unit prices andmaximization of the number of contracts.

The Staffing SBU is engaged in the temporary staffing businessmainly for clerical work for a wide variety of industries and fordeveloping Business Processing Outsourcing (BPO). With top
market share* in temporary staffing for clerical work, we areusing our biggest strengths of a solid business foundation andtrust to demonstrate our advanced capabilities in resolving issues
through temporary staffing and outsourcing business tie-ups. We
are developing optimal strategies in each field as we will expand
our marketing in clerical work qualitatively and quantitatively andincrease our share of the clerical staff-dispatching market. We
are providing working individuals with opportunities, awarenessand diverse choices to realize “Work, and Smile,” with the aim of
becoming the group continuously chosen by temporary staff with
their reliability and a sense of attachment by having them becomefans through an ongoing relationship.

During the COVID-19 pandemic, we put all our effort into
maintaining temporary staff employment and strove to reduce
the number of contract terminations. Moreover, with businesstie-ups in the BPO field in addition to a smooth response to equalpay for equal work in the temporary staffing field, net sales rose
3.9% from those of the previous year, with a 22.0% increase inoperating profit.
In the BPO field in particular, an increase in orders including
those related to COVID-19 contributed to strong year-on-yearsales growth while also raising profitability, contributing to the
SBU’s growth.

*Company survey as of February 2021

Progress under the Mid-term Management Plan

Progress under the Mid-term Management Plan

Using technology to strengthen the business foundation and pursuing increased reliability anda sense of attachment from temporary staff
smartphone app for people working at TEMPSTAFF and the T-PLA
We are using technology to strengthen the business, while also
maintaining security and creating an environment that makes
it possible to provide services to customers and temporary
staff despite the pandemic. In response to the recent increasein telework, we have developed the Remote Temp home-based
temporary staffing service. We are also boosting convenience forworking individuals with the increasingly popular Temp App official

PERSOL Group Integrated Report 2021

Governance

Results for Fiscal Year Ended March 2021

Value Strategy

Competitive Advantage and Strategic Direction

Value Story• Creation of employment opportunities from diversification of work styles • Declines in number of orders and operating rate, and increase in• Increasing demand in outsourcing field
contract terminations, due to COVID-19• Stronger foundation and improved productivity from use of technology

31

FY2018business-to-business platform for customers.
By measuring the “fan index” focusing on the “work” of temporary
staff, the Staffing SBU is making it possible to visualize “Work, andSmile” and striving to increase its degree of reliability and a senseof attachment (making fans). (Fiscal year ended March 2020 result:
39 points, fiscal year ended March 2021 result: 47 points, fiscal year
ending March 2023 target: 55 points)

Using technology to enhance value of customer experience and support autonomous career building
A pickup in corporate hiring is causing upward trends in both thenumber of contracts and the contract rates. The shift to online
counseling is proceeding on track, and we continue to implement
information security risk measures. We are also building on our useof technology to develop capabilities in direct recruiting to increase
the number of recruitment offerings and to give individuals optimal
selections with new functions like AI recommendations.
The Career SBU has introduced the Career Ownership Index* toincrease the number of individuals determining their own “work.”
To expand this index, we promoted existing businesses like “doda”
and launched new initiatives like a consortium related to careerownership. Our aim is to realize “Work, and Smile” by helping
working individuals build careers on their own. (Fiscal year ended
March 2021 result: 2.03 million individuals, fiscal year ending March2023 target: 2.37 million individuals)* The number of people who are aware of and acting on career ownership who use theCareer SBU’s services.

PERSOL Group Integrated Report 2021

32

Professional Outsourcing SBU

Solution SBU

Net sales and operating profit

Net sales and operating profit (loss)(Billions of yen)

97.2

(Billions of yen)

113.0

105.8
6.9

7.0

Net sales

6.3(0.03)FY2019FY2020Executive Officer,
Solution SBU Lead

FY2019(4.8)

FY2020Introduction

Toshihito Nagai

Executive Officer,
Professional Outsourcing SBU Lead

Opportunities and risks
Risks• Securing engineers and other specialist human resources• Increased competition in the IT (software) field

Opportunities

Risks• Changes in and diversification of individual work styles• Increasing demand for promoting digital transformation andincreasing productivity• Appearance of new entrants and competitors in the technology field• Intensifying competition for specialized human resources

Competitive Advantage and Strategic Direction

Results for Fiscal Year Ended March 2021

Using diverse range of specialists including engineers
and consultants to provide services from designand development to operation and maintenance asGroup’s third business pillar

Robust demand in IT—maintaining high growth andincreasing sales from those of previous year in IT field

Creating new businesses by entering fields new to
the Group, and digitalizing and updating its existing
business fields

Ongoing upfront investment to enter new businessfields for expansion of each business’s foundation andfuture growth

The Solution SBU carries out proactive investment in businessideas that create the future. Using our human resource businessexpertise developed through existing businesses and contacts
with a large number and variety of companies and individuals as acomprehensive human resource services company, as well as ourculture of pursuing challenges, we aim to create new value thattranscends today’s human resource business frameworks. This year
we are also entering the field of learning. With the recent increase indemand for online learning, we are addressing social issues in theareas of “learning” and “working” with coaching services offered by“persons” that only PERSOL can provide that follow each individual
employee closely and continuously.
By creating businesses with the potential to become new
business pillars for the Group through our own efforts and throughjoint creation with various stakeholders, we aim to achieve “Work,and Smile” for as many people as possible.

Although sales for the fiscal year ended March 2021 declined as
the COVID-19 pandemic depressed companies’ desire to hire andrestaurants were asked to refrain from operation, each business’s
foundation expanded steadily. This included strong growth at the“MIIDAS” career change app business, with more than 230,000
registered companies and continued growth as one of the SBU’s
main businesses.
In terms of profit, the unit recorded an operating loss for the
fiscal year ended March 2021, a reflection of the fact that our task
is to make upfront investments in various business fields to createbusinesses that can become core Group businesses. However,
we are aiming for sales growth and achieving profitability bycontinuously seeking exponential growth in existing businesses
and by entering new fields.

With robust demand in the IT field, sales increased from thoseof the previous year as we maintained high growth with a morethan 20% increase in net sales. Operating profit declined due
to a rise in the labor-costs-to-sales ratio in the IT field from anincrease in headcount and decreases in contracted orders andprofit in the engineering field, but the profit trend is recovering.
The operating rate in the IT field was stable, at more than 97%
as of the fiscal year-end. In the engineering field, the operating
rate recovered to 94% as of the fiscal year-end after bottoming
out in the second quarter, due to successful initiatives toincrease new orders through stronger marketing coordination
within the Group.

Progress under the Mid-term Management Plan

Progress under the Mid-term Management Plan

Initiatives to develop services and technologies to meet new demand from an expected market recovery in theengineering field while strengthening marketing coordination

Continuous investment in and development of potential new Group business pillars while expanding the clientbase for profitability at each business

Under the new SBU structure introduced in the fiscal year ended
March 2021, we have been striving to coordinate operations while
deepening mutual understanding among the companies in each
SBU. Although there have been effects from the COVID-19 pandemic,
the IT market has been solid, and the machinery and electricity
markets are gradually recovering. To create new value for further
growth by capturing demand for market innovation, including fromthe government, and the markets’ recoveries, we are working to

Despite the effects of COVID-19, we are continuing to invest in anddevelop businesses with the potential to become new businesspillars for the Group. Both “MIIDAS” and the “Sharefull” platform
for the short-term human resource utilization business are
posting steady growth in their numbers of corporate and individual
customers, and are acquiring new markets through the digitalizationof core fields. The Digital Workforce business, which is proposing a
new workforce by integrating people and technology, has seen its

PERSOL Group Integrated Report 2021

Governance

Results for Fiscal Year Ended March 2021

Value Strategy

Competitive Advantage and Strategic Direction

Value Story

Opportunities• Accelerating companywide digital transformation on assumption of
remote work
• Acceleration of automation and labor savings as domestic
manufacturing sites recoverWith more than 13,000 engineers, the Professional Outsourcing
SBU is engaged in design and development outsourced
contracting businesses in IT and engineering, businessconsulting and a temporary staffing business that dispatches
engineers. The unit is accelerating internal coordination andstandardization with the aims of high growth and profitability
as the Group’s third business pillar. We will use our processexpertise and technological capabilities developed to date toaddress the accelerating demand for operations that assume
remote work, remote control and development caused by the
COVID-19 pandemic. We will also offer approaches tailoredto the business environment and innovation in work styles inmanufacturing, construction and other industries in addition
to our existing field of clerical positions, as a group of IT andengineering specialists.

33

(1.6)

FY2018

Shinji Masaki

Opportunities and risks

Operating profit (loss)

1.7

4.0

FY2018Net sales

5.7

Operating profit

collaborate with Group companies, support operational digitaltransformation and carry out trial development related to the
IoT (including building an example of a model factory for digitaltransformation), with the aim of entering the IoT business. We also
intend to develop services to meet customer needs in areas including
fully remote dispatching and remote development, and to strengthen
our marketing activities further.

“POS+” cloud POS business affected by the adverse environment forrestaurants, but the number of new stores introducing the “POS+” isgrowing steadily. In October 2020, the Group acquired Dot Homes Inc.
to promote the digital transformation of the accommodation industry.
In the learning field, we have begun developing an online learningbusiness, and going forward, we will create new businesses through“Drit” and continue to enter new business fields through M&As andalliances while promoting the rapid growth of all businesses.

PERSOL Group Integrated Report 2021

34

Governance

History of and Basic Policy on Governance at the PERSOL Group

Asia Pacific SBU
Net sales and operating profit (loss)

Principles(Billions of yen)

277.5

273.2

251.4

Net sales
Operating profit (loss)

1.3

(0.4)

FY2018FY2019(1.5)

FY2020

The PERSOL Group establishes the basic management
policy and the corporate strategies of the entire Group withthe aim of realizing its corporate philosophy of “Providing
Opportunity, Individual Growth and Social Contribution.”
Each of the Group companies shall promote sustainablecorporate growth and the increase of corporate value overthe mid-to long-term and solve social issues through its

businesses by executing the corporate strategies in unitedefforts of the Group companies.
The PERSOL Group recognizes that good corporate
governance is the foundation for all efforts to realize theabove-mentioned corporate philosophy and will exert
continued efforts for the improvement of the Company’s
corporate governance.

Development areas

Executive Officer,
Asia Pacific SBU Lead

Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore, South Korea,• Delayed recovery in demand for human resources from continued
effects of COVID-19• Appearance of new players in field and debut of alternative services
due to technological advances• Effects from currency fluctuations including weaker Australian dollar
against Japanese yen

Accelerating sales growth and improved profitability
through stronger unified management

Sales decline from effects of COVID-19, but
Singapore temporary staffing business growing
and Australian business’s cost structure improving
through business integration
In addition to growth at the temporary staffing business in
Singapore, the permanent placement business in China and thetemporary staffing business for blue-collar jobs in Australia
showed trends of recovery in the fiscal year ended March
2021. However, sales declined as the rest of Asia saw delayed
economic recoveries from the effects of the COVID-19 pandemic,
and the Australian dollar weakened against the Japanese yen.
In terms of profit, the sales decline resulted in an operating loss,
but we have been working to improve the cost structure with thetransfer of PERSOLKELLY’s Australian business to Programmed.

Progress under the Mid-term Management Plan
Further strengthening earnings base and executing strategy aligned to each market
With the establishment of PERSOL Asia Pacific Pte. Ltd. as a regional
management company for the Asia-Pacific region, we have built afoundation for integrating back-office functions and a system thatfacilitates crosscutting initiatives. We are also accelerating our useof technology with investments in the human resource technologicalstart-ups FREECRACY and Glints. In addition to ongoing appropriate
investments for growth, we are looking to provide new services.
At Programmed, the maintenance business and the temporary

PERSOL Group Integrated Report 2021

staffing business for blue-collar jobs continue to record stableearnings, and the human resource services business in theoffice-based job domain and the healthcare business are being
strengthened. Anticipating that the COVID-19 situation will be
brought under control, PERSOLKELLY is preparing for a recovery
in the highly profitable permanent placement business, increasing
headcount and investing for growth in China and growing markets inSoutheast Asia, where profit growth is forecast.

2020

Oversight function

2021
Separated between Chairperson of
the Board and CEO

Established the Corporate Governance Guideline
Established the Nomination andCompensation Committee

Advisory committee

Appointed a woman
director

Nomination of directors

Established the Corporate GovernanceCommittee
Appointed a Board whose majority is
Independent Directors

Directors (of which,
Independent Directors)

6 (1)

10 (4)

Effectiveness evaluation

10 (4)

11 (5)

11 (5)

9 (5)

9 (5)

Began effectiveness evaluation of the Board
Introduced a share-based compensation scheme for senior executives
Revised the director and executive compensation system

Separation of execution
and oversightAcceleration of management
decision-making

Introduced an executive officer system
Delegated decision-making about business to the CEO
Established the HMC and internal committees
Shifted to the Strategic Business Unit (SBU) structure

Note: HMC = Headquarters Management Committee, SBU = Strategic Business Unit

The Corporate Governance Guideline lays out the
principles and desirable state of corporate governanceof the PERSOL Group and serves as the Guideline for the
directors and the Group Senior Executives (collectively
referring to the Representative Director, President andCEO, executive directors and executive officers, who areresponsible for the management of the PERSOL Group)
towards the realization thereof. We will take actions in linewith the Guideline and revise it as necessary in response tochanges in the times and circumstances and consistently
strive for better corporate governance.

GovernanceTo create synergies between PERSOLKELLY, which boasts the largest
market shares in its operational areas of temporary staffing andpermanent placement, and Programmed, which has top market sharein its operating market for a maintenance business and temporary
staffing for blue-collar jobs, we established PERSOL Asia PacificPte. Ltd. as a regional management company at the beginning of thecurrent Mid-term Management Plan, creating a structure of unified
management as one SBU. We are working to raise profitability,
including the integration of back-office functions. We are also aiming
for business growth by establishing a technology division within
the regional management company, accelerating investment andproviding new services. Programmed is strengthening its temporary
staffing business, where a steady market recovery is visible, as wellas its healthcare business, which is expected to grow going forward,
while PERSOLKELLY is focusing on China, which is marking an early
return to pre-COVID-19 levels, and will work to establish a No. 1
position in Singapore, where stable growth is expected.

2019

Value Strategy

Results for Fiscal Year Ended March 2021

2018

Established the Independence Criteria for External Directors

Compensation
Execution systemsystemCompetitive Advantage and Strategic Direction

2017

Value Story

Risks

Strengthening of
the oversight function

Opportunities• Stronger synergies through integrated management of countries
and territories in the Asia-Pacific region• Use of technology to raise productivity and profitability and provide
new services

2016

Shifted to a Company with the Supervisory Committee

Note: Business expansion in the Philippines facilitated through business alliance with JOHN CLEMENTS CONSULTANTS, INC.

Opportunities and risks

35

2015

Thailand, Taiwan, Vietnam

Introduction

Takayuki Yamazaki

History of strengthening corporate governance

13 markets

Basic policy on corporate governance1. Securing the Rights and Equality of
Shareholders

The PERSOL Group shall pay careful attention to equal treatment of shareholders by appropriately implementing
matters so that shareholders can exercise their rights effectively.

2. Appropriate Cooperation with
Stakeholders Other Than Shareholders

The PERSOL Group establishes “Group Vision” to set its fundamental stance to conduct its business, as well as the Codeof Conduct as the criteria for judgment and behaviors of all directors and employees, and endeavors to appropriately
cooperate with each stakeholder in conducting its business.

3. Securing Appropriate Disclosure ofInformation and Transparency

The PERSOL Group appropriately discloses its financial information such as financial standing and operating results,
corporate strategies, and risk management, and ensures transparency of information disclosure. The PERSOL Group
strictly manages undisclosed critical information which may have impacts on investment decisions.

4. Obligations of the Board

The Board is responsible for the oversight of management, sets the basic management policy, oversees the Group
Senior Executives, and secures the construction and operation of appropriate internal control systems.

5. Dialogues with Shareholders

The PERSOL Group shall, through dialogues with shareholders, obtain their understanding of its corporate strategies,
and endeavor to take appropriate measures based on the understanding of the standpoint of shareholders. The Board
shall establish and disclose policies concerning the measures and organizational structures aimed at promoting
constructive dialogues with shareholders.

Details of the Corporate Governance Guideline are available on our website.
https://www.persol-group.co.jp/en/corporate/governance/corporate_governance/

PERSOL Group Integrated Report 2021

36

GovernancePanel Discussion with Independent Directors

INTERVIEW

which has made it easier for SBU Leads to attend. I feel,the percentage of women promoted internally remains low,

however, that the operation of Board meetings still gives

so we recognize the need to implement solid initiatives

them little opportunity to speak. I would like to see meetings

that will systematically identify potential superior women

become more effective by intentionally asking them

managers from among our employees and develop them.

questions directly.

Our business will see a further acceleration of data-driven

Tomoda: We receive full briefings of the day’s agenda

marketing, making it very important to invest and secure

items in advance of Board meetings, which makes it easy

human resources for DX if we are to lead the industry.

to understand and participate in deliberations. Therefore, I

Kazuhiko Tomoda

Meetings with the CEO after the Board meeting have been

Independent Director

Independent Director(Member of Supervisory Committee)

added as a new initiative this year. These are very useful

Enomoto: Among our total of more than 50,000 employees

because we can exchange opinions about the day’s agenda

in Japan and overseas, I feel that we fall short in terms ofitems and other crucial items that we want to ask. Following

diversity of gender and nationality at the management level,

The PERSOL Group recognizes that strengthening corporate governance is a crucial element for enhancing

that, sometimes there is another session for Independent

including directors and executive officers. For example,

corporate value, and we are increasing the effectiveness of the Board. We held a panel discussion with three

Directors only to share information among ourselves. Holding

why don’t we promote motivated women internally, across

Independent Directors on themes deepening the PERSOL Group’s governance structure and recommendations formeetings online also reduces time constraints. I hope that

SBUs or national boundaries, and regardless of age or work

continuous growth.

this positive direction of deliberations will continue.

style? I would like to see the Company create a framework

Value Story

Ryosuke Tamakoshi

Independent Director(Member of Supervisory Committee)

is highly effective because each director speaks frankly.

Introduction

Chisa Enomoto

Q：You mentioned the percentage of women managers.
What are your opinions regarding diversity and theadvancement of women employees?

believe the meetings run very well. I also feel that the Board

through which many women working in the PERSOL Group

Q：How do you evaluate the atmosphere, the focus
on issues and governance structure of thethe Company’s governance includes ample organizational
auditing. The internal audit division reports both to theand management training?

can pursue challenges and join the management ranks.
Tomoda: The Company already has large overseas
operations, but we are still lagging in true globalization.

I favorably view the close coordination between thewhich Independent Directors were involved in the selection.

divisions to establish staff rotations with overseasof the Company from an independent standpoint for 11 years,

Supervisory Committee and the internal audit division. I

We have to wait and see the results to know whether our

subsidiaries. These types of programs would help instill the

including my time as an Independent Audit & Supervisory

would like to see Board meetings present more opportunities

selection was appropriate. In my opinion, I expect our

PERSOL philosophy overseas as well.

Board Member before becoming an Independent Director.

to discuss mid- to long-term direction and strategy.

new CEO and future leaders to be enterprising with a

Enomoto: Human resource rotation and study abroad

During that time, the governance structure has madeEnomoto: One issue is that it is difficult to know whether things

vigorous can-do spirit. At the same time, with significant

programs are crucial ways to promote globalization. They

dramatic advances, including the introduction of an executive

pointed out by the Board have been acted upon, and we havelegal, environmental and other changes with the times,

also lead to a gradual evolution of the corporate culture,

officer system and the transition to a Company with ato repeat the same thing several times. The Board’s operations

management must be constantly aware of effects andincreasing opportunities for future growth.

Supervisory Committee. The operation of the Board has

need a way to confirm progress on items that we identify.

challenges coming from outside the industry. Leaders must

Tamakoshi: Each year the Group holds awards ceremonies

have the ability to see what is crucial. Therefore, I consider

to recognize the activities of various teams, and in fact, a“taking on challenges” key to success for future leaders.

relatively large number of these team leaders are women.

Enomoto: I hope that Mr. Wada, the CEO, will initiate bold

Nevertheless, SBU Leads and other senior managers arereforms to create new value rather than continuing thealmost all men. Many women excel at their jobs, so I believe
the Board must have discussions that take a deeper look at

Tamakoshi: I have been involved in the corporate governancealso improved, with the secretariat implementing processes
like using tablet devices to distribute materials. Meetings
themselves also feature very free and open discussions.
Enomoto: The composition of the Board has changed

Q： What is your evaluation and opinion of the Board’s
effectiveness, and do you have any ideas formaking it more effective?

significantly over the past three years, with Independent

Tamakoshi: I am satisfied with the Board’s effectivenessmanagement style used up to now. A commitment to create

Directors making up a larger portion of the Board. The

overall, but I sometimes wonder if Independent Directors

a future for the Company and the PERSOL Group that will

diversity.

atmosphere at Board meetings encourages everyone toare self-righteous. The reason is each Independent Director

contribute to society and change the world is particularly

Enomoto: I believe that PERSOL will contribute to aexpress opinions openly. Meetings have been held online

has a different background. I worry about whether we fully

crucial. I also consider it crucial for leaders to have a special

sustainable society by becoming a leading company in terms

because of COVID-19, but in a good way, I feel that theconvey to management our true meaning.

kind of motivation that makes all employees great fans ofof the advancement of women. That requires management

progress of the meetings has been smoother and the

Enomoto: I agree with Mr. Tamakoshi. To increase

the Company.

commitment and speed. It is also crucial for supervisors to

discussions have become even livelier.

effectiveness even further, participants need to convey

Tomoda: My expectations of Mr. Wada are the same as Mr.

support their employees. I would like to see priority given

Tomoda: I took office as an Independent Director last year.

their own opinions accurately. Therefore, I think it would

Tamakoshi’s and Ms. Enomoto’s. I also believe that in terms

to this area, for example, by having SBU Leads set targets

Initially, I expected more of a summary of the Headquarters

be helpful to have more opportunities for communicationof cultivating management from the perspective of further

for the number of women managers and carrying out

Management Committee (HMC) deliberations to be presented

among Board members and constructive dialogue throughstrengthening the functioning of the Board, it is crucial

systematic training, and by publicizing successful cases liketo the Board. Recently, HMC activities have also been fully

which management pays attention to each Independent

to further consideration of the skill matrix. Also, issues

the creation of diverse workplaces throughout the Group.

reported, and this is helpful for the Board’s deliberations.

Director’s experience and diverse opinions.

related to gender and nationality are not simply matters of

Our goal is that the PERSOL Group will be known as a place

Speaking as a Member of Supervisory Committee, I believe

Tamakoshi: The Board meetings are often held online,

increasing numbers of people. In terms of management,

where many women can work and smile.

PERSOL Group Integrated Report 2021

PERSOL Group Integrated Report 2021

Governance

It would also be effective for human resource and financeValue Strategy

executive side and to the Supervisory Committee, andTamakoshi: The most recent CEO succession was the first in

PERSOL Group’s Board?

37

Q：What points do you think are crucial in areas like
expectations of the CEO, the succession plan,38

GovernanceCorporate Governance Structure

Overview of corporate governance structure

Based on the corporate governance principles, the PERSOLGroup has adopted the form of organizational structureof “Company with Supervisory Committee” under theJapanese Companies Act. Furthermore, for the purpose ofcomplementing the function of the Board, the Group has• Approval of a CEO succession planestablished a Nomination and Compensation Committee
and a Corporate Governance Committee as voluntarycommittees to increase transparency and objectivity
concerning decisions on the nomination and compensationof the directors and the Group Senior Executives.
As of September 1, 2021

Usage Guide:

1/2 orRatio of Non-executive Directors: 7/9

CEOInternal Director

General Meeting of Shareholders

above

1/2 orRatio of Independent Directors: 5/9

Corporate Governance Committee
Appointment
and Dismissal

Appointment
and Dismissal

Appointment
and Dismissal

The Board

Advisory

Directors who are not Supervisory
Committee Members

Chairperson

Corporate Governance Committee

Audit

Supervisory Committee
Directors who are Supervisory
Committee Members

ReportChairperson

ReportAccounting Audit
Approval/
Coordination

ReportCEO
Deputy President
Staffing SBU

CFOCareer SBU

CHROInvestment Committee

Professional Outsourcing SBU

CIORisk Management Committee

Asia Pacific SBU

Headquarters Management Committee (HMC)
Internal Audit Division

Human Resources Committee
Technology Committee
Gender Diversity Committee

The BoardSupervisory Committee

The roles of the Supervisory Committee include securing thesoundness of companies toward the increase of sustainablecorporate value, acting for the common interests of thePERSOL Group and shareholders while performing thefollowing duties:• Oversight of the execution of duties of the directors andthe preparation of audit reports• Decision on the details of the agenda concerning
appointment, dismissal and refusal of reappointment of an
external auditor• Decision on the opinion of the Supervisory Committee
concerning appointment, dismissal, resignation orcompensation of the directors (excluding directors who
are the Supervisory Committee Members)

39

PERSOL Group Integrated Report 2021

The Supervisory Committee may give specific instructions
to the internal audit division, as necessary, for the purposeof effective audit. The Supervisory Committee shallappropriately share information with the internal audit
division for the purpose of ensuring mutual cooperative
systems. Important personnel affairs of the internal audit
division shall be decided with the consent of the Supervisory
Committee to ensure the effectiveness of audit by theSupervisory Committee.

Nomination and Compensation Committee

The purposes of the Nomination and Compensation
Committee include increasing the transparency andobjectivity of the decisions on candidates for directors
and the Group Senior Executives as well as decisions
on compensation while enhancing the managerial andsupervisory functions of the Board. Upon receiving requests
from the Board, the Nomination and Compensation
Committee shall perform the following duties, and submit areport and recommendations to the Board:
Matters concerning decision on candidates:• Decision on a recommendation of the appointment anddismissal of the directors for discussion at the general
meeting of shareholders• Decision on a recommendation of the appointment anddismissal of the CEO (authority of representation and theposition)

Evaluation of Effectiveness of the Board

The Company, every year, evaluates the effectiveness ofthe entire Board to further improve the functions of theBoard and discloses the evaluation method and outline of
the result.
In the evaluation of the effectiveness of the Board forthe fiscal year ended March 2021, the Company conducted
a questionnaire survey of all directors. The Board at its
meetings discussed the issues recognized based on
the result and self-evaluation by each director over two
occasions and then produced the final evaluation.
As a result, it was confirmed that the effectivenessof the Board of the Company is ensured in terms of its
structure, operations, oversight function, support system,
and its relationship with investors and shareholders, as
it carries out open and constructive discussions, etc., byclarifying the points at issue at the Board meetings.
Further, we recognize that, in response to futurechallenges, we need to promote discussions on the basic
management policy, proper monitoring of the Mid-termManagement Plan, and continuous efforts toward securing
sufficient time for discussing important agenda items.
The Board shall take into account these evaluation
results and continue to improve its effectiveness andpromote the implementation of the PDCA cycle forgovernance reforms to realize the sustainable growth andcorporate value improvement of the PERSOL Group.

Progress in initiatives to address the issues recognized in
the evaluation of effectiveness in the fiscal year ended March 2020
1. Monitoring of the
progress based on
management goals
and implementation
plan

Taking into consideration the sense of uncertainty caused by the COVID-19
pandemic, we postponed the formulation of the Mid-term Management
Plan from the initially planned date. The Board discussed it over multiple
meetings and confirmed it, and we disclosed the Mid-term Management
Plan in August 2020. We are monitoring the progress being made every
quarter based on the Mid-term Management Plan and KPIs.

2. Prior briefingsand developmentof informationbase for further
enhancement of
the discussions at
the Board

By providing prior briefing of the agenda items of the Board meeting to
Independent Directors ahead of the Board meeting to clarify the points
at issue of the agenda item and matters for confirmation, we promoted
lively discussions at the actual meeting. Moreover, we provided tablet
terminals to the Independent Directors and prepared an informationbase that enables them to access major meeting materials and also
developed an environment where they can share the status of the
discussions by the management.

3. Securing
sufficient time to
discuss important
agenda items

We strived to prioritize important agenda items through close
inspection of the items to be submitted based on the criteria forsubmitting agenda items to the Board and by turning some items into
written reports. We also aimed to achieve appropriate time distribution
in operation of the meetings.

Governance

The Board is responsible for the oversight of management
and its main roles and responsibilities are to set the basic
management policy, oversee the Group Senior Executives,and secure the construction and operation of appropriate
internal control systems. For the purpose of enabling
management to make timely, flexible and decisive decisions,management decisions other than those reserved for the
Board by the Companies Act shall be delegated, in principle,
to the CEO. Provided, however, that the decisions on theexecution of important operations set forth in the Regulations
for the Board shall be made by the Board.

The PERSOL Group adopts the Executive Officer system withthe purpose of separating the oversight and management
and clarifying where management responsibility lies. In
addition, HMC is established to assist the CEO in making
decisions on the Group’s basic management policy andimportant operations. The decisions on the execution ofimportant operations delegated to the CEO by the Board shall

Value Strategy

Solution SBU

Headquarters Management Committee

Value Story

Appointment and Dismissal
Delegation of the Decisions on the Execution of Important Operations Audit
Audit

Chairperson

ReportExternal Auditor

Nomination andCompensation Committee

The purpose of the Corporate Governance Committee
is to enhance the supervisory functions of the Board bydiscussing the matters regarding the Company’s corporate
governance. Upon receiving requests from the Board,
the Corporate Governance Committee shall perform thefollowing duties, and submit a report and recommendations
to the Board:• Basic policy regarding corporate governance• Composition of the Board and committees under the Board• Measures to improve the effectiveness of the Board• Basic policy regarding effectiveness evaluation of theBoard and the committees under the Board

Introduction

above

Independent Director

Matters concerning decision on compensation:• Setting the compensation standards for directors and theGroup Senior Executives• Decision on a recommendation of the amount ofcompensation for the directors (excluding directors who
are the Supervisory Committee Members)

be decided by the CEO on the condition that the HMC has
made an affirmative resolution. Based on the concept thatthe members of the HMC (hereinunder, “the HMC members”)
shall be the persons who assume the significant decisions
on the execution of important operations delegated by the
Board and comprehensive roles as members of the senior
management of the Group, a proposal for the nomination of
the HMC members shall be prepared by the CEO from among
the executive officers, and shall be approved at the Board
upon deliberation at the Nomination and Compensation
Committee.
The Company has also established five committees(Investment Committee, Risk Management Committee,
Human Resources Committee, Technology Committee andGender Diversity Committee) under HMC to improve theeffectiveness of the Group’s internal control system.
The Investment Committee deliberates on importantmatters related to the Group’s overall investment and aims
to raise the Group’s organizational knowledge of a seriesof knowledge related to investment promotion. The Risk
Management Committee deliberates on the overall risk
management of the Group. The Human Resources Committee
deliberates on the Group’s human resources strategy
and succession planning for key talent. The Technology
Committee deliberates on key issues concerning the Group’s
technology strategy and related management resources.
The Gender Diversity Committee deliberates on the Group’s
strategies to promote the advancement of women and related
key strategies.
Each of the five committees is accountable to HMC and ispositioned to supplement and strengthen its functions.

Future challenges
1. Discussions
on the basic
management
policyDrafting of the policy for sustainability challenges including securing humanresource diversity and finalizing and overseeing the business portfolio areimportant elements of the basic management policy, and it was decided
that these should be periodically discussed at the Board meetings.

2. Proper
monitoring of
the Mid-termManagement
Plan

Amid the rapidly changing external environment, periodic oversight of theimplementation status of the Mid-term Management Plan and exchange of
opinions with the management is extremely important, and therefore it was
decided that the oversight function including monitoring methods should befurther reinforced.

3. Continuous efforts
toward securing
sufficient time fordiscussing important
agenda items

Going forward, based on the recognition that it would be necessary for the
Board to prioritize discussions on important agenda items such as thosecontributing to the basic management policy, it was sought to further
improve the operation of the Board meeting so as to secure sufficient time
for discussing important agenda items.

PERSOL Group Integrated Report 2021

40

GovernanceDirector and Officer Compensation and Succession of CEO, etc.

Level of compensation

The Compensation for Director and officer (hereinafter,“Executive Compensation”) of the PERSOL Group is
positioned as an incentive to achieve sustainable growthover the mid- to long-term. Following discussions by the
Nomination and Compensation Committee, the Board
resolved on a compensation policy for the fiscal year
ended March 2021 and beyond at a meeting held on
May 19, 2020, including a new policy on the forfeiture of
Executive Compensation (clawback and malus clause). ThePERSOL Group’s basic policy for Executive Compensation isembodied in the following three perspectives.

Executive Compensation is determined at a level
deemed reasonable and fair based on the basic policy
for Director and officer Compensation stated at the left.
More specifically, we determine the level of Executive
Compensation by studying and analyzing the compensationlevels of a group of benchmark companies (20–30
companies) selected utilizing an external database, etc.,
and based on the business circumstances for the Group. In
determining Executive Compensation during the Mid-termManagement Plan through the fiscal year ending March
2023, we selected 22 companies as a group of benchmark
companies among peer companies (in the personnel service
industry) and other major companies of comparable size on
the bases of market capitalization and the target values ofthe Mid-term Management Plan.

1. Linked to the short-term, and mid- and long-term
financial performance and the corporate value of thePERSOL Group- A scheme that is linked not only to short-term financial
performance but also to mid- to long-term financial performanceand corporate value- Aligns profit awareness with that of shareholders and raises
awareness of shareholder-oriented management- Ensures transparency and objectivity of the compensation
determination processStandard compensation composition model
Directors who are not Supervisory Committee
Members (excluding Independent Directors) and executive
officers (assuming that each of the measures is largely fully

Fixed compensation

Short-term incentive
compensation

Performance-linked mid- to long- Fixed mid- to long-term incentive
term incentive compensationcompensation• Directors

Evaluation
measures19%
Non-executive directors
Share-based
compensation

Basic compensation

Provision
methodPayment of fixed monthly
compensation set by position

83%• Directors who are not
Supervisory Committee
Members (excluding
Independent Directors)

Financial measures
Evaluated in accordance withthe levels of achievement of (1)net sales and (2) operating profit
by the entire Company and each
SBU, as well as the comparisonof growth rates with competitors
Non-financial measures
Evaluated in accordance withthe levels of achievement of (1)the employee engagement indexand (2) the percentage of womenin managerial positions for theentire Company and each SBU
Theme-based evaluation
Evaluated based on how they
have worked on the themes
set with the aim of improving
operating performance andcorporate value, and throughinterviews with evaluators(evaluation of directors who
are not Supervisory Committee
Members (excluding Independent
Directors) lies with theNomination and Compensation
Committee)

Financial measures• Consolidated net sales• Consolidated operating profit• TSR• ROIC
Non-financial measures• Employee engagement index• Percentage of women in
managerial positions• Ratio of investment intechnology• ESG rating

A short-term incentive paid
depending on the level of
performance milestoneachieved towards the Mid-termManagement Plan
Varies between 0% and 200%

Forfeit of compensation, etc. (Clawback/Malus)
Note: The value of share-based compensation for non-executive directors is fixed at 2 million
yen per director; as the amount of basic compensation varies among non-executive directors
depending on their roles, the actual compensation composition may not be identical with thatshown above.

Executive Compensation for the fiscal year ended March 2021
Total amount of compensation, etc., by compensation type (Million yen)
Total amount ofcompensation, etc.
(Million yen)

Basic compensation

283

203

34

23

22

7

(30)

(25)

(−)

(−)

(4)

(3)

Bonus (Shortterm incentive
compensation)−

Share-based compensation
Performance-linked
Fixed mid- to long-term
mid- to long-term
incentive compensation
incentive compensation−

Number of eligible
executives

In the event significant restatements of financial statements
due to material accounting errors or accounting fraud has
been resolved by the Board, or the Board has deemed that
there was a significant breach of executive service and/or
other agreements by officers during their term of office, theNomination and Compensation Committee shall deliberate,
at the request of the Board, whether or not to confiscate thewhole or part of their rights to receive bonus and/or sharebased compensation or confiscate the whole or part of thebonus and/or share-based compensation they had received,and provide the Board opinions and suggestions based on
the results of the deliberation.

68

63

4

6

(26)

(23)

(−)

(−)

(3)

(4)

Succession plan

351

267

34

23

26

13

(57)

(49)

(−)

(−)

(7)

(7)

At the Company, the Nomination and Compensation
Committee deliberates on the CEO succession plan.

• Directors

Designed to vary dependingon the level of achievement offinancial targets in the Mid-termManagement Plan towards the
fiscal year ending March 2023, as
well as non-financial measures

A fixed number of shares isdelivered as share-based
compensation to further increaselinkage with shareholder value

Varies between 0% and 200%

Governance17%• Directors who are not
Supervisory Committee
Members (excluding
Independent Directors)

Value Strategy

Bonus

Determination process for compensation
The amount of Executive Compensation, etc., of the PERSOLGroup, their determination process, and the policy for
determining details of compensation for each director andofficer shall be decided by the Board, following thoroughdeliberations at the Nomination and Compensation Committee,
which is an independent advisory body to the Board.
The amount of compensation, etc., for directors who are
Supervisory Committee Members shall be decided throughconsultations among the Supervisory Committee Members.
Executive Compensation, etc., shall be paid within the
maximum amount of compensation, etc., resolved at an
Ordinary General Meeting of Shareholders.

64%

17%

- Provides a stronger incentive to directors and officers withregard to improving financial performance and corporate value

Total(The amount of Independent Directors)

Share-based compensation

Basic compensation

Share-based
compensation- Makes compensation levels competitive with domestic
companies of the same size and in the same industry, and is
instrumental in securing high-quality human resources

Directors who are Supervisory
Committee Members(The amount of Independent Directors)

Eligible
director

Bonusachieved)

3. Sets competitive level of compensation

Directors who are not Supervisory
Committee Members(The amount of Independent Directors)

Positioning

Basic compensation

Value Story

2. Linked with shareholder value

Overview of the Executive Compensation system

Introduction

Basic policy for Director and officer Compensation

Specifically, the committee discusses and verbalizes
the image of leadership required in the PERSOL Group,
while securing contacts with Group Senior Executives andcreating an environment and opportunities for multifaceted
evaluation. Meanwhile, in formulating the Mid-termManagement Plan, the Group has established financial andnon-financial indicators as well as measures for achieving
them, and the Board monitors their progress in evaluatingGroup Senior Executives while maintaining objectivity andtransparency. Through this process, the Board decided on
the change of the Representative Director, President andCEO on April 1, 2021.
The Board oversees the Representative Director,
President and CEO and Group Senior Executives, while atthe same time continuing to provide backup, to increase
corporate value over the mid- to long-term throughsustainable growth.

Note: The above includes three directors who retired from the position of directors during the fiscal year under review.

41

PERSOL Group Integrated Report 2021

PERSOL Group Integrated Report 2021

42

GovernanceDirectors and Executive Officers (as of June 22, 2021)

Director: Chairperson

Directors who are not Supervisory Committee Members

Directors who are Supervisory Committee Members

Masamichi Mizuta

Takao Wada

Director and Chairman

Kazuhiko Tomoda

Representative Director, President and CEO

Important concurrent posts

Important concurrent posts

External Director of Linkers Co., Ltd.

Director (part-time) of PERSOL TEMPSTAFF CO., LTD.
Director (part-time) of PERSOL CAREER CO., LTD.
Director (part-time) of PERSOL Professional Outsourcing Co., Ltd.
Director (part-time) of PERSOL INNOVATION CO., LTD.
Non-executive Director of PERSOL Asia Pacific Pte. Ltd.

Number of years in office

12 years and 8 months

Number of years in office

Number of years in office

3 years

100%(13/13)

Career record

100%(10/10)

Career record

Joined Sparrow Japan
Joined Tempstaff Co., Ltd. (currently PERSOL TEMPSTAFF CO., LTD.)
Director of Tempstaff Co., Ltd.
Director of the Company
Director, Executive Officer of the Company
Director, Senior Executive Officer of the Company/President & Representative
Director of Tempstaff Co., Ltd. (currently PERSOL TEMPSTAFF CO., LTD.)
Apr. 2020 Director, Deputy President and Executive Officer of the Company
Apr. 2021 Representative Director, President and CEO of the Company (current position)

Mar. 1979
Jul. 1997
Sep. 2006
Jul. 2012
Jul. 2019
Jun. 2020

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Nomination andCompensation Committee

Fiscal year ending
March 2022

Number of years in office

The Board
Fiscal year ended
March 2021

Supervisory Committee

Nomination andCompensation Committee

100%(13/13)

Supervisory Committee

100%(10/10)

Nomination andCompensation Committee

Apr. 1984
Nov. 2005
Jul. 2012
Jan. 2014
Apr. 2018
Jun. 2018
Sep. 2018
Apr. 2019
May 2021

Joined Recruit Co., Ltd.
Joined Philips Electronics Japan, Ltd. (currently Philips Japan, Ltd.) (General Manager, Public Relations Department)
Joined Janssen Pharmaceutical K.K. (General Manager, Communication and Public Affairs Department)
Joined Tokyo Electric Power Company Executive Officer of Tokyo Electric Power Company(currently Tokyo Electric Power Company Holdings, Inc.)
Joined Hitachi, Ltd. Executive Communication Strategist of Hitachi, Ltd.
External Director, Member of Supervisory Committee of the Company (current position)
External Director of JOYFUL HONDA CO., LTD.
A member of Communication Strategy Committee of Meiji University (current position)
External Director of AEON MALL Co., Ltd. (current position)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Fiscal year ended
March 2021

100%(11/11)

Fiscal year ending
March 2022

Ryosuke Tamakoshi

Representative Director and Deputy President

The Board
Fiscal year ended
March 2021

Fiscal year ending
March 2022

Hirotoshi Takahashi

Joined Price Waterhouse Accounting Office
Representative Partner of Aoyama Audit Corporation (former Price Waterhouse Accounting Office)Representative Partner of Arata Audit Corporation (currently PricewaterhouseCoopers Aarata LLC)
Executive Officer of Arata Audit Corporation
Established Tomoda Certified Public Accountant Office
External Director, Member of Supervisory Committee of the Company (current position)
Outside Auditor of Hakuhodo DY Holdings Inc. (current position)/Outside Auditor of Daiko
Advertising Inc. (current position)/Outside Auditor of INES Corporation (current position)

The BoardSupervisory Committee

Nomination andCompensation Committee

100%(13/13)

100%(14/14)

100%(3/3)

Value Story

Fiscal year ended
March 2021

Supervisory Committee

Important concurrent posts

A member of Communication Strategy Committee of Meiji University
External Director of AEON MALL Co., Ltd.

Career record
Feb. 1988
Sep. 1991
Jun. 2006
Oct. 2008
Apr. 2015
Jun. 2016

Composition of and attendance at each committee (number of meetings attended/number of meetings held)
The Board

Important concurrent posts

Outside Auditor of Hakuhodo DY Holdings Inc.
Outside Auditor of Daiko Advertising Inc.
Outside Auditor of INES Corporation

Introduction

Career record
Joined Recruit Co., Ltd.
Joined Tempstaff Co., Ltd. (currently PERSOL TEMPSTAFF CO., LTD.)
Director of Tempstaff Co., Ltd.
Executive Managing Director of the Company
Vice President & Director of the Company
President & Representative Director of the Company
Representative Director, President and CEO of the Company
Director and Chairman of the Company (current position)
External Director of Linkers Co., Ltd. (current position)

Independent

Independent Director(Member of Supervisory Committee)

1 year12 years and 8 months
Apr. 1984
Jul. 1988
Jun. 1995
Oct. 2008
Jun. 2010
Jun. 2013
Jun. 2016
Apr. 2021
Jun. 2021

Chisa Enomoto

Independent

Independent Director(Member of Supervisory Committee)

Fiscal year ending
March 2022

Daisuke Hayashi

Independent

Independent Director

Newly appointed

Director (Member of Supervisory Committee)

Important concurrent posts

Important concurrent posts

Honorary Advisor of MUFG Bank, Ltd.

Non-executive Director of PERSOL Asia Pacific Pte. Ltd.

Number of years in office

Number of years in office

5 years

Newly appointed

Value Strategy

Important concurrent posts

Director (part-time) of PERSOL TEMPSTAFF CO., LTD.
Director (part-time) of PERSOL CAREER CO., LTD.
Director (part-time) of PERSOL Professional Outsourcing Co., Ltd.
Director (part-time) of PERSOL INNOVATION CO., LTD.
Number of years in office

8 years

Career record
Apr. 1995
Apr. 1999
Dec. 2008
Jun. 2013
Apr. 2015
Jun. 2016
Dec. 2018
Apr. 2020
Apr. 2021

Career record

Joined Intelligence, Ltd. (currently PERSOL CAREER CO., LTD.)
Director of Intelligence, Ltd.
Representative Director & Chief Executive Officer of Intelligence, Ltd. (Apr. 2012 Intelligence Holdings, Ltd.)
Vice President & Director of the Company
Vice President and Executive Officer of the Company
Vice President, COO & Director of the Company
President and Representative Director of PERSOL INNOVATION CO., LTD.
Director, Deputy President and Executive Officer of the Company
Representative Director and Deputy President of the Company (current position)

May 1970
Jun. 2002
Jun. 2004
Oct. 2005
Jun. 2010
Jul. 2011
Jun. 2016
Jun. 2018
Jul. 2020

Career record

Joined The Sanwa Bank, Limited (currently MUFG Bank, Ltd.)
Deputy President, Representative Director, and Executive Officer of UFJ Bank Limited (currently MUFG Bank, Ltd.)
President and Representative Director of UFJ Holdings, Inc. (currently Mitsubishi UFJ Financial Group, Inc.)
Chairman and Representative Director of Mitsubishi UFJ Financial Group, Inc.
External Audit & Supervisory Board Member of the Company
Director of Morgan Stanley
External Director, Member of Supervisory Committee of the Company
External Director of the Company (current position)
Honorary Advisor of MUFG Bank, Ltd. (current position)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Nomination andCompensation Committee

Nomination andCompensation Committee

The Board
Fiscal year ended
March 2021

Supervisory Committee

100%(13/13)

100%(3/3)

Fiscal year ending
March 2022

The Board
Fiscal year ended
March 2021

Supervisory Committee

100%(13/13)

100%(10/10)

Masaki Yamauchi

Independent

Independent Director

The BoardSupervisory Committee

Newly appointed

Newly appointed

Nomination andCompensation Committee

Executive Officer

Important concurrent posts

Important concurrent posts

CEO of Japan Innovation Network
Senior Advisor on Innovation of United Nations Development Programme (UNDP)
Specially-appointed professor, Sophia University
President of Japan Bosai Platform

Chairperson of the Board of Yamato Holdings Co., Ltd.

Takao Wada

Number of years in office

1 yearRepresentative Director, President and CEO

Hirotoshi Takahashi

5 years

Career record

The Board

100%(13/13)

Fiscal year ending
March 2022

PERSOL Group Integrated Report 2021

Supervisory Committee

100%(3/3)

Representative Director and Deputy President

Career record

Joined The Long-Term Credit Bank of Japan, Limited
Joined The World Bank Group
Joined Mercer Japan Ltd. Representative Managing Director of Mercer Japan Ltd.
Joined Innovation Network Corporation of Japan Executive officer of Innovation Network Corporation of Japan
Established Japan Innovation Network Executive Managing Director of Japan Innovation Network
External Director, Member of Supervisory Committee of the Company
Senior Advisor on Innovation of United Nations Development Programme (UNDP) (current position)
CEO of Japan Innovation Network (current position)
External Director of the Company (current position)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

43

Fiscal year ending
March 2022

Independent

Independent Director

Number of years in office

Fiscal year ended
March 2021

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Fiscal year ending
March 2022

Naohiro Nishiguchi

Apr. 1986
Mar. 1998
Nov. 2001
Nov. 2009
Jan. 2014
Jun. 2016
Jan. 2018
Oct. 2019
Jun. 2020

Joined ITOCHU Corporation
Admitted to the New York State Bar
Joined Cisco Systems, Inc.
Joined Sony Pictures Entertainment Inc. (Vice President, Legal Affairs)
Joined Intelligence, Ltd. (General Manager, Legal & Compliance Division)
Executive Officer of the Company
Executive Officer and CLO of the Company
Director, Member of Supervisory Committee of the Company (current position)

Governance

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Apr. 1993
Jan. 2001
Dec. 2002
Jul. 2007
Oct. 2012
Apr. 2015
Apr. 2020
Jun. 2021

Apr. 1984
Apr. 2005
Mar. 2007
Jun. 2011

Joined Yamato Transport Co., Ltd.
Executive Officer of Yamato Transport Co., Ltd.
Executive Officer of Yamato Holdings Co., Ltd.
Director and Executive Officer of Yamato Holdings Co., Ltd., and Representative Director,
President and Chief Executive Officer of Yamato Transport Co., Ltd.
Apr. 2015 Representative Director, Executive Officer and President of Yamato Holdings Co., Ltd.
Apr. 2019 Chairperson of the Board of Yamato Holdings Co., Ltd. (current position)
Jun. 2020 External Director of the Company (current position)

Kiyoshi Seki

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Masayuki Furukawa

Nomination andCompensation Committee

100%(10/10)

The Board
Fiscal year ended
March 2021

100%(10/10)

Supervisory Committee

Nomination andCompensation Committee

Executive Officer CFO

Hirotaka Mino
Executive Officer CHRO

Kazunari Kimura

Toshihito Nagai

Staffing SBU Lead

Solution SBU Lead

Taro Mineo

Takayuki Yamazaki

Career SBU Lead

Asia Pacific SBU Lead

Executive Officer

Executive Officer

Executive Officer,

Executive Officer

Shinji Masaki
Executive Officer

Professional Outsourcing SBU Lead

Executive Officer CIO

100%(7/7)

Fiscal year ending
March 2022

PERSOL Group Integrated Report 2021

44

GovernanceRisk Management

INTERVIEW

3. Risk Management Committee

At present, the industrial structure, the labor market and work styles are undergoingdrastic changes at an unprecedented pace, and new issues are also emerging.
Amid such circumstances, we believe that it is important for the PERSOL Groupto implement integrated risk management groupwide to fulfill its responsibility to
stakeholders, including customers, business partners, employees, corporate partners
and shareholders, and to maintain and improve our corporate value.
We will not only fulfill our social responsibility and maintain our reputation but also
support implementation of corporate strategies including appropriate risk taking
by implementing a PDCA cycle of effective risk management, after obtaining thecommitment of the CEO and other senior executives.

The Risk Management Committee (RMC) was established in
April 2020 as a cross-group organization that complements
and strengthens the functions of the HMC (Headquarters
Management Committee) of PERSOL HOLDINGS.
The committee, which is convened every quarter, ischaired by the officer in charge of the PERSOL Group’s
risk management division. The committee members are
the CEO (Chief Executive Officer), other senior executives
and each SBU Internal Control Promotion Manager, who
discuss significant risks and monitor the context of risk
management within the SBU.

General Manager,
Group GRC Division

1. Basic approach to risk management

Role
At the point where risks occur, promotes risk
management in business activities and daily activities

Second line:
Functional divisions

Monitors and supports the risk management activitiesof each Group company

Third line:
Internal Audit Division

Provides reasonable assurances regarding theeffectiveness of risk management from a standpoint
independent from the First and Second lines

Regarding the Second line, the departments in charge ofmanaging risks are set as below, according to the content
and nature of the risk. The risk management context isreported to the Group risk management division within
PERSOL HOLDINGS and the Risk Management Committee.

Risk management policyGroup-wide risk

Each functional division of PERSOL HOLDINGS manages
risks across the PERSOL Group (mainly operationalrisks) for effective groupwide risk measures.

SBU-specific risks

For risks with SBU-specific business and regional
characteristics, a risk management representative (=SBU Internal Control Promotion Manager) is assigned
in each SBU to autonomously manage risks withinthat SBU.

Secretariat (PHD Risk Management Division)

HMC/Risk Management Committee

First Line of Defense

Second Line of Defense

Control risks
as the point where risks occur

Supervise and provide advice
on risk management

Third Line of Defense
Give reasonable assurances fromindependent perspective

Material risk

Operating divisions of Group companies

Human resources (CHRO)
GRC (CLO)
SBU functional divisions

Note: PHD = PERSOL HOLDINGS, HMC = Headquarters Management Committee, CFO = Chief Financial Officer, CIO = Chief Information Officer, CHRO = Chief Human Resources Officer, CLO = Chief Legal
Officer, GRC = Governance, risk and compliance45

PERSOL Group Integrated Report 2021

Responding to risk

• Implement measures at each division in charge ofthe risk response in accordance with the establishedrisk response plan

CHECK

Monitoring• Confirm the progress and effectiveness of measuresby having the risk owner regularly report on thestatus of risk response

ACT

Improving andreviewing• Consider reviewing and improving the Group
Significant Risks and the activity policy for the next
fiscal year, reflecting achievements of the last year
and changes to risk evaluation

Details of risk

Measures against risks

Risk owner

IT-related risks(information leaks,
system failures,
etc.)

CIO

Investments (M&A)
risk• Reappraisal of affiliated companies’ shares or
impairment of goodwill, etc.
• Failure to obtain the expected return on invested capitalthat impacts the Group’s business development andoperating results• Establish the Investment Committee• Set the investment amount to be deliberated for each SBU and deliberate on
important matters related to the Group’s overall investment• Monitor the progress of past investments and report regularly to the HMC

CFO

Privacy invasionrisk• Decline in social trust of the PERSOL Group,
administrative punishment or criticism on social media,
by mishandling personal information, that resulting insignificant impact on business operations• Violations of laws and regulations resulting froma delayed response to legal regulations related topersonal information, etc.

• Establish the Personal Data Utilization Council to deliberate on the overall
privacy strategy of the PERSOL Group• Conduct a privacy review at the time of data utilization• Respond to the revised Act on the Protection of Personal Information

CIO

Business continuity
risk• Natural disasters, such as earthquakes, or pandemics,
etc., that significantly impact business operations• Strengthen the functions of the Emergency Response Headquarter• Automate monitoring of damage status• Formulate BCP and continuously implement review and improvement• Verify effectiveness by periodically conducting training

Representative
Director and
Deputy President

Pandemic risk

• Spread of infections and long-term restrictions on
activities imposed by the government that impact
business operations and operating results• Review the operating performance plan in response to the recession andchanges in the operating environment resulting from the pandemic and review
the business scheme

Representative
Director and
Deputy President

Risks associatedwith compliancesuch as violationsof legal rules, laws
or regulations(including conduct
risk)• Failure to properly operate any business or service, etc.,
of a highly public nature that does not meet the requests
and expectations of stakeholders or significantly impacts
the PERSOL Group’s social trust and brand status• Hold deliberations related to businesses and services, etc., of a highly public
nature and reestablish management structures and processes of these• Strengthen collection of information on risk
• Conduct compliance training for all employees, as well as manager training

Representative
Director and
Deputy PresidentInternal Audit Division(at PHD)DO• Implement security measures for the Group’s networks and systems• Establish a CSIRT (PERSOL-SIRT) for the PERSOL Group as a cross-group virtualorganization to centrally manage security incidents occurring within the Group• Information leaks due to external attacks (cyber attacks)• Implement security education in response to new threats and analyses of• Information leaks due to internal fraud/negligence
information security incidents• Delays in and suspension of main functions due to• Establish groupwide rules for system quality and security measures, andsystem failuresmonitor compliance at each company• Confirm, both at the time of contract and periodically, that external services andcontractors meet the information security standards specified by the PERSOL Group

Financial (CFO)IT and security (CIO)• Select particularly significant risks as the Group
Significant Risks from the identified risks, in light of
the Group’s present situation and corporate strategies• Designate an officer-level risk owner to establish
measures for each Group Significant Risk

The Group Significant Risks and the measures

Overview of the PERSOL Group risk management structure
The Board/Supervisory Committee

Selecting the Group
Significant Risks

At the Risk Management Committee meeting for the fiscal year ended March 2021, the following six risks were selected as
the Group Significant Risks. Officers in charge of each risk were designated as risk owners, to devise measures against risks.

Classification of risk and risk management policy
Classification of risk

PLAN

• Identify and evaluate risks at each SBU and PHD
functional division, using the risk evaluation
criteria common to the Group (degree of influence,
likelihood of occurrence, vulnerability)

GovernanceWith the transition to the SBU (Strategic BusinessUnit) structure in April 2020, we strengthened our risk
management based on the idea that “the first line is theowner of business risk management,” while introducing arisk management structure built on three lines of defense.
The concept of each line of defense is as follows.

Line of defense

First line:
Group companies

Stocktaking andevaluating risk for eachorganization

Value Strategy

2. Risk management structure

Concept of the three lines of defense of
the PERSOL Group

PDCA cycle of the Management of Group Significant Risk

Value Story

The PERSOL Group deems risk management activities
essential for maintaining and improving the Group’s
corporate value. Following this approach, the PERSOL Grouphas established the Group Risk Management Regulation
to identify risks that interfere with the implementation ofbusiness strategies and to control risks by taking suitablemeasures, while preparing to respond promptly andappropriately even when risks occur. Through these efforts,
we fulfill our responsibility to stakeholders, including
customers, business partners, employees and shareholders,
and take initiatives to continue to earn their trust.

Management process for the Group Significant Risks
Among the Group’s risks, those that are particularly
significant are selected as the Group Significant Risks,
in light of the Group’s present situation and corporate
strategies. Regarding these risks, we are not only
preferentially allocating resources as management issues
but also monitoring them by the RMC and the Board.
For the Group Significant Risks, officers of PERSOLHOLDINGS are designated as risk owners (those who
assume final accountability for a risk) to make risk response
more effective.

In addition, the risk response status is monitored by the
RMC and the Board to confirm the progress of risk response
and the effectiveness of measures, and improve and review
the status annually. The framework allows for continuous
improvement through implementation of the PDCA cycle.

Introduction

Naho Kan

Risk management of the PERSOL GroupPERSOL Group Integrated Report 2021

46

GovernanceCompliance and Crisis Management

Basic approach to compliancebusiness and region to raise awareness of complianceacross the Group.
Compliance training for all employees in the fiscal year
ended March 2021 focused on topics such as the importanceof meeting stakeholders’ expectations, cyberattack
trends and the risks of cloud services. Among the 29,670
individuals in Japan eligible for the training, the completion
rate within the three-month training period was 96.5%.

PERSOL Group compliance training
Compliance training
for all employees

Training for all employeesof the PERSOL Group
Entire Group(once a year)

Number of people whocompleted training
during the period:
28,622https://www.persol-group.co.jp/en/corporate/governance/code_of_

Legal newsletter

Dissemination of legal
knowledge related to thebusiness through theintranet

Entire Group

Number of times
distributed: 2

New graduate
training

Training for new
graduates when they join
the Group

Entire Group

Number ofparticipants in the
joint company joining
ceremony: 872

Mid-career hire
training

Training for mid-careerhires when they join theGroup

Entire Group

Conducted at eachGroup company asnecessary

Entire Group

Number ofparticipants: 491
Number of times
conducted:
Twice each, upon
appointment and six
months later

conduct.html

Compliance promotion structure
The PERSOL Group has established the Group GRC Division
within PERSOL HOLDINGS to formulate basic compliancepolicies for the Group as a whole and to promote complianceat Group companies.
In addition, the SBU Internal Control Promotion Managers,
who are designated at core companies of each SBU, support
the promotion of compliance and the implementation ofcompliance measures at Group companies.

SBU core companies
Cooperation/
supportThe Board
ReportReport/communication

Representative Director
and President
Report/communication

Internal Control Promotion
Managers
Instructions

Internal Control
Promotion Officers

Instructions

Whistleblowing/
consultation

Officer in charge of compliance

Complianceeducation

Cooperation/
supportInstructions

Group GRC Division
Whistleblowing/
consultation
Whistleblowing/
consultation

Complianceeducation
Whistleblowing/
consultation

Employees

Group companies
Persons in charge ofcompliance

Whistleblowing/
consultation

Complianceeducation

Employees

Efforts to raise employee awareness toward
compliance
Publication of the Compliance Handbook
We have prepared a Compliance Handbook for employees inJapan as a guide to clarify how they should behave from theperspective of corporate ethics and compliance, and we utilize
the Handbook to educate our employees about compliance.
Compliance training
In addition to providing annual compliance training to all
Group employees in Japan, we also conduct education andtraining programs at each Group company tailored to each47

PERSOL Group Integrated Report 2021

Conducting a compliance awareness survey
We conduct an annual compliance awareness survey on all
Group employees in Japan in order to continuously monitor
the instilling and establishment of compliance activities.
The results of the survey are analyzed and evaluatedby the GRC Department of PERSOL HOLDINGS and thenreported to management and the compliance divisions ofcore companies of SBUs as compliance indicators, with aview to reviewing and improving the compliance system andcompliance activities.

Whistleblowing system
In Japan, the PERSOL Group has established the Corporate
Ethics Hotline contact point at a specialized organization
outside the PERSOL Group to receive whistleblowing andconsultations from employees regarding activities that may
constitute a violation of laws and regulations. Overseas, wehave established internal contact points at Group companies
and created an environment conducive to whistleblowing,in accordance with the circumstances in each country.
PERSOL HOLDINGS and Group companies in Japan andabroad take various initiatives to ensure widespreadawareness of these whistleblowing contact points, including
postings on the intranet and training.
The Corporate Ethics Hotline is being used by Group
employees in Japan. In the fiscal year ended March 2021,
its recognition rate stood at 84%, and the number ofconsultations was 122.

Crisis management structure of PERSOL HOLDINGSEmergency Response Headquarter
Head of Emergency Response
Headquarter

Secretariat(Risk Management Department)

Emergency Response Headquarter members(executive officers and Head of Functional Divisions)

Specialized response team
Human resources

Information systems

Public relations

Facilities/equipment

Accounting/finance

Legal

Company-wide policies/support

Report/request

SBU Emergency Response Headquarter

Information sharing and response flow in the event of a crisis (at the time the Emergency Response Headquarter is established)PERSOL HOLDINGSThe Board

HMC members

Crisis management secretariat
Each functional division

ReportReportCompany and SBU where theincident occurs

Occurrence of incident

Fact check, investigation of cause, consideration of response policy and implementation
Receipt of report
Information disclosure and communication with stakeholders
Governance

Employees
Report/communication

Training for managers(section manager level),upon appointment and six
months later

The PERSOL Group has established the Group Crisis
Management Regulations and has been strengthening crisis
management, aiming to minimize the significant negative
impact that a crisis would have on the Group’s management
and business activities, and to quickly resolve any crisis.
If an incident such as a large-scale natural disaster,
compliance violations or cyberattacks occurs and is deemed acrisis (and in cases where such incidents may be so deemed
occur), the department in charge of the incident promptly
shares the information with the department in charge ofrisk management of PERSOL HOLDINGS. Both departments
make a timely and appropriate response, according to thetype of incident and its impact, in cooperation with the HMC

Value Strategy

PERSOL HOLDINGS

Newly appointed
manager training

Initiatives for crisis management

members of PERSOL HOLDINGS. If the Representative
Director and President of PERSOL HOLDINGS determinesthat the incident is a particularly major crisis, the Emergency
Response Headquarter is established at PERSOL HOLDINGS
to pursue a groupwide response, while appropriately
disclosing information to customers, relevant agencies,
ministries and others involved.

Value Story

DetailsPERSOL Group Code of Conduct

Scope

Results for fiscal year
ended March 2021

Name

In June 2019, the Corporate Ethics Hotline was registeredin the Whistleblowing Compliance Management System(self-adaptation declaration
registration system) under thejurisdiction of the Consumer
Affairs Agency.

Introduction

The PERSOL Group views compliance as meeting thedemands and expectations of society and conducting
business activities with integrity. Based on this view, thePERSOL Group established the PERSOL Group Code of
Conduct in November 2019.
This Code of Conduct sets out the basic behaviors basedon compliance required of all officers and employees of thePERSOL Group, both in Japan and abroad. We will act withhigh ethical standards and integrity based on the PERSOLGroup Code of Conduct in order to continue to be trusted byour customers and society.

Prevention of reoccurrence

Initiatives related to business continuity, etc.

Response to COVID-19

The PERSOL Group, which is engaged in the humanresource service business, sets ensuring the safety of ouremployees and temporary staff, as well as payment of theirsalaries, as our most important tasks. In anticipation of a
massive earthquake such as a Tokyo inland earthquakeor Great Nankai Trough earthquake, the Group is working
on reinforcing infrastructure for collecting information by
utilizing IT, including introducing a safety confirmation system
and another system that automatically identifies offices very
likely to be affected in a large-scale disaster. In addition,
regarding tasks related to the payment of salaries, the Grouphas established a business continuity plan in anticipation of
the simultaneous occurrence of a large-scale disaster and apandemic, in an effort to help employees and temporary staff
maintain their livelihoods even in a crisis.

In response to the COVID-19 pandemic, we continued ourbusiness activities under the basic policy of giving top priority
to the safety and health of all our stakeholders. We havetaken preventive measures such as encouraging teleworking
and staggered work hours, encouraging holding internaland external events and meetings with large numbers ofparticipants online, and thoroughly implementing infection
prevention measures in order to create a safe and secure
work environment.
In the event that an employee of the PERSOL Group is
confirmed to have been infected, we work with relevantorganizations to quickly implement the necessary measures
to prevent the spread of the infection in order to prioritize thesafety of our employees and others involved and minimize
the impact on our business.

PERSOL Group Integrated Report 2021

48

Financial and Non-Financial Data

Financial data

Non-financial data

Net sales

Operating profit/
Operating profit margin

Net profit attributable to owners ofparent company*1(Millions of yen)

(Millions of yen)

(Millions of yen)

925,818

970,572

950,722

5.0%

4.8%
4.0%

591,995

44,111

15,834

7,769

Persons

44,79552,00554,759Persons

38,964

46,15549,434

Number of contingent employees(temporary and part-time employees)

Persons

5,831

5,850

5,325

Staffing SBU

Persons

21,16826,21828,621

Career SBU

Persons

4,616

4,759

4,291

Professional Outsourcing SBU

Persons

10,312

11,92912,715

Solution SBU

Persons

286

460

611

Asia Pacific SBU

Persons

7,134

6,851

6,317

Holdings/directly managed companies

7,612

By SBU2017/3

2018/3

2019/32020/32021/32017/3

2018/3Operating profit

2019/32020/32021/32017/3

2018/3

2019/32020/32021/3

Total assets*2/Shareholders’ equity

(Yen)

(Yen)

(Millions of yen)

16.2%

5.0%

33.28

2017/368.64

17370,9932019/3

Net profit per share

ROE

2020/3

%

46

46

47

Number of new graduates recruited383,416

Average number of years of continuous service*2
267,339

30
26

19

Average age
136,725

139,066

159,165

154,792

161,022

Turnover rate*3

32.76

2018/320

Percentage of women employees

2021/32017/3

2018/3

2019/3

Dividend per share

2020/32021/3

Payout ratio

2017/3

2018/3

Total assets

2019/32020/32021/3

Percentage of taking child-care leave*4

Shareholders’ equity

Percentage of returning from child-care leave*5

Free cash flow

Capital expenditure(Millions of yen)

(Millions of yen)

(Millions of yen)

15.9%

15.3%

29,90927,212

13.8%
59,972

11.3%
43,43356,35648,026

Number of persons taking nursing-care leave*6

Number of persons with reduced working hours
13,38323,552
11,016

12,553

9,534

9.4%
7,481

43,911

6,842

Persons

976

1,103

1,231

Persons

561/415

629/474699/532

Total

Persons

5,126

5,439

3,883

Male/female

Persons

2,312/2,814

2,443/2,996

1,500/2,383

Total

Years

6.7

6.4

6.8

Male/femaleYears

7.1/6.3

6.9/6.3

6.8/5.9

Total

Years old

37

36

37

Male/female

Years old

37/36

37/35

37/36

Total

%

10

10

8

Male/female

%

10/11

9/10

8/9

Total

%

43

49

50

Male/female

%

7/95

11/95

10/95

Total

%

94

92

94

Male/female

%

96/94

100/91

100/93

Total

Persons

14

20

20

Male/female

Persons

2/12

8/12

10/10

Total

Persons

513

666

913

Male/female

11/902

Persons

15/498

9/657

Average hours of overtime

Hours

20

18

16

Number of persons with side jobs

Persons

-

153

366

Number of employees with disabilities*7

Persons

1,670

1,191

1,410

Percentage of employees who received diversity literacy training

%

-

86

95

Percentage of employees who had a stress check

%

72

79

82

Participation rate in the shareholding association-31,7292017/3

2018/3

EBITDA

ROIC

2019/32020/32021/32017/3

2018/3

2019/32020/32021/32017/3

2018/3

2019/32020/32021/3*1 During the fiscal year ended March 2018, an impairment loss on goodwill, etc., of 14.2 billion yen was recorded, because progress had not been made as initially anticipated at some subsidiaries
engaged in developing business in the Asia-Pacific region under the PERSOLKELLY brand, as well as at the part-time job media business, “an.” In addition, during the fiscal year ended March 2020,
extraordinary losses of 19.3 billion yen were recorded, including a restructuring loss of 3.1 billion yen related to termination of the part-time job media business, “an,” and an impairment loss on
goodwill of 12.6 billion yen related to the staffing business of the Programmed segment.
*2 “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018), etc., have been applied since the beginning of the fiscal year ended March 2019.
Total assets prior to the fiscal year ended March 2019 represent figures to which the said accounting standards have been retroactively applied.
*3 The consolidated tax return filing system has been applied since the fiscal year ended March 2021.
*4 EBITDA = operating profit + depreciation + amortization of goodwill*5 ROIC = net operating profit after tax before amortization of goodwill / invested capital (= interest-bearing liabilities + equity capital)

49

PERSOL Group Integrated Report 2021

Number of persons eligible for the share-based compensation scheme*8

%

9

10

11

Persons

100

102

193

Governance

EBITDA*4/ROIC*5

Total
Male/female

Value Strategy

5.5%

370,839

37.9%

24.0%

22.4%

25
75.94

2,205

19

(Millions of yen)402,33657.1%

104.391,788

18

Number of mid-career persons recruited

91.6%

10.4%

1,279

%

Value Story

Dividend per share/Payout ratio

13.4%

Persons

Percentage of women in managerial positions

Operating profit margin

Net profit per share/ROE*1

2021/3Total

2.8%
26,4392020/3Introduction

33,40936,06839,085

By employment

17,8202019/3

Number of full-time employees(regular employees)

Number of employees*

24,361

5.6%

722,183

Unit
1*1 The number of employees includes employees of overseas operations. The number of employees represents the total of the number of full-time employees (includes employees working at PERSOLGroup companies; employees assigned to work at non-PERSOL Group companies not included) and the annual average number of contingent employees (including temporary and part-time
employees).
Due to the shift to an SBU structure from the fiscal year ended March 2021, the number of employees prior to that time is recalculated under the present structure.
*2 The number of years is calculated for unlimited term employees only.
*3 The turnover rate is calculated using the number of full-time employees.
*4 The figures show the percentage of employees who started taking child-care leave, from among all employees with newborns (employees with a spouse who gave birth, in the case of male
employees) or adopted children during each fiscal year.
*5 The figures show the percentage of employees who returned to work, from among all employees who completed child-care leave during each fiscal year.
*6 The figures show the number of employees who started taking nursing-care leave during each fiscal year.
*7 The figures represent the number of employees with disabilities, as of June of each fiscal year.
*8 The figures represent the number of employees eligible for the trust-type share-based compensation scheme (BIP/ESOP).

PERSOL Group Integrated Report 2021

50

Corporate Profile/Stock Information

Certified as “Excellent Temporary Work Agencies”

Corporate Profile(PERSOL TEMPSTAFF and PERSOL TECHNOLOGY STAFF)

Company NamePERSOL HOLDINGS CO., LTD.

Established

October 1, 2008

Head Office

1-15-5 Minami-Aoyama, Minato-ku, Tokyo 107-0062, Japan

Registered Office2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, Japan

URL

https://www.persol-group.co.jp

1404005

The companies were certified as “Excellent Temporary Work Agencies” under “The Excellent
Temporary Work Agencies Certification System,” commissioned by the Ministry of Health, Labourand Welfare, to certify excellent temporary staffing agencies, primarily for supporting the careerdevelopment of dispatched workers.

“PRIDE Index”(PERSOL CHALLENGE)
The company received a gold rating, the highest level, in the PRIDE Index, an evaluation of efforts to
support LGBT employees and other sexual minorities.

* Full-time employees–49,434 (includes employees working at group companies. Employees assigned to work at non-groupcompanies not included.) Contingent employees (including temporary and part-time employees)–5,326 annual average.

Number of Group Companies

133 (39 domestic, 94 overseas) (As of September 1, 2021)

Number of Group Bases

647 (468 domestic, 179 overseas) (As of March 31, 2021)

Capital17,479 million yen (As of March 31, 2021)

Introduction

54,760 (As of March 31, 2021)
Consolidated Employees

Great Place to Work (GPTW)(PERSOL CAREER)

The company has been selected as one of the best companies for nine consecutive years in
the “Best Workplaces” ranking of GPTW, the world’s largest awareness survey institute, which
operates in roughly 60 countries around the world.

“Eruboshi” highest-level company certification(PERSOL CAREER)

Stock Information
2181

Stock ExchangeTokyo Stock Exchange, First Section

Fiscal Year-End

March 31

Base Dates

Shareholders’ Meeting date: March 31
Year-end dividend record date: March 31
Interim dividend record date: September 30

Trading Unit

“Sports Yell Company 2021”(PERSOL Group)

The PERSOL Group was certified by the Japan Sports Agency as a “Sports Yell Company” forproactively encouraging sports activities to promote employees’ health.

Value Strategy

Stock Code

Value Story

The company was granted the highest-level company certification under the “Eruboshi”
certification system, based on the Act on Promotion of Women’s Participation and Advancement in
the Workplace.

“HDI Certified Support Center”(PERSOL WORKS DESIGN)

The company was granted certification as an “HDI Certified Support Center” by HDI, theorganization with the most members worldwide in the field of support services.

100

General Meeting of Shareholders June
Shareholder Register
Administrator
Special Account Management
Institution

Mitsubishi UFJ Trust and Banking Corporation

Public Notice Method

Electronic public notice
Notification URL: https://www.persol-group.co.jp(In case electronic notification is unavailable due to technical difficulties or other problems,
the company will notify via The Nihon Keizai Shimbun.)Notes on Forward-Looking Statements
The information published in this report includes current plans, strategies and forward-looking statements of the PERSOL
GovernanceGroup. These statements are based on currently available information, and are deemed by the PERSOL Group to be rationalat the present time. However, these statements include inherent risks and uncertain factors, including economic trends,
fierce competition in the industry, market demand, foreign exchange rates, taxes and regulations.
Although performance results announced in the future may vary greatly from these statements due to these various
factors, the PERSOL Group is not liable for any losses incurred through the use of the information in this report.
In addition, the purpose of this report is to deepen the understanding of the PERSOL Group’s management policies,
plans, financial status and other information by our shareholders, investors and other stakeholders. This report is notintended for solicitation for investment in securities issued by the PERSOL Group.

Editorial Policy

This integrated report is a tool for communicating comprehensive information, integrating financial andnon-financial information about the PERSOL Group, including its business activities, IR activities andsustainability/SDGs initiatives. The purpose of this report is to deepen the understanding of our Value
Creation Story toward achieving the Group Vision of “Work, and Smile” by a wide range of stakeholders,
including our shareholders and investors.
This report extracts the basic information, financial data, corporate strategies, sustainability informationand other information particularly needed by the readers, based on major guidelines.
In addition to this report, more detailed information for some topics may be found on the PERSOL Group

About Guidance for Collaborative Value Creation

website (https://www.persol-group.co.jp/en/). Please refer to the website in conjunction with this report.

not expected to take this guidance as a rigid set of formal

Reporting Period

rules; rather, each company is expected

This report covers the fiscal year ended March 2021 (April 1, 2020 to March 31, 2021). However, it alsomentions periods before and after this period when necessary.

Referenced Guidelines

In editing this report, we referred to the Sustainability Reporting Standard of the Global Reporting Initiative(GRI), the International Integrated Reporting Framework of the International Integrated Reporting Council(IIRC) and the Guidance for Collaborative Value Creation, among others.

51

PERSOL Group Integrated Report 2021

Guidance for Collaborative Value Creation is a lingua franca
between companies and investors. It serves as a guide to
improving the quality of information disclosure and dialogue
with investors by providing companies (company executives)with a systematic and integrated view of the information thatthey should communicate to investors (corporate philosophy,business model, strategy, governance, etc.). Companies areto choose the parts that are importantfor its own business model and strategy,
and position them within its own value
creation story.

Artwork Used on the Cover

The PERSOL Group was a sponsor of Paralym Art World Cup 2020, an art
world cup for people with disabilities from around the world, aimed at creating
opportunities for disabled artists all over the world to be active in society
regardless of race, disability, gender or age.
The cover art, which is based on the 2020 theme of Peace, was created by
the inclusion IT team, which designs corporate websites, brochures and flyers,name cards and logos at businesses that are providing type A support forcontinuous employment.

What is Paralym Art?

Paralym Art is a program by SHOUGAISHA JIRITSU SUISHIN KIKOU ASSOCIATION. It provides works of art by persons
with disabilities to companies and individuals, and compensates the artists. Its main objective is to support the autonomyof persons with disabilities who cannot participate in society and are struggling economically. Through art, the program
promotes participation in society and economic independence by people with disabilities, without relying on social security
benefits. Artist registration is free, and as of August 2021, approximately 600 artists have registered with the program.

PERSOL Group Integrated Report 2021

52