CHAPTER 1 | Strategies

5One for All, All for One
Link and Motivation was established in 2000 by seven people.

We use Engagement Score (ES), a metric developed byWhen we began hiring mid-career employees, we took out an

Link and Motivation, to quantify the status of “One for All,

advertisement stating that “Corporations are leaving the mostAll for One” among the Group’s organizations and individuals.

important management issue till last.” The fact that thisIn addition, this score can be used as a yardstick formessage resonated with more than 200 applicants convincedcomparing organizations. Our Engagement Rating (ER) metric

us of the social need for addressing the theme of motivation.

is a simple way of organizing that data for disclosure. Nine ofAnother aspect of our management philosophy equal in

the 11 companies in the Link and Motivation Group have an

importance to achieving the “motivation” in our company

ER of AAA—the highest level. We regard ES and ER as key

name is realizing “One for All, All for One.” This is theorganizational metrics and believe the results reflect theoverriding theme in developing our organizational and humanpassion our employees have for their work.

resource strategies. Thinking in terms of individuals andIn maintaining this high ER—in other words, this highorganizations, it can be rephrased as “The Individual for thelevel of “One for All, All for One”—we continue to be theOrganization, the Organization for the Individual.” Focusing

world’s foremost company in its commitment to utilizing

too closely on the desires of individuals makes an organization

Motivation Engineering, which is the Group’s core technology,

unable to maximize its results; conversely, too close a focus

by managing our recruiting, development, systems andon organizational results will exhaust the individuals in it.

corporate culture to create organizations that serve as role

We therefore believe that an essential element of corporatemodels for society.

management is realizing high levels of both “One for All” and“All for One.”6

CHAPTER 1 | Strategies
01 Management Approach

Linking Employee Motivation to Business Strategy
Some take the view that “human resources are determined by businessstrategy,” but we also believe that “business strategy is determined

MissionThrough Motivation Engineering, we provide
opportunities to transform organizations andindividuals and create a more meaningful society.

by human resources.” In the long term, we will grow by linking our“engagement chain” business strategy and our “One for All, All for One”
organizational strategy to carry out our Mission.
In order to produce optimal solutions from our business andorganizational strategies, our monitoring looks at enhancement ofOrganization

Business
Creation of anEngagement Chain

LINK

Realization of“One for All, All for One”

ーOptimization of people
and technologyーーEnhancement ofemployee engagementー

employee engagement as the key theme, for the purpose ofincreasing productivity (i.e., human capital ROI).
To create an engagement chain and realize “One for All, All for One,”
our management emphasizes four domains: Recruiting,Development, Systems and Culture.

Productivity

All our organizational strategies are designed and implemented based

Human Capital ROI

34.0％

on Motivation Engineering, our core technology and the source of ourcompetitive advantage. We ourselves are a testing ground for Motivation
Engineering, and we value being a role model for organizations.

Organizational Strategy
Focus Areas

Recruiting

SystemsDevelopmentCulture7

CHAPTER 1 | Strategies
02 ProductivityOngoing Pursuit of Productivity from Linking
Our Business and Organizational Strategies

Human Capital ROI

Human Capital ROI

34.0％

We emphasize productivity as a metric that shows the degree ofoptimization of the linkage between our business strategies andour organizational strategies. In particular, the Link and Motivation

50%

Group monitors human capital return on investment (ROI), asa core metric.

45%

In 2021, human capital ROI for the Group was 34.0%. Humancapital ROI decreased in 2020, as the Group continued human capital

40%

investment even though the operating margin declined due to theCOVID-19 pandemic. However, human capital ROI returned to the35%

34.1％

same level as 2019 in 2021.

34.0％

We aim for further improvement in 2022. We believe that30%

making appropriate investments in human capital and achieving
higher returns on those investments is essential for maximizing

25.0％

25%

results and improving employee engagement. We therefore
constantly monitor these factors as part of management that aims
to balance investment and returns.

20%
20192020

2021

2022

Note: Human capital ROI = Adjusted operating income ÷ Human capital costs
Human capital costs are calculated as total personnel expenses including salaries,bonuses and benefits expenses, as well as executive compensation, etc.

8CHAPTER 1 | Strategies
03 Key Organizational Themes

Employee Engagement is Our Top Priority
To achieve the organizational objective of “One for All, All for One,” weregard enhancement of employee engagement as our top priority.

Organization

Business
Creating anEngagement Chain

LINKーOptimization of people
and technologyー

Realizing“One for All, All for One”
ーEnhancement ofemployee engagementー

Attracting quality talent according to our business strategies andmaintaining high employee engagement will lead to higher productivity.
In our business strategies, we are making a Group-wide push toenhance the value we deliver to customers through people andtechnology, under the banner of the “engagement chain.” We believe it
is essential to promote the digital transformation of organizations inaddition to improving employee engagement, in order to create anKey Themes for Increasing Productivity
Top priority:

Employee
Engagement
Promoting organizational
digital transformation (DX)tailored to businessstrategies

Engagement Rating

engagement chain. We are working to improve the IT skills of every
employee, as well as to introduce various technology tools and reform
our business processes.

Group companies with AAA rating

9 of 11

Average DX Score

98.9 out of 2009

CHAPTER 1 | Strategies
04 Employee Engagement
Number of Companies Ranked AAA

Engagement Survey Results

Engagement
Score

Engagement
Rating9 out of 11

2019(Feb.)

2020(Feb.)

2021(Feb.)High Employee Engagement Enhancesthe Effectiveness of Business Strategies
Maintaining a high level of employee engagement is the foremost(Companies)
2022(Feb.)

AAA1110119Less than

67

AA-

311

Less than

61

A1---

Less than

58

BBB--

11

Less than55

BB----

Less than

52

B---

-

Less than48

CCC----

Less than45

CC----

Less than

42

C---

-

Less than39

DDD----

Less than33

DD----

Note: The total number of Group companies differs by fiscal year due to restructuring.

We therefore monitor our Engagement Rating, which ranks
companies based on their Engagement Score. Currently,
nine out of 11 Group companies have the top AAA rating,and we believe this high level of employee engagement is acompetitive advantage of the Link and Motivation Group.

Engagement Score (ES)Calculated based on the levels of employee expectation and satisfaction with
their company and the degree of matching between the two factors, using Link
and Motivation’s database, which is one of the largest such databases in Japan.
Expectation

Organizational diagnostic datacompiled since our founding

2,370,000 employees
at 8,740 companies

Organizational
weaknesses

Organizational
strengths

Satisfaction

67 or higher

objective of our organizational strategy.

Note: Patent registration no. JP6298855

10Reference
Correlation between ES and Operating Margin

Employee Engagement Is Correlated with Business Results
The Link and Motivation Group has helped to resolve the organizational issues ofabout 10,000 companies, but organizational issues in corporate management areendless. We see the creation of organizations the same way an artist sees creating
art, and, above all, we will continue to deal with organizational issues to make us
the best example of creating that art. We have come to the conclusion that the mostimportant factor in creating a strong organization is employee engagement(the degree of mutual understanding and affinity between a company and its
employees). Proof is in the correlation between our unique indicator, Engagement
Score (ES), which quantifies employee engagement, and the growth rate of aCorrelation between ES and Labor Productivity

company’s operating margin.
We conducted joint research with the Iwamoto Laboratory at Keio University’s
Graduate School of Business Administration on the relationship between ES on theone hand and operating margin and labor productivity on the other. Based on thefinding of a 0.35% increase in the current-year operating margin and a 0.035-point
increase in the labor productivity index for each one-point increase in ES, the study
concluded that improvement in ES contributes to improvements in operating
margin and labor productivity.
Note: In this analysis, labor productivity is defined as EBITDA per yen of salary paid to employees.

11CHAPTER 1 | Strategies
04 Employee Engagement

Engagement Survey Details Part 1

IndividualDevelopment
Division2022(Feb.)

Link and Motivation Inc.

388

AAAAAAAAAAAA

Link Global Solution Inc.

22AAAAAAAAA

AAA

Link Event Produce Inc.

20

AAA

AA

AAA

AAA

Link Corporate Communications Inc.

79

AAA

AAA

AAA

AAA

Link Academy Inc.

511

AAA

AAA

AAA

AAA

Motivation Academia Inc.

31

AAA

AAA

AAA

AAA

Link Interac Inc.

172

AAA

AA​A

AAA

AA

Link Japan Careers Inc.

17

AAA

AAA

AAA

AAA

Link Staffing Inc.

15

AAA

AAA

AAA

AAA

Link-i Inc.

20

AAA

AAA

AAA

AAA

OpenWork Inc.

74-AA

BBB

BBB

Instilling Our Philosophy Promotes Group Growth
The Link and Motivation Group has made “Philosophy” its priority factor for
analyzing employee engagement. There are two reasons for this. First, webelieve that any organization we form should be inextricably connectedthrough our principles and management philosophy. Organizations are amechanism for accomplishing that which no individual could accomplish alone.

Engagement Factors and Group Priority Factors
Company baseOrganization

Philosophy

PeopleField

Facilities

Job

Conditions

Explanations

Decisions

Awareness

SupportCustomerInnovation

Integration

Sharing

Positioning of Priority Factor“Philosophy” by Company
Expectation
ICE BLOCK (Weakness)
INTERLINK (Strength)

1 company

6 companies

INK BLOT

IDLE LINE

1 company

3 companies

Satisfaction

MatchingDivision

2021(Feb.)

DirectTeam
Situation Supervisor

Organizational
Development
Division

Employees

2020(Feb.)

Company AreaGroup Company

2019(Feb.)

We form organizations as teams to achieve a mission, so we emphasize theengagement factor of “Philosophy” as a metric indicating our success in thatregard. Second, our analysis has shown that a company’s “Philosophy”
score is correlated with its Engagement Score.
We aim to be a Group whose common thread is not a single person (i.e., ourfounder), but rather our principles and management philosophy. This will enable
us to continue providing value long into the future.

12CHAPTER 1 | Strategies
04 Employee Engagement

High Employee Engagement Facilitates
the Success of Diverse Employees

Engagement Survey Details Part 2People are intrinsically diverse, and whatever their gender, age orEngagement Survey Results by Attribute
By Division
Organizational
Development Division
Individual Development
Division
Matching Division

Subjects

nationality may be, each person has their own unique background.

ER

Therefore, as the number of employees increases in tandem with our509

AAAbusiness expansion, the degree of diversity among employees in our542

AAA

organization will continue to increase as well.

298AAThis increase brings with it opportunities to generate innovationand improve motivation through the synergies generated among

By GenderSubjectsER

diverse individuals. We place great importance on continuing
to create such opportunities.

Male734

AAAFemale

614

AAAWe emphasize relationships with diverse employees. That is
why we emphasize employee engagement (the degree of mutual

By Nationality (Region)

ER

understanding and affinity between a company and its

1,164

AAAemployees). We do this because we believe that the strong bonds

11AAA

between our Group companies and their employees enable each6AANorth America34AAA

Central and SouthAmerica

2AAAEurope

11AAJapan
Asia (excluding Japan)
Oceania

Subjects

diverse employee to play an active role and generate innovation. For
that reason, we pay close attention to employee engagement across avariety of attributes and take pride in the high level we have achieved.

13CHAPTER 1 | Strategies
05 Enhancing Digital Transformation of Organizations

Process for Enhancing Digital
Transformation (DX)Average DX Score

98.9 out of 200

Increasing Individual Productivity
by Improving IT Literacy
To raise productivity as an organization and drive further businessgrowth, improvement of the IT literacy of each employee isessential. Since 2021, throughout the Link and Motivation Group,

Six-Month Cycle

we have been raising this literacy by introducing our service to support
digital transformation (DX) for individuals at companies, which isDiagnosis

Transformation

provided by the Individual Development Division.

×Identify current
skill level withDX Survey Basic

BasicOperation

Advanced

Knowledge

In 2021, we administered the DX Survey to measure the IT
Acquisitions ofskills andqualifications(IT Passport)

More efficientorganizational
operations
More efficientindividual work

knowledge and IT operation proficiency level of individual employees.
The result (DX score) was an average of 98.9 points for the Group
as a whole. In 2022, we will work to further improve IT skills and aim toraise the average to 110 points.
In addition, we have been appointing Technology Administrators
to promote digitalization at each Group company, and we arepromoting not only greater IT literacy among individuals, but also
more efficient organizational operations. We will repeat the cycle ofdiagnosis and transformation regularly to enhance DX throughout theLink and Motivation Group.

14