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

Integrated Report 2022
PERSOL GroupPERSOL HOLDINGS CO., LTD.
2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, Japan
Tel: +81-3-3375-2220

Introduction

Value Story

Value Strategy

Governance

CONTENTS

Introduction
1 Group Vision
1 Group Vision Structure
3 History of the PERSOL Group
5 Top Message

Value Story
9 Value Creation Story

Group Vision

11 Group Key Strategy
12 Message from the CSO
14 Concept of Sustainability
15 Message from the CFO
17 Initiatives to Visualize “Work, and Smile”
19 Message from the CHRO

Working life is a journey of growth and creation.
We all have big dreams,
and there are many different paths to success.
Thus, we need to make our own choicesfrom a range of diversified work opportunities.

21 Initiatives for Value Creation
28 Message from the CIO/CDO

Value Strategy
31 Mid-term Management Plan 2023
33 At a Glance

Our vision is to enrich society
so that all work leads to lives of happiness.

35 Message from the Deputy President
36 Business Overview by SBU
36 Staffing SBU
37 Career SBU
38 Professional Outsourcing SBU
39 Solution SBUGroup Vision StructureGroup vision structure for realizing“Work, and Smile”

40 Asia Pacific SBU

Governance
41 Message from the Chairperson of the Board
42 History of and Basic Policy on Governance at the PERSOL Group43 Corporate Governance Structure
45 Discussion with Independent Directors
47 Directors and Executive Officers
49 Major Activities of Independent Directors

GROUP VISION

50 Supervisory Committee
51 Nomination and Compensation Committee
53 Corporate Governance Committee
54 Evaluation of Effectiveness of the Board

FIVE CORE PRINCIPLESAuthentic

Customer-Focus
Teamwork

Professional

Innovative

CORPORATE PHILOSOPHY

Providing Opportunity
Individual Growth

1

PERSOL Group Integrated Report 2022

55 Risk Management
58 Actions Taken to Reduce the Risk of Privacy Infringement
59 Crisis Management
60 Compliance
61 Financial and Non-Financial Data
63 Corporate Profile/Stock Information

Social Contribution

PERSOL Group Integrated Report 2022

2

Value Story

Introduction

History of the PERSOL Group

Value Strategy

Governance

April 2020

Shifted to a five SBU (Strategic Business Unit) structure
Staffing SBU

Career SBU

Solution SBU

Asia Pacific SBU

July 2017

Renew the Tempstaff Brand logo

The roots of the PERSOL Group go back to Tempstaff Co., Ltd., which was founded in 1973. The company
was born at a time when the concept of temporary staffing had not arrived in Japan, and we have led
the industry by providing our services as a new work style to a large number of people. Since then, as acomprehensive human resource services provider, we have worked with many companies and expanded
our businesses in line with the wishes of working individuals and the needs of the times.

Professional
Outsourcing SBU
Specialized
Services

August 2020

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

October 2018

Renew the doda Brand logo

Net sales

1,060.8billion yen

May 1973

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

January 2019
Avanti Staff Corporation becomes a consolidated
subsidiary of PERSOL TEMPSTAFF CO., LTD.

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.

July 2019
FUJI XEROX LEARNING INSTITUTE INC. becomesa wholly owned subsidiary and changes its name to
PERSOL LEARNING INSTITUTE CO., LTD.

July 2016

When our founder Shinohara graduated from highschool 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 tosociety by providing many people with opportunities
to play an active role in line with the times. In addition, the growth of our
temporary staff is essential for them to have further opportunities to work.
Our employees and temporary staff have grown synergistically based on theidea that the growth of our temporary staff must be supported by the growthof our employees. We have taken initiatives in the belief that the purpose of
our existence is to expand our business to benefit society through the growthof our employees and temporary staff.

Announce the newGroup brand, “PERSOL”

1993
Tempstaff Co., Ltd. starts global expansion

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

Announce the brand tag line, “Work, and Smile”
May 1996
Tempstaff Co., Ltd. announces its Corporate Philosophy of“Providing Opportunity, Individual Growth and Social Contribution”

October 2019

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

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

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

December 2018
Establish PERSOL INNOVATION CO., LTD.

Change the Group Vision to“Work, and Smile”

July 2017
Temp Holdings Co., Ltd. changes to PERSOL HOLDINGS CO., LTD.,and several of our core Group companies undergo a name change

May 2010
Share of Kelly Services Ltd. is acquired

October 2017
Programmed Maintenance Services Limited becomes a consolidated
subsidiary
July 2015
Corporate Philosophy, Group Vision “Create social infrastructure forpeople and organizations that catalyzes growth and innovation” and Five
Core Principles are announced

April 2013
Intelligence Holdings, Ltd. becomes a consolidated subsidiary
1986
Tempstaff Co., Ltd. starts a temporary
staffing business
1970

1980

2000

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY20211970s 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 for leaving the office at the scheduled time in responseto the widespread use of a weekly no-overtime day

2002
Percentage of companies implementing employment
adjustments peaked

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

2004
The Worker Dispatching Act revised to lift the ban on
dispatching to the manufacturing industry

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

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

2006
The Equal Employment Opportunity Act for Men and
Women revised to prohibit discrimination of both men andwomen and disadvantageous treatment on the grounds ofpregnancy and childbirth2019
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

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 hold

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

2007
Labor Contracts Act enacted
Charter for Work-life Balance adopted

1999
The Worker Dispatching Act revised to liberalize the target
business in principle

2008
The global financial crisis

1987
Amendments to the Labor Standards Act enacted major reforms
to the working hour system, including the gradual implementationof a 40-hour workweek, and the establishment of flextime

3

1990

Changes in net sales

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

PERSOL Group Integrated Report 2022

PERSOL Group Integrated Report 2022

4

Introduction

Value Story

Value Strategy

GovernanceTop Message

The past year made me realize that our presence isinitial plan with new targets of 1,165.0 billion yen in net

essential to our customers’ HR strategies. I believe we aresales and an operating profit of 52.0 billion yen for theable to say that PERSOL is uniquely able to meet the urgent

fiscal year ending March 2023. The most important point

demand for workforces of more than 1,000 by customers

is to increase the value of the PERSOL Group in terms ofthat need, for example, to “hire employees with specialized

both economic value and social value. Accordingly, we will

skills to promote a new project” or to “quickly secure many

continue efforts to raise our sights even higher to enhance

employees to process benefits and respond to the COVID-19

social value as well.

emergency.” Our responses have been highly evaluated

Human resources are the core of our business, and allby companies, central government agencies and local

our successes come from the achievements of working

governments. Our results for the year are a true indication ofpeople. Therefore, the PERSOL Group’s first key strategy

the Staffing SBU’s true potential and strengths.

is to provide value that focuses on each individual. The

The Career SBU’s permanent placement business,

Group as a whole, including overseas businesses, iswhich had a very challenging year in the fiscal year ended

pursuing various initiatives to realize “Work, and Smile.”

March 2021, recorded a V-shaped recovery in the fiscal

One effort that symbolizes the enhancement of social

year ended March 2022. The SBU achieved this successvalue is the global survey we carried out to measure

We are creating a society in whichby anticipating the market and by being fully prepared

the degree of realization of “Work, and Smile” among

when demand returned. The situation was similar at theroughly 120,000 respondents in 122 countries and regions

everyone can experience “Work, andProfessional Outsourcing SBU, where the effect of COVID-19-

around the world. We are analyzing and researching

related manufacturing stoppages and cutbacks meant that

this data to determine which environments need to be

Smile” by providing work opportunities

engineers remained on standby, but since the beginning ofcreated and which measures need to be implemented

this year, standbys have been eliminated and now there isfor people to have a true feeling of “Work, and Smile” or,and choices to support self-determinationin fact a shortage of labor. When client companies restarted

in other words, to have a sense of well-being from theirprojects, PERSOL was given priority, which is evidence of thework. We are also carrying out and verifying measures

in work that is optimal for all.

strong trust that our customers place in us.

in-house. Furthermore, we are publicly releasing and

Takao Wada
Representative Director,
President and CEO (Chief Executive Officer)

On the other hand, our overseas businesses had tosharing the survey results globally to allow our client

deal with continuing lockdowns in various countries andcompanies to incorporate them and work with us. Whileterritories. Nevertheless, at PERSOLKELLY, both thebuilding relationships of trust with companies andtemporary staffing and the permanent placement businesses

local governments that endorse this initiative, we will

grew and Programmed achieved sales growth while

promote a wider adoption of this index and work towards

controlling costs. As a result, the Asia Pacific SBU achievedenhancing well-being in the workplace.

profitability.
The Solution SBU’s mission is to use technology to create

This was a year during which society’s
expectations of PERSOL increased. We
clarified our strengths, the reasons for our
existence and the role we should play inbusiness and society.

in the world around us and pursuing new challenges, while

top-line growth in the fiscal year ended March 2022 and, as

stressing the importance of the absolute values of our Groupa result, continued its proactive service development andVision, Five Core Principles and Corporate Philosophy.

investment in marketing. We see all SBUs building on these

Looking back on the fiscal year ended March 2022, I see

year ending March 2023. We will work proactively for further

market expectations and the role we should play amid

growth that will lead to successful results.

ongoing social and market changes. COVID-19 has meant

as President, the entire company has focused all its efforts

that society is expecting much more from the PERSOL Group,

on providing good work opportunities to realize its Group

including the securing of essential workers, stable human

Vision “Work, and Smile.” I consider “Fueki Ryuko” (being

resources and organizational management in an extremely

eternal and open to new changes) an important management

fluid environment, and the execution of large projects duringconcept. The past year has been one in which our core tasks

an emergency. By continuing to meet these expectations, wewere to provide value that exceeds customers’ expectations

achieved record sales and profits.

PERSOL Group Integrated Report 2022

These results were driven by our Staffing SBU business.

Net sales/Operating profit (Billions of yen)

We have already achieved the economic index targets of
the Mid-term Management Plan and have upgraded our

48.1

44.1
39.0

36.0
925.8

The Mid-term Management Plan addresses
both economic value and social value by
promoting activities that directly take onsustainability issues.

52.0(Forecast)positive trends and making solid progress during the fiscal

a year in which we further clarified PERSOL’s strengths,

During the roughly one-and-a-half years since I took officeby responding flexibly to economic, social and other changes

5

new business solutions. The business posted remarkable

970.5

722.1

1,165.0
950.7

1,060.8(Forecast)

25.7

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Net sales

Operating profit

PERSOL Group Integrated Report 2022

6

Value Story

Introduction

on our Corporate Philosophy of “Providing Opportunity,
Individual Growth and Social Contribution.” I believe thatpeople experience personal growth through their work,

Value Strategy

Governance■ Overall image of PERSOL’s aims and social issues to be resolved

PERSOL’s Aims

Eliminating Mismatches in Employment

and I want people around the world to grow throughCreation of situations in which

their work and improve their lives. This was precisely thethinking of our founder, Yoshiko Shinohara. I believe thatthe value of our business lies in spreading this philosophy
and demonstrating it to even more people. As includedin the SDGs, I also wish for a world that is at peace, a
In addition, sustainability and diversity are major issues

feel that they are contributing tosociety and have a sense of joy
and happiness (well-being in theworkplace)stable economy, the elimination of poverty and all people

facing society, and the PERSOL Group is confronting thesebeing able to live happy and fulfilling lives. Having animportant issues head-on and promoting approaches toenvironment in which one can work with peace of mind isresolve them. Representative examples of this are thean important way to realize this.

creation of the Gender Diversity Initiative in September

It is essential that people experience well-being from2021 and the Sustainability Committee in March 2022.

their work and that this feeling spreads to their family,

The Gender Diversity Initiative has set a target for 2030 ofcompany and the society around them. Our top priority ofMismatches in industries, types of work,

raising the percentage of women in managerial positions“providing work choices and opportunities by focusing on

geographic locations, working conditions,to 37% (to match the percentage of women employees

each individual” is based on this concept, and we believe

skills, suitability, etc.

in the Group) from the current 22% (as of March 2022).

this initiative will continue to be required in the future.

Increases in diversity of nationality, age, gender and otherFor example, the emergency presented by the COVID-19

factors within the Group are also essential for further

pandemic has made it possible to increase the degree ofgrowth, and I personally am deeply committed to this.

freedom in various work elements like the place of work,

With the establishment of the new committee, we havehours of work and duration of work. The expansion ofcreated a structure to promote a deeper, more proactive andwork choices means that possibilities are multiplying.

more concrete deliberation of major agenda items related to

Our role is to continue to expand those possibilities while

sustainability. Among these, addressing environmental issues

also providing them to as many people as possible. I

cannot be overlooked in terms of social issues. If we do notbelieve the use of technology will enable the significant

tackle problems like climate change, the economy, society andEliminating shortages oftalent and labor

Expanding work choices

Growing mismatches in employment

Social Issues

Organizations

Shortages of talentand labor

Individuals

Limited work choices

Issues for Organizations and Individuals

We want the next Mid-term Management
Plan to include goals that clearly specify
what PERSOL aims to achieve by 2030.

by themselves, and that work will give them various

expansion of those possibilities and, in addition, the value

We are forecasting that labor shortages in Japan willin which all working individuals can have this feeling inour own business will not survive going forward. Recognizingof people that are the PERSOL Group’s strength will makecome to 6.44 million people in 2030 (according to2030, we want the next Mid-term Management Plan to lay

this prospect, we have established a “carbon neutral target

it possible to offer optimal choices that will give greater

research by PERSOL RESEARCH AND CONSULTING). In

out clear strategies for advances of one step, two stepsof net zero greenhouse gas emissions from our businesssatisfaction to working people.

the ‘era of a 100-year lifespan,’ changes in employment

and a leap forward, as we consider where we want the
PERSOL Group to be by the midway point of 2026.

experiences and skills. Of course, strenuous effort isinvolved, but if hurdles can be overcome, the future iscertain to be one of “Work, and Smile.” To realize a society

activities by FY2030.” In addition, various industries are seeing

Another issue we need to address is mismatches in

conditions, including longer working lives and the end of

an increased need for environmental human resources, andemployment between companies and individuals or, in

lifetime employment, and improved productivity throughwe can make a major contribution by supporting humanother words, the fact that human resources and work

technology will further change the ways companies use

or how far robotics and AI technology advances, theresources issues facing customers. Going forward, I hope thatare both unevenly distributed and do not match. These

human resources. At the same time, individuals’ values

connection between people and work and the fact that

we will help resolve climate change and other social issues byfactors are creating a situation in which workplaces

related to work will change significantly.

people’s lives are enhanced through their work are certain

working together with various stakeholders.

and geographic regions are unable to acquire theStriving to eliminate the uneven
distribution of work and mismatches
between individuals and companies today,
when our founder’s thought and theGroup’s future vision are converging.
The PERSOL Group’s mission is to create a society inwhich anyone can feel a sense of “Work, and Smile,” based

7

people choose their own work,

Realization of“Work, and Smile”

PERSOL Group Integrated Report 2022

In the future, no matter what technologies are developed

On the basis of these major social trends and future

to remain. The PERSOL Group needs to continue to support

human resources they need or are unable to find humanprojections, we need to think about how to achieve “Work,these relationships for the next 100 to 200 years. I wantresources with the required skills. I believe it is very

and Smile” as we approach 2030 and clarify what kindpeople around the world to say, “PERSOL makes my work

important that we provide value that eliminates thisof world we want to create. I will use my own words tobetter” or “PERSOL is an essential infrastructure for

uneven distribution and that we reduce the asymmetry of

convey this concrete vision to Group employees to enablechoices in work and life.” All PERSOL Group employees will

information by disclosing the various work-related data

them to do their best. I am confident that this will increase

make every effort to respond flexibly as the world changes,

we possess. These efforts will lead to realizing a society inemployees’ sense of empathy and lead to even greater

develop services and expand them, while listening to thewhich individuals can decide for themselves from amongstrength. The driving force for the achievement of theneeds of companies and individuals, and continue to be

many choices the work that is optimal for them.

Group Vision lies within each individual employee.

needed and valued by society.

Individuals who want to work can choose their work

PERSOL Group Integrated Report 2022

8

Introduction

Value Creation Story

Value Strategy

Value Story

GovernanceBusiness 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

INPUTSPERSOL’s promise to society
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.

Sources of value creation

BUSINESS ACTIVITIESHuman capitalGroup key strategy

Personnel who have been honestly
helping working individuals

OUTPUTS
Business activities results
Business targets

1

Social value

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

2
Innovating through technologies

3
Deep, wide and abundant connections
with customers formed throughpersonal interactions

Work environmentchanges PERSOL sees

Extending our value globally

Business domain

Financial capital
Healthy financial basis forbusiness growth

Career SBU

Professional Outsourcing SBU
Five Core Principles
Authentic
Customer-Focus
Professional
Teamwork
Innovative

Corporate Philosophy

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

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

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

Staffing SBU

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

Feel satisfied with and appreciation for
PERSOL’s services, and support PERSOL.

Service users (including job seekers)

Connect personnel withorganizations optimally

Professional Outsourcing SBU
Corporate strategies

People live and work longer
all over the world.

Staff

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

Economic value

Abundant information on personnel
and human resources collected bystaff and companies

Staffing SBUPERSOL’s staff membersIntellectual capital

SBU business strategies

Social relations capitalSet the vision “Work, and Smile,” make assessments and improvements

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 2021)

Financial capital (As of March 31, 2022)• Number of Group employees: 60,675 (As of March 31, 2022)• Number of operating bases: 469 domestic, 160 overseas• Number of job postings: Approx. 209,000 (As of August 2022)• Hours of employee training (per person): 15• Number of research papers published: 13• Shareholders’ equity: 184,526 million yen• Rating (As of June 30, 2022): A (Positive)
according to the Japan Credit Rating Agency (JCR)• Equity ratio: 43.4%(As of February 28, 2022)* Includes contingent employees
in Japan• Number of dispatched temporary staff: Approx. 114,000*(As of July 1, 2022)

9

PERSOL Group Integrated Report 2022

• Number of client companies: Approx. 40,400 (As of March 2022)

PERSOL Group Integrated Report 2022

10

Introduction

Group Key Strategy

Message from the CSO

We formulated Group key strategies to achieve a society that PERSOL envisions.

Pursuing maximization of

The future of employment that PERSOL envisions will embody the idea “Work, and Smile.” Toward this end, the PERSOL

the corporate value of the Group byGroup formulated three key strategies for Groupwide implementation. The first is to focus on the individual and help
improve their own work engagement. The second is to turn technology into a strategic tool that facilitates new work styles

Value Strategy

Value Story

Governanceleveraging the full potential of each SBU

and constructive employment formats. The third is to utilize the insights and know-how that we have accumulated inJapan and spread the “Work, and Smile” concept from the Asia-Pacific region.

Taro Mineo

1

Focusing on each individual
We make priority investments on the activities that contribute to the increaseof work engagement for all working individuals supported by PERSOL.
By asking “What is better job?”, “What is better style of work?”, and “Whatis better life?”, from a viewpoint of a “working individual,” we create andsupport diverse work that will shape our future.
More specifically, we provide work opportunities and insights best suited
to respective life stages, aptitude and ability of individuals. We serve as
partner that helps working individuals not only when finding a job but forlifelong career, additionally providing them with support for matters otherthan work.
We also provide individuals with opportunities to study so that they canhave enough career options to choose from on a continual basis at all life
stages.

2Work-life style(time, place)

Career, work style

Types of jobs,
employment

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

Support individuals’ work styles in each stage in life

Help individuals find their potentials and options continuously.
Interview,
personal records

Learning

Community

Coaching

Innovating through technologies
By making the best use of technologies and promoting digitaltransformation, we propose new workstyles and employment.
We build the infrastructure for analyzing and utilizing the enormous
personal and corporate data we accumulated in the past, and promote
digitization of platform businesses including temporary staffing and job
placement to further upgrade those businesses.
In addition, we create new businesses for future by reconsidering theconventional values we provided from a perspective of utilizing cuttingedge technologies.

PERSOL Group Integrated Report 2022

With annual net sales of more than 1 trillion yen, the“extending our value globally” was mixed.

progress toward the three Group key strategies of “focusing
on each individual,” “innovating through technologies” andPERSOL Group has become one of the world’s few“Focusing on each individual” is a strategy represented

comprehensive human resource services companies.

by PERSOL’s mission of closely supporting each individual’s

Following the launch of the SBU structure setup, I believe

potential and values throughout their life stages. We launched
the “Future Vision of Work Initiative” as a test product and

SBU. At the same time, we are aiming for even higher

are currently verifying the service. I believe we have had

growth while the businesses of the five SBUs cover a broad

some success in deepening the direction of the vision, but

Create new businesses
through digital innovation

spectrum and each of them has different management

it is still at the test stage. During the period of the next Mid-issues at different stages. To succeed, I felt we would

term Management Plan, we hope to advance to a full-fledged

Introduce more advanced
core businesses via digitizationneed to explain a clear direction for the entire Group andservice with 10 million users.

improve the level of management based on more strategic
Utilize
corporate data

Utilize
personal data

Strengthen business andImprove local

Provide greater value

management base inbusiness in thefor areas outside thethe Asia-Pacific region.

Asia-Pacific region.

Asia-Pacific region.

2023

11

an impression of strong growth, but I believe the degree of

we have been enhancing competitive strengths of each

Extending our value globally
We will establish a management system to provide values from Japan,
which already faces many work-related challenges ahead of other nations,to the Asia-Pacific region.
We will contribute to the solution of social challenges around the world
to realize our Group Vision “Work, and Smile.”

The role of the CSO is to create “venues fordiscussion that will lead to higher growth for the
PERSOL Group”

Createnew workstyles
and workforce styles

Develop foundation for data use

3

Executive Officer CSO(Chief Strategy Officer)

2030

In terms of “innovating through technologies,” we intend

thinking. To embody “Work, and Smile” as we turn our

to develop services proactively using technology products

attention to the diverse values of regions around the world,in Japan and overseas. By adding digital capabilities to

the PERSOL Group needs to maintain close and extensive

the PERSOL Group’s various in-person services, we hopecommunications with management from an even higher

to significantly improve customer experiences and makeperspective than ever, and I consider it one of my roles asthem more convenient. We recognize that the acquisition

CSO to create venues for that discussion. I will share withof technology personnel is an urgent issue, and after taking

management the awareness of issues I used to realize while

actions to create employment conditions and ensure good

I was engaged in execution as an SBU Lead and promote

working environments, we have been able to drastically

open-minded discussions to create management strategies

increase the number of engineering-related employees,that will lead to the Group’s continuous growth.

compared with the number of the period of the previous Midterm Management Plan. We will continue to work to create

Executing the Group key strategies

environments that make it easier for engineers to spur

I view the fiscal year ended March 2022 as one in which theinnovation and to implement human resource evaluation

PERSOL Group was able to record results that were generally

systems that reflect engineering employment conditions,above those planned in terms of financial management

which I believe will lead to an increase of new products andtargets. I am grateful that each individual business gave

services that will have an instant impact.

PERSOL Group Integrated Report 2022

12

Introduction

Value Strategy

Value Story

GovernanceConcept of Sustainability

With regard to “extending our value globally,” we havebesides aiming to improve profitability, we will reorganize

restructured our internal functions in the Asia-Pacific region

our platform to further facilitate significant advances andImagining 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 findand achieved profitability as one of the outcomes of thesestrengthen technological areas. We will also work to further

solutions to social issues.

activities.

enhance our strengths in matching people with organizations,

Although we are making steady progress with the Group

attracting customers and designing operations that become

key strategies, I recognize that growth strategies and aims

the source of our competitiveness, while also continuing tofor the Group as a whole are still abstract and challenges we

explore new business areas.

Sustainability Policy

are facing. In terms of investment for growth under these

Driven by our Corporate Philosophy of “Providing Opportunity, Individual Growth and Social Contribution,”them did not succeed, I feel that our lack of success in making

Aiming to overcome various issues and difficulties
in society to create a better world

strategic investments from a business portfolio perspective

Major social trends that relate to the PERSOL Group include

With appropriate governance, we will continue to engage in business that realizes

is an issue.

the contraction of the working-age population, changes in

our Group Vision, “Work, and Smile,” and enrich society so that all work leads to lives of happiness.

strategies, we deliberated multiple M&As but since some of

the PERSOL Group works with diverse stakeholders to actively address social andenvironmental issues in the aim of building a sustainable society.

work styles and skill requirements caused by transformation

Creating a long-term Group growth strategy as aholding company

of industry structures and the diversification of individuals’

Under the next Mid-term Management Plan, which we intend

level of skills available and labor market needs becoming

to announce in 2023, we aim to include specific objectives

a major social issue. Given the “Work, and Smile” society tofor the PERSOL Group, outline a growth story and clarify thewhich the PERSOL Group aspires, I believe we need to renew

kinds of strategies we will pursue, with a medium- to long-

our awareness of sustainability in the built-in value structure

term view of the entire Group’s future. PERSOL HOLDINGS

at the core of our management. In formulating the next Mid-

CO., LTD. will work to create a structure for greater strategic

term Management Plan, we have held extensive discussions

cooperation across SBUs and a structure for each SBU toto revise our materiality, using input from stakeholders andfully demonstrate its potential, with the aim of maximizing

based on PERSOL’s business strategies.

synergies in the use of Group resources.
We will begin by identifying key growth areas andFive priority issues identified by PERSOL

values and lifestyles. These trends saw gaps between the

We emphasize five SDGs as priority issues, and we also contributeto achieving all 17 SDGs through supporting the growth of people and creating jobs.

The Sustainability Committee, which we established in
March 2022, is intended to deepen management’s discussion

allocate investment for growth to those areas. We intend toof important agenda items related to sustainability. Going

focus management resources on growth areas and create

forward, the committee will formulate and pursue abalanced business operations. In the Asia-Pacific region,sustainability strategy similar to our business strategy,

SDGs 8.1

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

financial strategy, human resources strategy, technology
strategy, risk management strategy and other key strategies,
while also being responsible for the monitoring function
related to materiality. The Group also declared its Goal

SDGs 9.1

SDGs 5.5

Develop resilient
infrastructure

Empower women

Create next-generation work styles and jobsof Carbon Neutrality in May 2022. Under this declaration,
the PERSOL Group aims to achieve net zero (Scope 1 & 2)
greenhouse gas emissions from the entire Group’s businessactivities by FY2030 and, with that as a basis, we will pursue

SDGs 9.5

SDGs 5.bPromote industrial
development

Utilize technology
to enhancecapabilities of
women

Individual customers
Corporate customers

more environmentally friendly business activities.

Build a foundation for economic activity
and promote innovation

Looking toward future growth, the PERSOL Group needs

Encourage greater participation of
women in the workplace
SDGs 10.2

to create sustained value and continuously meet thePromote social,economic andpolitical inclusion

expectations of various stakeholders. We consider it our
responsibility to play a part in overcoming society’s issues

PERSOL employees

and difficulties to create a better world. I hope that this will be
the consensus of management, and that along with working
to maximize corporate value, it will be the starting point ofSDGs 4.4

SDGs 10.7

Improve skills forsecuring jobs
that motivate

Well-managed
policies for humanresources
overseas

Providing Opportunity
Individual Growth

our growth story for the future.

Social Contribution
Provide learning opportunities

13

PERSOL Group Integrated Report 2022

Provide job opportunities for everyone

PERSOL Group Integrated Report 2022

14

Introduction

Value Strategy

Value Story

Governance

Message from the CFO

Enhancing corporate value by

I see our business as being one of industries that haveseen the greatest environmental shift from changes inleveraging the strength of our logical and■ Trend of ROIC(%)

20

social behavior due to COVID-19. With choices like remote
work, people’s work styles have altered significantly,

open management structure

increasing options in areas including place of work and

15.9%
15

their own work style and career path. The expansion

Junji Tokunaga
Executive Officer CFO(Chief Financial Officer)of opportunities for people to change jobs or choose

11.3%
10

their work style, and the opportunity for companies toraise productivity are positive trends for society as awhole and also favorable developments for the PERSOLGroup. I sense that the time has finally come to makecomprehensive efforts to raise profitability, which will be a

14.2%

13.8%

type of work, which should allow people to reassess

9.2%
5
FY2017FY2018FY2019FY2020

FY2021* ROIC: Net operating profit after tax before amortization of goodwill / invested capital (= interestbearing liabilities + equity capital)

major theme under the next Mid-term Management Plan.
In terms of organic investment, we will invest inresources to enhance the quality of our temporary staffing

a dividend benchmark of 25% of adjusted EPS. In terms

and permanent placement businesses and to increase ourof capital allocation for future growth, themes will always

own headcount. In addition, the Group views M&As as abe deliberated according to the Company’s stage, andFulfilling five roles as new CFO to maximize
corporate value

finally, one of my essential roles is to maintain favorable

growth driver, and we want to invest in highly profitable,

we intend to discuss optimal capital measures for our

relationships with shareholders, which plays a criticalhighly effective M&As after careful and cautious analysis.

business while seeking an optimal balance.

I have recently assumed the position of the Chief Financialrole in fund procurement for listed companies. It is very

Our Investment Committee comprises not only financial

We also need to think about addressing future

Officer of PERSOL HOLDINGS CO., LTD. I think the CFO’s

important to unfailingly return the gains from our businesspeople like me but also members highly specialized inchanges in our business environment. In this regard,

primary role is to enhance corporate value or, to put it

to shareholders or to use them for new investments. I

areas including information technology, human resources

I consider it important to increase opportunities for

simply, to maximize future cash flow. To maximize cash

consider these the five roles of the CFO.

and management strategy, as well as outside experts, anddialogue with shareholders and investors to further

we work as a unit to make investment decisions. We have

deepen our relationships through timely and appropriate

been steadily refining our use of weighted average costcommunication.

flow, I see five specific important roles for the CFO to play.
The first is to refine the business model of each businessfor both the short term and the medium to long term. I
am expected to identify short-term and medium- to long-■ Five roles of the CFO• Identification and improvement of short-term and mediumto long-term issues at individual SBUs

term issues at each SBU at an early stage and make
improvements. The second is to optimize all our multiple
businesses to create an optimal business portfolio. All SBU
Leads are carrying out their duties from the perspective of
maximizing the value of their own business. I view looking
and optimize the overall portfolio as another importantof capital (WACC) and return on invested capital (ROIC)
as benchmarks, and we intend to use these indexes toevaluate investment proposals and make appropriate• Portfolio optimization• Optimal allocation of management resources• Financial risk management

investments.

Balanced resource allocation in pursuit of ROIC
management and portfolio management• Dialogue with shareholders and investors

the fiscal year ended March 2021 and at the same time
set an efficiency benchmark for management of ROIC

relates to management, in other words, making decisionsof at least 10%, with an emphasis on capital efficiency.
I believe it is important for the company to clear thisthe budget and seeing that it is followed, but the budget

Identifying changes in post-COVID-19 society
and making thoroughgoing efforts to raise
profitability

involves decision-making about which management

For the fiscal year ended March 2022, the PERSOL Groupmean we should concentrate all our resources in certain

resources to use to generate maximum output. The same

recorded high growth at all businesses, achieved record

SBUs that maintain high ROIC. No one knows whether

holds true for M&As. The fourth is risk management in asales and profit and met the Mid-term Management Plan’s

those businesses will be able to maintain high ROIC andbroad sense. Risk is not necessarily related to finance,

numerical targets one year ahead of plan. During the fiscal

sustainable growth. I believe we should carry out balanced

but most risks to a company are fundamentally related

year ending March 2023, the final year under the current

resource allocation based on occasional changes in theto money. I consider the identification and control of bothplan, we are forecasting further growth at all SBUs andoperating environment, using both ROIC management andnear-term and future risks key CFO functions. The fifth andexpect another year of continued sales and profit growth.

portfolio management to increase future cash flow.

management resources. Ordinarily, this means formulating

PERSOL Group Integrated Report 2022

(Yen)

50.0

role of the CFO. The third is financial decision-making as iton the optimal allocation, investment or withdrawal of■ Trend of dividend per share

Annual42 yen(Forecast)
Annual42 yen40.0

The PERSOL Group transitioned to an SBU structure frombeyond individual businesses to create greater synergies

15

With regard to the return to shareholders, we have set

ROIC benchmark, while also investing with the aim of

30.0

15.0

20.0

15.0

10.0

15.0

21.0

20.0

21.0

FY2021

FY202213.0

10.0

achieving even higher ROIC. However, this does not

22.0

13.0

0.0
FY2018

Total dividend
amount (million yen)

FY2019FY2020FY2018FY2019FY2020

FY2021

FY2022

5,849

6,967

6,022

9,745

9,745** The forecast total dividend amount was estimated based on the number of shares issued andthe number of treasury shares both at the end of March 2022.

PERSOL Group Integrated Report 2022

16

Introduction

Value Story

Value Strategy

GovernanceInitiatives to Visualize “Work, and Smile”“Work, and Smile” global survey
with the Well-being for Planet Earth Foundation to carry out
the “Work, and Smile” global survey, which is conducted

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

as part of the Gallup World Poll,* the world’s largest

2020

public opinion poll. In the survey, we ask about the three2021

72.8% (-4.3%)

Q2 Do you think the work you do in your job significantly improves the
lives of other people outside of your own household, or not?

fulfillment), workplace evaluation (social contribution andmeaningful feeling) and workplace self-determination.
In this survey, we measure and visualize the status ofUsing the index in Fukuoka City

95th
103rd

77.1%

components of what we call the Workplace Well-being
Index. These are workplace experience (happiness andInitiatives to promote workplace well-being

Percentage of respondents replying “Yes” andglobal ranking of Japan

Every year since 2020, the PERSOL Group has collaborated

87.1%

2020

79.1% (-8.0%)

2021

5th
46th

“Work, and Smile” throughout the world, including regions
where the PERSOL Group does not provide services, with

Q3 Do you, personally, have many choices in regard to the type ofwork you can do in your life?

the aim of enhancing workplace well-being to realize our

2020

Group Vision “Work, and Smile.”
This survey highlights how important it is that individuals

2021

31st
56th

73.5%
69.2% (-4.3%)

make their own decisions from a range of choices and how
important it is that they gain a sense of happiness andsatisfaction from work. Such subjective elements are key toimproving individual work engagement and performance.
As human capital grows in importance, workplace wellbeing has come to the fore as a key factor for maximizing
the value of human resources. The PERSOL Group will work
to disseminate the Workplace Well-being Index to society,

The Workplace Well-being Index has been adopted in a system implemented by Fukuoka City, a first step in our efforts to promote the use of
the index outside the PERSOL Group. In April 2022, Fukuoka City launched the Fukuoka City Well-being & SDGs Registration System, whose
purpose is to support Fukuoka City businesses as they make efforts to improve the well-being of workers and to achieve the SDGs.
As a requirement for applying to the system, companies must measure their workers’ satisfaction levels using the Workplace Well-being
Index. Businesses that meet the application requirements are eligible for favorable interest rates in the city’s loan system and for support
from regional financial institutions.
The PERSOL Group will continue to work with various municipalities and other local governments as we broaden our efforts to promote
the Workplace Well-being Index.

Initiatives with Marunouchi Work Culture Lab
The PERSOL Group participates in the Marunouchi Work Culture Lab, a project to test,
propose and implement a culture of change (work culture) for the future that achieves bothindividual well-being and sustainable corporate growth. In this project, we demonstrate andanalyze new work styles based on the current social situation where different work styles,
such as working from home, are being tested. We aim to propose and disseminate a newwork culture for the coming era.
In 2021, we conducted a demonstration experiment focusing on “workcation” in Shimoda
City, Shizuoka Prefecture. The experiment explored the differences in work values andhappiness between people living in an urban area and those in a more rural environment.
We also carried out other research such as testing hypotheses on incorporating relaxation
methods into work to increase productivity. Together with the participating companies, wewill disseminate accounts of these activities and verification results through symposiums
and white papers.

A workshop with Marunouchi Work Culture Lab

research it and apply results by collaborating with various

Topicsorganizations and companies to promote the initiative.
* 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 andthe World Happiness Report.

We disclose the survey data on a dedicated web page to allow variousorganizations and companies to use it for human resource management.
https://www.persol-group.co.jp/en/sustainability/well-being/worlddata/PERSOL Group employee workplace well-being findings
In our engagement survey of our employees, we also ask the three questions of the Workplace Well-being Index. While
there are some differences* in the results arising from our survey method, which is different from that of the “Work,and Smile” global survey with Gallup, we can see a high correlation between the responses to these three questions
and the engagement index of PERSOL Group employees. We monitor each survey item over time, using it to understandout initiatives. In this section, we look at initiatives in the Staffing SBU and the Career SBU.

Fan Index

Career Ownership Index(Target: temporary staff, operational staff)(Target: job seekers)

In the Staffing SBU, we have the “Fan Index,” which measures the degreeof reliability and the sense of attachment that temporary staff andoperational staff feel about our services. We are carrying out initiatives
such as a staff awards program and fan meetings with the aim of
improving ongoing relationships with staff. We improve the Fan Index
every year and have upwardly revised our target level for the fiscal year
ending March 2023 by 60 points, as we work to improve staff satisfaction
and build trust.

The Career SBU is working to increase the number of people in society
who take responsibility for their own careers. As an initiative to increasethat number, we have made the Career Ownership Index, which measures
the number of people who use Career SBU services and whose attitudeand behavior show a sense of career ownership.* Increasing the numberof people in society who focus on career ownership and act accordinglymeans that the market for career changes and side jobs will expand. By
increasing our share in this market, we will deliver economic value.
Through our services, we will help people build careers on their own
and will increase the number of people who determine their own work.

■ Fan Index

employees’ workplace well-being and to analyze engagement improvement.

5pt

Q1 I enjoy the work I do in my job every day.

56pt

Q3 I, personally, have many choices in regard to the type of work I can

Percentage of respondents
who answered “Yes”

61%

Percentage of respondents
who answered “Yes”

56%

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

81%* Gallup carries out the “Work, and Smile” global survey by telephone and face-to-face, while we conduct our employee engagement survey online. We have confirmed that differences inthe survey methods have led to a response bias, with Internet surveys tending to score about 10 points lower.

PERSOL Group Integrated Report 2022

3pt
49pt

3pt
39pt

Non-fan
Neutraldo in my life.

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

17

As a measure that contributes to social value, each SBU in the PERSOL Group has its own “Work, and Smile” index and carries

39pt

48pt

FY2019FY2020* Equivalent to “determining their own work” or “taking responsibility for their own careers”■ Career Ownership Index
2.03 million
people2.14 million
peopleMarch 2021

June 2022

2.37 million
people58pt
Fan

FY2021* Fan Index: Calculated based on responses to the question “What does PERSOL TEMPSTAFF
mean to you?” using the numbers of the top two positive answers, “I trust it and have asense of attachment to it very much” and “I trust it and have a sense of attachment to it”* Only temporary staff are included for the fiscal year ended March 2020. Temporary staff
and operational staff are included from the fiscal year ended March 2021.

FY2022targetPERSOL Group Integrated Report 2022

18

Introduction

Value Story

Value Strategy

Governance

Message from the CHRO

Designating and analyzing indexes, and■ Managers’ Actions which Increase Engagement

refining measures to achieve

Shared vision“Work, and Smile” Groupwide

Communication of
growth expectations

Hirotaka Mino
Executive Officer CHRO
(Chief Human Resource Officer)

Informing their staff members what is
important in their work on a daily basis.
Verbally communicating expectations
for staff members’ growth.

To do this, we have newly formulated PERSOL Leadership
Competency, a framework for promoting a succession
plan for management for the next generation and talentmanagement that clearly states the requirements sought in
the PERSOL Group’s senior executives. On the basis of thiscompetency, we have carried out an executive assessment

Feedback on strengths

Providing feedback that focuses on
staff members’ strengths.

that combines a 360-degree survey to understand the

Self-disclosure

Sharing their concerns and thoughts.

consultants, to visualize the most talented human resources

level of those desired qualities and interviews with outside
and post them in appropriate positions. We will provide

These four actions were added to the engagement survey

ongoing feedback to target senior executives to raiseas an action index for managers from 2021, and analyzingawareness, thereby supporting their growth and cultivating

those survey results confirmed that this action index

the next generation of management.

makes a clear contribution to engagement. We continued

Data-based initiatives to enhance well-being

surfaced. Going forward, we will refine the action index and

Employees with a shared vision who are dealing with

use this to bring about changes in managers’ actions.

working people and various companies are the primaryEngagement index rise for the second
consecutive year

employees of the Asia Pacific SBU since 2021, making

The third initiative is related to career autonomy. The

source of the PERSOL Group’s value, and the number

As the Executive Officer responsible for human resources,

it possible to measure the engagement of all Group

Group Vision includes the “need to make our own choicesof these employees is growing. The number of Groupmy primary focus is on realizing “Work, and Smile” among

employees. The engagement index from the first Asia

from a range of diversified work opportunities,” and we

employees rose by roughly 10% again during 2021, as we

our employees for the further realization of “Work, andPacific SBU survey was 79%, which was higher than fortake employees’ career autonomy extremely seriously. We

were able to secure human resources without disruption

Smile” among our customers and society as a whole.

domestic employees. Although we cannot make a straightbelieve that high career autonomy means that employees

despite accelerating competition in the acquisition of humanAchieving “Work, and Smile” among employees can also becomparison because of differences in culture and national

have the motivation to want to build their own careers,

resources. Hiring was affected by the COVID-19 pandemic

seen as enhancing engagement, and we have designatedcharacteristics, we view this as a favorable level. Going

and are able to take actions toward that career proactively

in 2020, which dampened mid-career recruitment to some

employee engagement as our most important humanforward, we will pursue visualization and initiatives atand of their own accord. We have instituted a variety ofextent, but this recovered to the pre-pandemic level in 2021.

resource index and are carrying out annual engagement

the global level as we strive to raise engagement for theopportunities to promote this ‘motivation’ and ‘action,’

At the same time, as the Group grows through M&As

surveys. In 2021, the employee engagement index rose

PERSOL Group.

including the Career Challenge program of open recruitment

and other developments, the presence of employees whofor job transfers within the Group, the Job Trial program,are new graduates is important for shaping and passing

We have also rolled out a similar survey for the overseas

to 67% from the previous year’s 63%. The vision empathy
index measuring employees’ empathy with the Group

Initiatives to maximize employee engagement

which offers trial postings to jobs at different divisions

on the PERSOL Group’s corporate culture. Every year, we

Vision also rose, to 77% from 76%, and this was the second

We have been able to enhance engagement to some extent

within the Group, and Smyle, an original career design

recruit roughly 1,000 new graduates, and we are cultivatingconsecutive year of improvement since the survey questions

through new initiatives.

training program. Analysis of past engagement surveys has

awareness as PERSOL Group employees through activities

shown that increasing employees’ career autonomy also

like the Groupwide joint entrance ceremony.

The first is the formalization of a PDCA cycle at thewere significantly revised in 2020.

companywide management level. On the basis of the results

contributes to engagement. Going forward, we will makeelements for enhancing engagement—“autonomy,” “self-of the engagement survey, each SBU identifies issues andefforts to develop initiatives that focus on the factors thatslightly year on year, but our analysis shows that theefficacy,” “relationships,” “health” and “shared Group

formulates measures for improvement, and these areprevent employees from taking ‘action’ on their ‘motivation.’stagnant job-changing market held the turnover rate in

Vision”—and have incorporated measures to achieve thesereported to the Human Resources Committee on an ongoing

We have also introduced a restricted stock compensation

check last year because of the pandemic. Going forward, inin our human resources strategy. We believe that thebasis. This cycle achieves a commitment to enhancescheme for all management-level employees of the Group.

addition to enhancing engagement, we will strive to stabilize

successes of those measures are gradually showing up in

engagement at all businesses at the management level, andBy enhancing managers’ own engagement and developing

the retention rate while focusing on the turnover rate.

the engagement survey results.

in 2021 the engagement index rose at all SBUs.

their awareness of a management perspective and a

We have identified five engagement drivers as important19

to conduct interviews in 2022 and new common actions

Engagement index

Vision empathy index

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

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

The second is the establishment of a new “action index.”
The results of past engagement surveys have shown that

Our turnover rate is roughly 10%, and has been rising

Moreover, analysis of engagement survey results has

shareholder’s perspective, we aim to maximize the entire

shown that employees’ health has a strong correlation

Group’s engagement.

to the engagement index, and we have begun to disclose

support for growth and trust from superiors affects thethe percentage of employees taking leave due to mental

Initiatives to cultivate the next generation ofmanagement

health issues and the percentage of employees with highinterviews with managers of organizations with highengagement throughout the Group, and identified andTo continue to contribute to society and realize “Work,

we are implementing measures to reduce the number ofanalyzed characteristic actions. As a result, we discovered

and Smile,” the PERSOL Group needs to begin to cultivate

employees with poor health as well as measures to enhance

engagement of their subordinates. We therefore conducted

stress. To realize “Work, and Smile” among employees,

67%

77%

the following four actions that were common across job

human resources who can become our next generation

engagement, with the aim of enhancing well-being across(+4pt year on year）(+1pt year on year）

categories and business environments.

of management with a view 10 to 20 years into the future.

the Group, and we are making steady progress on this front.

PERSOL Group Integrated Report 2022

PERSOL Group Integrated Report 2022

20

Introduction

Value Strategy

Value Story

GovernanceInitiatives for Value Creation

Diversity, Inclusion & Equality
disclosure of differences in wages between men and women.
At the PERSOL Group, the average annual income of womenin career positions is 90% of the average annual income of
men in career positions. One factor in this is the difference inthe ratio of women to men in managerial positions. We willcontinue to work toward a higher percentage of women in
managerial positions as this will also narrow the wage gap
between men and women.

PERSOL Group Common Policy
We, PERSOL Group, have our group vision of “Work, and Smile,” and we are working to realize a society where anyone in theworld can “Work, and Smile.”
With the diversification of individual values and advancement of technology, the surrounding environment and how theworld perceives work have reached a major turning point. The labor market is also changing more than ever with the rapid
advancement of technology. For sustainable societal and corporate growth in this rapidly changing environment, there is a needfor flexibility and creativity, to create new values, as well as respond to change through the utilization of synergies of diverse
abilities. We believe that the basis of this is the diversity of employees.
In order to realize a society where anyone in the world can “Work, and Smile,” it is indispensable for us to not only to have
employees who can recognize and appreciate the feelings, ways of thinking, and perspectives of different individuals, but also to
let them contribute their abilities and realize their achievement and satisfaction in their work.
We value diversity in all forms and ways to bring the best ideas and value to our customers, stakeholders and employees.
To draw on the strengths in the diversity of our employees, we will endeavor to create a culture of inclusiveness where allindividuals believe they can be themselves, where we respect their various differences such as culture, background, beliefs, andabilities. Therefore, we have launched DI&E actions to realize our group vision that recognizes intersectionality and maximize
the potential of employees through equal opportunity.
That is our challenge.
This policy applies to all directors, senior managers and employees of PERSOL Group.

Progress on DI&E initiatives[Groupwide] Changes in the percentage of women in managerial positions
24%

Result23.8%

Target

22.9%
21.9%

22%

20.6%
20%
18%
16%

Kyoko Kida

18.1%
2nd half
2018

1st half
2019

2nd half
2019

21.5%

Men

Women

Unlimited-term Career position
employment Limited position

90.1%

13,891

8,123

93.3%

1,051

1,834

Fixed-term employment

83.2%

1,276

3,808

All employees

77.8%

16,21813,764* The wage differential between men and women is calculated as the ratio of women’s wages
to men’s wages in the fiscal year ended March 2022.
* Wages include basic salaries, overtime allowances, incentives, bonuses, etc., and exclude
retirement allowances, commuting allowances, etc.
* Limited position employees are those in an employment category that specifies one or moreof the following: region, job or working hours.
* Temporary employees are excluded from the employees in the calculations.
* The overall differential is affected by the large number of women employees in fixed-term
employment and limited positions.

Subcommittee nameSummary

Start a Movement• Consider and execute public relations strategy for the activities of the Gender Diversity Initiative, bothinternally and externally

Change One Step for Tomorrow• Create a system and environment for encouraging women to assume managerial positions andconsider providing them training and opportunities• Consider ongoing follow-up measures after duties are assumed

Build a Framework for Diverse
Individuals to Evolve and Grow

• Implement PDC cycle—understanding the factors that hinder the increase of women in managerial
positions, setting targets and planning, improvement—to increase the percentage of women in
managerial positions

Change from Management• Circulate among management examples of change from managers and experts at leading companies
and link them to specific policy output

We are also working on topics other than women’s active
participation. Every month we hold an event called “Let’s All
Think about DI&E,” which aims to improve employee DI&E
literacy and create fellowship within the Group. The numberof participants at this event grew significantly to 1,303 in thefiscal year ended March 2022, compared to 492 in the fiscal
year ended March 2021. At the event, we held dialogues on
the following topics, including LGBTQ and non-Japaneseemployees.

• People with disabilities × Work
• Childbirth/parenting and women’s careers

1st half
2020

2nd half
2020

1st half
2021

2nd half
2021

1st half
2022

1st half
2023• Learning about diverse career values and thinking about your own career* Due to changes in the aggregation method, the figures from 2022 onward have been calculated as of the beginningof each fiscal year. (Figures up to 2021 were calculated as of the end of each fiscal year.)

We believe that it is important to promote diversity by accepting
the attributes, values and abilities of our employees in orderto realize “Work, and Smile” and increase our employees’
engagement. To this end, in February 2022, we announced atarget of 37% women in managerial positions by 2030 as a key
personnel indicator for DI&E. After discussions at the Gender
Diversity Initiative, which was launched in September 2021,
we decided to align our target gender ratio for managerial
positions with the gender ratio for employees. We set individual
targets for each SBU, taking into account the age compositionand other factors. As you can see, the percentage of womenin managerial positions has grown steadily over the past few
years. We feel confident that we can reach our goal for 2030.

PERSOL Group Integrated Report 2022

Number of people to be counted• Working with non-Japanese employees

Chairperson of the Gender Diversity Initiative
PERSOL Group

21

Wage differentials
between men and
women

Examples of topics

19.4%
18.6%

Employment category[Let’s All Think about DI&E]

22.1%

20.4%
18.4%

At present, the Gender Diversity Initiative has the following
four subcommittees and carries out activities every month.

FY2021 wage differentials between men and women

Alongside these efforts, we have begun improving thework environment of our employees. Until recently, just as
women had not had equal opportunities to participate insociety, men had had very limited opportunities to participate
in housework and child care. In response to this situation,
the Gender Diversity Initiative began working to create anenvironment that allows men to use child-care leave and to
take time off. We shared and promoted worthwhile initiatives
at each company. As a result, the percentage of child-careleave among men rose to 19% in the fiscal year ended March
2022, with a total of 117 men employees taking leave.
In addition, the revised Act on Promotion of Women’sParticipation and Advancement in the Workplace requires

The number of employees with disabilities also grewsignificantly, from 1,981 in June 2021 to 2,417 in June
2022. As well as complying with the legally mandated
employment rate, we will continue striving to provide workand a workplace that enable people with disabilities to play
active roles and realize “Work, and Smile.”

We also participated in Tokyo Rainbow Pride 2022, one ofAsia’s largest LGBTQ-related events. More than 800 people
visited our booth during the period. The event was a deeply
meaningful chance for like-minded people to socialize
and share information. We intend to continue to use suchopportunities for engagement in the future.

Initiatives in the Asia-Pacific region
Guided by the principle that employees are our greatest asset,
PERSOLKELLY organizes various DI&E events. As a specificexample, in Indonesia, we hold a DI&E event every April on
Kartini Day to express support for women’s empowerment andpromote awareness about women’s equality and diversity.
We will continue to improve understanding of the Group’scommon policy on DI&E across the Asia-Pacific region, aligning
our DI&E initiatives across the entire PERSOL Group.

PERSOL Group Integrated Report 2022

22

Introduction

Value Story

Value Strategy

Governance

Providing Opportunities for Learning

Training programs for independent growth of employees
Using a range of study programs to help employees improve their performance and develop their abilities
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.
We have put in place various study programs to support
growth in line with employees’ various roles and abilities. As
well as helping employees improve their performance anddevelop their abilities, these programs focus on supporting
employees in their inner growth, allowing them to live theirlives in their own way. We work together at three levels of ourorganization—Groupwide, each SBU and each company—toprovide opportunities for employees to grow.
As for training for all employees, we prepare uniform
content for new graduates and mid-career employees toinstill our corporate philosophy. In addition, we provide active
learning-type training to increase employee career autonomy
and growth opportunities as well as e-learning content throughour internal platform. Active learning offers unique, advanced
workshops and cross-boundary learning, giving employees theopportunity to rethink their attitude toward their career fromvarious angles through experiences that differ from daily life.
More than 1,000 employees have participated in this program.
In our training for managers across the Group, we develop
programs for each role, from first-line managers to thesenior managers who will lead our management in the next
generation. For newly appointed managers of each company,
we have developed a one-year joint program that goesbeyond the company’s boundaries, providing an opportunity
to learn about the knowledge, skills and attitudes requiredfor day-to-day management. For senior managers, we also
provide selective training, assessment and coaching to help
them grow into human resources who can become our next
generation of management.

Training for managers

1 Assessment of current capabilities
DI&E literacy training

DI&E training for management classCompanywide productivity
improvement program

Team performance (organizational
development) program

Career design training “Smyle”

Executive assessment andexecutive coaching

Active learning-type training “@ (at)”Selective training for senior managers

Groupwide e-learning system“PALMS”* The Groupwide training described above is only a small part of all the training at the PERSOLGroup, which also includes programs planned and run at SBUs and each company site.

The curriculum is composed of two axes: abilities for
effective performance of each person’s role and strong
personal skills required as a member of society. By including
support for in-house lecturers and an evaluation system,
this initiative also allows for the sustainable development ofhighly original content. Temp University plans to offer 200
courses by March 2025.

Started developing DX and AI human resources with ExaWizards Inc.
Companies are focusing on digital transformation (DX) as a
key to securing revenue and maintaining competitiveness.
However, only 36% of companies are able to provide
specialized training in the DX field in-house. It is estimatedthat by 2030 there will be a shortage of 124,000 workers in
AI, the core technology for DX.

23

PERSOL Group Integrated Report 2022

In addition to specialist expertise, employees must gain
new skills that will enable them to adapt to changes in themarket environment and business category. This is vital forcompanies to grow sustainably in the volatile, uncertain,
complex and ambiguous (VUCA) era. In particular, there isTraining for all employees

Training for newly appointed
managers

PERSOL TEMPSTAFF and PERSOL TECHNOLOGY STAFF
each started developing DX and AI human resources in 2022
in collaboration with ExaWizards, a company that uses AIbased services to help solve social issues.
Both companies will provide trainees with optimized
training programs based on the results of a human resource

PERSOL TECHNOLOGY STAFF selects trainees from amongits engineer employees through an assessment process.
These employees learn DX and AI technologies ranging
from general-purpose DX literacy to image recognition andnatural language processing. We support these employees
after they complete the training by providing opportunities
to gain hands-on experience by such means as working as
temporary AI engineers at a major system integrator.

“Learning with Coach,” an online coaching service that closely assists individuals

Examples of PERSOL Groupwide training programs*

Launch of Temp University, an in-house program in which employees teach andlearn from each otherOn April 1, 2022, PERSOL TEMPSTAFF, engaged in temporary
staffing and outsourcing businesses, launched Temp
University, an in-house program in which employees teacheach other, learn from each other and create together.
By addressing changes in society and the labor market
environment, this new initiative helps working individuals
grow independently and advance their careers throughrelearning and reskilling.

assessment conducted through exaBase DX Assessment& Learning, a DX personnel discovery and training support
service provided by ExaWizards, to help them acquire therequired specialized skills.
Through this training program, PERSOL TEMPSTAFF aims
to accelerate the acquisition of specialized skills needed forcertain departments and roles, including e-learning, planningskills and communication skills.

2 Setting of individualized curriculum
3 Accompaniment by a technical coach
um
cul
rri
Cu

A
ner
ear
or L
mf
u
l
ricu
Cur

B
er
arn
Le
for

Starting pointfor Learner B

Starting pointfor Learner A

a growing need for reskilling in cloud and AI technology todrive DX.
PERSOL INNOVATION provides “Learning with Coach,” acorporate online coaching service designed to enable learning
optimized for each individual. Drawing on the expertise of
the PERSOL Group and specializing inreskilling, the service has produced
solid results in developing humanC
resources for cloud and AI technology.
r
ne
ar
Le
“Learning with Coach” provides career
r
fo
m
lu
u
coaching that motivates individuals to
ic
rr
Cu
learn, a learning environment whereStarting point
they are accompanied by a coach andfor Learner C
a curriculum personalized according to
the learner’s skill level. In this way, we
will realize individual optimization andsupport the improvement of new skills
for the digital age.

Workshops for elementary and junior high school students to think about work
As part of its efforts to provide career education for future
generations, PERSOL CAREER offers free workshops toelementary and junior high schools throughout Japan,
creating opportunities for children to think about work.
The workshops target students from the fourth grade ofelementary school through the third grade of junior highschool. Through a work experience program in which
students act as career advisors and an industry research
program, students learn about a wide range of professions.
As they communicate with PERSOL CAREER employees,
they also learn about the importance of thinking about theircareers. Since beginning in 2018, the workshop has been
held 149 times and 7,794 children have participated (as of theend of July 2022).
The workshops for thinking about work won an award forexcellence at the 11th Career Education Awards*, sponsoredby the Ministry of Economy, Trade and Industry.
* The awards recognize companies in industries for outstanding educational support activity initiatives.

PERSOL Group Integrated Report 2022

24

Introduction

Value Story

Value Strategy

Governance

Providing Opportunities to All IndividualsEntering the business of recruiting and training overseas human resources with specified
skills, and permanent placement of non-Japanese persons

Providing “Employment of people with disabilities × RPA Service”
As part of their work style reforms, companies have recently
been increasingly introducing operational automation androbotic process automation (RPA), but a shortage of RPA
human resources to develop and operate robots exists, giving
rise to cases of insufficient progress within companies andinsufficient operational management.
PERSOL CHALLENGE and PERSOL PROCESS &TECHNOLOGY are addressing these concerns with
“Employment of people with disabilities × RPA Service” totrain such people as RPA staff, with the aims of expanding
areas of employment for people with disabilities andeliminating the shortage of RPA human resources.
With this service, PERSOL CHALLENGE confirms the
specifics of a disability, vocational aptitude and environmental
compatibility of people who will be tasked with RPA
operations, and on the basis of that information, PERSOLPROCESS & TECHNOLOGY provides technological training toenable those people to handle operation, maintenance andsmall-scale development. PERSOL CHALLENGE’s specialist
consultants support corporate administrators to make itpossible that operations are carried out smoothly if a person
experiences uncertainty or an issue arises.

“HiPro” service comprehensively supports professional human resources
As companies allow employees to take side jobs and remote
work spreads, individual work styles have been diversifying
as more people seek second jobs or freelance work. However,roughly only 10% of companies have experience using
outside human resources through those arrangements.
To make the use of people working side jobs, freelancers
and other outside human resources become a matter ofcourse, in May 2022, PERSOL CAREER launched the “HiPro”
service to comprehensively support professional humanresources. In addition, the existing services for using
outside human resources—the “i-common” placement
service for management advisors and the “i-common tech”

agency service for freelance specialist IT engineers—havebeen consolidated under the “HiPro” service to provide
multifaceted support for the resolution of increasingly
complicated corporate issues. The “HiPro” service supports
the realization of diverse work styles by increasing choices
for individuals who want to expand their possibilities using
their own experience and skills as well as for companies
looking to address increasingly complicated issues.

Conclusion of agreement for comprehensive cooperation to promote regional revitalization through telework
On July 8, 2021, the PERSOL Group concluded an agreementwith the Secretariat of the Council for the Realization of
the Vision for a Digital Garden City Nation of the Cabinet
Secretariat for comprehensive cooperation to promote
regional revitalization through telework.
The spread of COVID-19 has triggered an increase inpeople working remotely. While this is bringing about major
conceptual changes in terms of the lifestyles, work styles
and work locations of working individuals, companies outsidemajor metropolitan areas are increasingly facing worker
shortages. In response, people working for companies
in large cities are using telework to do work for regional
companies, and there is increasing interest in continuing with
their current employer but moving to the countryside withoutchanging jobs.
Under this agreement, the PERSOL Group will set up

25

PERSOL Group Integrated Report 2022

joint projects with local governments, support side jobs
and multiple jobs at regional companies and promote
cooperation and interchange with regional companies. By
promoting regional revitalization through telework, we aresupporting diverse work styles to achieve our “Work, andSmile” Group Vision.

Specific initiatives• PERSOL PROCESS & TECHNOLOGY, which endorses the Action
Declaration of Regional Revitalization Telework Promotion, isrevitalizing the businesses of regional companies, increasing
the number of regional satellite offices and hiring for
positions not tied to a specific location• PERSOL CAREER has added a new Special Feature on
Telework Recruiting to its career change “doda” website• PERSOL WORKS DESIGN is promoting a “workcation” projectin collaboration with Hyuga City in Miyazaki Prefecture

To maintain workforces in industries like nursing care andmanufacturing, where the shortage of human resources is
becoming increasingly serious, PERSOL Global Workforce
is providing human resource services tailored to overseas
human resources, with a focus on Japan’s new Specified
Skilled Worker residency status.
The company has established Japanese language training
centers overseas and is working with partner companies
to train human resources with specified skills throughprograms of three to six months for passing Japanese
language proficiency and other accreditation tests. This
training is currently taking place in Indonesia, Nepal andthree other countries. Despite the COVID-19 situation, asof the end of August 2022, the company had trained andtentatively placed more than 400 workers, of whom 300
have begun working in Japan.
In addition to training and placing non-Japanese humanresources with Japanese language ability and other skills
that enable them to contribute immediately, the company isworking to change thinking about non-Japanese people at thecompanies where they work and in society in general, aiming
to eliminate human resource shortages while also achieving“Work, and Smile” for non-Japanese human resources.

Contributing to and creating employment in local communities in Australia
In Australia, Programmed, which is engaged
in a broad range of temporary staffing andmaintenance businesses with more than 4,500
employees and roughly 1,000 partners, is working
with the SPARK Ginninderry Construction Taster
Program, which offers training programs for local
residents for educational, social and economic
revitalization. Together, we are providing
programs that develop skills and support handson experience and accreditation for people wishing
to work in industries including construction.
Participants receive roughly one month of training
to learn the skills required and experience theactual social environment of the career they wish
to pursue. This program supports career pathsaligned with the needs and unique characteristics
of all individuals and creates employment
opportunities in local communities.

“Athlete Career Support Project” increases postretirement career choices
Although individual work styles and careers are diversifying,athletes, who have few opportunities to acquire businessknowledge and experience while they are active, are often
at a loss for a career after their playing days have ended.
PERSOL CAREER has launched and is promoting the “Athlete
Career Support Project” to help create medium- to long-term
careers for athletes.
Organized around the “SPORT LIGHT” for sports industry
media, this project provides broad support for athletes’ careerformation through offerings like training programs that allow
athletes to consider their medium- to long-term career fromwhen they are active, events that facilitate business contacts

and postretirement career advice from dedicated advisors toeliminate uncertainty about the future.

PERSOL Group Integrated Report 2022

26

Introduction

Value Strategy

Value Story

Governance

Message from the CIO/CDO

Innovation & Technology
Look forward to the PERSOL Group using
technology as a strength to create
a new society and work styles
Introduced RPA within the Group to automate
more than 200,000 hours of operations
In April 2020, PERSOL PROCESS & TECHNOLOGY launched“PERSOL Automation PJT” to improve productivity andpromote digitalization within the Group, automating morethan 200,000 hours of operations in two years. Furthermore,
the RPA engineers trained in this project have successfullylaunched new businesses, while the 270 employees who
received RPA training have also advanced their careers.
In addition, we have developed the “PERSOL RfE* Guide”
and are enhancing our training programs using theknowledge and expertise we have gained from helping
many customers introduce RPA and train RPA personnel.
Through these and other initiatives, we will further improve
productivity within the Group.

development in the field of next-generation mobility to realize afuture where people can work together with robots and drones.
We provide a full range of development support, fromcontracting services that combine various in-house
technologies, such as robot operating system (ROS)
development, mechanical design, electrical and electronic
design, control software development, experimentationand certification, and model-based development (MBD), toengineer staffing services that meet our customers’ needs.
We will support the development of robots that can become
human partners, such as automatic transport robots forlogistics, nursing care robots and drones. In this way, we
will boost individual productivity and contribute to thedevelopment of society.

* RfE: Abbreviation for “A Robot for Every Person,” a concept that aims to enable all employees
to use robots, design and develop robots and leverage robots

Yuta Tsuge
Executive Officer CIO/CDO(Chief Information Officer/
Chief Digital Officer)

Reflecting major trends in technology, the human resourceof the progress for DX among SBUs. Since the SBU structureservices industry is undergoing dramatic change. At thissetup was launched, progress has been made in transferringjuncture, I assumed the position of the PERSOL Group’s

discretionary authority, but certain SBUs have made dramatic

CIO/CDO in April 2022, and with both nervousness andadvances in DX while others have not. I believe that to obtain

determination, I will make every effort to meet thethe maximum effect from DX, we need to build an appropriate

expectations for the position. Further, I will advance initiatives

organization from an overall Group perspective.

to enable achieving one of our Group key strategies of

I believe that technology has the power to expand work“innovating through technologies” to make additional

possibilities for both individuals and companies. I see three

breakthroughs in our management.
Promotion toeach company

Setting goals

Analysis of
issuesPlanning

A nursing care robot

Using the metaverse to create new work styles
and employment
Launch of
new business

Post-training
supportDevelopment of robots
to improve operationsin own organization

Training“Manufacturing DX” for supply chain optimization
Since May 2021, PERSOL PROCESS & TECHNOLOGY has
been providing the support service “Manufacturing DX” topromote DX in manufacturing.
The service builds on the PERSOL Group’s long-standing
track record of temporary staffing to the manufacturingindustry and contracting tasks in the field of design anddevelopment. It combines IT consulting knowledge suchas operational process transformation, data analysis andsystem construction to support manufacturing companies in
actively deploying digital technologies to optimize the supply
chain. In addition to simply introducing digital technology,
we support organizational growth by helping develop digital
human resources who can master the technology andcontinuously improve it on the client side.

Robot mobility development
PERSOL RESEARCH & DEVELOPMENT, which carries out
the Group’s technical engineering operations, supports

27

PERSOL Group Integrated Report 2022

PERSOL MARKETING, which is engaged in temporary
staffing and outsourcing businesses for marketing supportand store and sales support, entered the metaverse
business in January 2022 and began offering VR humanresource development, temporary staffing services andstore operation support services in a virtual space. With themetaverse, people can use their knowledge and experience
to work without regard to where or when they work, theirage and gender, and whether or not they have a disease or
disability, thereby expanding their work choices. In addition,
we will provide new channels to respond to changes in theenvironment to solve social issues such as sustainability
transformation (SX) and to grow client companies, andcontribute to expanding client companies’ sales channels.
In July 2022, we signed a comprehensive partnershipagreement with GAIA LINK INC., the official distributor of“Virbela,” the leading metaverse platform in Europe andthe United States. Using the metaverse, we will provide
solutions to get more customers and expand sales channels
for educational institutions such as companies anduniversities, and municipalities. Through such initiatives,
we aim to create employment by providing a variety of
workplaces within the metaverse.

things as important for us to make maximum use of that

During the fiscal year ended March 2022, we worked

power: working as a Group to maximize the energy of digitalto enhance the level of digital transformation (DX) in ourhuman resources; putting forth strategies to maximize thecore businesses and also launched services that symbolize

gains from DX over the medium to long term; and creating

the creation of new ways of employment. One of these,

IT governance. Under the next Mid-term Management Plan,

the “PERSOL MIRAIZ” service for job seekers, embodies

we want to seek out and invest in growth areas that enable

the “Future Vision of Work Initiative,” which supports all

the Group as a whole to “expand possibilities” and influence

individuals in finding work that suits them and charting

society.

their career through the broad-ranging support needed for

We must accurately understand the expectations of bothcareer development, including job matching and learning. For

companies and working individuals and offer services that

corporate clients, we have released the “Salaries” service

meet those expectations. As companies see markets expandthat supports them to introduce job-based employment by

and become borderless and the speed of management

showing appropriate salary and compensation levels, andaccelerates, management evolution is becoming crucial.

new human resource strategies. Going forward, we also wantManagement evolution involves human resources strategies,

to strive to improve user experiences while expanding ourand we realize that PERSOL is expected to provide newservices by pursuing initiatives like data alliances that goframeworks. This is an age in which working individuals needbeyond human resource services.

to build their own careers themselves and need to take action

In addition, the activities of the Technology Committee

to fill in gaps in the path to their desired career. We recognize

started in the fiscal year ended March 2021. Over the year,

the need for tools to assess each person’s capabilities

the committee has focused on accurately identifying theand learning opportunities for career advancement. By

situation at each SBU and issues the Group is facing. We alsoutilizing and structuring the huge amounts of data we havedeveloped digital talent in the tech sector, provided advanced

accumulated, we will create a new standard of value for job

training to get to the next level in their career and clarified

selection. We consider addressing those needs our main

the purpose of investment in information technology (IT).

mission.

While we have promoted DX by securing human resources

I am confident that the PERSOL Group has the strength toand reinforcing our foundation, we have also clarified the

propose new work styles and create a better society. Please

issues that need to be addressed. One of these is disparities

look forward to our future growth.

PERSOL Group Integrated Report 2022

28

Introduction

Value Story

Value Strategy

Governance

Environmental Initiatives
Environmental initiatives of Group companies• Support services for implementing greenhouse gas
emission visualization and reduction plans

The PERSOL Group contributes to the realization of a sustainable society in which all people truly feel “Work, andSmile.” To achieve this, we recognize addressing climate change and conserving the environment is one of ourmanagement issues, and we are pursuing a range of initiatives in these areas.
• Setting a “Carbon Neutral” target by FY2030• Participation in climate change-related initiatives

In May 2022, we set ourselves a “Carbon Neutral” target as anenvironmental goal, aiming to achieve net zero greenhouse gas*emissions from our business activities by FY2030.
We will continue to strengthen our efforts toward realizing adecarbonized society.

The PERSOL Group declared its endorsement of therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) in March 2022 and joined the TCFD
Consortium, a forum established to discuss initiatives based on
the TCFD recommendations.
In response to the TCFD recommendations, in May 2022, webegan to disclose “Governance,” “Strategy,” “Risk management”
and “Metrics and targets” in relation to climate-related risks andopportunities.
Based on TCFD recommendations, we will continue tostrengthen our governance and proactively disclose informationand enhance its disclosure.

* The greenhouse gas emissions from business activities represent the total of Scope 1 andScope 2.

25,601t
Carbon Neutral
by FY2030

0
FY2021

FY2030PERSOL Group greenhouse gas emissions
To ensure the accuracy and reliability of the emission calculations, we obtained third-party verification from SOCOTEC Certification
Japan for the figures marked with for the actual greenhouse gas emissions in the fiscal year ended March 2022.

Item

Unit

FY2020

FY2021(April 2020—March 2021)(April 2021—March 2022)• Reducing the use of paper resources by introducing
E-Contracts

PERSOL PROCESS & TECHNOLOGYPERSOL TEMPSTAFFPERSOL PROCESS & TECHNOLOGY, which is engaged in businessconsulting and system-related business, provides support
services for implementing greenhouse gas emission visualization
and reduction plans. Using expertise gained through its energy
business since October 2011 and its proprietary method ofbusiness design through outsourcing business, the company
is contributing to managing decarbonization at companies
by providing support as a partner in the pursuit of problem
specification, consideration of action plans, project management
and the introduction and implementation of reduction solutions.

PERSOL TEMPSTAFF, which is engaged in temporary staffing
and outsourcing businesses, provides the Temp App, an official
smartphone application for temporary staff. Featuring an
e-contract function, the app has been downloaded more than
100,000 times. Contracts with staff have traditionally used paper.
With the Temp App, users can select an e-contract to handle thecontract by electronic means. Of the dispatched temporary staff,
82% agreed to use E-Contracts. This will reduce the number ofsheets of paper by 2,312,000 by March 2023, equivalent to 1,156
cedar trees (where 2,000 sheets of A4 paper are estimated to beequivalent to one cedar tree). Expanding use of the Temp App will
help protect environmental resources.

Understand thecurrent situation

Form a reduction plan

Pursue decarbonization• Engine testing with carbon-neutral fuelPERSOL RESEARCH & DEVELOPMENT• Temporary staffing of “Green Engineers”*
PERSOL TECHNOLOGY STAFFPERSOL TECHNOLOGY STAFF, which is engaged in temporary
staffing of IT and manufacturing engineers, offers a temporary
staffing service for “Green Engineers” who can visualize
greenhouse gas emissions in manufacturing and designin consideration of the environment. As well as promoting
projects to calculate CO2 emissions at automakers, the company
will strengthen its recruitment, training and development ofengineers committed to carbon neutrality and strive to position“Green Engineers” to support design and development andincrease their value as engineers.
* Engineers who have the technical ability to support corporate green transformation, as
defined by PERSOL TECHNOLOGY STAFFPERSOL RESEARCH & DEVELOPMENT, which is engaged intechnical engineering operations, provides performance,
functionality and durability testing services for engines thatuse carbon-neutral fuel. The automotive industry has in recent
years made rapid advances in fuel efficiency and electric vehicle
development. At the same time, carbon-neutral fuel is gaining
attention for large commercial vehicles that are difficult toelectrify and require large power output due to their long driving
range, as well as for agricultural and construction machinery
whose power supply infrastructure presents a challenge.
Recently, needs have also been growing in the area of testing
engines that use carbon-neutral fuel. PERSOL RESEARCH &DEVELOPMENT is working with the commercial vehicle industry,
the agricultural and construction machinery industry and fuelproducers by using the engine
development technology that thecompany has cultivated over theyears to help make carbon-neutral
engines a reality.

Total Emissions (Scope 1 + 2)*

t/CO2

25,25325,698

Scope 1*t/CO2

12,395

12,721

Future environmental initiatives

t/CO2

9,379

10,034t/CO2

13,028

12,977

The PERSOL Group has set a “Carbon Neutral” target for greenhouse gas emissions, aiming for net zero greenhouse gas emissions fromour business activities by FY2030. By promoting energy conservation measures in our offices, switching to hybrid vehicles (HVs) and electricvehicles (EVs), and using renewable energy, we will work toward the realization of a carbon-neutral society, a common global issue.

26.7

24.2

Of above, “Programmed”*
Scope 2*Emission Unit (Scope 1 + 2)*

t-CO2/1 billion yen sales

Scope 3 (Japan)*Category 5: Waste Generated in
Operations*

t/CO2

1,445

1,154

Category 6: Business Travel*

t/CO2

515

601

Category 7: Employee Commuting*

t/CO2

9,369

7,889

Million kWh

26.3

26.5

Electricity Consumption** Rounded off to the nearest whole number• HV/EV switching policy• Energy conservation measures

We will switch to HVs and EVs, which have relatively low
environmental impact, to help reduce greenhouse gas emissions.
From the fiscal year ending March 2023, we will work to switch
over to HVs wherever possible for vehicles used at our domestic
and overseas bases. Expecting an expanded EV lineup andinfrastructure development, we will gradually convert our fleet toEVs starting with locations in Japan from around 2025.

We will work to reduce wasteful power usage at each of our
locations. We will strive to create offices that are environmentallyfriendly by carrying out thorough energy conservation activities
including setting air conditioning and PCs to be energy-efficient to
the extent that they do not interfere with work as well as turning
the power off when offices are unoccupied and by investing inenergy-saving equipment.

Details of our environmental initiatives are available on our website.
https://www.persol-group.co.jp/en/sustainability/tcfd/

29

PERSOL Group Integrated Report 2022

PERSOL Group Integrated Report 2022

30

Value Story

Introduction

GovernanceValue Strategy

Mid-term Management Plan 2023

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.

The Mid-term Management Plan positions these three
years as a time for establishing the foundations for future
growth by sophisticating the business and improving theoperation base to provide value to society through therealization of “Work, and Smile.”

2020–2023

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

Numerical Targets

Asia Pacific SBU Mid-term Management Plan (April 2023–March 2026)
Overview of Asia Pacific SBU Mid-term Management Plan
Ahead of the planned announcement of the Group’s
next Mid-term Management Plan in May 2023, wereleased the Mid-term Management Plan for the Asia
Pacific SBU in August 2022. The plan positions thethree-year period as one for building a foundation for2030 to improve profitability.
Our approaches in the Asia-Pacific region will
be promoted in three phases. In the first phase, weFuture Initiatives in the Asia Pacific SBU

Initial Plan for FY2022(Announced in August 2020)

FY2022 Forecasts

1,060.8 billion yen

1,000.0 billion yen

1,165.0 billion yen

Operating profit

48.1 billion yen (4.5%)

45.0 billion yen (4.5%)

52.0 billion yen (4.5%)

EBITDA (EBITDA margin)

67.1 billion yen (6.3%)

61.0 billion yen (6.1%)

74.2 billion yen (6.4%)

Net sales(Operating profit margin)

Phase 2 (–FY2030)
Reforming to a technology-driven business model in collaboration with businesses
in Japan, and responding to talent mobility in the APAC region including Japan

Phase 1 (–FY2025)
Creating an integrated management foundation in the Asia Pacific SBU, improving
profitability and hitting the must-have target of 10% ROIC in FY2025

Financial Targets
Under the Asia Pacific SBU Mid-term Management Plan, we aim to enhance the SBU’s overall profitability and have set
targets of ROIC of 10%, operating profit of 10 billion yen and EBITDA of 15 billion yen for the fiscal year ending March
2026.
(Billions of yen)

Progress under Mid-term Management Plan 2023
Improving social value was a significant theme during thesecond year of the Mid-term Management Plan 2023, so weestablished two new committees during the year—the Gender
Diversity Initiative in September 2021 and the Sustainability
Committee in March 2022. We recognize gender diversity
as a particularly important issue and are taking actions
so that opinions and suggestions from women obtained
through dialogue are fed back to management to support andpromote women’s active participation.
Also, we have issued an Integrated Report since 2020and expanded disclosure of our environmental, social andPhase 3 (FY2031–)
Establishing APAC businesses as one of the pillars of PERSOL’s
growth and earnings

In the fiscal year ended March 2022, we achieved the planned targets for the fiscal year ending March 2023, the final year of the
Mid-term Management Plan, a year earlier than initially planned. Accordingly, new numerical targets for the fiscal year ending
March 2023 were set at higher forecast figures than the initial plan.
FY2021 Results

will initially strengthen our integrated managementfoundation and thoroughly improve profitability. In thesecond phase, we will use technology to transform ourbusiness model in collaboration with businesses inJapan and address the mobility of human resources.
In the third phase, which starts from 2031, we aim tohave Asia Pacific businesses become a pillar of theGroup’s growth and earnings.

governance-related information.
We also established the Group Sustainability Division,
aiming to steadily achieve “Work, and Smile.”
In terms of increasing economic value, we are pursuingongoing discussions and monitoring by the Board and othermanagement entities based on return on invested capital(ROIC). Although ROIC temporarily fell during the fiscal year
ended March 2021, we achieved 14.2% for the fiscal year
ended March 2022, surpassing our designated minimum
level of 10%.

Increase social value• Integrated Report 2021 was published in September 2021, thus enhancing ESG-related information.
• The Gender Diversity Initiative and the Sustainability Committee were established in September 2021 andMarch 2022, respectively.

Increase economic value• Discussion and monitoring based on ROIC were continued by the Board of Directors, etc.
• In the fiscal year ended March 2022, ROIC was 14.2%, exceeding 10% that was set as the minimal level.

Shift to a strategic business
unit (SBU) structure• The Corporate Governance Committee was established in July 2021 to enhance the governance function.
• This ensured the management oversight function even under an SBU structure that permits more prompt
decision-making.

Identify growth areas• Investment in M&A continues to be sought by the Professional Outsourcing SBU.

Strengthen business withtechnology• The beta version of “PERSOL MIRAIZ,” a career management service as the core of the “Future Vision of Work
Initiative*,” was launched in February 2022.

Numerical Targets of Particular Importance(FY2025)

ROIC

Operating Profit

EBITDA

10%

10 billion yen* 15 billion yen

Net sales
Operating profit
Operating profit margin
EBITDA* Calculated on an IFRS basis

EBITDA margin

FY2021 Results*(January to December 2021)

Final Year of
the Mid-term Management Plan
(April 2025 to March 2026)

APAC SBU Total Staffing business

APAC SBU Total Staffing business

338.0

241.0

400.0

3.8

4.7

10.0

300.0
9.0

1.2%

2.0%

2.5%

3.0%

8.9

5.2

15.0

11.0

2.6%

2.2%

3.8%

3.7%

* For the FY2021 results, to enable comparison with the targets in the final year of the Mid-term Management Plan under
the same conditions, exchange rates are converted to national currency rates based on 130 yen to the US dollar, andfigures based on the assumption of the transition to IFRS planned for introduction from the FY2023 were used.

Business Strategy
The Asia Pacific SBU Mid-term Management Plan
contains three strategies for improving profitability. The
first is to revise the business portfolio. We will create an
optimal portfolio through selection and concentration,
including improved profitability at the staffing businessby expanding the placement business across the entire
Asia Pacific SBU. The second is implementing structuralreforms and cost optimization, which will involve cost
reductions through initiatives including consolidating
the Asia-Pacific business’s head office functions andpursuing increased efficiency by moving functions andoperations offshore. The third is to boost productivity

through DX investment. We will work to improve theproductivity of placement business consultants bydeveloping AI matching and to raise productivity at thetemporary staffing business with automation tools andprocess improvement tools.

1 Revise the business portfolio
Implement structural reforms and2 cost optimization

3 Boost productivity through DX investment* An initiative that supports all individuals to work in ways that suits them and to chart their own future.

31

PERSOL Group Integrated Report 2022

PERSOL Group Integrated Report 2022

32

Introduction

Value Story

GovernanceValue Strategy

At a Glance

The PERSOL Group is engaged in a wide

Staffing SBU

Career SBU

Recent composition of sales

Recent composition of sales

range of services aimed at realizing

Professional Outsourcing SBU

Solution SBU

Asia Pacific SBU

Recent composition of sales

Recent composition of sales

Recent composition of sales“Work, and Smile” in various businessdomains, by sincerely and closely
assisting working individuals and withthe customer contacts and trust that

13%

16%
FY2021starting point.

65%

84%

have been created with our people as the

FY2021

22%

74%

40%

34%
FY2021

FY2021Engineering

Solutions

100%

26%

FY2021

26%
Temporary staffing

BPO

Permanent placement

IT

Job recruitment media

Temporary staffing (IT, engineering)

Programmed

PERSOLKELLY

OthersServices

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

Services

Services

Permanent placement(mid-career, new grad recruitment)
Career change media, direct recruiting
Side job, multiple jobs, freelancer support
Career self-reliance training
Outplacement support

Outsourcing (IT, business)
Digital solutions, system development
Business consulting
Engineering (design and experiment)
Temporary staffing (IT, engineering)

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

Features/Business Models

Features/Business Models

Features/Business Models

Subcontracting agreement

Job seekers

Labor supply contracts/staffing fee payments

Service users

Introduction

A wide range of services that go
beyond existing domains

Work instructions

Client companies
Corporate clients

Equipment/facility maintenance services

Corporate clients

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

Hiring companies
Permanent placement
Side job, freelancer

Temporary staffing of engineers, etc.

Outsourcing

Temporary staffing/permanent placement
Outsourcing
Equipment/facility maintenance services

Career change media

SBU Core Company/Representative Companies/
Examples of Handled Brands• PERSOL CAREER• PERSOL CAREER CONSULTING• Benesse i-Career** Benesse i-Career is a non-consolidated company.

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

Outsourcing contracts

Outsourcing contracts

Employment contracts/salary payments

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 INNOVATION

Employment contracts
Provision of labor

Employment
contracts/salary
payments

Job seekers in eachcountry and region

Work instructions

Client companies

SBU Core Company/Representative Companies/
Examples of Handled Brands• PERSOL TEMPSTAFF• PERSOL EXCEL HR PARTNERS• PERSOL FACTORY PARTNERS• PERSOL MARKETING• PERSOL WORKS DESIGN

Provision of labor

Advertisement listing applications/advertisement listing services

Outsourcing contracts

Temporary staffing
Outsourcing
Permanent placement

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

Features/Business Models

Digital solutions in the HR fieldTemporary engineers
Service provision

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

Employment contracts

Labor supply contracts/
staffing fee payments

Introduction

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

Job applications

Job applications

Introduction

Services

Provision of information over the Internet

Applying for jobs

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

Temporary staff

Employment contracts

Services

Job applications
Employment contracts/salary payments

Provision of laborwhich provide employment services for thedisabled.

Features/Business Models

Work instructions

We offer highly specialized services uniqueto the PERSOL Group, including PERSOLRESEARCH AND CONSULTING, which
conducts surveys and research related toorganizations and human resources, andprovides consulting and training services
centered on the development of people,
organizations and management; andPERSOL CHALLENGE and PERSOL THANKS,

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

Corporateclients/clientcompanies

SBU Core Company/Representative Companies/
Examples of Handled Brands• PERSOL Asia Pacific• PERSOLKELLY• Programmed Maintenance Services

Core Company/Representative Companies

PERSOL RESEARCH AND CONSULTING,PERSOL CHALLENGE, PERSOL THANKS,PERSOL NEXTAGE, PERSOL FACILITYMANAGEMENT, PERSOL VENTURE
PARTNERS, PERSOL Global Workforce

33

PERSOL Group Integrated Report 2022

PERSOL Group Integrated Report 2022

34

Value Story

Introduction

Message from the Deputy President

PERSOL will use the comprehensive strength of the Group to

Staffing SBU

create new value to eliminate mismatches in the growing labor

Making steady progress in using technology to strengthen ourbusiness foundation and increase staff satisfaction (gaining fans)

Hirotoshi Takahashi

Kazunari Kimura

Representative Director and Deputy President

Executive Officer,
Staffing SBU Lead

(Billions of yen)

The PERSOL Group is working with five SBUs. The Staffing SBU

In terms of progress under the key strategies of the Mid-is engaged in temporary staffing, which is the Group’s originalterm Management Plan, in April 2020, we transitioned to an

business, and Business Process Outsourcing (BPO). Permanent

SBU structure and expedited execution by transferring decision-placement, including mid-career placement, is the coremaking related to operational execution to the respective

business of the Career SBU. The Professional Outsourcing SBU

SBUs. In addition, we established the Corporate Governancehandles the temporary staffing of specialists and engineers in

Committee in July 2021 and, through this and other measures,fields including IT & engineering as well as the development of

have been further increasing the effectiveness of our corporate

outsourced contracting businesses. The Solution SBU provides

governance. With regard to “identifying growth areas,” wedigital solution services in fields, including employment

are prioritizing investment in areas including the hiring of

support and human resources management while creating

engineers at the Professional Outsourcing SBU to make it the

new businesses. The Asia Pacific SBU is engaged in temporary

Group’s third business pillar, while continuing to explore large-

staffing, permanent placement and other services in major

scale investments, including M&As. We have also worked on

cities in the Asia-Pacific region. Each SBU will continue tobuilding foundations and improving profitability with the aim

expand the value it provides to customers and achieve “Work,of making proactive investment from 2023 at the Solution SBU

and Smile” during the fiscal year ending March 2023.

and the Asia Pacific SBU. Under these circumstances, regarding

Recently, the markets for hiring and employment havethe Asia Pacific SBU, we made an early announcement of the

been undergoing drastic changes, and we recognize that theunit’s next Mid-term Management Plan in August 2022 to lookchanges in the PERSOL Group’s operating environment are also

toward the future and achieve rapid and significant growthsignificant. The digitalization of society in general is accelerating(refer to page 32). We are working to “strengthen our businesschange in the business environment, a trend accompanied bywith technology” through investment in IT and DX to raisechanges in the knowledge and skills that organizations seek

productivity and increase customer satisfaction, while building

in workers. At the same time, COVID-19 has brought about

platforms to promote the “Future Vision of Work Initiative.”paradigm shifts in individual lifestyles and values, and these

Going forward, we will continue to fuse people and technologies

changes in both organizations and individuals are causing

in each business field to meet the diverse needs of customers,“mismatches in employment” to increase even more. We

an approach that will lead to providing even greater value.

Net sales

575.7

530.2

510.1

Competitive Advantage and Strategic Direction

Operating profit

39.3
29.1

23.8

FY2019FY2020

FY2021

Opportunities and risks
Opportunities• Creation of employment opportunities from diversification of work
styles• Stronger foundation and improved productivity from use of technology

Risks• Declines in number of orders and operating rate due to renewed
spread of COVID-19• Medium- to long-term decline in working-age population and lower
demand due to advances in automation

Progress under the Mid-term Management Plan

unique possible solutions to the issue of expanding choices foropportunities for changing jobs throughout one’s life to increase

working individuals and the issue of eliminating labor shortages

and to see diverse work styles evolving further. In addition toand insufficient human resources at companies. Using theproviding job choices, it is becoming increasingly important tohuge amount of work-related information collected through ourhelp make it possible to achieve career goals while shortening job

diverse services and the experience of our tens of thousands

search periods and minimizing mental stress. We recognize that

Following the “Temp App” for people working at TEMPSTAFF
and the “T-PLA” platform for corporate clients, we are also
developing an application in-house for employees andbuilding a platform for consolidating and analyzing theinformation collected, as we make maximum use of evolving
technologies to accelerate our DX to increase the value of
people and boost operational productivity.
To provide a broad range of employment opportunities,
we are also developing services including FlexibleCAREER,
Remote Temp, funtable, Chall-edge, RPA Associates and
Nekusuku.
In addition, we are carrying out initiatives including staff
recognition programs and fan meetings. As a result, staff
members’ Fan Index (degree of reliability and a sense of
attachment) has been improved year by year, leading toongoing relationships.

of employees and more than 110,000 people dispatched as

this is the role of the PERSOL Group. During the fiscal year ending* Please refer to page 18 for more information about the Fan Index.

temporary staff, we will refine our existing services and create

March 2023, the final year of the Mid-term Management Plan, we

new services. By doing this, we hope to eliminate as many

will refine our businesses and build management foundations

issues facing society, individuals and companies as possible andfor a smooth transition to the next Mid-term Management Plan,

to meet the expectations of our customers.

making every effort to achieve “Work, and Smile.”

consider our top priorities to be the presentation of PERSOL’s

PERSOL Group Integrated Report 2022

GovernanceBusiness Overview by SBU

markets as the work environment changes.

35

Value Strategy

As we enter “the era of a 100-year lifespan,” we expect

Working to expand market share further with ouradvanced capabilities in resolving issues and support
from working individuals
The Staffing SBU is engaged in the temporary staffing businessmainly for clerical work for a wide variety of industries and fordeveloping Business Process Outsourcing (BPO). With top market
share* in temporary staffing for clerical work, we are using ourbiggest strengths of a solid business foundation and trust to
demonstrate our advanced capabilities in resolving issues throughtemporary staffing and outsourcing business tie-ups. We areworking to increase our share of the market for temporary clericalstaffing by proposing optimal solutions tailored to customers’ needs
and strengthening our dispatching of human resources who can
respond to diverse work styles and digitalization. We are providing
working individuals with opportunities, awareness and diverse
choices to realize “Work, and Smile,” with the aim of becoming thegroup continuously chosen by temporary staff with their reliability
and a sense of attachment by having them become fans through an
ongoing relationship.
* Company survey as of February 2021

Results for Fiscal Year Ended March 2022

Strongly driving the Group’s growth with solid resultsin temporary staffing and BPO fields
Despite the COVID-19 pandemic, the numbers of both orders andconfirmed contracts in the temporary staffing field were solid.
We also invested proactively in advertising for temporary staff
recruitment. The number of dispatched temporary staff members
grew throughout the year and, as of March 2022, exceeded 110,000.
Orders in the highly profitable BPO field were strong, particularly
for public-sector projects. As a result, the Staffing SBU as a whole
recorded high sales and profit growth, with increases of 8.6% in net
sales and 35.1% in operating profit, results that drove the PERSOLGroup’s overall growth. We will continue to work for steady growthin both the temporary staffing and BPO fields and to establish a firm
position in the domestic market.

PERSOL Group Integrated Report 2022

36

Value Story

Introduction

Value Strategy

Governance

Career SBU

Professional Outsourcing SBU

Appropriately identifying and addressing circumstances of

Pursuing challenges of new fields (technologies, processes,

job seekers and companies and steadily improving value ofindustries) while maintaining solid growth in existing fields

customer experience
Shinji Masaki

Yu Senoo

Executive Officer,
Professional Outsourcing SBU Lead

Executive Officer,
Career SBU Lead

Competitive Advantage and Strategic Direction

Competitive Advantage and Strategic Direction(Billions of yen)

Net sales

Operating profit

83.4(Billions of yen)

75.2

13.2
59.5

7.2

0.3

FY2019FY2020

FY2021

Opportunities and risks
Opportunities• Medium- to long-term market growth in career change business• Growth in career change demand from increased desire forindividual career formation• Increased productivity through digitalization and use of AI

Risks• Increased market competition from emergence of competitors• Less interest in hiring at companies due to weakening businesssentiment

Progress under the Mid-term Management Plan
The number of people changing jobs per year in theworking population is expected to grow beyond the prepandemic level, and we are therefore forecasting growthin the permanent placement market as a channel for the
influx of people changing jobs. We are building an evenmore data-driven structure, developing matching models
that appropriately address the situation and circumstancesof individuals and projects and introducing an AI matchingsystem to appropriately define application requirements todeliver “appropriate services and appropriate informationfor each customer, with appropriate timing.” In addition,
we are strengthening our ability to secure projects in highclass fields and working to maximize our ability to attract
customers and in matching in the IT field, with the aims of
maintaining and raising unit prices. We will continue to lead
the Group as a growth driver.

37

PERSOL Group Integrated Report 2022

Working to grow our business by increasing
the number of individuals who are aware of and act
on determining their own “work” themselves
The Career SBU’s main businesses cover the field of regular
employees, including the operation of the “doda” recruiting media, acharged employment placement business, a business that supportsside jobs, multiple jobs and freelance work, and an outplacement
support business. To increase the number of individuals who
determine their own “work” themselves, from the fiscal year ended
March 2021, we regularly measure the Career Ownership Index*,
which incorporates both awareness and action. Although demandfor our main services was temporarily sluggish during the fiscal
year ended March 2022 due to the COVID-19 pandemic, the monthly
number of active users for the majority of services grew steadily
during the year.
Going forward, we aim to achieve “Work, and Smile” by improving
the customer experience in existing services, by developing newservices and by repeatedly identifying significant points from survey
results to increase the number of service users, helping working
individuals to build careers on their own.

105.8

Net sales

6.3

Operating profit

121.1

113.0

6.9

4.0

FY2019FY2020

FY2021

Opportunities and risks
Opportunities• Reviews of operational processes and growing automation needs
for increased operational efficiency and labor savings against
backdrop of labor shortages• In light of the above, growing need for recurrent education for
individuals and more people wanting to change jobs including
those without experience

Risks• Intensifying recruitment of engineers• Response to technology obsolescence amid increasingly rapidtransformations in demand* Please refer to page 18 for more information about the Career Ownership Index.

Progress under the Mid-term Management Plan
Results for Fiscal Year Ended March 2022

Achieving sales and profit growth by strongly
recovering in both the permanent placement businessand the job advertising businessWith both the number of informal appointments of workers in thepermanent placement business and the number of orders in the
job advertising business recovering, the SBU recorded higher sales
and significantly higher profit growth, increasing net sales 26.4%
and operating profit 2,088.9% over those of the previous year.
Demand was steady, with orders from companies recovering to prepandemic levels. The number of newly registered job seekers fellin the fiscal year ended March 2021 largely due to COVID-19, but
in the fiscal year ended March 2022, it recovered to above the prepandemic level.
Aiming for further growth, we will continue to refine processes,
including improving the quality of matching, and continue to invest in
marketing to increase the number of newly registered job seekers.

The companies within the Professional Outsourcing SBU are
further refining their strengths in their existing business fields
while maintaining solid growth and pursuing challenges in
new fields.
With trends of recovery in the IT, machinery and electricity
markets, operating rates are higher than those of mostother years, but we are keeping a close eye on the shortageof engineers and continuing to strengthen our expansion of
education and training, including recurrent education, androtations to increase engineers’ added value. We are also
proactively taking up the challenge of the IoT and other new
fields to address needs for automation and labor savings,
while aiming for further growth through stepping up ourrecruitment of engineers and M&As.

Seeking growth by strengthening businesses withtechnology and stepping up hiring of engineers
The Professional Outsourcing SBU is engaged in design anddevelopment outsourced contracting businesses and temporary
staffing business in the IT and engineering fields, as well as
business consulting. We expect another year of solid growth in thefiscal year ending March 2023 and are aiming for a roughly 50%
increase in our hiring of engineers over that of the previous year,
while expanding our career support and training programs forengineers to bolster their technological capabilities. In addition,
we are working to raise billing rates by continuing to strengthen
our marketing capabilities and providing high-unit-priced services
including business consulting using our outsourcing expertise.
At the same time, we are proactively using our technologicalcapabilities to address increasingly important social issues like
decarbonization.

Results for Fiscal Year Ended March 2022

Steady recovery in engineering field, continuation ofsolid growth in IT field
Demand in the IT field remains solid, and in the engineering field,
we are strengthening our marketing and stepping up recruiting
to raise engineers’ operating rates. With growth in both fields, the
SBU’s net sales rose 7.1% from those of the previous year, with
a 72.1% increase in operating profit. Also, we maintained highoperating rates of roughly 95% in both the IT and engineering
fields. The number of client companies for the SBU as a wholesurpassed 2,000, as we strengthened our new client developmentin the engineering field in particular, as the market rebounded andinquiries rose, and as other fields continued to show solid results.
The number of engineers also increased from that of the previous
year to roughly 14,000, and going forward we intend to focus on
the recruiting of engineers.

PERSOL Group Integrated Report 2022

38

Value Story

Introduction

Asia Pacific SBU

Maintaining high growth through portfolio and investment

Steady sales growth and improved profitability centered on

management by creating, verifying and expanding businesses

staffing businessTakayuki Yamazaki
Executive Officer,
Asia Pacific SBU Lead

Executive Officer,
Solution SBU Lead

Competitive Advantage and Strategic Direction
Net sales

Operating profit (loss)

Speedy creation of new businesses through “healthy,
prolific and efficient” management system and use ofexisting assets

5.7

(1.6)

FY2019(4.8)

FY2020(3.0)

FY2021

Opportunities and risks
Opportunities• Evolution of diverse work styles in response to labor shortages
including that from contraction of working-age population• Appearance of Web 3.0 and other new work environments that
support changes in values and diversification of individual work
styles• As technology and job-based employment spread, increased
demand for update of skills needed for work

Risks

• Low rate of digitalization and productivity increases at companies
against backdrop of Japan’s unique low human resource mobility

Progress under the Mid-term Management Plan
Aiming for higher business growth, the Solution SBU
is managing and investing in its portfolio to develop
businesses with the potential to become new businesspillars for the Group.
Growth stage businesses such as “MIIDAS” have steadily
expanded their market position through proactive investment.
In the learning business and “Drit” incubation program, which
are in the research and development stage, we invested ina balanced manner, proposing new services to the market
including withdrawal from businesses at an early stage
depending on their verification status. Through M&As andbusiness tie-ups, we have also entered the nursing carebusiness, which has major human resource issues.
Going forward, we will maintain high growth rates by
speedily creating and expanding next-generation businesses.

39

PERSOL Group Integrated Report 2022

Competitive Advantage and Strategic Direction(Billions of yen)

11.1
7.0

Governance

Solution SBU

Toshihito Nagai(Billions of yen)

Value Strategy

To achieve “Work, and Smile” in the future, the Solution SBU is using
a management system separate from that of existing businesses toprovide new value that transcends the divisions within the humanresource business.
We are nurturing businesses while creating many new businesses
needed for the future, verifying them and making decisions towithdraw some at an early date. These efforts include a new matchingbusiness that connects companies and individuals to eliminate labor
shortages, services that integrate people and digital technologies toreduce work-related burdens, and a learning business that maximizes
possibilities through relearning. We are also using M&As to pursue
new fields including nursing care and Web 3.0.
Going forward, we will use assets including expertise gained by
the Group through its existing businesses to quickly realize nextgeneration businesses that contribute to the Group’s development
and transformation.

Net sales

273.2

Operating profit (loss)

Restructuring to optimize cost structure and focus on
highly profitable businesses

290.1

251.4

1.0
(0.4)

FY2019(2.2)

FY2020

FY2021* Effective in the three months ended December 2021, the accounting process waschanged for SaaS (Software as a Service) in the Australian business in the Asia Pacific
SBU. Accordingly, the said change is also reflected in the values for the fiscal year
ended March 2021 and the fiscal year ended March 2022, respectively.

Opportunities and risks
Opportunities• Recovery from COVID-19 in demand for human resources• Expectations for growth in working-age population, especially inSoutheast Asia
• Opportunities for business expansion by addressing diverse work
styles post-COVID-19

Risks

Results for Fiscal Year Ended March 2022

• Appearance of new players in field and debut of alternative services
due to technological advances• Risk from foreign exchange rate fluctuations• Human resource shortages from drastic market recovery

Continuing upfront investment while reducing losses
with a contribution from sales growth of our main
business

Progress under the Mid-term Management Plan

In our main business, the “MIIDAS” career change app business, thecumulative number of corporate accounts grew through services
that meet the hiring and training needs of small and mediumsize companies. Also, in the “POS+” cloud-based POS business,the cumulative number of installations at stores increased due toimprovements in operational efficiency at local governments andmajor restaurants by strengthening the direct sales structure. These
led to high sales growth at both of the SBU’s businesses. In addition,
improved usability for the “Sharefull” platform for the short-term
human resource utilization business has led to the steady expansionof the client base, especially among younger users and, as a result,
the SBU as a whole recorded a large increase in net sales.
In terms of profit and loss, upfront investment in businesses to gain
superior competitive positions over the medium to long term meantthat the SBU recorded an operating loss for the fiscal year ended
March 2022, but the loss narrowed from that of the previous year.

Having completed a reorganization to increase profitability,
the Asia Pacific SBU is focusing on highly profitablebusinesses and businesses where future growth is forecast
under its renewed structure. Boosted by a recovery fromCOVID-19, the staffing business aims to maintain its No. 1
position in Singapore and Malaysia, while achieving steadysales growth in other emerging Southeast Asian countries,
Australia and New Zealand by focusing on staffing in theoffice-based job domain. The maintenance business is also
recording steady growth, aiming for further growth fromthe fiscal year ending March 2023 by focusing on the highly
capital-efficient facility management business.
At the same time, we are working to improve cost
efficiency further with an additional push toward integrating
and consolidating back-office functions, while pursuingbusiness in the “human resource (HR) technology” field andDX of operation.

The PERSOL Group’s overseas business is organized for integrated
management across the SBU. Having acquired additional shares in
PERSOLKELLY to bring our shareholding to 97.5%, the Asia Pacific
SBU has carried out major restructuring across the unit. Following the
integration of back-office functions that began with the launch of thecurrent Mid-term Management Plan, the staffing business (temporary
staffing, permanent placement) at Programmed and PERSOLKELLY,
which previously operated independently, has been restructured.
This is intended not only to improve profitability and create synergies
but also to facilitate swift business decision-making to respond as
quickly as possible to changes like offshore hiring across national
borders, with the aim of becoming the Asia-Pacific region’s No. 1
comprehensive human resource services company.
In addition, the regional management company PERSOL Asia
Pacific is taking the lead in investing in and developing newtechnologies to improve consultants’ operational efficiency withinvestments in AI matching technologies and to provide customers
with added value.

Results for Fiscal Year Ended March 2022

Returning to profitability on growth at both staffing
and maintenance businesses
With the recovery in the global economy, the temporary staffing
business was solid and the permanent placement business recordedhigh growth, resulting in an 8.4% increase in net sales from those of
the previous year. We also made investments to increase headcountfor the future but maintained solid results in all areas in which we
operate, including Singapore and Malaysia, where we have the top
market share. As a result, the operating loss turned around to an
operating profit.
In Australia and New Zealand, both the staffing and maintenancebusinesses saw a recovery in new orders and, with a positive
foreign exchange effect as well, net sales increased 18.1%. In
addition, efforts to control costs in back-office functions resulted ina turnaround to an operating profit. As a result, the Asia Pacific SBU
as a whole turned around to an operating profit.

PERSOL Group Integrated Report 2022

40

Value Story

Introduction

Value Strategy

Governance

Message from the Chairperson of the Board

History of and Basic Policy on Governance at the PERSOL Group

Making every effort to enhance sustainability

Principles
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

and corporate value through more advanced
corporate governancebusinesses 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.

History of strengthening corporate governance

Masamichi Mizuta

2015

Chairperson of the Board

2016

2017

2018

2019

2020

Shifted to a Company with
the Supervisory Committee

Oversight function

2021

2022

Separated between Chairperson of the Board and CEO
Established the Lead Independent Director
Established the Corporate Governance Guideline

as we actively establish a management structure for swift, flexible decision-making and the further deployment ofStrengthening of
the oversight function

As the change in the work environment accelerates, we are constantly striving to transform corporate governancemanagement oversight functions.

Established the Nomination andCompensation Committee

Advisory committee

Appointed a woman director
Nomination of directors

Directors (of which,
Independent Directors)

6 (1)

10 (4)

10 (4)

11 (5)

11 (5)

have a management structure that delegates crucial

airs.” Throughout my eight years as President and CEO,decisions regarding operational execution to the CEO, andand since becoming Chairperson of the Board, I have kept

senior executives can make their decisions swiftly andthe “Three Nevers” in mind as a crucial underpinning of theflexibly. Furthermore, the Nomination and Compensation

PERSOL’s corporate governance.

Committee oversaw the CEO succession plan, and the

The purpose of corporate governance is to enhance
corporate value over the medium to long term. Therefore,

and CEO after extensive deliberation. It means that there is

the Board of Directors is entrusted by shareholders toan appropriate separation of management and oversightundertake the crucial function of management oversight. I

between Mr. Wada, who has ultimate management

do not believe management oversight is looking down from

responsibility as CEO, and me, as Chairperson of the Board.

above on the CEO and other senior executives. Instead, I
see it as building relationships of mutual trust through daily

In this context, the Board engages in truthfully open,
vigorous, and constructive deliberation, which seniordialogue with them, designing an environment in which

executives approach with intensity. I believe this results

they are fully engaged in management, and occasionallyin Board deliberations in which Independent Directors andproviding encouragement so that they make firm decisions.
During the global COVID-19 pandemic of the last two and a

41

Board unanimously approved Takao Wada as President

other Board members with various backgrounds willingly
make use of their diverse knowledge, experiences, andhalf years, I sense that the change in the work environment

capabilities, as shown in the skill matrix on the following

has accelerated compared to what we thought before thepage.

pandemic. These are described by factors like the aging ofAs sustainability becomes a major issue globally, themost workers, the increasing frequency of job changes, theCompany is strengthening its structure for addressing

blurring of the distinction between regular and non-regularclimate change and other aspects of sustainability toemployees, the shift to job-based employment, and theachieve a sustainable society that gives a true feeling ofincrease of freelance work, side jobs, and multiple jobs.

“Work, and Smile” to all people. We consider overseeing

To address these changes promptly, the Company

sustainability management a crucial Board responsibility.

has been actively pursuing various reforms in corporate

Through more advanced corporate governance, we will

governance. We intend to maintain a “monitoring board”

make every effort to enhance PERSOL’s sustainability andas a type of Board, with Independent Directors now

corporate value.

PERSOL Group Integrated Report 2022

Compensation
Execution systemsystem“Never get angry, Never be overbearing, and Never put on

9 (5)

9 (5)

9 (5)

Began effectiveness evaluation of the Board
Formulated the Policy for Constructive Dialogue with
Shareholders and Investors

Dialogues with shareholders

composing the majority of the Board. In addition, we

Appointed a Board whose majority is Independent Directors

Established the Independence Criteria
for External Directors

Effectiveness evaluation

Yoshiko Shinohara, PERSOL’s founder, used to advise me:

Established the Corporate Governance Committee

Introduced a share-based compensation
scheme for senior executives

Revised the director and executive
compensation system

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.

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.

The PERSOL Group appropriately discloses its financial information such as financial standing and operating results,
3. Securing Appropriate Disclosure of Information
corporate strategies, and risk management, and ensures transparency of information disclosure. The PERSOL Groupand Transparency
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, andendeavor to take appropriate measures based on the understanding of the standpoint of shareholders. The Board shallestablish 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 2022

42

Value Story

Introduction

Value Strategy

GovernanceCorporate Governance Structure

Overview of corporate governance structure

Features of corporate governance structure• The chairperson is a non-executive director.
• The Board is composed of a majority of Independent Directors.
(Five of the nine directors are Independent Directors.)• In addition to the statutory Supervisory Committee, theNomination and Compensation Committee and the Corporate
Governance Committee have been established as voluntarycommittees. Both of those committees are composed of amajority of Independent Directors, and Independent Directors
serve as chairpersons.
• The position of Lead Independent Director has been
established.

The Board(Fiscal year ended March 2022: held 13 times)
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 the execution of important
operations set forth in the Regulations for the Board shallbe made by the Board.

Nomination and Compensation Committee(Fiscal year ended March 2022: held nine times)
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)• Approval of a CEO succession plan

43

PERSOL Group Integrated Report 2022

Corporate governance structure
As of October 21, 2022
Usage Guide:
Ratio of Non-executive Directors: 7/9

CEOInternal Director

Ratio of Independent Directors: 5/9

Independent Director

1/2 or

General Meeting of Shareholders

above

1/2 orabove

Appointment
and Dismissal

Appointment
and Dismissal

Appointment
and Dismissal

Nomination andCompensation Committee
The Board

Advisory

Directors who are not Supervisory
Committee Members

Chairperson

Corporate Governance Committee

Supervisory Committee
Audit

Directors who are Supervisory
Committee Members

ReportChairperson

Chairperson

Audit

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

Audit

ReportReportExternal Auditor

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
established 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.

Accounting Audit
Approval/
Coordination

ReportCEO
SBUs leadCorporate Functions lead

Staffing SBU

CFO

Headquarters Management Committee

Career SBU

CSO

Investment Committee

Professional Outsourcing SBU

CHRORisk Management Committee

Solution SBU

CIO/CDO

Human Resources Committee

Asia Pacific SBU

Internal Audit Division

Technology Committee
Gender Diversity Initiative
Sustainability Committee

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)

Corporate Governance Committee(Fiscal year ended March 2022: held eight times)
The purpose of the Corporate Governance Committee
is to enhance the supervisory functions of the Board bydiscussing 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 the Boardand committees under the Board

Headquarters Management Committee (HMC)(Fiscal year ended March 2022: held 24 times)
The Company adopts the Executive Officer system withthe purpose of separating the oversight and management
and clarifying where management responsibility lies. In
addition, Headquarters Management Committee (HMC) isestablished to assist the CEO in making decisions on the
PERSOL Group’s basic management policy and important
operations. The decisions on the execution of important
operations delegated to the CEO by the Board shall bedecided by the CEO on the condition that the HMC has madean affirmative resolution. Based on the concept that themembers 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 nominationof the HMC members shall be prepared by the CEO fromamong the executive officers, and shall be approvedat the Board upon deliberation at the Nomination andCompensation Committee.
The Company has also established six committees(Investment Committee, Risk Management Committee,

Human Resources Committee, Technology Committee,
Gender Diversity Initiative and Sustainability Committee)
under HMC to improve the effectiveness of the Group’s
internal control system.
The Investment Committee deliberates on importantmatters related to the Group’s overall investment andaims to raise the Group’s organizational knowledge of aseries of knowledge related to investment promotion. The
Risk Management Committee deliberates on the overallrisk 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 Initiative deliberates on theGroup’s strategies to promote the advancement of womenand related key strategies. With the CEO as the chairperson,
the Sustainability Committee deliberates on sustainability
and related management agenda to further promotesustainability management, in the belief that sustainability
is the highest priority management issue.
Each of the six committees is accountable to HMC and ispositioned to supplement and strengthen its functions.

Supervisory Committee(Fiscal year ended March 2022: held 13 times)
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 directors and the
preparation of audit reports• Decision on details of the agenda concerning theappointment, dismissal and refusal of reappointment of an
external auditor• Decision on the opinion of the Supervisory Committee
concerning the appointment, dismissal, resignation orcompensation of directors (excluding directors who are theSupervisory Committee Members)

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.

PERSOL Group Integrated Report 2022

44

Introduction

Value Story

Value Strategy

GovernanceDiscussion with Independent Directors

opinions more efficiently.

achieving the targets and have

Yamauchi: The PERSOL Group’s Board carries out anmore in-depth deliberation

ongoing PDCA cycle by summarizing various measuresinternally about what rolefor improvement as comprehensive evaluations of thethe PERSOL Group can play ineffectiveness of the Board of Directors and identifying

addressing these social issues. I

additional areas for improvement. I consider the external

want the results of those deliberations

assessments in the future essential for maintaining a third-

to focus on our sustainability management.

party perspective and preventing the Board from becoming

Investing proactively in solutions and innovation will be

self-satisfied with measures for improvement.

essential to realize “Work, and Smile” in the Asia-Pacificregion and Japan.

Masaki Yamauchi

Chisa Enomoto

Independent Director
Chairperson of the Corporate Governance Committee
Member of the Nomination and Compensation Committee

Independent Director(Member of Supervisory Committee)

The PERSOL Group is pursuing various measures to increase the Board’s effectiveness. Seeking further

45

Q: What do you view positively, and what do you
see as areas for improvement in the Board’s
composition and “diversity of perspectives”?

do not see this as having led to measures that recognize

Yamauchi: “Diversity of perspectives” is crucial for increasingsustainability as a driver to enhance corporate value over

Yamauchi: It is just as Ms. Enomoto has said. Although
the Company has been addressing sustainability to date, I

the Board’s effectiveness. PERSOL discusses the role thethe medium to long term. Sustainability management, in the

Board should play and the composition and skills needed totrue sense of the time, is something we have just begun, and I

perform that role, then releases the results as a skill matrix.

would like to see more focus on efforts to achieve it. I believe

Based on those discussions, we have further strengthened

that the PERSOL Group is one of the significant corporate

the governance structure by having Mr. Kazuhiro Yoshizawa,groups that can offer solutions to an aging population and a

who has a wealth of expertise in technology, join the Board aslabor shortage, which are critical social issues facing Japan.

an Independent Director in June 2022 to address the criticalStrengthening our management by focusing on sustainabilityGroup management issue of strengthening our technology.

means that the PERSOL Group’s role in shaping Japan’s

However, this arrangement is not the final step. I believe that

future is bound to increase.

in the future, we should continue reviewing the skills needed

improvement, we discussed issues in the Group’s corporate governance and sustainability management with theto anticipate changes in the times to strengthen the Board

Independent Directors.

regularly. Also, a favorable organizational culture will be
indispensable for deploying the full effect of this “diversity

Q: Finally, do you have any thoughts about
management issues that the PERSOL Group should
address?

of perspectives.” We must create a culture where different

Enomoto: The PERSOL Group seeks to connect people

Q: How would you evaluate the PERSOL Group Board’s
effectiveness?

believe we must make better

perspectives and opinions are mutually recognized. Achieving

throughout Japan and the Asia-Pacific region to increaseuse of time allocation andand maintaining an organizational culture that supports

choices related to “work” to create unlimited possibilities. This

Enomoto: In addition to promoting understanding andadvance explanations ofdiversity would facilitate healthy deliberation in management

initiative will lead to the embodiment of “Work, and Smile.”deliberation in setting the agenda and sharing information

essential agenda items. In

decision-making about risk-taking. I am confident that thisTo achieve this, contributing to resolving social issues related

about progress under the Mid-term Management Plan, I

addition, during our ongoing

would lead to swift, proactive decision-making by senior

to working by leveraging our aggregated data about the

believe the Board does an excellent job of appropriately

consideration of the formulation

executives.

awareness and thinking of the working people who play theallocating time during its meetings. It also creates anof the next Mid-term Management

Enomoto: This is why we cannot rely only on our experience

leading role in human capital management will be essential.

environment where it is easy to speak out, and I feel that

Plan in the fiscal year ending Marchto date; we need to polish our skills with a view toward

Then, the PERSOL Group, which brings together people withother members are proactively receptive to the opinions of2023, a significant point to discuss will bechanges in the social structure going forward. I also hope thatvarious abilities, should demonstrate a successful example ofIndependent Directors. For example, the seating arrangement

what kind of monitoring is needed to understand the progresssenior executives will continue to have the same diversity ofcorporate growth by aligning its trajectory with the future andat Board meetings does not separate the internal directors

being made under the plan accurately.

perspectives and further polish their skills. Deliberation basedenhancing employee engagement.

from the Independent Directors, which is a good way of

Enomoto: I agree about the importance of involving the Boardon sufficient and highly transparent information from senior

Yamauchi: People live to be happy. Nevertheless, what

promoting honest discussion. I also feel that the wrap-up of

in formulating the next Mid-term Management Plan. I also

executives and diverse opinions can be essential for future

constitutes happiness and which choices are needed tothe day’s proceedings by Mr. Wada before the end of eachconsider it extremely important to proactively exchange

Board meetings.

meeting is perfect.

opinions with the executive officers attending Board meetings,

achieve satisfaction varies from person to person. ThePERSOL Group has many contact points for working people

Yamauchi: The Board of the PERSOL Group has free and open

as we can develop a better plan. As an issue for the future, I

deliberation. The Board’s effectiveness has improved over thewould like to consider more effective ways of communicating

two years since I joined. One example is that explaining agenda

the outcomes of these Board deliberations to employees. We

items before the meeting makes the reviews very meaningful.

Directors, also want to encourage the Group’s roughly 60,000

Enomoto: I am an advisor to the Sustainability Committee

ways to achieve this for society as a whole. I sincerely

I also appreciate the wrap-up that Ms. Enomoto mentioned

employees. I hope to convey this feeling to employees andof the Company. The PERSOL Group has set targets forhope that the PERSOL Group will become a company withas a helpful way to continue these deep deliberations until

believe it would be ideal for both Directors and employees if

promoting diversity and achieving carbon neutrality and has

tremendous competitiveness by handling this management

the next meeting. To encourage further Board deliberation, I

Directors were able to receive workplace deliberations andbegun formulating a road map to meet them. Let us work on

issue.

PERSOL Group Integrated Report 2022

Q: What are your views about the meaning ofsustainability management and its effect on
corporate value?

and companies and a good understanding of their various
needs. The Group considers the achievement of workplace
well-being a vital management issue and should disseminate

PERSOL Group Integrated Report 2022

46

Value Story

Introduction

Value Strategy

GovernanceDirectors and Executive Officers (as of October 21, 2022)

Director
Directors who are not Supervisory Committee Members

Masamichi Mizuta

Directors who are Supervisory Committee Members

Takao Wada

Director and Chairperson

Daisuke Hayashi

Representative Director, President and CEO

Chisa Enomoto

Director (Member of Supervisory Committee)

Important concurrent posts

Important concurrent posts

Important concurrent posts

External Director of Linkers Co., Ltd.

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

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

Number of years in office

Number of years in office

13 years and 8 months

13 years and 8 months

Independent

Independent Director(Member of Supervisory Committee)
Important concurrent posts

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

Number of years in office

1 yearNumber of years in office

4 years

Hirotoshi Takahashi

Ryosuke Tamakoshi

Representative Director and Deputy President

Kazuhiko Tomoda

Independent

Independent Director

Important concurrent posts

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

Honorary Advisor of MUFG Bank, Ltd.

Independent

Independent Director(Member of Supervisory Committee)
Important concurrent posts

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

Number of years in office

6 years

Number of years in office

Number of years in office

2 years

9 years

Masaki Yamauchi

Independent

Independent Director

Kazuhiro Yoshizawa

Executive Officer
Independent

Independent Director

Important concurrent posts

Important concurrent posts

Takao Wada

Representative Director, President and CEO

Kazunari Kimura

Executive Officer, Staffing SBU Lead

Executive Advisor of Yamato Holdings Co., Ltd.
External Director of Resona Holdings, Inc.

Corporate Advisor of NTT DOCOMO, INC.
Outside Director of Sony Financial Group Inc.

Hirotoshi Takahashi

Representative Director and Deputy President

Yu Senoo

Executive Officer, Career SBU Lead

Taro Mineo

Executive Officer CSO

Shinji Masaki

Executive Officer, Professional Outsourcing SBU Lead

Hirotaka Mino

Executive Officer CHRO

Toshihito Nagai

Executive Officer, Solution SBU Lead

Yuta Tsuge

Executive Officer CIO/CDO

Takayuki Yamazaki

Executive Officer, Asia Pacific SBU Lead

Junji Tokunaga

Executive Officer CFO

Number of years in office

Number of years in office

2 years

Newly appointed

Composition of the Board (as of October 21, 2022)

Board Skill Matrix (as of October 21, 2022)

Ratio of Independent Directors: 55%

Skills that the board of directors should have (knowledge, experience and capability) (Note)
Name/Position

5 Independent Directors

Ratio of Non-executive Directors: 77%

4 Internal Directors

2 Executive Directors

7 Non-executive Directors

Ratio of women directors: 11%

8 men directors

1 woman director

GenderCorporate Management andStrategyInnovation/Technology

HR and Organizational
Development

Internationality

Risk Management/
Legal Affairs

Finance/Accounting

Sustainability/ESG

Masamichi Mizuta

Chairperson of the Board

Man

●

●

●

Takao Wada

Representative Director, President and CEO

Man

●

●

●

Hirotoshi Takahashi

Representative Director and Deputy President

Man●

Ryosuke Tamakoshi

Independent Director

Man

●

●

●

Masaki Yamauchi

Independent Director

Man

●

●

●

●

●

●

●

●

Kazuhiro Yoshizawa

Independent Director

Man

Daisuke Hayashi

Director (Member of Supervisory Committee)

Man

●

●

●

Chisa Enomoto

Independent Director(Member of Supervisory Committee)

Woman

●

●

●

Kazuhiko Tomoda

Independent Director(Member of Supervisory Committee)

Man

●

●

●

(Note) Definition of skills that the board of directors should have (knowledge, experience and capability)
Corporate Management and Strategy

Experience and ability of engaging in important decision making and successor selection of own company gained as a corporate executive

Innovation/Technology

Knowledge and experience regarding technology utilization and innovation in corporate management gained as a CTO of a company, etc.

Human Resource andOrganizational Development

Knowledge and experience regarding human resource strategy and health management, etc., gained as a CHRO of a company, etc.
Knowledge and experience regarding education business

Internationality

Experience and ability of organizational operation, business management and business operation involving multiple countries at aninternational organization or company

Risk Management/Legal Affairs

Knowledge and experience regarding risk management gained as a CRO of a company, etc.
Knowledge and experience regarding business law and governance gained as a CLO of a company, etc.

Finance/Accounting

Knowledge and experience regarding business plan, budget and capital policies gained as a CFO of a company, etc.
Sufficient knowledge and experience as a specialist of financial accounting

Sustainability/ESG

Experience and ability of working on promotion of sustainability and solving social issues in business management

Details of the career records of the directors are available on our website.
https://www.persol-group.co.jp/en/corporate/director/

47

PERSOL Group Integrated Report 2022

PERSOL Group Integrated Report 2022

48

Value Story

Introduction

Major Activities of Independent Directors

Each Independent Director is expected, from an objective
standpoint independent from the Group Senior Executives,to oversee management through making important
decisions of the Board, including the appointment anddismissal of the Group Senior Executives, and to oversee
conflicts of interest among the Company, Senior Executives,and controlling shareholders and provide advice to increase
mid- to long-term corporate value by encouraging theCategory

Name

Ryosuke Tamakoshi

Independent
Director

Naohiro Nishiguchi

Masaki Yamauchi

Chisa Enomoto

13/13(100%)

13/13(100%)

13/13(100%)

Attendance at
Supervisory
Committee
meetings

sustainable growth of the PERSOL Group, based on not
only his/her experience and expertise but also conventional
wisdom and common sense.
Independent Directors actively express their opinions
and recommendations from a professional perspectiveat the Board and other crucial meetings and contribute tooverseeing the Company’s management, as indicated below.

–

–

–

13/13

13/13

(100%)(100%)

Attendance at
Nomination andCompensation
Committee
meetings

Attendanceat Corporate
GovernanceCommittee
meetings

9/9

8/8(100%)(100%)

9/9(100%)

–

9/9

8/8

(100%)(100%)––

Independent
Director(Member ofSupervisory
Committee)

Kazuhiko Tomoda

49

PERSOL Group Integrated Report 2022

12/13

12/13

(92%)

(92%)

–

GovernanceSupervisory Committee

Major activities in the fiscal year ended March 2022
Attendanceat Board
meetings

Value Strategy

7/8
(87%)

Status of opinions expressed and summary of duties
performed in response to expected roles

Attended the Board and other crucial meetingsand expressed opinions, as appropriate, from acomprehensive perspective based on his extensive
knowledge and experience as a corporate manager
both in Japan and overseas. In addition, he led theactivities of the Nomination and Compensation
Committee as its chairperson while also serving as
the Lead Independent Director and a member of the
Corporate Governance Committee.
Attended the Board and other crucial meetingsand expressed opinions, as appropriate, from acomprehensive perspective based on his extensive
knowledge and experience with innovation andinternationality. He also served as a member of theNomination and Compensation Committee.
Attended the Board and other crucial meetingsand expressed opinions, as appropriate, from acomprehensive perspective, such as commenting
on growth strategies and management issues inJapan and overseas from the standpoint of the entire
Group, using his extensive knowledge and experience
mainly as a top executive. In addition, he led theactivities of the Corporate Governance Committee as
its chairperson while also serving as a member of theNomination and Compensation Committee.
Attended the Board and other crucial meetings andexpressed opinions, as appropriate, at the Board
meetings and the Supervisory Committee meetingsfrom a comprehensive perspective based on her
extensive knowledge and experience in public
relations strategy to mainly enhance the Company’s
brand value and reputation. She also served as a
Member of the Supervisory Committee.
Attended the Board and other crucial meetings andexpressed opinions, as appropriate, mainly froma professional perspective as a certified public
accountant. In addition, he led the activities of theSupervisory Committee as its chairperson while also
serving as a member of the Corporate GovernanceCommittee.

Number of members

3 (2 Independent Directors,
1 internal director)

Number of meetings held in thefiscal year ended March 2022

13

Kazuhiko Tomoda
Independent Director
Chairperson of Supervisory Committee

The Supervisory Committee’s roles include securing the Company’s soundness to increase sustainable corporate
value and acting for the company and its shareholders’ common interests. The committee oversees the execution of
the duties of directors. It prepares audit reports and decides on details of the agenda concerning the appointment,
dismissal, and refusal of reappointment of an external auditor. Also, it determines the opinion of the Supervisory
Committee concerning the appointment, dismissal, resignation, and compensation of directors (excluding directors
who are the Supervisory Committee Members), among other duties.

Organization and members
The Supervisory Committee consists of one internal director,
a full-time member of the Supervisory Committee, and two
Independent Directors.
The Supervisory Committee determines the audit policy,
the priority of audit items, and the division of duties in theaudit plan. Also, it cooperates with the Company’s internal
audit and internal control divisions by using online methodsof exchanging information, among others. In addition, it
attends important meetings, regularly trades opinionswith Representative Directors, and receives reports on
matters related to the execution of duties from directors,
executive officers, and employees. Furthermore, it demands
explanations as necessary, examines important approval
documents and other materials, and audits the implementationof duties of directors, executive officers, and other membersof management. Regarding subsidiaries, the Supervisory
Committee communicates and exchanges information withdirectors and audit and supervisory board members of thesubsidiaries and receives business reports as needed.

Activities of the Supervisory Committee Members
and the Supervisory Committee
Activities of the Supervisory Committee Members
A full-time member of the Supervisory Committee attends the
HMC, Corporate Governance Committee, Risk Management
Committee, Investment Committee, Human Resources
Committee, and other important meetings. Also, it gathers
information from business reports by the Representative
Directors, executive officers, and other members ofmanagement. In addition, it strengthens cooperation withthe external auditor and the audit and supervisory board
members of the core companies of each SBU, internal audit,
and internal control divisions. Furthermore, it shares theinformation obtained with the other independent Supervisory
Committee Members to raise the effectiveness of the audit
and oversight functions.
Independent Supervisory Committee Members actively
fulfill their roles by speaking out and giving advice basedon their professional expertise and wealth of experience atBoard meetings, in the Corporate Governance Committee,
Sustainability Committee, Risk Management Committee, andthe three-way audit council (forum for the cooperation of theSupervisory Committee, external auditor and internal audit
division).

Activities of the Supervisory Committee
The Supervisory Committee regularly convenes once a monthand more frequently if needed. In addition, a preliminary
briefing is also given before each Supervisory Committee
meeting to share information among the members andconfirm the agendas of the Board and Supervisory Committee
to enhance the committee’s effectiveness.
Significant matters considered by the Supervisory Committee
The Supervisory Committee primarily considered the following
items during the fiscal year that ended in March 2022:• Audit policy, priority audit items, audit plan, and division ofduties• Execution of duties by Representative Directors, executive
officers, and other members of management• Status of development and operation of Group internal
control systems• Approval of the internal audit plan and receipt of reports
from the internal audit division• Report of audits and reviews by the external auditor andconsultation with the external auditor on key audit matters

Priority audit items
In the fiscal year that ended in March 2022, the Supervisory
Committee prioritized audit items:1) the progress of the Mid-term Management Plan
2) the status of the development and operation of data
governance and information security structures
3) the state of development and operation of the compliancesystemPERSOL Group Integrated Report 2022

50

Value Story

Introduction

Value Strategy

GovernanceNomination and Compensation Committee

Number of members

4 (3 Independent Directors,
1 internal director)

Ryosuke Tamakoshi

9

Lead Independent Director
Chairperson of the Nomination andCompensation Committee

Number of meetings held in thefiscal year ended March 2022

The purposes of the Nomination and Compensation Committee include increasing the transparency and objectivityof the decisions on candidates for directors and the Group Senior Executives as well as decisions on compensation
while enhancing the managerial and supervisory functions of the Board. Upon receiving requests from the Board,
the Nomination and Compensation Committee performs its duties regarding decisions on candidates and decisions
on compensation and submits a report and recommendations to the Board.

Basic policy for Director and officer 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.
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

2. Linked with shareholder value- Aligns profit awareness with that of shareholders and raises
awareness of shareholder-oriented management- Ensures transparency and objectivity of the compensation
determination process

3. Sets competitive level of 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- Provides a stronger incentive to directors and officers withregard to improving financial performance and corporate value

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.

for Director and officer Compensation stated at theleft. More specifically, we determine the level of
Executive Compensation by studying and analyzing thecompensation levels 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-term Management Plan through the fiscal
year ending March 2023, we selected 22 companies as agroup 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 of the Mid-termManagement Plan.

Standard compensation composition model51

PERSOL Group Integrated Report 2022

Total amount of compensation, etc., by compensation type (Million yen)
Total amount ofcompensation, etc.
(Million yen)

Share-based
compensation

17%

Bonus

Non-executive directors
Share-based
compensation

21%

Basic compensation79%

Non-executive directors excluding the Chairperson
Share-based
compensation

17%

Basic compensation

83%

Number of eligible
executives

52
（−）

21
（6）

6
（3）

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

63
（25）

56
（21）

−
（−）

−
（−）

6
（4）

4
（2）

Total
(The amount of Independent Directors)

389
（64）

269
（53）

39
（−）

52
（−）

27
（10）

10
（5）

Note: The above includes one director who was a Supervisory Committee Member and retired during the fiscal year ended March 2022.

Total amount, etc., of consolidated compensation, etc., of internal directors who are not Supervisory Committee Members
Total amount of compensation, etc., by compensation type (Million yen)
Name

Total amount ofcompensation, etc.
(Million yen)

Position

Masamichi Mizuta

Basic compensation

Bonus(Short-term incentive
compensation)

Share-based compensation
Performance-linked midto long-term incentive
compensation

Fixed mid- to long-term
incentive compensation

Director and Chairperson

81

55

11

10

4

Takao Wada

Representative Director, President and CEO

107

65

15

21

5

Hirotoshi Takahashi

Representative Director and Deputy President

98

60

12

20

4

Overview of the Executive Compensation system
Positioning
Basic
compensation

Bonus

Share-based
compensation

Fixed
compensation

Eligible director

Evaluation measures

Provision method
Payment of fixed monthly
compensation set by position

Directors

Financial measures
Evaluated in accordance with the levels of achievement of (1) net sales and (2) operating profit by theentire Company and each SBU, as well as the comparison of growth rates with competitors
Directors who are
Non-financial measures
not Supervisory
Evaluated in accordance with the levels of achievement of (1) the employee engagement index and (2)Short-term
Committee
incentive
the percentage of women in managerial positions for the entire Company and each SBU
Members (excluding
compensation
Theme-based evaluation
Independent
Evaluated based on how they have worked on the themes set with the aim of improving operating
Directors)
performance and corporate value, and through interviews with evaluators (evaluation of directors
who are not Supervisory Committee Members (excluding Independent Directors) lies with theNomination and Compensation Committee)
Directors who are
Performancenot Supervisory
linked midCommittee
to long-term
Members (excluding
incentive
Independentcompensation
Directors)

Financial measures
Evaluated in accordance with the levels of achievement of (1) consolidated net sales, (2) consolidated
operating profit, (3) TSR and (4) ROIC
Non-financial measures
Evaluated in accordance with the levels of achievement of (1) the employee engagement index, (2) thepercentage of women in managerial positions, (3) ratio of investment in technology and (4) ESG rating

Directors

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.

Succession plan
Note: The value of share-based compensation for non-executive directors excluding the
Director and Chairperson is fixed at 2 million yen per non-executive director; as the amount ofbasic compensation varies among non-executive directors depending on their roles, the actual
compensation composition might not be identical to that shown above.

Fixed mid- to long-term
incentive compensation

39（−）

Forfeit of compensation, etc. (Clawback/Malus)

Chairperson

Performance-linked midto long-term incentive
compensation

212
（32）

Fixed midto long-term
incentivecompensation

19%

Bonus (Short-term
incentive compensation)

325
（38）

Basic compensation

64%

Share-based compensation
Basic compensation

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

Executive directors, etc. (assuming that each of
the measures is largely fully achieved)

Level of compensation

Executive Compensation is determined at a level
deemed reasonable and fair based on the basic policy

Executive Compensation for the fiscal year ended March 2022

At the Company, the Nomination and Compensation
Committee deliberates on the CEO succession plan.
Specifically, the committee discusses and verbalizes
the image of leadership required in the PERSOL Group,

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

Designed to vary depending on the levelof achievement of financial targets
in the Mid-term Management Plan
towards the fiscal year ending March
2023, as well as non-financial measures
Varies between 0% and 200%
A fixed number of shares is delivered asshare-based compensation to further
increase linkage with shareholder value

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.
In addition, the PERSOL Group has verbalized its image ofthe ideal leadership required of Group Senior Executives in
the PERSOL Leadership Competency. Assessments basedon this competency are conducted to visualize humanresources and utilized to formulate succession plans,transfer personnel and develop human resources.
By overseeing the Representative Director, President
and CEO and Group Senior Executives, while providing
appropriate support and advice, the Board will aim toincrease the Group’s corporate value over the mid to longterm through sustainable growth.

PERSOL Group Integrated Report 2022

52

Value Story

Introduction

Corporate Governance Committee

Number of members

5 (3 Independent Directors,
2 internal directors)

Number of meetings held in thefiscal year ended March 2022

853

Masaki Yamauchi
Independent Director
Chairperson of the Corporate GovernanceCommittee

Composition and roles of the committee

1. Basic policy regarding corporate governance

The Corporate Governance Committee was established in July
2021 as an advisory body to the Board to enhance the Board’s
oversight functions by discussing matters regarding theCompany’s corporate governance.
The committee must have at least three members. The
Company stipulated that Independent Directors must make up
the majority of the committee and that the committee will also
elect the Chairperson from members who are Independent
Directors.
In the period under review, the committee comprised
five members, including two internal directors (Masamichi
Mizuta and Daisuke Hayashi) and three Independent Directors(Ryosuke Tamakoshi, Masaki Yamauchi, and Kazuhiko Tomoda)
and Masaki Yamauchi chaired the committee.
Upon the request of the Board, the Corporate GovernanceCommittee primarily considered the following matters andsubmitted reports and recommendations to the Board.
1. Basic policy regarding corporate governance2. Composition of the Board and committees under the Board
3. Measures to improve the effectiveness of the Board
4. Basic policy regarding effectiveness evaluation of the Boardand committees under the Board

The committee clarified the role of the Director andChairperson and reported the results to the Board.
Subsequently, it cooperated with the Nomination andCompensation Committee to establish a compensation system
for the Director and Chairperson.
Additionally, it deliberated on the role of the Lead
Independent Director and reported on the adoption of thisframework to the Board. Subsequently, in December 2021,
Ryosuke Tamakoshi was appointed the Lead Independent
Director.

Major activities

The committee received reports and deliberated on topics
such as ensuring the diversity of core human resources andworking on sustainability challenges required by the Corporate
Governance Code, which the Tokyo Stock Exchange revised inJune 2021.

PERSOL Group Integrated Report 2022

GovernanceEvaluation of Effectiveness of the Board

The purpose of the Corporate Governance Committee is to enhance the supervisory functions of the Board bydiscussing matters regarding the Company’s corporate governance. Upon receiving requests from the Board, thecommittee submits reports and recommendations to the Board on the basic policy regarding corporate governanceand measures to improve the effectiveness of the Board.

In principle, the Corporate Governance Committee convenes
at least four times a year, and the fiscal year ended in March2022 met eight times.
The committee has been operating under the policy ofdeliberating on various issues and measures that will improvethe effectiveness of the Company’s corporate governance byconsidering compliance with the Corporate Governance Coderevised in June 2021 and offering recommendations to theBoard.
The primary activities of the Corporate GovernanceCommittee in the fiscal year that ended in March 2022 were as
follows:

Value Strategy

2. Composition of the Board and committees
under the Board
The committee determined the skills required of theCompany’s Board based on the Board’s roles and the mid- tolong-term Value Creation Story and formulated the skill matrixof the Board. The committee also submitted a report to theBoard on skills of the Board requiring reinforcement and, after
deliberation by the Nomination and Compensation Committee,
successfully chose a candidate for director.

Every year, the Company evaluates the effectiveness of theentire Board to further improve its oversight functions anddiscloses the evaluation method, process and an outline of
the results.
In the evaluation of the effectiveness of the Board for the
fiscal year ended March 2022, the Company conducted a self-

Process of evaluation of the effectiveness of the BoardP

The committee recommended having the Chairperson of theBoard interview individual directors and having members ofmanagement conduct questionnaires and engage in otheractivities in addition to the self-assessments and Board
discussions, which have already taken place. Through these
efforts, an even more objective effectiveness evaluation of theBoard was made possible from multifaceted information.

D

Operating policy andplans of the Board forthe fiscal year underreview(e.g., agenda, priority
measures)C

A(Evaluation of effectiveness)
Steadyimplementation of
the plan(Held every year)(1) Self-evaluationquestionnaire survey(2) Individual interviews
Opinions of the executing side

Evaluation and issues
recognized in the fiscal
year under review
and the direction of
responses(3) Discussion by
the Board(multiple times)

Opinions of the secretariat

Reflect issues recognized in the operating policy and plans for the Board in the coming fiscal year

Results of evaluation of effectiveness of
the Board (Overview)As a result of multiple discussions at the Board meetings
based on the analysis results, the Board of the Company
confirmed that its effectiveness 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 points at issue at Board meetings. Further, it
was confirmed that the effectiveness of the Board has

Discussion of
the fundamental
management policy• The Board received reports on human resource
development policy for ensuring diversity in humanresources, sustainability issues including climatechange, and the concept of the business domain,
among other topics, deliberated on them, andadvanced discussions about the basic management
policy.

Appropriatemonitoring of
the Mid-termManagement Plan

• Monitored progress every quarter using the Mid-termManagement Plan and key performance indicators(KPIs)• Recognized issues for further improvement in better
clarification of goals and sophistication of monitoring
methods• Promoted the vitalization of deliberations at Board
meetings through prior dissemination of meeting
Continuous initiatives
materials and preliminary briefings
for securing sufficient• Implemented sessions between Representative
deliberation time for
Directors and Independent Directors and sessions
crucial agenda items
among just Independent Directors for sharing
awareness regarding important management issues

Discloseresults

been improving given the appropriate implementation of
initiatives addressing issues recognized in the fiscal year
ended March 2021 and other factors. At the same time, theBoard confirmed issues to be addressed in the future tofurther demonstrate the oversight function by the Board.
The Board of the Company will take into account theseevaluation results, continue to improve its effectiveness andpromote implementation of the PDCA cycle for governancereforms to realize sustainable growth and corporate value
improvement of the PERSOL Group.

Progress in initiatives to address the issues recognized in the evaluation ofeffectiveness in the fiscal year ended March 2021

3. Measures to improve the effectiveness of
the Board

4. Basic policy regarding effectiveness evaluationof the Board and committees under the Board

evaluation questionnaire survey of all directors, individualinterviews of each director by the Chairperson of the Boardand a questionnaire survey of senior executives who arebeing supervised. At two meetings, the Board discussed
issues recognized from the results and then produced thefinal evaluation.

Issues to be addressed in the future

Setting forth crucial
agenda items to
be given priority indiscussions at Board
meetings• The need for discussions of mid- to long-term
strategies like sustainability and companywide
strategies (resource allocation for the businessportfolio and others, capital policies, and otheritems), and the need to further clarify goals to aim
for in the Mid-term Management Plan and to conduct
appropriate monitoring• Discussion of management issues, keeping in mind aconsistent story that leads to the Group Vision “Work,and Smile”

Composition of
the Board• Consider gender and internationality to ensure
diversity of perspectives reflecting the external
environment while maintaining the current Board size
• Ensure opportunities for a better understanding ofpotential successor candidates for the Board andsenior executives

Allocation of time to
crucial agenda items • Secure deliberation time for crucial agenda items withfocused discussions and enhanced individual briefings
and the concept ofmeeting management • Simplify explanations of agenda items in meetings tofor generating highshare information
quality discussions

PERSOL Group Integrated Report 2022

54

Value Story

Introduction

Value Strategy

GovernanceRisk Management

Risk management of the PERSOL GroupTo realize the Group Vision of “Work, and Smile,” I believe that the PERSOL Group needs
to continue earning the trust of its customers while providing value to society. Risk
management activities are indispensable for achieving these goals, and the Group as awhole is engaged in initiatives for that under the commitment of the Representative Director,
President and CEO and other senior executives.
We have engaged in initiatives addressing risks such as information leaks and privacy
invasions, in light of the Group’s handling massive volumes of information of customers
and employees, etc., as one of the Group Significant Risks with a particularly significant
impact on the Group as a whole. However, amid the unprecedented speed at which changes
Naho Kan
are taking place in the environment surrounding the Group, the accompanying risks are
General Manager,
also changing at lightning speed. Accordingly, for the fiscal year ending March 2023, weGroup GRC Division
have revised our risk scenario in light of these changes to the environment, identified newrisks from the standpoint of social issues and added risks associated with human rights violations to the Group Significant Risks, in
response to expectations for the Group to make further contributions as a company offering human resource services.
Going forward, to contribute to realizing a society in which all work inevitably results in smiles, we will make a concerted effort
through these risk management activities to enable the PERSOL Group to earn the trust of all our stakeholders, including ourcustomers, and allow them to use our services with peace of mind.

Classification of risk and Policy for
Risk Management
Classification of risk

Policy for Risk Management

Group-wide risk

Each functional division of PERSOL HOLDINGS manages
risks where uniform risk measures across the PERSOLGroup would be effective.

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.

Especially regarding the Second line, risk management
departments were set up, upon the establishment of the Policy
for Risk Management according to the content and natureof the risk. The risk management status of the Second line
is reported to the Group risk management division within
PERSOL HOLDINGS and the Risk Management Committee, as
described below.

Risk Management Committee

The basic approach to risk management

Risk management structure

The PERSOL Group positions risk management activities as
essential for keeping losses and damages to a minimum
when risks materialize as well as for maintaining andimproving the Group’s corporate value. Following thisapproach, the PERSOL Group has established the Group Risk
Management Regulations to identify risks that interfere with
the implementation of business strategies and to control
risks by taking suitable measures. The PERSOL Group has
also established the Group Crisis Management Regulations to
respond promptly and appropriately when risks materialize.
Meanwhile, given that there is no right answer to the risk
management method, we believe it is essential to constantly
optimize it in accordance with our corporate culture,
management strategy, governance structure, and others. We
will continue to review it to ensure that it is optimal for ourcustomers, business partners, employees, shareholders, andall other stakeholders.

With the transition to the SBU (Strategic Business Unit)
structure in April 2020, we adopted the three-line model forrisk management, based on the idea that “the first line is the

The Risk Management Committee 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 is convened every quarter with members
including the Representative Director, President and CEO,Group Senior Executives and SBU Internal Control Promotion
Managers. At each meeting, in addition to deliberations
on significant risks, the status of risk management by thefunctional divisions of PERSOL HOLDINGS and the SBUs ismonitored.

The management process for the Group Significant Risks
Among the Group’s risks, those that are particularly
significant are selected as the Group Significant Risks, inlight of the Group’s management situation and corporate
strategies. Regarding these risks, we preferentially allocate
resources as management issues and conduct monitoring at
the Risk Management Committee and the Board.
For the Group Significant Risks, officers of PERSOLHOLDINGS are designated as risk owners (those who
assume final accountability for risk) to make risk response
more effective.
In addition, the framework allows for continuous
improvement by confirming the progress and effectivenessof risk responses at the Risk Management Committee andthe Board and by implementing the PDCA cycle to consider
improvement and review of the status annually.

owner of business risk management.”

Concept of the three-line model ofthe PERSOL Group
Role

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

・Consider reviewing and improving
the Group Significant Risks
and the activity policy for the
next fiscal year, based on theachievements of the year andchanges to risk evaluation

・Identify and evaluate risks at each SBU andthe functional divisions of PERSOL HOLDINGS,
using the risk evaluation criteria common to
the Group (degree of influence, likelihood of
occurrence, vulnerability)

CT
Improving andreviewing

Stocktaking andevaluating risk for eachorganization

Overview of the PERSOL Group risk management structure

HMC/Risk Management Committee

First Line of Defense

Second Line of Defense

Third Line of Defense

Control risks
as the point where risks occur

Supervise and provide advice
on risk management

Give reasonable assurances fromindependent perspective

Selecting
the Group
Significant Risks

Monitoring

ECK

Secretariat (PHD Risk Management Division)・Confirm the progress andeffectiveness of measuresby having the risk owner
regularly report on thestatus of risk response

CH

The Board/Supervisory Committee

Responding to riskAN

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

PL

First line:
Group companies

A

Responsible department

PDCA cycle of the Management of Group Significant Risks

・Select particularly significant
risks as the Group Significant
Risks from the identified
risks, in light of the Group’s
management situation andcorporate strategies
・Designate an officer-level riskowner to establish measuresfor each Group Significant Risk

Financial (CFO)IT and security (CIO)
Operating divisions of Group companies

Human resources (CHRO)
GRC (CEO)Internal Audit Division(at PHD)SBU functional divisions
Note: PHD = PERSOL HOLDINGS, HMC = Headquarters Management Committee, CEO = Chief Executive Officer, CFO = Chief Financial Officer, CIO = Chief Information Officer, CHRO = Chief Human
Resource Officer, GRC = Governance, risk and compliance55

PERSOL Group Integrated Report 2022

DO・Implement measures at each division in chargeof the risk response in accordance with theestablished risk response planPERSOL Group Integrated Report 2022

56

Value Story

Introduction

Value Strategy

GovernanceActions Taken to Reduce the Risk of Privacy Infringement

Group Significant Risks for the fiscal year ending March2023 were selected, as indicated in the table below, and weare working to strengthen measures led by the risk owners
against each Group Significant Risk.
Among the selected Group Significant Risks, “risks

associated with climate change” and “risks associated withhuman rights violations” are considered not only risks for
the PERSOL Group but also important issues for the Group.
We are making efforts to contribute to resolving these social
issues through our business.

Overview of Group Significant Risks for the fiscal year ending March 2023
Significant risks

Reasons for selection

Status of measures against risks[Personal information leaks]• Information leaks due toexternal attacks (cyberattacks)• Information leaks due tointernal fraud/negligence

The PERSOL Group possesses and handles
a large amount of personal information
regarding registered staff, temporary staff,
job seekers, client companies, employees
and other related parties, and the social
impact of a leak would be massive.

• Implement security measures for the Group’s networks andsystems• Strengthen the capabilities for responding to security incidents
within the Group by establishing a CSIRT (PERSOL-SIRT) for the
PERSOL Group• Implement security education and targeted e-mail attack
response training for employees• Establish groupwide security rules and monitor compliance withthem
• Confirm the security levels of external services and contractors(at the conclusion of the contract and periodically review them)

CIO/CDO[System failures]• Delays and suspension ofservices provided by the
PERSOL Group and mainfunctions due to a system
failureThe Group’s businesses greatly depend on
computer systems and their networks, andthe impact on business of a system failure
would be massive.

• Establish a structure and a reporting flow for a system failure• Bolster telecommunication lines and hardware

CIO/CDO

Risks associatedwith investment
for company
acquisition• Reappraisal of affiliatedcompanies’ shares or
impairment of goodwill, etc.
• Failure to obtain the expected
return on invested capital

The PERSOL Group has achieved growththrough company acquisition and businesscollaboration, and intends to increase its
corporate value through similar methods inthe future.

• Establish the Investment Committee to deliberate importantmatters relating to the Group’s overall investments• Monitor the progress of past investments as well as return on
investment and report to the HMC

Privacy invasion
risk• Administrative punishment,
litigation and troubles or
criticism on social media
from mishandled personal
information• Increase in service user
defection and deterioration of
the corporate image due todisadvantages to or mistrust of
the data provider

While increased utilization of personal
data is expected from the standpoint ofenhancing the convenience of services andthe PERSOL Group’s growth strategies, therisk of disadvantages to data providers due
to factors such as the development of AI isincreasing in society.

• Establish the Personal Data Utilization Council to deliberate
privacy policies and measures of the Group as a whole• Develop a prescreening process from a privacy perspective whenplanning new services and measures

Business
continuity riskin emergencies
such as natural
disasters• In the event of a natural disastersuch as an earthquake or apandemic, the Company mightsuspend its business to ensure
the safety of its employees,
because of restrictions on theiractivities or because of damage
to the Company’s assets.

The damage from risks associated withnatural disasters is intensifying each year
due to climate change. Also, multiple andsynchronized natural disasters should be
anticipated.

• Strengthen the functions of the Emergency Response Headquarter• Automate grasp of the disaster situation• Formulate BCP and continuously implement review andimprovement• Verify effectiveness of BCM by periodically conducting training

Risks associatedwith climatechange• Rising temperatures due togreenhouse gases, which
adversely affect the PERSOLGroup’s businesses andfinancially impact the Group due
to increased costs

To realize a sustainable society where
everyone can work safely and securely• Declare intention to become carbon neutral by 2030
• Deliberate next measures to reduce emissions toward becoming
carbon neutral- Promote activities to conserve energy and resources at offices- Switch to EV/HV- Switch to renewable energy, etc.

CHRO

Risks associatedwith humanrights violations• Cases of human rights violation
occurs in the PERSOL Group,
which provides humanresource services, leading toadministrative penalties ineach country and damage tothe social credibility and brandimage of the PERSOL Group.

Addressing this risk is essential for realizing
the Group Vision “Work, and Smile,” and thesocial impact of a human rights violation
would be massive due to the Group’sbusiness characteristics.

The following preparations to establish a framework are planned:(1) Formulate a human rights policy(2) Conduct human rights due diligence(3) Establish grievance mechanisms, etc.

CEO

IT-relatedrisks (personal
information
leaks, system
failures, etc.)

Details of risks

Risk
ownersBasic Policy on the Use of Personal Data
The PERSOL Group is committed to creating new value
through the appropriate and effective use of Personal Data*entrusted to us by our stakeholders, for the benefit of ourcustomers, business partners, employees, shareholders, andother stakeholders, as well as for the development of society
through the creation of better job opportunities.
On the other hand, as information technology has advanced
rapidly in recent years, the use of Personal Data has become
more sophisticated and complex. As a result, the risk of
personal privacy issues (including human rights violations
such as discrimination) becoming public (hereinafter referred
to as “Risk of Privacy Infringement”) is higher than everunprecedentedly.
To handle this Risk of Privacy Infringement, the PERSOLGroup has built a management system and review process.
In addition to that, the PERSOL Group has also establishedprivacy policies and explanation pages of these privacy policies(including our services) to simply and plainly explain the dataacquired (and its use) to ensure stakeholders’ security in its
acquisition and use of personal data.
* “Personal Data” is not limited to “Personal Information” as defined by the Personal
Information Protection Law in Japan, but also includes attribute information and all related
information regarding individuals, such as movement, behavior and purchase history.

Management System for the Risk of
Privacy Infringement
The PERSOL Group has established the “Personal Data
Utilization Council” to examine the appropriate use of Personal
Data across the PERSOL Group and manage the Risk of
Privacy Infringement. The Council deliberates on (1) policies
and rules governing the use of Personal Data; (2) policies foraddressing use of Personal Data which could be attributed tothe significant Risk of Privacy Infringement; and (3) factors totake into consideration for the proper management of the Risk
of Privacy Infringement.

Management System for the Use of Personal Data57

PERSOL Group Integrated Report 2022

CFO

Adviser

Personal Data Utilization Council
Chairperson: CSO
Other members: General Manager of GRC, GIT, GDX and Privacy Officer of each SBU(External Legal Counsel)

Secretariat
CSO

CEO

GRC

Staffing

CareerProfessional
Outsourcing

Solution

Privacy Officer

Privacy Officer

Privacy Officer

Privacy Officer

ObserverObserverObserverObserverEstablishment and Operation of the Privacy
Review Process
The PERSOL Group has established a system to assess
the impact of new performing services under contract
or new measures involving the use of Personal Data
before implementation. During this process, specialized
departments in legal affairs and information management

conduct examination processes (involving data from various
perspectives) to determine the negative impact of the useof Personal Data on stakeholders, predictability, and scopeof data usage and acquisition. In order to meet and exceed
the trust and expectations from society at large, we consider
the implementation and privacy protection measures to befeasible.

PERSOL Group Integrated Report 2022

58

Value Story

Introduction

Crisis Management

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.
Specifically, if an incident such as a large-scale natural
disaster, compliance violation or cyberattack occurs and isdeemed a crisis (and in cases where such incidents deemedso might occur), the department in charge of the incident
promptly shares the information with the HMC members
and the department in charge of risk management of
PERSOL HOLDINGS, and they make a timely and appropriate
response, according to the type of incident and its impact. If
the Representative Director, President and CEO of PERSOLHOLDINGS determines that the incident is a particularly major
crisis, the Emergency Response Headquarter is establishedat PERSOL HOLDINGS to pursue a groupwide response, while

appropriately disclosing information to customers, relevant
agencies, ministries and others involved.
Crisis management structure of PERSOL HOLDINGS(Example: At the time of a large-scale natural disaster)Emergency 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
Facilities/equipment

Information systems

Public relations

Accounting/finance

Legal

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.
PERSOL Group Code of Conduct
conduct.html

Company-wide policies/support

Report/request

SBU Emergency Response Headquarter

PERSOL HOLDINGS
Crisis management secretariat
Each functional division

HMC members

The basic approach to compliance

Company and SBU where theincident occurs

Compliance promotion structure
The PERSOL Group has established the Compliance Control
Department within PERSOL HOLDINGS to promote compliancefor the entire Group.
In addition, the SBU Internal Control Promotion Managers
and Officers, who are designated at core companies ofeach SBU, support the promotion of compliance and theimplementation of compliance measures at Group companies.
PERSOL HOLDINGS

ReportReportOccurrence of incident

Fact check, investigation of cause, consideration of response policy and implementation
Receipt of report

Cooperation/
supportThe Board

Information disclosure and communication with stakeholders

Instructions

Whistleblowing/
consultation

Report/communication

PERSOL Group Integrated Report 2022

Asia-Pacific region. We have always had safety measures inplace, including safety confirmation rules, but in response to
the recent escalation in international tension, we are currently
working to further improve safety measures that assume
the possibility of war and terrorism, carry out training andformulate evacuation rules to maintain the safety and protect
the health of local employees, expatriates and those travelingabroad on business.

Response to COVID-19
During the COVID-19 pandemic, we have continued ourbusiness activities under the basic policy of giving top priority
to the safety and health of all our stakeholders. On the basis of
this policy, we are also cooperating with relevant organizations
to implement measures needed to prevent infections and the
spread of infections.

Complianceeducation

Employees

Cooperation/
supportInstructions

Group companies
Whistleblowing/
consultation

Whistleblowing/
consultation

Complianceeducation

Employees

Group GRC Division

Persons in charge ofcompliance

Whistleblowing/
consultation
Whistleblowing/
consultation

Scope

Results for fiscal year
ended March 2022

Name

Details

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:
30,412

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: 968

Mid-career hire
training

Training for mid-careerhires when they join theGroup

Entire Group

Conducted at eachGroup company asnecessary

Newly appointed
manager training

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

Entire Group

Number ofparticipants: 666
Number of times
conducted:
Twice each, upon
appointment and six
months later

Instructions

Internal Control
Promotion Officers

Officer in charge of compliancePrevention of reoccurrence

Internal Control Promotion
Managers
Report/communication

Representative Director
and President
Report/communication

The PERSOL Group sets ensuring the safety of our employees
and temporary staff, as well as the payment of their salaries,
as our most important tasks. The Group is working on
establishing systems for collecting information by utilizing
IT, including introducing a safety confirmation system inanticipation of a massive earthquake such as a Tokyo inland
earthquake or Great Nankai Trough earthquake, and anothersystem that automatically identifies offices very likely to beaffected in a large-scale natural disaster. In addition, regarding
tasks related to the payment of salaries, the Group has
established a business continuity plan in anticipation of thesimultaneous occurrence of a large-scale natural disaster anda pandemic, while conducting regular drills, to help employees
and temporary staff maintain their livelihoods even in a crisis.
Furthermore, the PERSOL Group is making efforts toreinforce safety measures for employees in Japan and thePERSOL Group compliance training (in Japan)

At the overseas Group companies, we also conductedcompliance training on such topics as compliance, theprevention of bribery and information security for all
employees.

SBU core companies

ReportInitiatives related to business continuity, etc.

awareness of compliance.
The compliance training for all employees in Japan in
the fiscal year ended March 2022 focused on education on
Group compliance and information security. Among 30,564
individuals eligible for the training, the completion rate within
the three-month training period was 99.5%.

https://www.persol-group.co.jp/en/corporate/governance/code_of_

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

59

GovernanceCompliance

Initiatives for crisis management

The Board

Value Strategy

Complianceeducation

Employees

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 evaluated by
the GRC Division of PERSOL HOLDINGS and then reported to
management and the compliance divisions of core companiesof SBUs as compliance indicators, with a view to reviewing andimproving the compliance system and promotion activities.

Whistleblowing system
Efforts to raise employee awarenesstoward compliance
Publication of the Compliance Handbook
We have prepared a Compliance Handbook in Japan andoverseas as a guide to clarify how employees should act fromthe perspective of corporate ethics and compliance, and madeall our employees aware of its content. The Handbook includes
the entire text of the PERSOL Group Code of Conduct and isused for raising compliance awareness.
Compliance training
In addition to providing regular compliance training to all
Group employees in Japan and overseas, we also conduct
education and training programs at each Group company
that are tailored to each business and each region to raise

In Japan, the PERSOL Group has established the Corporate
Ethics Hotline contact point at a specialized externalorganization to receive whistleblowing from employees
about activities that might constitute a violation of laws andregulations, while overseas we have established whistleblowing
contact points at Group companies and created an environment
conducive to whistleblowing, in accordance with thecircumstances in each country. PERSOL HOLDINGS and Group
companies in Japan and abroad take various initiatives toensure widespread awareness of these whistleblowing contact
points, including postings on the intranet and training.
In the fiscal year ended March 2022, for the Group
companies in Japan, the recognition rate of the whistleblowing
contact points stood at 86%, and the number of whistleblowing
reports was 125.

PERSOL Group Integrated Report 2022

60

Introduction

Value Story

Value Strategy

Governance

Financial and Non-Financial Data

Financial data

Non-financial data

Net sales

EBITDA*1, *5(Millions of yen)

(Millions of yen)

Operating profit*1/
Operating profit margin*1

Number of consolidated employees*1(Millions of yen)
67,1501,060,893
925,818

970,572

59,972

950,722

56,35648,026722,183

5.0%

4.8%

4.5%

4.0%
44,111

43,17039,08536,06848,143
2.7%
25,7242018/3

2019/32020/32021/32022/3

2018/3

2019/32020/32021/32022/3

2018/3

2019/3Operating profit

Net profit attributable to owners ofparent company*1, *2

2020/32021/32022/3Operating profit margin

Net profit per share*1

Dividend per share/Payout ratio*1

(Yen)

(Yen)

(Millions of yen)
136.84

31,523

91.6%
57.1%
30.7%

104.3924,361

2018/3

33.28

7,612

2019/32020/32021/330

66.50

15,3417,769

2022/3

2018/32020/319

2021/32022/3

2018/3

2019/32020/3

Dividend per share

ROIC*1, *6/ROE*1, *2
(%)
18.6
16.2
15.9

Free cash flow*1(Millions of yen)

(Millions of yen)

(Millions of yen)

370,839

370,993381,179
27,212

9.2
5.5

23,616
11,01610.1

11.3

2022/3

43,634

421,778

14.2

13.8

2021/3

Payout ratio

Total assets*1, *3/Shareholders’ equity*1
402,336

42

26

25

32.76

2019/3

39.1%

24.0%

139,066

159,165

154,792

159,539

2019/32020/32021/3

184,526

5.0-31,7292018/3

2019/3

ROIC

ROE

2020/32021/32022/3

2018/3

Total assets

2022/3

2018/3

2019/32020/32021/32022/3

Shareholders’ equity*1 Effective in the three months ended December 2021, the accounting process was changed for SaaS (Software as a Service) in the Australian business in the Asia Pacific SBU. Accordingly, the saidchange is also reflected in the values for the fiscal year ended March 2021 and the fiscal year ended March 2022, respectively.
*2 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.
*3 “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.
*4 The consolidated tax return filing system has been applied since the fiscal year ended March 2021.
*5 EBITDA = operating profit + depreciation + amortization of goodwill*6 ROIC = net operating profit after tax before amortization of goodwill / invested capital (= interest-bearing liabilities + equity capital)

61

PERSOL Group Integrated Report 2022

Total
Number of full-time employees
By employment*2
Number of contingent employees(temporary and part-time employees)
Staffing SBU
Career SBU
Professional Outsourcing SBU
By SBU
Solution SBU
Asia Pacific SBU
Holdings/directly managed companies
Number of persons in managerial positions
Total
Percentage of women in managerial positions
Percentage of women employees
Engagement index
Vision empathy index
3
Management index*
Career autonomy index
Total number of participants in manager training
Hours of training per manager
Total number of participants in training
4
Hours of training per employee*
Total
Number of new graduates
recruited
Male/female
Total
Number of mid-career
persons recruited
Male/female
Total
Average number of years
5of continuous service*
Male/female
Average age
Total
Male/female
5
Turnover rate*
Total
Male/female
Total
Percentage of taking child6
care leave*
Male/female
Total
Percentage of returning from7child-care leave*
Male/female
Total
Number of persons taking
nursing-care leave*8
Male/female
Total
Number of persons with
reduced working hours
Male/female
9
Wage differentials between men and women (career position)*
Average hours of overtime
Number of persons with side jobs
Number of employees with disabilities*10
Number of non-Japanese employees
Percentage of remote work*11
Percentage of employees who received diversity literacy training
Percentage of employees who had a stress check
Percentage of employees with high stress*12
Percentage of employees taking leave due to mental health issues*13
Number of fatal accidents
Participation rate in the shareholding association
Number of persons eligible for the share-based compensation scheme*14

Unit

2020/32021/32022/3

Persons
Persons

52,005
46,15554,75949,43460,67554,458Persons

5,850

5,325

6,217

Persons
Persons
Persons
Persons
Persons
Persons
Persons%%%%%%
Persons
Hours
Persons
Hours
Persons
Persons
Persons
Persons
Years
Years
Years old
Years old
%
%
%
%
%
%
Persons
Persons
Persons
Persons%
Hours
Persons
Persons
Persons
%
%
%
%
%
Cases
%
Persons

26,2184,759
11,929
460
6,851
1,788
2,210
19
46
–
–
–
–
–
–
45,452
19
1,103629/474
5,439
2,443/2,996
6.4
6.8/5.9
36
37/35
10
9/10
49
11/95
92
100/91
20
8/12
666
9/657
–
18
154
1,410
477
–
86
79
12.7
1.3
0
10
102

28,621
4,291
12,715
611
6,317
2,205
2,509
20
47
63
76
58
–
3,448
14
45,07119
1,231
699/5323,883
1,500/2,383
6.8
7.1/6.3
37
37/36
8
8/9
50
10/95
94
100/9320
10/10
913
11/902
–
16
476
1,670
459
–
95
82
12.1
1.3
0
11
193

31,902
4,554
13,346
844
7,388
2,641
2,404
22
45
67
77
62
50
5,406
17
53,37015871
452/419
5,120
2,321/2,799
7.2
7.5/6.7
37
37/37
10
10/10
55
19/93
95
98/94
21
9/12
1,032
14/1,018
90
17
809
1,981
459
61
92
82
12.1
1.6
0
12
2,238

*1 Includes employees of overseas operations. Due to the shift to an SBU structure in 2020, the number of employees prior to that time is recalculated under the present structure.
*2 The number of full-time employees does not include PERSOL Group employees assigned to work at non-PERSOL Group companies but includes employees from non-PERSOL Group companies
working at PERSOL Group companies. The number of contingent employees represents the annual average number of temporary and part-time employees.
*3 The average value of responses to questions about growth support and trust by superiors is used.
*4 The number of hours of training per employee during the fiscal year ended March 2022 decreased as a result of the lower number of new graduate recruits and the ensuing revision of a portion of
the new employee training program, due to the effects of the pandemic.
*5 Calculated for unlimited term employees only.
*6 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 men
employees) or adopted children during each fiscal year.
*7 The figures show the percentage of employees who returned to work, from among all employees who completed child-care leave during each fiscal year.
*8 The figures show the number of employees who started taking nursing-care leave during each fiscal year.
*9 The difference is calculated as the ratio of the wages of women in career positions to the wages of men in career positions. As a factor for the difference, we recognize the effect of the current
difference in the ratio of women to men in managerial positions.
*10 The figures represent the number of employees with disabilities, as of June of each fiscal year.
*11 The figures show the percentage of employees who replied that they engage in remote work at least once a week (as of September 2021).
*12 The figures show the percentage of those with high stress among employees who had a stress check.
*13 The figures show the percentage of employees who have taken a leave of absence of one consecutive month or more due to mental health issues.
*14 The figures represent the number of employees eligible for the trust-type share-based compensation scheme (BIP/ESOP) and the restricted stock compensation scheme. (Through the fiscal year
ended March 2021, the figures represented only the number of employees eligible for the trust-type share-based compensation scheme.)PERSOL Group Integrated Report 2022

62

Introduction

Value Story

Value Strategy

GovernanceCorporate Profile/Stock Information

MSCI Japan Empowering Women Index (WIN)Corporate Profile(PERSOL HOLDINGS)PERSOL HOLDINGS has been selected as one of the leading Japanese companies in the industry for implementing gender diversity initiatives while
maintaining superior financial quality.

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/

Excellent Temporary Work Agencies(PERSOL TEMPSTAFF)The company was certified as “Excellent Temporary Work Agencies” under “The Excellent Temporary Work Agencies Certification System,”commissioned by the Ministry of Health, Labour and Welfare, to certify excellent temporary staffing agencies, primarily for supporting the careerdevelopment of dispatched workers.

2022 Certified Health & Productivity Management Outstanding Organizations (Large Enterprise Category)

60,675 (As of March 31, 2022)
Consolidated Employees(PERSOL TEMPSTAFF, PERSOL FIELD STAFF and PERSOL WORKS DESIGN)* Full-time employees–54,458 (includes employees working at group companies. Employees assigned to work at non-groupcompanies not included.) Contingent employees (including temporary and part-time employees)–6,217 annual average.

The companies were selected as 2022 Certified Health & Productivity Management Outstanding Organizations (Large Enterprise Category) as examplesof particularly exceptional companies in implementing initiatives to promote health and productivity management.

Number of Group Companies 136 (41 domestic, 95 overseas) (As of September 1, 2022)
Number of Group Bases

629 (469 domestic, 160 overseas) (As of February 2022)

Capital17,479 million yen (As of March 31, 2022)

2021 PRIDE Index(PERSOL CHALLENGE)
The company was judged to have met all requirements in the index for establishing an LGBT-inclusive work environment and was awarded a gold
rating for the second consecutive year.

Special Award in the Company Category of the Forbes JAPAN WOMEN AWARD 2021

Stock Information(PERSOL CAREER)

Stock Code2181

Stock ExchangeTokyo Stock Exchange, Prime Market

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

100

General Meeting of
Shareholders

June

Among the companies that continuously produce women leaders and professionals, the company was given a Special Award in the Company Category
for achieving the highest rate of growth of all companies in the action indicators.

Highest-level company certification of Eruboshi(PERSOL CAREER)
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.

“Most Liked!” IR Award(PERSOL HOLDINGS)PERSOL HOLDINGS was selected as a company committed to “IR activities that contribute to sustainability” with the aim of improving information
disclosure and dialogue about sustainability-related matters.

Sports Yell Company 2022

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

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.

HDI Certified Support Center(PERSOL WORKS DESIGN)
The company was recertified with the HDI Support Center Certification of HDI, the world’s largest support service industry membership association,and obtained certification as a seven-star company.

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.

to take this guidance as a rigid set of formal rules; rather, each

Reporting Period

company is expected to choose the parts

This report covers the fiscal year ended March 2022 (April 1, 2021 to March 31, 2022). 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.

63

PERSOL Group Integrated Report 2022

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 withinvestors by providing companies (company executives) witha systematic and integrated view of the information that theyshould communicate to investors (corporate philosophy, businessmodel, strategy, governance, etc.). Companies are not expectedthat are important for its own businessmodel and strategy, and position themwithin its own value creation story.

Notes on Forward-Looking Statements
The information published in this report includes current plans, strategies and forward-looking statementsof the PERSOL Group. These statements are based on currently available information, and are deemed by
the PERSOL Group to be rational at the present time. However, these statements include inherent risks andPhoto Used on the CoverThe logo was created with mosaic art decorated withthe wonderful smiles of PERSOL Group employees.

uncertain factors, including economic trends, fierce competition in the industry, market demand, foreignexchange rates, taxes and regulations.
Although performance results announced in the future may vary greatly from these statements due to thesevarious factors, the PERSOL Group is not liable for any losses incurred through the use of the information inthis 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 not intended for solicitation for investment in securities issued by the PERSOL Group.

PERSOL Group Integrated Report 202264