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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

IR BOOK 2022 - Organizational Strategy

Organizational
Strategy
組織戦略MissionValue Creation Process
Management Strategy
Business Strategy

27

Link

Organizational Strategy

Sustainability

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Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

28

Strategy Overview
We will invest appropriately in the ongoing creation of a working environment with a high level of engagement from highly skilled employees. Our goal is to maximize our humancapital, which will lead to business growth. In particular, we are improving our organizational and human resource capabilities through management of recruiting, training, systems
and corporate culture that fully utilizes our own solutions.

Business Strategy

Organizational Strategy

Link

Organizational capabilities(Priority indicator: Engagement Rating)

Human resource capabilities(Priority indicator: Level-specific role survey scores)

Management Areas of Organizational Strategy

Recruiting

Training

Systems

Corporate
CultureIR BOOK 2022 - Organizational Strategy

Productivity

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Organizational Strategy

Sustainability

Corporate Data

Appendix

29

Organizational Capabilities –Priority Indicator: Engagement Rating–
We use engagement scores (calculated from organizational diagnosis data on some 3.12 million employees at a total of 10,600 companies) as a yardstick to carry out an ongoingcycle of improvement in employee engagement.

Engagement Factors in 16 Areas

Facilities andenvironment
Systems andbenefits

Toward the boss

Decision-making

ICE BLOCK(Weaknesses,
weak points)

Support
Toward the workplace

Human resources

Micro Perspective

Toward the company

Macro Perspective

Business content

Collection of
information

INTERLINK(Centripetal force of theorganization, uniquenessof the company)

Satisfaction

External adaptation
Internal cohesivenessTransformation
activities
Succession

INK BLOT(Indifferent)

IDLE LINE(Unnecessary
expenditures)

Ideally, both expectations and satisfaction levels should be high, with theengagement factors forming a line on an upward trajectory.

Note: Click here for research results on the correlation of engagement scores with operating margin and labor productivity.

Based on social system theory, psychology, behavioral economics and other academic fields, we define 16 areas as engagement
factors—eight related to the company as a whole, four related to the employee’s boss, and four related to the workplace—to diagnose
employee engagement. By further subdividing them into 64 items and plotting them in a graph along the axes of expectation and satisfaction,
we conduct diagnosis and analysis to identify priority issues to be resolved. In addition, we use the organizational diagnosis data (on some 3.12
million employees at 10,600 companies) that we have been compiling since Link and Motivation was established to calculate an Engagement
Score, our unique indicator. We then use it as a yardstick to carry out a cycle of improving employee engagement in the organization.

IR BOOK 2022 - Organizational Strategy

Philosophy andstrategies

Organizational
climateExpectation

Provision of
information

Company foundation

Work content

4eyes® Windows

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30

Organizational Capabilities –Priority Indicator: Engagement Rating–
The Link and Motivation Group has disclosed its Engagement Rating results since 2018. Since our founding, each Group company has maintained a high level of employee
engagement, which is an advantage for the Group.

Engagement Rating Results

10

companies(out of 11)

Company

Link and Motivation Inc.
Organizational Development Division

AAA

Link Global Solution Inc.
Link Event Produce Inc.
Link Corporate Communications Inc.

Individual Development Division

AAA

Link Academy Inc.
Motivation Academia Inc.
Link Interac Inc.

Matching Division

AAA

Link Japan Careers Inc.
OpenWork Inc.
Link Agent Inc. 3
Link-i Inc.

1. Results from February for each year (excluding Link Dining Inc.)
2. As of the time the survey was conducted in February 2023
3. Formerly Link Staffing Inc.
Note: The Group discloses information on human capital based on ISO 30414.

Number of
Employees2

Engagement Rating

2019

2020

2021

2022

2023

437
22
27
78

AAA
AAA
AAA
AAA

AAA
AAA
AA
AAA

AAA
AAA
AAA
AAA

AAA
AAA
AAA
AAA

AAA
AAA
AAA
AAA

456
50

AAA
AAA

AAA
AAA

AAA
AAA

AAA
AAA

AAA
AAA

159
12
71
19
20

AAA
AAA
—
AAA
AAA

AAA
AAA
AA
AAA
AAA

AAA
AAA
BBB
AAA
AAA

AA
AAA
BBB
AAA
AAA

AAA
AAA
AA
AAA
AAA

IR BOOK 2022 - Organizational Strategy

Number of AAA-Rated
Group Companies1

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Corporate Data

Appendix31

Human Resource Capabilities –Priority Indicator: Level-Specific Role Survey Scores–
The Link and Motivation Group has organized the elements necessary for individuals to generate results into its Framework of Requirements for Human Resources.* We believe therequirement that should be given the highest priority in development is “stance,” which serves as the foundation for other skills. We therefore focus on level-specific role survey
scores, which measure the degree to which an individual’s “stance” is developed.

Framework of Requirements
for Human Resources

Literacy

Motivation

Portable skills

StancePotential

Specialized knowledge and skills
required for the individual’s industry,
occupation and region (culture)

Skills and competencies in areas such as
foreign languages and IT that are required
across industries, businesses and regions(cultures)

Basic skills required for working adults
regardless of industry, occupation or region(culture)

Attitude and orientation, as well as
ability to fulfill role expected by theorganization

Basic competence as a person* Framework organized by Link and Motivation from the content of a survey it conducted and requirements it defined under a commission from the Ministry of Economy, Trade and Industry for its 2005 Survey on Basic Skills of Working People .

IR BOOK 2022 - Organizational Strategy

Technical skills

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Corporate Data

Appendix32

Human Resource Capabilities –Priority Indicator: Level-Specific Role Survey Scores–
The percentage of people with a rank of “A” or higher increased compared with the previous year both for all employees and for those in managerial positions. We therefore believethat the human resource capabilities of the Link and Motivation Group are improving. By further increasing the percentage of people with a rank of “A” or higher, we will raise thecapabilities of each of our human resources, enabling them to implement our business strategies and improve productivity.

Upper management

Plato Survey

Management

Lincoln Survey

Leaders

Einstein Survey

Mid-level employees

Columbus Survey

Junior employees

Darwin Survey

Senior employees

KOSI Survey

We define the stance required for each job level, and measure the degree ofagreement between the expectations and satisfaction of those who work withthe survey subject. Results are divided into 11 levels, the same as in theengagement survey, and we calculate the percentage of survey subjects witha rank of “A” or higher.

Level-Specific Role Survey Scores
2021

All employees

Managers and above

2022

Number of eligible respondents

1,386

1,137

Rank A to AAA

713

646

Percentage of total

51.4%

56.8%

Number of eligible respondents

159

146

Rank A to AAA

111

110

Percentage of total

69.8%

75.3%

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Overview of Level-Specific Role Surveys

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Organizational Strategy

Measures to Improve the Capabilities of Organizationsand Human Resources –Recruiting–

Sustainability

Recruiting

Corporate Data

Training

33

Appendix

Systems

Corporate
CultureIt is said that the competency level of the new employees a company hires determines its future in five to ten years. In addition to hiring capable human resources, out of the four areasof recruiting, training, systems and corporate culture we invest most heavily in recruiting to ensure that our employees have a high degree of sympathy with our philosophy.

Recruiting United by a Common Philosophy

New University Graduate Recruiting: Entry Management Survey Results

Expectation

ICE BLOCK (Weakness)0companies

companies

Satisfaction

INK BLOT (Indifferent)0

companies

Formation of Candidate GroupTop Forum

IDLE LINE (Unnecessary)0companies

Selection
Selection support by Entry Manager(Understanding the company, motivation,
self-reflection support)

Internship“RiSE”

INTERLINK (Strength)

7

New University Graduate Recruiting Process

Internship“SPiRAL”

Event forIT engineers

Managerinterview

Director
interview

Finalinterview(President)

Note: Covers the seven Group companies that recruit new university graduates.

To achieve a high level of employee engagement, at the recruiting stage we insist on a high level of

We approach recruiting with the stance of attracting the talent we want, rather than choosing fromengagement. In the Link and Motivation Group, we believe that sympathy with our philosophy willamong people who want to work for us. We believe it is important for our recruiting activities to lead

lead to a high level of engagement, so we give sympathy with our philosophy the greatest emphasis

people with potential and compatible values to feel that we want them to join our company.

in our recruiting.
We measure the degree of mutual affinity between our Group companies and applicants inThat is why the entire company, from upper management to the youngest employees, works
together in recruiting. The idea is not to put people into the company, but to put the company into

recruiting activities based on the Entry Management Survey, a diagnostic tool that can quantify theapplicants. Therefore, a variety of employees interact with applicants during various aspects of thedegree of mutual commitment between companies and applicants. The results of the 2022 survey

recruiting process to give applicants a deeper understanding of the Group. We believe this enables

indicate that in each Group company, new employees are sympathetic with the Group’s philosophy

our hiring to emphasize the connection between the applicant’s vision for the future and thewhen they join.

philosophy of the Link and Motivation Group.

Human Capital Report pages 10-13

IR BOOK 2022 - Organizational Strategy

Position of Priority Factor “Philosophy” by Company

Attracting the Talent We Want to Hire

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Measures to Improve the Capabilities of Organizationsand Human Resources –Training–

Sustainability

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Corporate Data

Training

34

Appendix

Systems

Corporate
CultureWe emphasize that each employee should adopt the viewpoint of being the manager of their own “i-Company” to independently develop their careers. LM College, an institution fordeveloping our human resources, provides abundant opportunities for each employee to nurture their own i-Company. It also offers them chances to hone their abilities in relation to
the expectations of others in terms of the stance required by the Group and portable and technical skills.

Cultivating Management Personnel to Support the Company’s Future

Updating Literacy for Contemporary Needs“Top Gun Selection” Training for Management Personnel

Measures to Improve IT Literacy

Proposal Presentation
Meeting
Presentations to directors on various
themes and feedback

Class

Survey Feedback
Training
Setting tasks and targets withGroup Representative
Director Ozasa Yoshihisa

Objective

Diagnosis

Program 3Group Dinner
Sharing views from various angles
and socializing withGroup Representative
Director Ozasa Yoshihisa

No. of Participants
2021

Professional

Raise the level of corporate officers-

5Company presidents andmanagement

Cultivate the next group of officer
candidates

10

14

General employees

Cultivate manager candidates forthe coming year

66

Cultivating management personnel to lead the organization is indispensable for business expansion
and growth. The Link and Motivation Group’s management personnel are expected to be able toadapt to product, labor and capital markets, and to think from a Group-wide perspective. However, incarrying out day-to-day duties, there is a tendency to adapt only to the product market and to takethe perspective of one’s own particular field. Therefore, since 2021 we have been implementing theselective training program Top Gun Selection as an opportunity for growth separate from actual
work. The year-long program selects participants from each level, from general employees to senior
managers, to learn the perspective and approach a manager should have.
In 2022, we provided training at all levels for a total of 25 people. We felt the training helped
participants develop as future management personnel, with comments including, “Now I understandthe different standards required to be ready to take on a management role,” and “I came to strongly

Operation

Training attendance

Knowledge

Acquisition ofqualifications(IT Passport)

Advanced

Identify current skill level
using DX Survey Basic

2022

Corporate officers

feel that I want to play a role in creating our future.”

Transformation

Basic
2021

Number of trainees
DX Score*

2022

1,367
98.9

1,499
123.3

* The sum of the scores for digitalknowledge and Excel skills. Since
each has a maximum of 100 points,
the maximum DX score is 200 points.

Skills and competencies in areas such as foreign languages and IT that are required acrossindustries and businesses are referred to as literacy. We believe literacy must be updated in linewith contemporary needs. This is similar to the concept of reskilling, which has been attracting
attention recently. Employees must continue acquiring essential skills, even as what constitutes“essential” changes.
Lately, improving the IT literacy of each employee has become crucial for increasing
productivity as an organization. Therefore, since 2021, we have been working to improve individual
IT literacy by rolling out DX support measures for individuals at companies, which is provided by the
Individual Development Division.
The average score on the DX Survey, which measures individual IT knowledge and IT
operation proficiency (DX score), was 123.3 out of 200 for the Link and Motivation Group in 2022,
surpassing our target for the year of 110 points.

Human Capital Report pages 14-17

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Program 2

Program 1

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Management Strategy

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Organizational Strategy

Measures to Improve the Capabilities of Organizationsand Human Resources –Systems–

Sustainability

Recruiting

Corporate Data

Systems

Training

35

Appendix

Corporate
CultureA company’s systems play an important role in showing employees the company’s expectations and the direction of its growth. To improve organizational and human resource
capabilities, we believe it is crucial for each employee to feel that, in meeting the company’s expectations, they are also getting closer to achieving their own vision.

Linking the Visions of a Company and Its Employees

Growth at Four Times the Speed of the Rest of the World

Systems That Connect Corporate and Individual Visions

System Design in Three-Month Intervals
Jan.

i-Company Branding System
2020
Management plan submission rate

1 year

2021

98.7％

2022

98.2％

97.4％

Survey feedback

3 months Monthly target setting and evaluation

evaluation score*

Performance
Stretch goal
Total

▲

Sense oftime at
LMG

▲

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

▲

●
★
◆

▲

Dec.
●
★
◆

（●）（▲）
●
★
◆

Nov.

●
★
◆

▲

●
★
◆

▲ Target setting ● Evaluation and compensation ★ Group General Meeting ◆ Paid vacation

2020
Average individual

Generalsense of
time

Feb.

2021

4.7
5.0
9.7

2022

4.8
5.0
9.8

4.7
5.0
9.7

* Both performance and stretch goals are evaluated on a scale of 1 to 9, with 5 being“met expectations.”

To improve employee engagement, we emphasize the connections between the company’s visionand the vision of each employee. We believe that clarifying the career path an individual will follow
and how they will grow while working at a company—and as a result how this will get them closer
to achieving their own vision—helps to improve employee engagement.
Therefore, we provide opportunities on various timeframes for individuals to align theirvisions with the company’s, as shown above. We have employees set targets and evaluate them forevery three-month period, provide survey feedback to clarify targets for the next year, and conduct
the i-Company Branding System for targets three years in the future. Each of these measurescommunicates the company’s intended direction and expectations of each individual, then offers an

A unique perspective toward time has supported discontinuous growth at the Link and Motivation
Group since its founding. Based on our belief that running on a cycle with a short span is importantfor growth, we share a unique view of time, in which three months everywhere else is one year at
the Link and Motivation Group. Accordingly, we set a milestone every three months. By doing so, we
aim to create an environment where employees maintain a high level of motivation as they continue
to grow and to achieve speedy business development.
All organizational operations, including management of business results, target setting,personnel evaluations, promotions or demotions, payment of bonuses, the Group General Meeting,and vacations (year-end and New Year holidays), are divided into units of three months andconducted four times a year. This intentional division of time acts as a mechanism that makes us
conscious of using time to the fullest every day.
As a result, Link and Motivation has a very high score of 4.9 out of 5 for the items “growthenvironment for employees in their twenties” and “employee morale” in OpenWork’s survey. We
believe this is proof that our employees are making full use of their time.

opportunity for individuals to make clear their intentions and growth objectives.

Human Capital Report pages 18-21

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Timeframe
3 years

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Measures to Improve the Capabilities of Organizationsand Human Resources –Corporate Culture–

Sustainability

Recruiting

Corporate Data

Training

Appendix

Systems

36
Corporate
CultureIn the process of growing as a company, we are promoting specialization within our organization to maximize results, while investing in communication to achieve the seemingly
contradictory goals of integration and mutual understanding.

Creating Opportunities for Making Connections as a Group

Creating a Corporate Culture That Spurs Individual Desire for Growth

Communication Measures

Awards System

Average number of attendees in 2022:

1,156

Web-based in-house newsletter

Average access rate in 2022:

93.1％

New university graduates(First to third year)

Rookie of the Year (1st/2nd/3rd)
Young employees who achieved outstanding results

General employees

Best Motivation Creator
General employee who achieved outstanding results

Managers

Best Motivation Manager
Manager who achieved outstanding results

Entry managers(Recruiters)

Entry Manager of the Year
Entry manager (recruiter) who achieved outstanding results

Administrators

Administrator of the Year
Administrator who achieved outstanding results

Projects

Best Motivation Project
Project that achieved outstanding results

Companies

Company of the Year
Company that achieved outstanding results

To maintain employee engagement, the Link and Motivation Group considers it crucial to enhance

For our business to grow, we believe that it is important for each employee to broaden their own

vertical and lateral communication within the organization. We have therefore developed various

roles based on a desire for personal growth. We have therefore established an awards system toopportunities for communication that connects senior management to the field, department torecognize employees who have done so.

department, and all employees to each other.
Representative examples include the Group General Meeting, a web-based in-houseAwards are presented at the Group General Meeting held once every three months. Criteria
for selecting employees as award winners cover a comprehensive range of factors, including levelnewsletter, and measures to instill the Group’s heritage. Through well-timed sharing of aof performance, degree of growth and change, and extent of influence on others. A certificate withGroup-wide perspective and the creation of a common language, we aim to create a situation

the reasons for the evaluation and relevant anecdotes is read in front of all employees, and thewhere everyone works toward common goals.

winner has the opportunity to make a speech. This not only helps to encourage the further growth of
the award recipient, but also spurs a desire for growth among other employees.

Human Capital Report pages 22-25

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Group General Meeting

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Appendix

37

Special Feature: Human Capital Management Case Study
Our ongoing efforts as a company that supports our customers’ human capital management encompass both theory and praxis. This look at the 2022 Gold Award winner for Companyof the Year, which is given to the Group company with the best results, is a case study of our initiatives in practice.

Motivation Cloud Enterprise Company
MissionNumber of Employees

53

Engagement Rating

AAA

The company recorded the highest Engagement Score of any company in the Group. In addition to developing new customers among major companies, it significantly improved themonthly retention rate. The company’s influence extends beyond its own organization, as the fastest among all Group companies to reach its target for customer referrals to the
Career School Business.

Striving for Results That Exceed Expectations

Applying Motivation Engineering to Its Organization

The year 2020, when COVID-19 spread worldwide, was a turning point for Motivation CloudEnterprise (“MCE”) Company. At a time when every company involved in human resources
was negatively affected, every member of MCE Company was committed to business growth,aiming to achieve noteworthy results without using external conditions as an excuse andworking to increase engagement in every organization. To ensure speedy decision-making,the management team held daily meetings without fail, then ensured that members clearly
understood the decisions made in order to deal with customers and present a united front infacing issues. As a result, MCE Company continued to grow each year from 2020 to 2022. To
achieve its vision for 2025 and 2030, the company will continue to play a role that goes beyond
diagnosis of its customers’ organizations to include transformation and disclosure, in a cyclethat increases the engagement of all organizations.

Twice a year, MCE Company also internally conducts the organizational diagnosis surveys it
provides to its customers through Motivation Cloud. Rather than seeking to assign blame fororganizational problems, including any issues that become clear through the survey, thepresident, managers and general employees all work together to resolve issues as concerned
parties. In order to do so, it is essential that managers act as a liaison between the president
and general employees on a daily basis, that each individual acts independently, and that
relationships of trust exist between all members of the organization. For example, when a
new member joins the team, opportunities for dialogue with the manager, and for sharing ofgoals, strengths and weaknesses among staff, lay the foundation for building a good team. In
doing so, the company straightforwardly and sincerely carries out the ongoing process oforganization building.

Applying Motivation Engineering to Its Business
MCE Company is committed to fully utilizing Motivation Engineering in its own business. As
one manager once put it, “The most important thing in MCE Company is not its president, but
its philosophy.” Even the president can be wrong at times. That is why, when questions arise
on how to price services for customers, or how to deal with competitors, the company does
not make facile decisions. Rather, it refers back to the DNA Book, which serves as thefoundation of all decisions and actions taken in the day-to-day operations of the Link andMotivation Group. The company president also takes the lead in building up a library of casestudies of improvements in engagement at customer companies as a knowledge base for use
in sales, content delivery and products to improve reproducibility.

Comments from Employees of Other Group Companies

I feel that the key to winning the Company of
the Year is not just a particular company’s
achievements and engagement within its
own organization, but also the extent towhich it can redirect those factors backoutside the company to spread its influence.
I can take pride in our service when dealing
with customers.

It was very frustrating for us not to win
Company of the Year, but you can’t help but
be convinced by the overwhelmingly highlevel set by MCE Company in winning theGold Award. As we continue to monitor
conditions at our customers and throughout
the Group, I hope we can improve ourorganizational strength and win next year.

IR BOOK 2022 - Organizational Strategy

Reasons for
the Award

Support for organizational transformation at major companies
through cloud-based services