Human resources are
our greatest, most powerfultype of capital

HUMAN CAPITALREPORT

2023
Link and Motivation Grouphttps://www.lmi.ne.jp

1

Using Human Resources as Our Greatest,
Most Powerful Type of Capital
to Create a More Meaningful Society
As Japan’s labor force shrinks and companies’ competitive advantages shift from products to services,human resources and organizations will become key assets for corporate management.
Link and Motivation was founded in 2000 based on this confident prediction.

We believe in creating companies that are chosen not only by customers in the product market,
but also by employees and applicants in the labor market—what we call “Motivation Companies.”
We believe in utilizing people and organizations not as resources that diminish with use,
but as a company’s greatest, most powerful capital, capable of generating unlimited value when properly utilized.
Taking these beliefs to heart, everyone in the Link and Motivation Group from executives to staff members has been working

to conduct management where we practice what we preach as we provide support for our corporate customers.

Our progress along this path has also benefitted from the growing trend toward promoting human capital management.

Link and Motivation remains committed to maximizing the value of the world’s human capital in order to create a more meaningful society.

2

Link and Motivation Group Profile
MissionBusiness Structure

Through Motivation Engineering,
we provide opportunities to transformorganizations and individuals
and create a more meaningful society.

Corporate Slogan

Organizational
Development Division

Individual
Development Division

Support for creatingorganizations that
individuals choose(Motivation Companies)

Support for creating
individuals thatorganizations choose(i Companies)① Consulting & Cloud Business③ Career School Business② IR Support Business④ Cram School BusinessIndividual Passion Inspires the World

Matching Division
Providingopportunities tolink organizations
and individuals

Company Overview(As of December 31, 2023)

Name：
Representative：
Head office：Established：
Stock market
listing：
Paid in capital：
Revenues：
Operatingincome：Number of
employees：⑤ ALT Placement Business

Link and Motivation Inc.
Ozasa Yoshihisa, Chairman and Representative Director
Kabukiza Tower 15F, 4-12-15 Ginza, Chuo-ku,
Tokyo 104-0061, Japan
April 7, 2000

⑥ Personnel Placement Business

Overview by Division(Year ended December 31, 2023)

Prime Market, Tokyo Stock Exchange(Securities code: 2170)¥1,380,610,000¥33.9 billion (consolidated)¥4.6 billion (consolidated)

Revenues(billion yen)

Organizational
Development Division
Individual
Development Division
Matching Division

1,470 (consolidated)

Gross Profit Number of(billion yen) Employees

128

90

622

64

29

524

153

63

322

3

Contents
Key Points of Human Capital Report 2023
Based on valuable feedback from our stakeholders in the capital market (shareholders and institutional investors), product market (customers) and labor market (employees and applicants), we have substantially
improved the content and format to provide a more practical understanding of the Link and Motivation Group’s approach to human capital management as well as the human capital that is a Group strength.

Chapter 1

Chapter 4

Approach to Human
Capital Management

The Foundation Supporting
Human Capital Management

5 Message from the CEO and CHRO

51 Governance Structure

7 An Organizational Strategy That Makes the Most of

52 A Board of Directors with Expertise in

Human Capital

Chapter 5(Professor Ito Kunio and President and Representative
Director Sakashita Hideki)

11 Findings from Research on Human Capital

Chapter 2
The Link and Motivation Group’s
Human Capital Management
13 Businesses of the Link and Motivation Group
14 Group Organizational Strategy

55 Compliance and Ethics/Costs

Being/Productivity

21 Group Human Capital Management from an Employee’s
Perspective

Chapter 3
Measures for Human CapitalManagement
24 Initiatives to Maximize Human Capital
25

Improving Human Resource Capabilities: Stretch Cloud

26

Improving Engagement: Motivation Cloud

27 Specific Investments in Recruiting, Training, Systems andCorporate Culture

Securities Report(Japanese only)

Pursuant to Japan’s Financial
Instruments and Exchange Act,the report contains a company
overview, business condition andfinancial information such as
financial statements, as well as
non-financial information on thecorporate governance system andother topics●

Financial Statements

Contains quarterly financial
information●

Shareholder Report(Japanese only)

Provides an overview of LMG’sbusinesses, information on its
human resources and other topics
in addition to the Group’sbusiness results to help deepen
shareholder understanding●

Corporate
Governance
Report(Japanese only)

Contai ns i nformati on on LMG’s
corporate governa nce pursua nt
to the l i sti ng regul ati o ns of theTokyo Stock Excha nge

60 Recruitment, Mobility, Turnover
63 Succession Planning/Workforce
Availability

64 Other

65 Our Understanding of Human Capital
Disclosure Guidelines●

Covers LMG’s approach tohuman capital management andresults

58 Organizational Culture
Organizational Health, Safety and Well

Financial Non-financial
Information Information

Human Capital Report

57 Leadership

62 Skills and Capabilities(Consulting & Cloud Business)

Contains information on LMG’s
management strategies, businessactivities and ESG initiatives, with the
IR Book (Integrated Report)
aim of deepening overall
understanding of the economic andsocial value created by LMG

56 Diversity

Capabilities/Engagement Overview of

An Organizational Strategy Linked to Business Strategy

Content
Form of Disclosure

54 Correspondence with ISO 30414 Metrics

Productivity/Human Resource

Human Capital Investment
19

Human Capital Data

The Link and Motivation Group (“LMG”) communicates with its stakeholders using
diverse tools to disseminate information from a variety of perspectives.

●

●

●

●

●

Human Capital Repor t 2023 -8 A Discussion on the Nature of Human Capital

Organizational and Personnel Matters

Overview of the Link and Motivation Group’s Information
DisclosureChapterApproach to Human
Capital Management
5

Message from the CEO and CHRO

7

An Organizational Strategy That Makes
the Most of Human Capital

8

A Discussion on the Nature of Human Capital
Professor Ito Kunio and President andRepresentative Director Sakashita Hideki

11

Findings from Research on Human Capital

5

Approach to Human Capital Management

Message from the CEO and CHRO
Theme

1

In Japan, a country with few natural resources, a company’s competitive advantage
used to arise from “hardware” such as factories, machinery or technology. In the era
ahead, however, “software” associated with people, such as ideas, hospitality andmotivation, will become the source of competitive advantage. I founded Link andMotivation with this conviction. Since then, we have been linking two concepts—the
Motivation Company, which increases and unifies employee motivation and connects
it to results, and the i-Company, in which each individual views themselves as theirown corporation. We also have been linking actual Motivation Companies and iCompanies to conduct human capital management with the objective of continuing to
produce both, in high quantity and quality.
Among the various characteristics of human capital, we particularly emphasize
engagement, which is the degree of mutual understanding and affinity between acompany and its employees. Engagement has been shown to have a correlation withcorporate performance and labor productivity, and the Link and Motivation Group puts
this finding into practice in improving engagement.

Chairman and Representative Director

Ozasa Yoshihisa

TOP MESSAGE

Human Capital Repor t 2023 - Chapter 1

Our Human CapitalManagement

6

Approach to Human Capital Management

Message from the CEO and CHRO

Theme

Because of our commitment to practicing what we preach, we have also been
making ongoing investments in human capital throughout LMG. I can explain thevalue of doing so from the two perspectives of return on investment and my own
experience. First, as a result of setting numerical targets for improving the skills of ourhuman resources and increasing their engagement in the sense of unifying them, our

Theme

3

human capital return on investment (ROI) has been extremely high. In terms of

Future Steps for Carrying
Out Our Mission

We place business strategy and organizational strategy on an equal footing andoperating income, this means that the value created exceeds the capital invested.
Moreover, in my own experience, in organizations with a high level of engagement,

conduct management that links them. Giving precedence to business strategy, followed

intentions expressed by the leader are promptly communicated and put into practiceby the organizational and human resource strategies to execute it, may be a common

throughout the workplace. Basically, in any workplace or company, there are times

approach. From my experience, however, business and organization are two sides of thewhen people approach change with fear or hesitancy, but employees of the Link andsame coin. For example, seeking a certain type of human resources because of the kind

Motivation Group instinctively adapt to change. I believe that in this dramaticallyof business you want to conduct is just one possible approach. It is also possible to firstchanging

andconsider the human resources you have and then decide the kind of business you will

engagement in particular, will not only raise labor productivity, but will also facilitate

conduct, choosing from the available options based on the personalities and skills of themore agile leadership.

people.

corporate

operatingenvironment,

improving

humancapital,That is why we invest in human capital: to improve the skills of our employees,
Click here for a video versionof this message (Japaneseonly).

increase their engagement, and securely unify them. In this way, we have made and willcontinue to make human resources our greatest and most powerful asset. Naturally, as amember of the service industry, we consider this stance critical for our future growth, so
we will continue to ramp up initiatives in order to carry out our mission.

Human Capital Repor t 2023 - Chapter 1

2

The Value of Human
Capital Management
as an Executive

7

Approach to Human Capital
Approach to Human Capital Management
Management

An Organizational Strategy That Makes the Most of Human Capital
The Link and Motivation Group’s
Approach to Human CapitalManagement

The management of a Motivation Company, which uses employee motivation as its growth engine, places its business andorganization on an equal footing. We believe that linking a business strategy that maximizes customer value and anorganizational strategy that makes the most of human capital while investing an appropriate amount of time and money inboth to obtain returns will increase corporate value over the medium to long term and enable us to carry out our mission.

Business
Strategy

LINK

Organizational
Strategy
Human Capital Repor t 2023 - Chapter 1

KGI
Productivity

Human Capital ROIBusiness Results per Employee

Management areas from the perspective of increasing value (proactive investment to generate business results)

Engagement

Human resource capabilities

Degree of alignment between the organization’s
vision and individual motivation

Degree of alignment between the abilities required by theorganization and the abilities possessed by the individuals in it

KPI
Organization

Abilities
required by theorganization

Recruiting

Investment
Targets

Proactive investment in recruiting humanresources who have the skills necessary
for business growth and a high level of
sympathy with the organization’s vision

Abilities
possessed by
the individual

Individual

Organization

Training
Proactive investment in training humanresources to develop the skills necessary forbusiness growth and continue to increase
their sympathy with the organization’s vision

Organization’s
visionIndividual
motivation
Individual

Systems

Corporate Culture

Investment in creating and operating
systems that make the most of employees’skills and continue to increase employee
sympathy with the organization’s vision

Investment in communication thatmakes the most of employees’ skills andcontinues to increase employee
sympathy with the organization’s vision

Management area from the perspective of risk avoidance (immediate response in the event of abnormal levels)

Supervision
TargetVarious risks related to human capital→ See page 65 for our understanding of human capital disclosure guidelines.

8
SPECIAL CONTENTS

A Discussion on the Nature of Human Capital
Humancapitalmanagement

has

been

attracting

attention.

Thismanagement approach views human resources as a type of capital andThat finding led to our publication of the Report of the Study Group on
Improvement of Sustainable Corporate Value and Human Capital in 2020.

emphasizes maximizing their value to improve corporate value over the
medium to long term. We take a look at the nature of human capital

Sakashita: When Link and Motivation was established in 2000, efficiency was

management in this conversation between Ito Kunio, who chaired thebeing heavily emphasized and expectations were high for IT. However, IT is usedstudy group that published the Ito Report for Human Capital Management

by people, and results will vary depending on the purpose of use. The Company

and is promoting human capital management from an academic

therefore started with the intention to prove the effectiveness of management

perspective, and Link and Motivation President and Representativethat focuses on people’s motivation and engagement, and to support such

Director Sakashita Hideki, who is promoting it from a business perspective.

management.
One way of approaching this issue is to look at the many companies where

Current State of Human Capital Management
Ito: When I talk to managers, they all say the same thing: Our people areimportant. But some data has emerged that presents a shocking state of affairs.
For example, when asked if they want to continue working at their current
company for a long time, employees in Japan answered “yes” at the lowest rate of
all countries surveyed.

communication consists solely of exchanging figures without any deeper
thought—without any discussion of why the company exists or why it is engaged
in a particular business or type of work. Even when those companies do suchthings, employees feel they are forced to do it, and consequently even if thosecompanies do conduct an employee engagement survey, they find it difficult toimprove. I think that improving motivation from within, rather than just external

At the same time, they were also least likely to say yes when asked if they want tomotivation such as raising salaries, will serve as the engine of growth for Japan.

change jobs (move to another company). Efforts to restore the competitivenessof Japanese companies will not produce results as long as employee
enthusiasm and engagement remain low.
President and Representative Director

伊藤 ItohKunio

Link and Motivation Inc.

In 1991, Mr. Sakashita joined Recruit Co., Ltd.,
where he was involved in organizational andpersonnel consulting as part of theComprehensive Human Resources Services
Division. In 2000, he participated in theestablishment of Link and Motivation Inc. as afounding member, and has been serving aspresident and representative director since2013.

Hideki Sakashita

Professor and DirectorCFO
Hitotsubashi CFO Education and ResearchCenterMr. Ito has a Doctorate in Commercial Science and has served
as a professor and dean of the Graduate School of Commerceand Management, and senior vice president at Hitotsubashi
University. He chaired the study group that publishedCompetitiveness and Incentives for Sustainable Growth: Building
Favorable Relationships between Companies and Investors(known as the Ito Report) in 2014 as well as other government
committees and projects on corporate governance, intangible
assets and ESG. In September 2020, the Report of the Study
Group on Improvement of Sustainable Corporate Value andHuman Capital (known as the Ito Report for Human CapitalManagement) published its findings for the Ministry of Economy,
Trade and Industry.

A Discussion on the Nature of Human Capital

Sakashita Hideki, President and Representative Director of Link and Motivation Inc., and Ito Kunio, Professor and Director of Hitotsubashi CFO Education and Research Center

Ito: I completely agree. Perhaps one reason for the low employee engagement at

Rather than making it all about the disclosure, it would be better to create aJapanese companies, which claim to value people, is their corporate philosophies.

positive cycle—to use the feedback on the information that is disclosed toI often hear it said that once those admirable sentiments are written down,

improve conditions at the company through human capital management,

Japanese corporate philosophies are treated as set in stone, and never again

which will show up in the next disclosure.

become the subject of a general debate.
However, as you mention, each employee should have a clear idea of why they
are working at their company and doing the job they do, then reconcile that withthe corporate philosophy. Those who are in basic agreement about their reasons
will work at the company for many years and do good work, while those who are
not in agreement will move on to another company. This kind of healthy turnoveris important.

Enhancing Management through Human Capital
Disclosure

Sakashita: The Link and Motivation Group conducts regular diagnoses of
employee engagement, which is thought to have a high correlation with corporate
growth in areas such as business results and retention of human resources. We

then disclose the level of employee engagement as an Engagement Rating.
At the same time, as a business, we conduct a cycle of diagnosis, transformationand disclosure for our client companies that leads to improvement in their corporate
value. We also try to make corporate conditions clear even without formal
disclosure through the online employee reviews collected by OpenWork, one of ourGroup companies. By doing so, any discrepancies between the details in a

Ito:

Looking at many Japanese companies these days, they are all

enthusiastically claiming that they will be making a major effort to disclose humancapital information, but I sense that all they are really thinking about is thedisclosure itself. Take the ratio of women in management positions, for instance.
Their interest in the topic ends with somehow just making it look like they aremeeting their targets, which has a different meaning from the original objective.

9

company’s integrated report or other disclosure materials and actual conditions are

made clear.
As we work in this way for a more open labor market, we intend to promote andhelp spur human capital management by expanding the organizational andpersonnel consulting support for diagnosis, transformation and disclosure that wehave offered since the Company was established.

A Discussion on the Nature of Human Capital

Sakashita Hideki, President and Representative Director of Link and Motivation Inc., and Ito Kunio, Professor and Director of Hitotsubashi CFO Education and Research Center

10

People Turn Strategies into Reality

For example, companies in the manufacturing industry offer factory tours. People

Ito: Companies communicate their management strategy externally through, for

see the company in action, it leaves an impression, and they invest in it. The

example, their medium-term management plan. Then, when investors see ansame is true for human capital management. For a company to talk about its

appealing strategy, they want to know how feasible it is.

recruiting without showing potential investors what they are talking about is a

In considering feasibility, the responsibility for turning a management strategy into

wasted opportunity.

reality falls to the people in the company. But actually, until now virtually no

Human Capital Rather Than Human Resource

information was disclosed about the human resources who carry out the
management strategy. When investors want to see whether a company is capable

Ito: Until now, Japanese companies have managed their people as resources.

of executing its management strategy, if the disclosed information does not clearly

Going forward, they will need to fundamentally change the way they view people.

address this issue, they will have doubts about the company’s ability to perform

In other words, people are not a “resource” that decreases with use, but rather asustainably. I therefore believe that disclosure of human capital information istype of “capital” whose value increases without limits when placed in the right

crucial in the sense that it helps people understand a company’s ability toenvironment. The value of all human capital is not identical across the board; that

execute its management strategy. Link and Motivation is a listed company. How

is something management and employees have to get together and discuss at

is it for you?

each company. I think Link and Motivation already does this. Is that the case?

Sakashita: To take an example from sports, I think that human capital disclosure
is like showing not just the scores of games, but also details on the players’
training.

Sakashita: Since our founding, we have held that human resources are acompany’s biggest and strongest asset. Rather than simply adjusting people to fit

Ito: That’s an interesting analogy. Admittedly, there is usually no way of knowing

a business, this management philosophy also adjusts the business to fit its people.

how seriously players are working on the various aspects of their game. However,I also think that corporate climate and corporate culture are important fordisclosing information is a way for a company to show that it has a specificunderstanding human capital.

training schedule and its employees are highly motivated to train, and thus that its
business results will improve.

Note: Click here for a video of thefull conversation (Japaneseonly).

11

Approach to Human Capital Management

Findings from Research on Human Capital
A study conducted by our research organization, the Motivation Engineering Institute, has shown therelationship between engagement and corporate performance and investment metrics.

Relationship between Engagement and Corporate Performance

Relationship between Engagement and Investment Metrics
We analyzed the quantitative relationship between engagement, which
is an important element in human capital investment, and theimpact of engagement on management.

investment metrics ROE, ROIC and PBR.

The results showed that engagement has a positive

The results showed that the higher the level of engagement,
the higher the ROE, ROIC and PBR.

impact on both operating margin and labor productivity.
Click here
for details.

Operating Margin

Correlation between Engagement and Operating Margin

Labor Productivity (Index) Correlation between Engagement and Labor Productivity

Note: “ES” stands for Engagement Score

Click here
for details.

Correlation between Engagement and ROE

Correlation between Engagement and ROIC

Note: “ES” stands for Engagement Score

Correlation between Engagement
and PBR

Human Capital Report 2023 - Chapter 1

In joint research with the Iwamoto Laboratory at Keio University’s
Graduate School of Business Administration, we analyzed theChapter

The Link and Motivation Group’s
Human Capital Management
13

Businesses of the Link and Motivation
Group

14

Group Organizational Strategy
Productivity／Human Resource Capabilities／Engagement

18

Overview of Human Capital Investment

19

An Organizational Strategy Linked toBusiness Strategy (Consulting & CloudBusiness)

21

Group Human Capital Management from an
Employee’s Perspective

13

The
The Link
Link andand Motivation
Motivation Group’sGroup’s Human Capital Management
Human Capital Management

Businesses of the Link and Motivation Group
The Link and Motivation Group operates service businesses in which people deliver value directly to customers.
Since our founding, employee motivation is the very engine of corporate growth; or, in other words,
human capital is the source of the value we create.

Consulting & Cloud Business

IR Support Business

Organizational
Development

Individual
Development

Division

Division

Human Capital Is
the Source of theValue We Create

Matching

Support for creating individuals
that organizations choose(i-Companies)

Career School Business

Cram School Business

Providing opportunities
to link organizations and individuals

Division

ALT Placement
Business

Personnel Placement
Business

Value creation process: Page 10 of IR Book 2023 (integrated report)
Details of specific businesses: Pages 26-31 of IR Book 2023
(integrated report)

Human Capital Repor t 2023 - Chapter 2

Support for creatingorganizations that
individuals choose(Motivation Companies)

14

The Link and Motivation Group’s Human Capital Management

Group Organizational Strategy
The Link and Motivation Group, which supports the creation of Motivation Companies, is committed to practicing what itpreaches in its own management. As a result of ongoing investment in human capital, gross profit per employee has
increased and productivity has improved.

Business
Strategy

LINK

Human capital ROI*

Gross profit per employee

2023 result: 48.4%2023 result: ¥10,595,000

Management areas from the perspective of increasing value (proactive investment to generate business results)

Human resource capabilities
Degree of alignment between the abilities required by theorganization and the abilities possessed by the individuals in it

KPI

Indicator

Investment
Targets

Proactive investment in recruiting humanresources who have the skills necessary forbusiness growth and a high level of
sympathy with the organization’s vision

Degree of alignment between the organization’s vision and individual motivation

Indicator

Role Survey Scores2023 Results: Percentage of A rank or higher: Managers: 73.1%; Allemployees: 55.4%2024 Benchmark: Percentage of A rank or higher: Managers:
77.0%; All employees: 57.0%

Recruitment

Engagement

2023 Results: 8 out of 8 companies maintained high standards of
AA rank or above
2024 Benchmark: 8 out of 8 companies maintain high standards of
AA rank or above

Training
Proactive investment in training humanresources to develop the skills necessary forbusiness growth and continue to increase
their sympathy with the organization’s vision

Systems
Investment in creating and operating systems
that make the most of employees’ skills andcontinue to increase employee sympathy withthe organization’s vision

Management area from the perspective of risk avoidance (immediate response in the event of abnormal levels)

Supervision
TargetEngagement Rating (ER)Various risks related to human capital* Human capital ROI = Adjusted operating income ÷ Investment in human capital
Adjusted operating income is a profit indicator that measures operating results. It excludes temporary factors such as goodwill, right-of-use assets, and impairment of fixed assets from operating income.
Investment in human capital reflects total expenditures, including employee salaries and bonuses, statutory internal and external welfare expenses, commuting expenses and other executive compensation.

Corporate Culture
Investment in communication that makes
the most of employees’ skills andcontinues to increase employee sympathy
with the organization’s vision

Human Capital Repor t 2023 - Chapter 2

Productivity

Organizational
Strategy当社グループの人的資本経営

15

The Link and Motivation Group’s Human Capital Management

Group Organizational Strategy: Productivity
The Link and Motivation Group conducts its management using human capital ROI and gross profit per employee as key goal indicators (KGIs) that link its
business strategy and organizational strategy.

In 2023, productivity improved in line with our expectations as gross profit increased 10.2% and operating income grew a substantial 27.4% comparedwith the previous year. We also expect further improvement in productivity going forward.

Gross Profit per Employee（%）(¥ thousand)

48.4%

50

11,00010,595

10,000

40

41.1%

9,347
9,000

8,775

33.0%
30
8,000

7,000

20
2021

2022

2023

2021

2022

2023

Human Capital Repor t 2023 - Chapter 2

Human Capital ROI

16

The Link and Motivation Group’s Human Capital Management
当社グループの人的資本経営

Group Organizational Strategy: Human Resource Capabilities
Human resource capabilities show the degree of alignment between the abilities required by the organization and the abilities possessed by
the individual in it.
As a management KPI, we use an 11-level ratings scale for role survey scores, which are calculated by measuring the degree of alignment
between the expectations and satisfaction of others regarding the performance of the survey subject.
An 11-level ratings scale for scores calculated by measuring the degree of alignment

Role Survey
Scoresbetween the expectation and satisfaction of others regarding the performance of thesurvey subject

2023 Results

Ratings*

In 2023, the Link and Motivation Group’s human resource capabilities remained

RatingScore

AAA67or higher

AA

Less thanA

Less than

BBB

Less thanconstant, with rankings of “A” or higher for more than 55% of all employees, and more

Upper management

than 70% of managers

67
61

2021

2022

2023

Number of eligible
respondents

1,386

1,137

1,378

All employees Rank A or higher

713

646

764

BB

58
Less than 55

BLess than

52 the general public

Percentage of total
(%)

51.4

56.8

55.4

Mid-level employees

CCC

Less than48

Number of eligible
respondents

159

146

156

Junior employees

CCLess than

45

111

110

114

C

Less than42

Managers andRank A or higher
above

DDD

39

Percentage of total
(%)

69.8

75.3

73.1

Less thanDD

Less than33

Management

Leaders

Average among* Calculated based on data from approximately 720,000 respondents in 7,030 corporate diagnoses

Human Capital Repor t 2023 - Chapter 2

Roles

当社グループの人的資本経営

17

The Link and Motivation Group’s Human Capital Management

Group Organizational Strategy: Engagement
Engagement shows the degree of alignment between the organization’s vision and individual motivation.
We use Engagement Rating as a management KPI for the status of engagement in an organization. This rating is on an 11-level scale based on
Engagement Score,1 which is calculated by measuring the degree of alignment between employee expectations and satisfaction.

Rating of the status of engagement in an organization on an 11-level*22 (ER)Engagement Rating*ratings scale based on a score calculated by measuring the degree ofalignment between employee expectations and satisfaction

Company
foundation

Business
content

Company

Score

AAA

67or higher

AA

Less than67

Collection of
information

A

Less than

61

DecisionmakingBBB

Less than

58

BB

Less than

55

B

Less than

52 the general public

SupportWork content

External
adaptation

Human
resources

Internal
cohesiveness

Systems
and benefits

Workplace

Organizational
climateFacilities andenvironment

In 2023, the Link and Motivation Group continued to maintain a high level of employee

RatingProvision of
information

Boss

Philosophy
and strategies

2023 Results

Ratings*3

Transformation
activities
Succession

engagement, with an Engagement Rating of AAA for six companies and AA for two

RatingDivision

Organizational
Development
Average among

CCC

Less than48

CC

Less than45

C

companies out of the eight Group companies. *4

DDD

42
Less than 39

DD

Less thanLess thanFeb. 2022

Feb. 2023

Feb. 2024

Link and Motivation Inc.

AAA

AAA

AAA

Link Event Produce Inc.

AAA

AAA

AAA

Link Corporate
Communications Inc.

AAA

AAA

AAA

Link Academy Inc.

AAA

AAA

AAA

Motivation Academia Inc.

AAA

AAA

AAA

Link Interac Inc.

AA

AAA

AA

OpenWork Inc.

BBB

AA

AA

Link-i Inc.

AAA

AAA

AAA

Division

Individual
Development

Division

33
Matching

1. Engagement Score is a registered trademark of Link and Motivation Inc. (Registration number 6115383).
2. Engagement Rating is a registered trademark of Link and Motivation Inc. (Registration number 6167649).
3. Calculated based on data from approximately 4.03 million respondents in 11,360 corporate diagnoses.
4. Excluding Link Dining Inc., which is engaged in other businesses

Group Company

Division

Human Capital Repor t 2023 - Chapter 2

Engagement Measured in 16 Areas

18

The Link and Motivation Group’s Human Capital Management

Overview of Human Capital Investment
Investing appropriately to maintain conditions in which highly skilled employees can work with a high level ofbusinessengagement will lead to

growth.

We therefore improve both human resource capabilities and engagement at the same time using our own portfolio of solutions for thoroughmanagement of recruitment, training, systems and corporate culture.

Human Resource Capabilities

KPI

Engagement

Indicator Role Survey Score

Indicator Engagement Rating

See page 25 for details.

Rating of the status of engagement in an organization on an
11-level scale based on a score calculated by measuring
the degree of alignment between employee expectations
and satisfaction

See page 26 for details.

Management areas from the perspective of increasing value (proactive investment to generate business results)
Investment
Area

Investment
Themes

Recruitment

Training

Systems

Recruiting that increases
human resource
capabilities andengagement

Training that increases
human resource
capabilities andengagement

Design and operation ofsystems that increase humanresource capabilities andengagement

Communication that
increases human resource
capabilities and engagement

・Recruiting events
・ Entry Management Survey/Entry Manager system

・DX promotion・Management personnel
development
・i-Company Branding Support(career management)

・Quarterly goal setting and evaluation
・Compatible Work system
・Employee stock ownershipassociation
・Life event support

・Company events (Group General
Meeting）
・In-house media

Management area from the perspective of risk avoidance (immediate response in the event of abnormal levels)

Supervision
TargetCorporate Culture

Compliance and ethics / Organizational health, safety and well being

Human Capital Repor t 2023 - Chapter 2

An 11-level ratings scale for scores calculated bymeasuring the degree of alignment between the
expectations and satisfaction of others regarding theperformance of the survey subject

19

The Link and Motivation Group’s Human Capital Management

An Organizational Strategy Linked to Business Strategy (Consulting & Cloud Business)
As changes in the labor market continue to accelerate, our business policy is to utilize the expertise and insights we have cultivated in consulting onorganizational and human resource issues to thoroughly expand the Consulting & Cloud Business.
We will grow substantially by linking a business strategy that maximizes customer value with an organizational strategy that makes the most of human capital.

Changes in
the Operating
Environment
Since 2020

Changes indemographics(decrease inworking
population)

Changes inindustrial
structure(business shift
from products toservices)

Improving humanresource capabilities

Growing momentum forhuman capitalmanagement
A management approachthat views human resources
as capital and maximizes
their value to improve
corporate value over the

An issue for ensuring thatcurrent employees canperform at their best

Intensifying competition forcapable human resources
amid advances in AI
technology

Organizational
Development

Division

Individual
Development

Consulting & CloudBusiness
IR Support Business

Division
Career School Business
Cram School Business

Matching Division
ALT Placement Business
Personnel Placement
Businessmedium to long term
Diversification ofwork motivation

Current Focus for
Business

Improving engagement
An issue for retaining andacquiring human resources

Human Capital Repor t 2023 - Chapter 2

Since the 1990s

Organizational Issues
for Companies Going Forward

20

The Link and Motivation Group’s Human Capital Management

An Organizational Strategy Linked to the Group’s Business Strategy(Consulting & Cloud Business)

Organizational
Development
Division
Consulting & CloudBusiness
IR Support BusinessIndividual
Development
Division

The aim of our business strategy is to increase both recurring revenue1 and one-time revenue per customer.*2
As part of our organizational strategy, which is linked to our business strategy, we have set investment points for
Matching Division

recruitment, training, systems and corporate culture.
Increase recurring revenue（Key Point）●

Introduce the Motivation Cloud series at major companies
and promote cross-selling of Stretch CloudBusiness
Strategy

LINK

Organizational
Strategy

Increase the number of consultants capable of providing
comprehensive support for solving complex and diverse
customer issues identified through organizational diagnosis

Productivity

Gross Profit per Employee
2023 result: ¥13,049,000

Investment in Human Capital
2023 result: ¥4,140 million

For details, see page 22 of IR Book 2023
(integrated report)

Management areas from the perspective of increasing value (proactive investment to generate business results)

Human resource capabilities
Degree of alignment between the abilities required by theorganization and the abilities possessed by the individuals in it

KPI

Indicator

Role Survey Score

2023 Results: Percentage of A rank or higher: Managers
85.7%; All employees 62.2%

Recruitment

Investment
Targets

・Ramp up recruiting of humanresources with high aptitude asconsultants
・Maintain and improve the level of sympathy
with the Group’s philosophy

Training
・Add new employee training
programs for rapid
development of consultants

1.Cloud services providing regular diagnosis and transformation at the optimal frequency for each company
2.Consulting services providing focused transformation as required based on diagnosis results

Engagement
Degree of alignment between the organization’s visionand individual motivation

Indicator

Engagement Rating

2023 Results: 13 out of 13 companies with AA rank or higher

Systems

Corporate Culture

・Improve compensation for
consulting specialists

・Establish new award for projects that
demonstrated the most value forcustomers during the year

Human Capital Repor t 2023 - Chapter 2

Increase one-time revenue per customer（Key Point）●

21

The Link and Motivation Group’s Human Capital Management

Group Human Capital Management from an Employee’s Perspective: A Year in One
Department
The Link and Motivation Group’s investment in its human capital is clearly noticeable in daily operations. The following looks at one department
over a year.
New Employee Training

1

2

i-Company Branding Support (iBS)Over several months, we conduct a variety ofFortraining sessions for new university graduate

development,

independent,

autonomous

career【Portable Skills】
Skill

each

employeehastheopportunity to propose a management plan

employees, with the aim of helping them

Dealingwithchallenges

Strength

Dealing withoneself

Strength

Dealingwith others

Strength【Motivation】
ReasonScore『Behavior type』

Strength

×

Dire
ction

×

Dire
ction

『Work type』

Strength
力Strength【Mission】

acquire the basic stance and skills they willandinitiatives

for

their

i-Company(aneed as working adults.

concept that views each individual as his or

Objective/Time/SituationLevel of Importance

Mission

Will
Can

1Q

See page 35
for details.

3Q

2Q

December

4Q

Stretch Cloud
Weekly improvement activities

Diagnosis

Weekly improvement activities

Motivation Cloud
Investment
Areas

Improvement activities/Simple survey

Diagnosis
1

2

New employee training *Diagnosis

Improvement activities/Simple survey
DX training

i-Company Branding Support

Training
TOP GUN SELECTION *Note: Selective training

Systems

3

Goal setting

Evaluation

Goal setting

Evaluation

Goal setting

Evaluation

Goal setting

Evaluation

Corporate
Culture4 Kickoff meetingGroup General
Meeting

Kickoff meetingGroup General
Meeting

Kickoff meetingGroup General
Meeting

Kickoff meetingGroup General
Meeting

Division General
Meeting

3

Division General
Meeting

See page 39
for details.
To accelerate their growth, employees set

Goal Setting and Evaluation→

goals on two axes—performance (degree oncontribution to company business results andthe organization) and stretch goal (degree ofindividual growth)—followed by evaluation
meetings with superiors every three months.
*Note: Depending on Group company

4

Division General
Meeting

Kickoff Meeting
Every three months, the department holds a
kickoff meeting for all members to reflect on the
period just ended, share future goals andstimulate communication. Departmental awards
are also presented.

Division General
Meeting

Human Capital Report 2023 - Chapter 2

her own corporation).
JanuaryMust

22

The Link and Motivation Group’s
Human Capital Management

Group Human Capital Management from an Employee’s Perspective: A Week for One
Employee

The Link and Motivation Group’s investment in its human capital makes is clearly noticeable in daily operations. The following looks at
one employee over a week.
Each department has one of two set days

Media for all LMG employees isaeach week for working in the office. On days

updated once or twice a month.

message once a month, and in mywhen I work at home, I concentrate on myToday, I read LM Hitoyasumi,

company, the company president

own assignments, and on days when I'm inwhich is packed with information

also sends a weekly message on thethe office, I attend many face-to-facerelated to daily work.

company intranet. It’s really helpful

meetings and go out to lunch with my co-Groupcompany

send

for getting a clear idea of what toworkers.

See page 47 for details.

See page 47 for details.

focus on during the week.
See page 40 for details.
Company President’s Message

Lunch with Co-Workers

In-House Media

Monday

Tues
day

Wedne
sday

Company Meeting

Team Meeting

FridayThurs
day

Review of the Week
with Stretch Cloud

Response to Motivation
Cloud Simple Survey

All employees carry out the plan-do-

Thecheck-act (PDCA) cycle using the humandiagnosis using Motivation Cloud once

resources development tool Stretch

every six months, and once every month

Cloud. It helps me look back at my growthor so we also fill out a simple survey on

for the week in the form of a weather
report, ranging from sunny to cloudy or
rainy. The past week was “sunny.”

See page 25 for details.

company

conducts

organizational

focus items to confirm progress. Then at
the next team meeting, the members
make sure we are all on the same page.

See page 26 for details.

Human Capital Report 2023 - Chapter 2

The director and officer in charge ofeachChapter

Measures for Human
Capital Management
24

Initiatives to Maximize Human Capital

25

Improving Human Resource Capabilities-Stretch Cloud-26

Improving Engagement –Motivation Cloud-27

Specific Investments in Recruiting, Training, Systems
and Corporate Culture

24

Measures for Human Capital Management

Initiatives to Maximize Human Capital

KPI

We invest in recruiting, training, designing systems and establishing our corporate culture to develop humanresources with the skills necessary for business growth and a high degree of sympathy with the vision of

Human Resource
Capabilities

Investment Recruitment
Training
Area

Engagement

Systems Corporate Culture

their organization. In doing so, we make full use of our own solutions.

Management Areas from the Perspective of Increasing Value (Proactive Investment to Generate Business Results)
Investment Area

Name of Measure

Diagnoses an individual’s performance with respect to role expectations through a multifaceted
evaluation and identifies issues in order to design a plan for personal growth (transformation) andto establish a cycle that improves human resource capabilities

Role Survey Score
Percentage of A rank or higher: Managers 73.1%
All employees 55.4%

Motivation Cloud

Diagnoses employee engagement with a company and identifies issues in order to establish
a cycle that increases engagement through improvement (transformation) initiatives

Engagement Rating: 8 out of 8 companies maintained
high standards of AA rank or higher

New university graduate
Recruitment recruiting events

Note: Percentage of attendees who rated the event 4 or 5 ona scale of 1-5

Entry Managers are involved in the recruiting process and provide optimal individualized
support with the goal of helping applicants succeed after joining the Group. We also
quantitatively assess applicant engagement.

Group companies whose strength lies in LMG’s
philosophy and strategies: 8 out of 8 companies

DX promotion (reskilling)measures

Provide employees with opportunities to acquire IT Passport certification and to learn
how to use ChatGPT in order to improve their IT skills

Average DX Score: 124.3

Management personnel
training

Evaluation system

Compatible Work
Ownership system
Employee stock ownershipassociation

Corporate
CultureEvent satisfaction 100%

Entry Management Survey /Entry Manager System

iBS2023（i-Company Branding
Support）measures

Systems

To provide a clear image of what to expect after joining the Group, we hold events to directly
convey the reality of work, details of the business and the thoughts of Chairman Ozasa.

Provides growth opportunities separate from assigned duties to develop human resources whowill lead the organization. Selected participants spend one year acquiring the perspective
required of a manager.
Provide opportunities for employees to follow their desired career path and to gain
understanding of the meaning of belonging to a company based on the “i-Company” concept,
in which each employee acts as the manager of their own corporation
We set goals based on our unique view of time, which treats three months as one year withthe aim of growing four times faster than the rest of the world. Evaluations are given on the
two axes of performance and degree of growth.
We specify days for each team to work in the office, enabling a work style that makes themost of the respective features of office work and telework to improve both laborproductivity and engagement.
Offers incentives to support regular stock acquisitions by employees in order to foster a sense ofownership in their company’s management and help them build assets over the medium to longterm

Successor coverage rate: 112.5％
i-Company management plan submission rate:

98.1%
Average individual evaluation score: 9.7
Frequency of office attendance: 1-2 days per week
Stock ownership association membership rate:
90.9％

Life event support

Re-establishes the terms of the employee-company relationship according to life stage
and provides support in line with individual circumstances and milestones

Maternity leave rate: 100.0%
Paternity leave rate: 56.0%

Group General Meeting

Held once every three months. It brings together all employees to share theGroup’s current status and future direction.

Group General Meeting Average number ofattendees:1,371

In-house media

To promote mutual understanding between the Group and its employees, the views ofmanagement and Group issues are posted on the Group intranet. Employees can makecomments to communicate with senior management.

Average access rate for Top Comment (Internetbased in-house bulletin) : 90.1%

Human Capital Report 2023 - Chapter 3

Stretch Cloudー

Training

2023 Results

Details25

Measures for Human Capital Management

Improving Human Resource Capabilities : Stretch CloudStretch Cloud, a cloud-based human resource development tool, diagnoses an individual’s performance with respect to role
expectations through a multifaceted evaluation and identifies issues in order to design a plan for personal growth(transformation) and to establish a cycle that improves human resource capabilities.

1. Survey Responces

2. Workplace Survey Feedback

Visualize the level of performance of one’s role fromthe perspective of one’s boss and co-workers to clarify
issues for growth through self-reflection and training
Examplelack of appropriate support andsubordinates is recognized as an issue

praisefor▼

Brief comment on subject’s management style from theboss’s perspective“Able to achieve short-term targets, but acts like a player-

results and future direction with theboss and staff members, then compare
reactions to make adjustments
ExampleThe subject sets the target of becoming a manager who
works closely with staff members to achieve goals.

▼coach who cannot understand staff member diversity tosupport their job performance and growth.”

Rather than getting results by oneself with a focus

Brief comment on subject’s management style from co-solely on short-term business performance, become aworkers’ perspective“A manager who reliably drives

manager who can unify diverse members and continue

business results, but does not listen to the opinions ofto produce results as a team.

staff members and cannot provide appropriate support for
their duties.”

4. Regular Review Using the Cloud

3. Implementation of Action Plan
Implement an action plan while receiving
support and insights into specificissues related to growth from the boss.

Frequent cloud-based review of the
progress of the action
plan and course
corrections
ExampleExampleThe subject feels a sense of growth.
Progress on the action plan is “sunny”
for 1 and “cloudy” for 2.
The subject is aware of various types of support.

Through trial and error, the subject learns to adjust
interactions and the scope of duties delegated basedon each staff member’s personality and abilities.

I didn’t really notice atthe time, but looking
back, I can see I’m now
able to regularly keep
track of how my staff
members are doing.

Although I accomplished
1, I haven’t had enoughtime for 2.

1.

First thing each morning, get an accurate
understanding of whether staff members are having
difficulties in their duties by paying close attention towhat they have to say and other methods.

2. When necessary, provide support for staff members’
duties.

Human Capital Report 2023 - Chapter 3A

I can find out how others
in my workplace think ofme based on the survey
responses.

2Hold a meeting to share the survey

I was able to obtain
opinions directly frommy boss and staff
members. I will do mybest to implement myaction plan.

26

Measures for Human Capital Management

Improving Engagement : Motivation Cloud
Motivation Cloud, a cloud-based tool for improving engagement, is used to diagnose engagement, which is the level of sympathy employes feeltoward their company, to identify issues.
We then design an organizational improvement (transformation) plan to establish a cycle that increases engagement.

1. Survey Responces
Staff members answer surveys about their
expectations of and satisfaction with their company,
workplace and boss. The results are used toquantitatively visualize conditions in the organization.

The company wasn’t
making an active effort
to get feedback from
customers firsthand.

If staff members candivide up the responsibility
for meetings withcustomers, we will be able
to reflect our customers’desires.

Hold a meeting to report survey
results, set numerical targets anditems for improvement, anddetermine a six-month action plan.
Example“Improvements based on
customer feedback” is selected as
an item that can be improved
within six months.
The following action plan is implemented with

Although the organization’s engagement score is high,there is a divergence between expectation andsatisfaction levels for the survey items “businessprospects” and “improvements based on customer
feedback.”

the target of increasing the satisfaction level by
0.5 points.
1. Regular meetings with customers
2. Sharing of results among departments

4. Regular Review Using the Cloud

3. Implementation of Action Plan

Each month, staff members complete asurvey focused on items for improvement tocheck their progress.

Implement the action plan on adaily basis and manage itusing the dashboard function.

ExampleExampleThe satisfaction level increased by 0.3 points as

Although parts 1 and 2 of the action

customer feedback began to be linked to
improvements.
Since the expectation level also improved
during the same period, staff members

Looking back, I realizethat the organization
has changed. Let’s
improve it even further.

Now that we havefirsthand feedback fromour customers, let’s link itto the next proposal.

plan have been implemented, theresults are not being linked to the next
action after being shared.
Based on the results, correct course to makeexchange opinions in the workplace to develop

improvements such as reviewing customer

an action plan for obtaining more firsthandinteractions.

customer feedback.

Human Capital Report 2023 - Chapter 3

Example2. Workplace Survey Feedback

Measures for Human Capital Management

Recruitment

Training Systems

Corporate
Culture27

Specific Investments in Recruitment, Training, Systems and Corporate Culture

Recruitment
PurposeApproach

Recruitment creates a company’s future five to ten years ahead
Common wisdom in Japan says that “sales capabilities determine a company’s

This is because we are confident that these human resources will perform at afuture one year ahead, corporate product development capabilities determine its

high level.

future three to five years ahead and the quality of the new university graduates a

We also believe that recruiting activities have the effect of increasing current

company hires determines its future five to ten years ahead.” Among the four

employees’ motivation. They provide an opportunity for applicants andareas of recruiting, training, systems and corporate culture, the Link andemployees to discuss their visions for the future. Employees talk with applicants

Motivation Group invests the most in training. We began hiring new university

about the future of society and the Group in their own words. This motivates

graduates in the second year after our founding, unusually early for a startup, andthem to try to realize the future they have discussed. Then, the newly hired

have continued to invest in recruiting year after year, even during the 2008 global

employee discusses the future with the next batch of applicants, and the cycle

financial crisis and the COVID-19 pandemic, up to the present. We view recruiting

continues. Establishment of a framework for this ongoing cycle, which has now

as the “acquisition of human resources with the high level of skills we need to

become part of the Group’s culture, is the driving force that makes the most of

carry out our management strategies” and, at the same time, “an activity to

the Link and Motivation Group’s human capital.

welcome highly motivated human resources as kindred spirits who aim to realize
the Group’s mission.”

Human Capital Repor t 2023 - Chapter 3

Hire human resources who have theskills the Group requires and who
sympathize with our mission

Recruitment

Recruitment

Training Systems

Corporate
Culture28

New University Graduate Recruiting Events
Measuresin DetailObjective and Outcome
Internship That Leads to Selection

Joint Briefing on Group Companies

high level of skills the Group requires and

SPiRALTOP FORUM

In this program, interns are involved in diagnosing

At this event, the presidents of Group companies gather toHiring of 108 new university graduates withan average quality rating as new employeesof 10.1, exceeding the expected level of 10.0*
and meeting our anticipated standards forboth quantity and quality

organizational* Following a six-month trial period after joining a Group company, employees
are evaluated on a scale of 2 to 18, with 10 being “as expected.”

difficult corporate issues gives participants a feeling forare highly motivated to realize our mission

theirtalk about their company’s business and outlook. Speaking

transformation based on actual customer case studies

directly to the students, they each make the case for their

that

for

own company’s philosophy and business areas. As part ofconsultants. Working side by side with Link andthe recruiting of 2024 university graduates, 872 students

Motivation Group consultants in confronting the mostattended the event.

wereconditions

originallyanddeveloped

planningas

exercises

the real nature of organizational and personnel consulting.
As part of the recruiting of 2024 university

graduates,

342 students participated in the program.

Data Highlights

Number of New University
Graduates Hired by Link andMotivation Inc.

Comments from Participants

Although there was a one-time decrease during
the COVID-19 pandemic in 2021, the kind of human resources“I got a deeper understanding of the actual job. I
was interested in organizational transformation,

we seek have continued to join Link and Motivation

but I didn’t have a concrete image of it. By actuallyin the numbers we expect.

experiencing it, I felt it was substantial, rewarding（Persons）
60

56

54

60

work that was difficult but also meaningful.”

27“By interacting with employees, I learned thateveryone has their own approach to work.”

0
2020graduates

2021graduates 2022graduates 2023graduates“I obtained detailed information about each Group
company and got a deeper understanding ofeach company president’s stance.”“I learned that the Group operates a wide range ofbusinesses as well as the roles of each company
and the connections between them.”

40
20

Comments from Participants

Human Capital Repor t 2023 - Chapter 3

Acquire human resources who have theRecruitment

Recruitment Training Systems

Corporate
Culture29

Entry Management Survey/Entry Manager System
Measuresin DetailObjective and Outcome
Acquire human resources who havethe high level of skills the Group

Entry Management Survey

Entry Manager System

We use our Entry Management Survey, a diagnostic

The Link and Motivation Group has introduced an Entry

tool for visualizing the state of engagement between aManager System in which each university student who

Data showing that new employees placecompany and applicants, then go through the PDCA

has been selected as a prospective new employee upon

importance on corporate philosophy andcycle in recruiting.

graduation is assigned to a current employee who

strategies at the eight Group companies

In 2023, the survey item “philosophy and strategies”

manages the process from job offer to employment.

was positioned as a strength of all Group companies,

With the mission of helping new employees succeed

and the levels of applicants’ expectations of andafter joining the Group, we provide a variety ofsatisfaction with the philosophy of the Group

individualized support in areas including understanding

company they joined were both high. In this way, we

the Group, self-analysis and growth.

realize our missionthat hire new university graduates

Data Highlights

Reasons New Employees
Joined the Group in 2024
“I want to create organizations where
all members can play a leading role. ”“I want to give hope to job applicants.”
Respondents gave many reasons such as these related to
the Group business philosophy.

sympathize with our philosophy when they join theGroup.
Positioning of Priority Factor “Philosophy and Strategies”
by Company
Expectation

ICE BLOCK (Weakness)

INTERLINK (Strength)companies

companies0

INK BLOT

0companies

8

IDLE LINE

Satisfaction“I want to create a society wherechildren look forward to growing up.”ensure that talent with the skills we require0companies

Note: Results for eight Group companies that recruit new
university graduates

An Entry Manager (right) with the student he is incharge of (left)

Human Capital Report 2023 - Chapter 3

requires and are highly motivated toRecruitment Training Systems

Corporate
Culture30

The Entry Manager: A Guide
Who Believes in an
Also, I was very conscious of LMG’s stance of attracting the talent we want,rather than choosing from among people who want to work for us.

Applicant’s Potential

Aspiring to promote
greater happiness forJapan and people after
studying in Northern
Europe, I joined LMG
because I agree with its
approach of valuing
people as capital.

Mr. Sasaki was Ms. Tsutsumi’s Entry Manager（

堤：
Tsutsumi It sticks in my mind how frustrated he made me feel when I
momentarily lost confidence in myself. As we neared the final stage, when an
applicant meets the president to talk about their desire to join LMG, Mr. Sasaki
said to me, “If you like, I can set up an opportunity to talk to the president, but
it’s up to you.” At that time, I was really disappointed with myself because I feltthat I should be the one asking him to set up this opportunity. I remember how
strongly I felt in that instant that I needed to become able to clearly express
what I want. That incident left an impression—I felt frustrated at times because
he managed to stay one step ahead of me in my own plans.

Being a Serious Partner in Working
Lifepage 29 ）.

Ms.

Tsutsumi, what kind of person is Mr. Sasaki, from your perspective?
堤：
Tsutsumi I feel that he believes in my potential even more than I do, and hehas always stayed one step ahead. He is a role model for me, someone I
respect and can also feel at ease with.
And Mr. Sasaki, how did you view Ms. Tsutsumi as her
Entry Manager?
Sasaki She was insecure at times, but during our many discussions, I wanted
佐々木
to be a serious partner in giving her the best possible start to her working life.
Since there are no right answers in life, I wanted to let her know that sheshould make her own choices, then make that work. We worked together toconsider her options in life.

TALK

Reasonfor
Joining
LMG

Were there any memorable episodes in your relationship?

Sasaki Kai
Motivation Academia Inc.
Company Administrator** One person assigned to each organization is
responsible for collecting and communicating
all information about that organization andimproving engagement.

Reasonfor
Joining
LMG

Having experienced both thegood and bad aspects of anorganization while playing on
my high school soccer team,
LMG’s ideals and philosophy
resonated strongly with me, andI
wantedtoworkwithindividuals and organizations.

Human Capital Report 2023 - Chapter 3

Motivation Academia Inc.
Manager of Shibuya School

Employee
One-on-One

CROSS

Tsutsumi Ayane

Frustration at Someone Else Always
One Step Ahead

Recruitment

Employee One-on-One

Going beyond the Organization’s
Current Capabilities

Training Systems

Corporate
Culture31

Don't Let the Dreams You Shared End Up as
Merely Dreams
Don't Let the Dreams You Shared End Up as Merely Dreams

Now that both of you are Entry Managers, what do you find fulfilling in
the work?

Tsutsumi I believe that entry management doesin their potential is difficult, but rewarding. Being there at the moment they
make their decision is most rewarding of all. In fact, just yesterday a student I
am in charge of made a final choice to join our company, tearfully thanking
their parents, friends, and me as Entry Manager. That was truly gratifying.

?What Is Entry Manager of the Year?
page 46 ) to Entry
An award given once a year at the Group General Meeting (Managers who have achieved outstanding results, reflecting the Group’s emphasis on
recruiting.

one

continues to make an impact is important. Next
April, the students I was in charge of will finally
start work here, so I feel I must help themtheambitionsandvisions

weI also want to bring our recruiting system more

TALK

achieve

students in whatever they want to accomplish as a serious partner in their

discussed to show that I mean what I said.
in line with the expectations of all our
stakeholders.
SasakiIn addition to achieving my own ambitions, I also want to support myworking lives. To achieve this, both my company and I need to grow further.
Our vision is to become a company that our stakeholders can expect greatthings from.

Human Capital Report 2023 - Chapter 3

Tsutsumi Finding the balance between impartially considering the life choicesa university student ought to make while also remaining the foremost believer

not end with making a job offer. How

CROSS

佐々木
Sasaki It reaffirms my belief that recruiting is：a way of improving engagement for the entire
company. I think recruiting is an activity where
the whole company goes all out to go beyond
its current capabilities. It is a way for acompany to redefine itself in order to take on
the tasks it faces. I feel that it leads to new
ideas and a positive attitude toward work.

Recruitment Training Systems

Measures for Human Capital Management

Corporate
Culture32

Specific Investments in Recruitment, Training, Systems and Corporate Culture

Training
PurposeApproach

Developing i-Companies
One key element for increasing human resource capabilities and

For all these reasons, the Group provides abundant opportunities forengagement is the development of independent human resources.

each of its employees to develop an i-Company. LM College, our in-

We emphasize that each employee should adopt the approach ofhouse institution for human resource development, provides

being the manager of their own “i-Company” to independently

opportunities for employees to consider the expectations of others as

develop their careers. By thinking in this way, they will develop thethey hone all the skills required of working adults.

ability to objectively grasp their current situation from theSince 2021, we have been concurrently conducting a new program toperspective of their i-Companyʼs customers, partners and competitors.

develop the next generation of managers to ensure our sustainable

This helps provide an accurate understanding of the expectations ofcorporate growth. Given that the growth of the Group is accelerating,others, as well as their own strengths and challenges. It also leads to

we are focusing on developing human resources who will support thatindependent and proactive career development.

growth and expansion.

Human Capital Report 2023 - Chapter 3

Cultivate the skills the Group requires andincrease sympathy with our philosophy

Training

Recruitment

Training Systems

Corporate
Culture33

DX Promotion (Reskilling)
Measures
Measuresin DetailObjective and Outcome
Diagnosis

Raise the average level of employee IT

DX Survey BasicAn annual diagnosis of practical skills related toknowledge and operation of information

An average DX Score of 124.3 in 2023,

technologies

an increase from the previous year

Transformati
onTransformation

Transformation

IT Skills Training
Depending on the diagnosis results,
participants undergo training to improve theirskills.

Data Highlights

What is a DX Score?

Overview of Level Specific Training
CoursesLevel

DX stands for “digital transformation,” and theresults of our DX Survey Basic are presented on ascale of 200 points as a metric called the DX Score.
The DX Score pinpoints issues for each individual
by measuring knowledge of digital technology,
including security, and operating skills for
information technologies, mainly Microsoft Office.

Professional
AdvancedBasic

In 2023, we conducted training for all employees on
the use of generative AI (ChatGPT) to improve
productivity.
Comments from Participants

Training

Excel, PowerPoint, Python, AI,
RPA, GAS, HTML/CSS, SEO,
etc.
Excel basics, PowerPoint
basics, typing basics, etc.

“I got a picture of how to use ChatGPT in my job, and asense of how it can increase work efficiency.”“I learned new things, such as how the accuracy ofanswers changes depending on how you give
instructions.”"I was somewhat hesitant to use it, but it turned out to beeasier to use than I expected."

Human Capital Repor t 2023 - Chapter 3

skills in line with the times in order toimprove productivity by increasing
human resource capabilities

Training

Recruitment

Training Systems

Corporate
Culture34

Management Personnel
Training
Measuresin DetailObjective and Outcome
Develop management personnel who
consider corporate growth from a

Survey Feedback Training

to the product, labor and capital
markets

A successor coverage rate of 112.5%
for executives, maintained at a highlevel

Part of our selective training program forThis meeting is another part of the Top Gun

management personnel called Top Gun

Selection training, in which participants give

Selection, survey feedback training is a forum

presentations on topics such as proposals for thefor all participants to discuss the future of theGroup’s medium- to long-term plan, and receive

Link and Motivation Group and their own careers

feedback.

with Chairman and Representative Director
Ozasa. Through this training, participants
identify issues and set targets.
Comments from Participants

Data Highlights

Comments from Participants

initiatives to date through financial results and theProspective Management Personnel

stock price for the past few years gave me a
“Igot advicefrom ChairmanOzasaandothermembers,and it

Results for 2023 are as follows.

Executive
candidates

Company
president
candidates

Prospective Management Personnel
27 candidates / 24 current(As of December 31, 2023)
27 27 27 candidates / 24
current appointees(Successor coverage rate:
112.5%)
104 candidates / 51 current
appointees (Successor
coverage rate: 203.9%)(Breakdown of candidates)
Ready in less than 1 year: 5
Ready in 1 to 3 years: 27
Ready in 4 to 5 years: 72“Learning about the quantitative impact of ourdeeper understanding of the Group.”

was a great opportunity for me to reconsider how I candemonstratemyvaluetothe Group.”“I felt the need to broaden my horizons and learn more
about global trends and other companies in order to“Talking directly with Chairman Ozasa about issues andformulate a medium- to long-term plan.”

how to improve them gave me a clear understandingof where we are now and what the future holds.”“How I use this opportunity is important, so I want to have agoal inmind when doing so.”Human Capital Repor t 2023 - Chapter 3

broad perspective in order to adapt

Proposal Presentation
MeetingTraining

Recruitment

Training Systems

35

Corporate
CultureiBS2023 (i-Company Branding Support）
Measures
Measuresin DetailObjective and Outcome
Employees align their career direction

i-Company Challenge

promote mutual understanding

Declaration of Intent in an i-Company
Management Plan

An Opportunity to Achieve the i-Company
Management Plan

98.1% submission rate for i-Company*
management plans, an increase
from the previous year
* The Link and Motivation Group’s original approach of viewing
one’s own career independently and proactively as the
manager of one’s own corporation.

Each employee creates a management plan for their own iCompany and submits it to their company. By linking thetwo visions—their company’s intended direction and what
the individual wants to do—we establish a clear direction forgrowth and occasionally provide opportunities for change

The i-Company Challenge is an opportunity tomake proposals in areas such as the launch of new
businesses, transformation of current businesses
and new systems as a way of achieving an iCompany management plan.

The i-Company Challenge is an opportunity tosuch as transfers.

The submission rate in 2023 remained high at 98.1%.

make proposals in areas such as the launch ofnewbusinesses,

transformationofcurrent

businesses and new systems as a way ofData Highlights

achieving an i-Company management plan.

Change Originating froman i-Company Challenge Winning Project2021 Gold Award WinnerDream Support Project2023 Award Winning Work

i-Company Management Plan
What the employee will, can and must do at work
● Mission (significance/meaning) derived from theabove●

Vision of self in three years based on the
missionGold Award Nakatani Shuichi
ProposalCloud services that realize
a PDS cycle for IR activities●

Sharing of various information with their company(requests for transfers/interviews and information on
working environment)●

A project giving elementary school students theopportunity to deliver an English speech online about
their dreams, with the aim of building self-confidence.
Winners were chosen after a nationwide preliminary
round.

【Portable Skills
】
Skill
力

For
challenges【Motivation Type】
Reaso
n

Score

『Behavior Type』×

Oriented×

Oriented力
力

Forchallenges『Work Type』

力
力

For
challenges

力【 Mission 】
Object/Time/CircumstancesMy

MISSIONAt the Group General Meeting ( page 46 ),

W ill
Can
Must

award-winning projects were introduced, andaward winners delivered speeches.

Human Capital Repor t 2023 - Chapter 3

i-Company Reportand ambitions with the Group toINTERVIEW

Recruitment

Training Systems

Corporate
Culture36

Developing Management
Personnel through Mutual
Communication
Yamanaka Mai(Link and Motivation Inc.
Manager of Planning Officer andManager of Incubation Office
Organizational Development Division

Career Historyorganizational and personnel consulting for major companies, she

GrowthHow was the survey feedback session facilitated by Chairman Ozasa?
I was impressed by his strong focus on medium- to long-term career development. I also felt that
it was different from the typical unidirectional feedback session in that we all worked together tocheck on each other’s careers. I got to hear the chairman’s perspective on my strong points andhow to develop them over the medium to long term. In response, I talked about the kind of career
I want to have, so the program led to an exchange of opinions.
You mentioned that you discussed your career. Do you
have a vision for your future?

Employee
Interview

handled rebranding of corporate products and services as a brandHonestly, I haven’t made any particular decisions. Rather

marketing consultant.

than aiming for a certain title, I want to do something

She has also been involved in management planning for the entire

meaningful for society that also helps the organization grow,Group, with experience in building business management systems
for subsidiaries after M&A and business integration. Next, shewhatever form it may take. In that sense, I would like to be aserved as marketing manager for Motivation Cloud, driving its

capable assistant who can guide management.

expansion since launch. Currently, she is in charge of businessand management planning for new services.

Reasonfor
Joining
LMG

The fact that the most important aspect of management—that is, the importance of the people
who carry out management strategies—keeps getting set aside for later is something thatreally resonated with me. I was also attracted to LMG’s approach of practicing what theypreach in management and their stance toward customer support.

Further Strengthening Management Personnel Training
What do you think the Link and Motivation Group needs to do to prepare for management
succession?

Interacting with Management to Consider the Future of the GroupTop Gun Selection is an effective opportunity for gaining a management perspective. Aside from
What were your impressions from participating in the Top Gun Selection management
personnel training program?

that, I think the Group needs to create more chances to further develop each individual’s abilities.
Since we all tend to get caught up in meeting immediate targets, I think that being given numerous

It was an opportunity to objectively consider options for the Group’s future and also get feedback

opportunities to think about medium- to long-term management—for example, what we should dofrom management, so I was able to obtain opinions based on the management team’s ideas andto have a greater impact on the three markets (product market, labor market and capital market)—strategies. But even more than just listening to opinions, an important part of the program is thewill produce human resources capable of becoming the next generation of managers.

chance to learn what the management team considers important through dialogue with them. The
program gave me the chance to put forward my proposals and then to hear the opinions of the
management team to make sure we are all on the same page, in a setting other than the GroupManagement Committee or a similar meeting.
Aside from discussion of the Group’s direction, it is also an opportunity to express as an individual
where you want your own career to lead. So, the program offers multiple benefits in a single
venue.

?

What Is Top Gun Selection?
This selective training program aims to develop management personnel who can make a difference inachieving our mission. Participants make presentations on various topics to directors, and determine
issues and set targets with Representative Director and Chairman Ozasa Yoshihisa.

(

page 34 )Human Capital Report 2023 - Chapter 3

Joined Link and Motivation in 2009. After gaining experience in

Mutual Feedback with a View toward Medium- to Long-Term

A Way to Cultivate i-Companies

Training Systems

Corporate
Culture37

Developing a Deeply Held Stance
One of LM College’s unique training measures is survey feedback training.* What is theand Motivation Companies

Ando Sayaka

Employee
Interview

Human Resource Development UnitManager
Motivation Engineering Institute
Link and Motivation Inc.

Reason for Continuing
to Work at LMG
I want to give something back to those who
kept believing in my potential when I lacked
self-confidence. I also want to carry on LMG’s
corporate culture, in which all employees
expect great things of each other.

idea behind this training, and what results does it achieve?
There are two key points. First, the training enables participants to understand where they standat present. Second, it does not end with diagnosis but can lead to participants’ transformation.
Additionally, participants in each group feedback session include a manager from a department
with which the others do not usually interact. This has the advantage of making it easier for
everyone to express their true feelings because of the indirect relationship. All participants learnsomething new about themselves, including issues they need to work on, based on commentsfrom the other members of the group, which is another feature of the training.
••

Training in which participants give mutual feedback, spanning Group companies and departments,
about concerns and future goals based on individual evaluations and issues identified using Stretch
Cloud( page 25 )How many employees participate in the training?
The participation rate is virtually 100%, except for those with unavoidable circumstances
preventing attendance, and the training has been conducted for many years. So, in addition tohuman resource development, I feel that it also has a direct bearing on the organizational
development of the Group as a whole, transcending departments.

Using Extensive Data to Create Effective
Workplaces
Are there any aspects of the training that you would like toOrganizations and Individuals That Embody “One for All, All for
One”
The Link and Motivation Group has devoted substantial energy to developing its humanresources since its founding. What is the mission of LM College, its training institute?
Its mission is to make the Group’s motto of “One for All, All for One” a reality. We believe thatorganizational development and individual development are inseparable and must be achieved
concurrently. LM College aims to create conditions for accelerating growth so that organizations
can provide maximum value to their customers, and individuals can acquire skills that can beused anywhere.

change going forward?
Our intention is to create effective workplaces by using theextensive data on organizations and individuals we haveaccumulated since our founding, analyzing the patterns ofsuccessful human resources, and reflecting this in the training.
Also, now that AI is being used more and more, I think weneed to focus more on the human touch and enhance theexpertise of our motivation engineers.

The Core Belief That “Human Resources Are the Greatest, Most
Powerful Type of Capital”?

What Is LM College?
The Link and Motivation Group’s unique human resource development institute offers a wide
variety of learning opportunities, including level-based training, reskilling and a venue for refining
our unique Motivation Engineering technology.

Conversely, what do you intend to continue to emphasize?
There will be no change in our commitment to embodying the concept that human resources are
our greatest, most powerful type of capitaland to developing them into first-class motivationengineers. Nevertheless, after each training session, we even examine the aspects that werebasically successful to see if any adjustments are necessary. We will further develop the trainingby identifying measures that need to be changed as we continue to adhere to our underlying
policy.

Human Capital Report 2023 - Chapter 3

INTERVIE W

Recruitment

Measures for Human Capital Management

Recruitment

Training Systems

Corporate
Culture38

Specific Investments in Recruitment, Training, Systems and Corporate Culture

Systems
PurposeApproach

Conveying Messages from Management
through Our Personnel Systems
Personnel systems play an important role in showing employees

As another expectation, our personnel systems contain the

a company’s expectations and the direction of its growth. One

message that we want employees to increase the speed of theirthing we expect from our personnel systems is that they convey

growth. Based our own unique perspective of time that runs at a

the message that we want to link the direction the Group intends

speed four times that of the rest of the world at Link andto take with the vision of each employee. To improve

Motivation Group, we have designed various systems with theengagement, we consider it crucial that each employee feels that

expectation that our employees will grow at four times the speed

they are getting closer to achieving their own vision whileof the rest of the world.

meeting their company’s expectations. For this reason, we have

We believe that incorporating messages on what we consider

implemented many measures that provide opportunities formost important in our personnel systems in ways like thesealigning these elements.

enables us to increase engagement as we conduct management.

Human Capital Report 2023 - Chapter 3

Use rules as parameters for making the most of theskills Link and Motivation requires andincreasing sympathy with our philosophy

Systems

Recruitment

Training Systems

Corporate
Culture39

Evaluation
SystemMeasuresin DetailObjective and Outcome
Encourage human resources to have a sense

Quarterly
Evaluationsof satisfaction with their own growth throughevaluation and personnel systems

Stretch Goal
Evaluation

We maintain a high rating of 4.4* out of 5.0
points in the “fair evaluations” category
on OpenWork, one of Japan’s largest
online employee review platforms.
Online review data for Link and Motivation Inc. as of February2024※2 As of February 2024

months everywhere else is one year for the Link andMotivation Group, and so we set milestones every three

Targets are set along two axes in order to cover not only
performance, which indicates the degree of contribution to thecompany’s business results and the employee’s organization,months. Our aims are to create an environment where

but also a stretch goal, which indicates the degree of individual

employees can maintain a high level of motivation as they

growth. These targets are used in going through the PDCA

continue to grow, and to conduct business with a sense of
speed. Specific organizational operations conducted fourcycle.

Examples of Stretch Goals

times a year, at three-month intervals, include managementof business results, target setting, personnel evaluation,

Becomea Calm, PreparedCoach:No MoreActing
as a PinchHitter

promotion or demotion, and payment of bonuses.

Data Highlights
1Q (Jan.-Mar.)

Average Individual Evaluation Score

2Q (Apr.-Jun.)

3Q (Jul.-Sep.) 4Q (Oct.-Dec.)
Background

Targetsetting

Evalu Target
ation setting

Evalu
ation

Targetsetting

Evalu Target
ation setting

Evalu
ation

The average evaluation score is nearly 10, indicating a
Premiumcompe
nsationbalance between the company’s expectations andemployee generation of business results and growth.

Averageindividual
evaluation
score*3

Performance*1
StretchGoal*2
Total

2021

2022

2023

4.8
5.0
9.8

4.7
5.0
9.7

4.8
5.0
9.7

*1 A metric for evaluating degree of contribution to the company’s business results and theemployee’s organization.
*2 A metric for evaluating degree of individual growth.
*3 Performanceandthestretchgoalareevaluatedonascaleof1to9,with5being“metexpectations.”

Premiumcompe
nsationClass
compensationNote: Average of two
evaluations

Premiumcompe
nsationTargetsetting

Employees set individual targets for a three-month
period. Since the cycle is a short period of 3 months,
employees can remain constantly aware of their targets.

Evaluati
on andcompensationEvaluations are conducted according to the targets thathave been set, with promotions or demotions based ontheevaluation
results.
Bonuses(premium
compensation) are also paid every three months.

A manager who tends to take on his staff’s
work, including minor details of their tasks,
will work to support them in their duties likea coach supports a team.

Popeye: A Role Model for Ho-Ren-So
BackgroundAn employee will work to improve work quality
through thorough use of Ho-Ren-So (anabbreviation of “Report, Contact and Consult”)
like the cartoon character Popeye who obtains
power from spinach (horenso in Japanese).

Human Capital Repor t 2023 - Chapter 3

Based on the idea that short-span cycles are important for
growth, we share a unique perspective of time in which threeSystems

Recruitment

Training Systems

Corporate
Culture40

Compatible Work
Measuresin DetailObjective and Outcome
Use the features of both office

We used the COVID-19 pandemic as an opportunity to introduce a new way of working we call Compatible
Work, in which we schedule days for working in the office and teleworking days for each team to create thework productivity andmost suitable operations for them.

engagement

Office Work

Telework

Employees work in the office once or twice each week.
We make the most of the characteristic features of office
work—cooperation, chance occurrences, emotion andlogic, and sympathy—by holding meetings where indepth discussions are required, kick-off and end-of-period
meetings that generate a sense of unity, andconsultations with new members that foster mutual
understanding, among other activities.

Employees telework three or four times each week. In
addition to providing time for individual work such as
preparing materials, we make the most of thecharacteristicfeaturesoftelework—concentration,planning, rationality and synchronization—by holding
meetings to share details from Group Management
Committee meetings, regular consultations with members,
and in-house training sessions with numerous participants,
among other activities.

We have increased productivity
While maintaining a high level ofengagement.

Data Highlights

Survey on Compatible Work
We conduct surveys of managers as needed todesign the optimal work style for the current
situation.
“Because of my family circumstances, which include
providing childcare and nursing care, I have been able towork more productively using telework.”“Face to face, it is easier to pick up on changes inmotivation than when communicating through a screen,so I would like to increase the number of days in theoffice when working with new employees.”

Benefits

ChanceEmotion and Sympathy
Occurrences
Logic
Share theFoster a
Promotesense of unity Learn from understandin same feelings
othersg of others
Cooperation

Benefits

Rationality Synchroni
zationConduct
Improve work Carry out standardized Simultaneous
efficiency
tasks
operations communication
systematicallyof information

Concentration

Planning

Human Capital Report 2023 - Chapter 3

work and telework to improve

Systems

Recruitment

Training Systems

Corporate
Culture41

Ownership System: Employee Stock Ownership Association
Measuresin DetailObjective and Outcome

An employee stock ownership association is a system in which employees regularly acquire company stock toshareholders so each employee commits

help them build assets over the medium to long term.

to the growth of the Company and theirAn employee stock ownership association is a system in which employees regularly acquire company stock to

own individual growth as an ownerhelp them build assets over the medium to long term.

Seminar for Employees

The membership rate for the Employee

Incentive System

Stock Ownership Association is 90.9%,
a high level that fulfills our objective.

We have introduced an incentive system in which

The Board of Directors of the Employee Stock

the Company adds a uniform 10% incentive when

Ownership Association conducts financial literacy

employees

courses to increase employee ownership.

purchase

Company

shares.

We

recommend holding stocks for the long term with

Data Highlights

the aim of creating the following cycle.

Seminar for Sharing Investing Experiences with
Junior Employees

History of Employee Stock

An opportunity to get answers to yourquestions and to deepen your understandingof how to actually start and continue
investing!

Ownership Association
StartingDate

2002
Initiatives before Stock Listing

We set a hypothetical stock price for use within the
Company, raising or lowering it depending on daily ordervolume, the number of complaints received and otherfactors, in order to make employees aware of themselves
as shareholders.

Put what you learn
to work right away!

Each Group
member produces
results

1

Comments from Participants
Results are reflected in
the Company’sbusiness performance
Capital market evaluation
improves and the stock
price increases

Asset value
increases“I had just been enrolled in automatic payments to
buy Company stock, so this was a good
opportunity for me to reconsider what I want fromthe association.”Objectives

・To give employees a management perspective“I had heard a little about financial literacy at work,

・To share joy in the Company’s growth with Group
employees who continue to invest their valuable time

but this was my first time taking a course like this,and I learned a lot.”

Human Capital Report 2023 - Chapter 3

Encourage employees to become

Systems

Recruitment

Training Systems

Corporate
Culture42

Life Event Support
Measuresin DetailObjective and Outcome
Build better relationships between theWork Style Options

company and employees by supporting

Our system enables employees to temporarily change

Although the Link and Motivation treats its employees thetheir work style to deal with childbirth, childcare, familysame regardless of gender, childbirth is an event unique tonursing care, injury, illness, or a work-related accident. At

women. We have established various support programs to

The number of employees choosing flexible

the same time, we also reassess expectations based ongive female employees the sense of security they need towork styles has increased yearly, and 161

changes in work performance.

give birth, return to work, and thrive in the workplace. We

employees took advantage of work style

Employees can choose from various options for working

have also established programs to support the involvement

options in 2023.

days and working hours, and the number of employees

of both male and female employees in the care of their

who use the system has been increasing year by year.

children.

employees’ changing situations

Examples of Childbirthand Childcare Support

Data Highlights

OzaSanta

Number of Employees Using Work Style
Options（Persons）

Cash Gift for Newborn Children

150

Presents for employees’ children

We give employees ¥500,000 for a first or
100

OzaSanta, played by Chairman and Representative
Director Ozasa Yoshihisa, delivers presents to childrenof Group employees to show our gratitude to thefamilies who support them.

136

161

2022

2023 （Year）

subsequent child

50

￥
0

I gavepresents to
366 kids in2023.

second child and ¥1,000,000 for a third or
154

2021

Childcare Support Allowance
The Company pays half of the cost of ababysitter or daycare center an employee
uses during working hours.

Human Capital Report 2023 - Chapter 3

individual work styles according toChildbirth and Childcare
SupportRecruitment

Systems That Create New

to Work at LMG

Reducing Time and Space Constraints for Working
While Parenting
Both of you are balancing childcare and work. Have any of the Group’ssystems been particularly useful?
Sano

The end of my childcare leave coincided with the end of the COVID-

19 pandemic, so the Group had already introduced Compatible Work(

page 40 ), which was very helpful because it allowed me to work both athome and in the office. I like that I can watch my child while I work. Anotheruseful system is Work Style Options, which I can use until my child graduatesfrom junior high school. I am also really grateful that my company subsidizes

do so. When I told my boss I wanted to take three months of paternity leave, he
immediately assured me that even longer would be OK. Then, after I returned
to work, he mentioned that all employees should take leaves as long as mine.
Some junior employees have even wondered if the leave I took was longenough. That helped me get over any feelings of guilt I might have had.
As for my job duties, I have never felt that I couldn’t take time off from workwhen I needed to. Before my paternity leave began, the entire team worked to

Employee One-onOne

I want to help make conditions
more hospitable in Japan forenthusiastic scientific research,and I believe Link and Motivation
can play a role in making that
happen.

I have heard that it is hard for men to take paternity leave in Japan,

ensure things would be fine without me, so the moment my child was born, I
was able to start my leave the following day. Then, it was easy to get back into
the swing of things when I returned to work, so all this has left me with a strong
impression that the idea of “putting family first” is deeply rooted in myorganization. In fact, even before I officially joined the company, someone here
told me, “Someone else can always cover for you at work, but no one canreplace you at home, so make your family your priority.”

Sano Manami
Recruiting Advisor/Career Advisor, MidCareer Recruiting Company
Link-i Inc.

half the cost when I leave my child in daycare.

Reason for Continuing

Sakurai
桜井：

to Work at LMG

The Flextime system is also good. I sometimes have to take a few

hours off during the working day to take care of my child. Also, since it takes acouple of months to receive the paternity leave payment, I was very grateful tohave the cash gift for newborns just when we had all the expenses of childbirth.

Because each person here has joined thecompany after engaging in meaningfulinteractions during the recruiting process,there are many sincere and enthusiastic
employees. This results in an organization
made up of members who have the mostimportant qualities necessary for working
with others.

Human Capital Report 2023 - Chapter 3

Reason for Continuing

Sakurai桜井：

but Link and Motivation has created conditions that make it really easy for us to

TALK

Human Resources Unit, Group
Design Office
Link and Motivation Inc.

43

One often hears that even when a company has systems likethese, they are difficult to use. How has your experience been?

CROSS

Sakurai Takuya

Corporate
CultureOrganizations Where Team Support Is the Norm

Relationships with theCompany

Training Systems

Recruitment

Employee One-on-One

佐野：
Sano The same goes for my organization. I

Training Systems

44

took two years of maternity leave, so I was a

佐野：
Sano To begin with, now that there are limitations on my time at work since
returning from maternity leave, I am particularly conscious that I cannot

little nervous upon returning, but I got a warm

progress without the cooperation of my co-workers. The resulting increase inwelcome. Now I have a shortened workday,

opportunities to communicate with others in the workplace has been a big

and all members in the workplace support me.

change for me. I feel more motivated to take my work seriously and show myMore important than the mere fact that adetermination to advance in order to earn my co-workers’ support. I also takecompany has a system in place is whether ormore pride in my work. I want to maintain this attitude and show my gratitude to

not it is actually being used. Link andmy co-workers.

are being used.

Changing Work Styles Raises i-Company Consciousness

approach to your job?
I have more opportunities to appreciate the greater flexibility I’m

CROSS

Has the change in your work style affected your motivation or your

Number of Employees Taking Childcare Leave

with the organization has improved considerably. Being able to work in thisway is one of the reasons I have continued working. Of course, balancing
work and childcare has made things much more difficult. Changing my work

style has also given me more time to think about my i-Company (page 35 ).

This experience has been an opportunity forme to think about my options as an i-Company,
starting with whether or not to take paternity

leave in the first place, as well as what I should
devote myself to after the birth of my child.

? What Are Work Style Options?
A system that enables employees to temporarily change their work style to deal
with childbirth, childcare, family nursing care, injury, illness, or a work-related
accident. Employees can choose the number of working days per week andhours per day according to their individual circumstances. ( page 42 )TALKgiven in working and the understanding of my co-workers, so my engagement（Persons）

Female

40

Male

3
0
2
0

25

1
0
0

25

9

9

2021

2022

Note: Consolidated
figures

14

20

2023

（Year）

Human Capital Report 2023 - Chapter 3

Motivation is a company where such systems

Sakurai
桜井：

Corporate
CultureMeasures for Human Capital Management

Recruitment

Training Systems

Corporate
Culture45

Specific Investments in Recruiting, Training, Systems and Corporate Culture

Corporate Culture
PurposeApproachCommunication Is the bloodstreamof the Organization
When bloodstream is blocked, the human body develops various

However, increasing specialization in an organization gives rise

disorders and illnesses. Similarly, when communication is

to a host of problems. A sense of distance naturally increases,

blocked in an organization, various issues arise. Just as it isboth vertically in the hierarchy and horizontally among functions,

important to maintain good bloodstream in our bodies, we

the intentions of senior management are not communicated, andconsider it extremely important to enhance communication withincooperation between departments weakens, among other issues.

an organization.

To resolve these issues and maximize results, we promote

In more concrete terms, we believe that it is important to use

s p e c i a l i za t i o n w i t h i n o u r o r g a n i za t i o n a n d i n v e s t i ncommunication to create connections within an organization,communication to achieve the seemingly contradictory goals ofboth vertically in its hierarchy and horizontally among functions,

integration and mutual understanding. We also consider

to facilitate both integration and mutual understanding. Growing

communication crucial for increasing employee motivation.

the Link and Motivation Group necessitates specialization into

Investing in communication is essential for us to maintain a highorganizational hierarchies and functions.

level of engagement as we continue to grow.

Human Capital Repor t 2023 - Chapter 3

Use communication as the parameter for making
the most of the skills Link and Motivation requires andincreasing sympathy with our philosophy

Corporate
CultureRecruitment

Training Systems

Corporate
Culture46

Group General Meeting
Measuresin DetailObjective and Outcome

The Group General Meeting is held once every three months in order to share views of the Group as a

Improve engagement by sharing thewhole.

Group’s current status and vision

The meeting provides an opportunity to align all employees toward common goals through a full schedule ofpage 35)

as well as regular features such as a review of business results, MVP awards and a presentation by Chairman
Ozasa on policy.

The average number of attendees was

The average number of attendees in 2023 was 1,371.

1,371, with many employees

participating and sharing theirperspectives.

Data Highlights

Feedback from Group General
Meeting Attendees“I was able to get a glimpse of how we willgrow as a Group.”“The meetings are a chance to deepen myunderstanding of the Group by getting a
lot of new information.”“I am always inspired by the enthusiasm ofpeople from other Group companies! It isan opportunity to better understand myown company.”AwardsChairman’s
Presentation

We summarize the past threeAwards are presented to MVP

Chairman and Representative

months through a review of theemployees who have produced

Director Ozasa Yoshihisa sharesproduct market, labor market andparticularly

his policies for the future.

capital market.

achieved

growthandpositive

impacton

Report on theThree Markets

workers.

outstanding

results,
had

their

a
co-

Human Capital Report 2023 - Chapter 3

events that include welcoming prospective new employees and the i-Company Challenge awards (Corporate
CultureRecruitment

Training Systems

Corporate
Culture47

In-House Media
Measuresin DetailObjective and Outcome
Promote understanding of the
management team’s views and of the

Top Comment

LM Kaitai Shinsho

Link and Motivation Group as a whole

an in-house bulletin on the Group intranet,
is 90.1%, maintaining a high level.

To give employees a multifaceted understanding ofturns each month to deliver a message via thethe Group, each April we publish LM Kaitai Shinsho,

Group intranet to employees covering the Group’s

which breaks down our current situation in thecurrent direction and other topics, in order to shareproduct, labor and capital markets, and analyzes

the views of senior management. The siteand explains various quantitative data.

maintained a high access rate of 90.1% in 2023.

Data Highlights「LandMark」
LandMark is a communication platform that aggregates
information to be shared throughout the Group and distributes
it in a timely manner. The use of the English word “landmark”
for its name signifies our intention that all employees gain their
bearings from the site, which is filled with information based
o n

o u r

m a n a g e m e n t

p h i l o s o p h y .

Comments from Readers

Comments from Readers“Now I understand that our reorganization is“It’s easy to understand because it gives a

aimed at increasing the value we provide bygrasp of data from multiple perspectives,

creating customer-centered clusters. I will renew

including the Group overall as well as themy efforts to provide customer value! ”

status of each division and Group company.”“The detailed advance explanation of the“In-house media of this high quality will inspire us tobackground of the changes helped me

expand our horizons and take actions for the future so

consider my next moves.”that we can live up to what it signifies for the Group.”

Human Capital Report 2023 - Chapter 3

The average access rate for Top Comment,

Directors of the Link and Motivation Group takeWhat Makes Our Corporate
Culture Unique?

Training Systems

Corporate
Culture48

Setting Long-Term Individual Visions Throughout the Organization
Are there any measures carried out within the Group that left an impression on you?
One measure in my department is for each employee to create a vision of what they want to be

Imano Satoshi
Motivation Cloud Unit Manager

three years from now. This is highly effective as a way of making a long-term investment in the
future. I also like the fact that employees are free to choose who they ask for advice, not just their

Product Design Office
Link and Motivation Inc.

Employee Interview

Reasonfor
Joining
LMG

My mission is to help create a society
where all creative people, including
engineers, can work with enthusiasm. I
decided to join Link and Motivation
because of my sympathy with theGroup’s philosophy and businesses in
the
area
of
“creatinggoodorganizations” to achieve this goal.

direct superiors, because it allows individuals throughout the entire organization to work together.

The Link and Motivation Group has numerous in-house media (page 47 ). How do you

use them in your daily work?

Using Statements from Management as the Basis for Decisions
Ordinarily, they are used extensively in the course of communicating within a team. During a

Aligning Terminology to Maximize the Power to Provide Value todiscussion, people will quote something a member of the management team said in some in-Customers

house media or at the Group General Meeting (You changed jobs mid-career to join Link and Motivation as an engineer in 2019. Was there
anything that surprised you about the corporate culture?
I was surprised to find that there is so much specialized vocabulary, constituting a common

language, for sharing the Group’s way of thinking, based on the Group’s own DNA Book.
Everyone in the Group uses the same terminology to maximize our ability to do our utmost forcustomers, even though our job descriptions and roles may be different. I think that is unique.

page 46 ). For example, “Chairman Ozasa

said so-and-so” or “This approach seems best based on what President Sakashita said in his

message.” You could say that in-house media serve as a reference point for members in productdevelopment or everyday decision-making.
Also, for me personally, the Group’s in-house media create a feeling of connection with the
management team, which fosters agreement with and trust in management. I think that is aunique point for Link and Motivation.

Employees use this language not only in measures to promote understanding of our DNA andterms, but also in everyday communication.

Communication Gives an Organization
Strength

What are your impressions of this common language used in the Group?

What effects do you see from the Group’s measures to

It took me some time to understand it properly and to be able to express myself using it. However,build its corporate culture?

because I had to take that time, I feel that once I became able to use it, it has the advantage ofI believe that having everyone communicate using a common

facilitating communication with others in the Group.

language makes our shared objectives clearer and increases? Measures to Promote Understanding of Our DNA
Measures include giving tests, having employees write reports, or other methods
conducted each year to promote understanding of our DNA Book, which we havepublished to share the Link and Motivation Group’s unique concepts and philosophy.

our strength as an organization. In other words, it increases
engagement with the organization, which in turn should provide
our businesses with room for growth in the future.

Human Capital Report 2023 - Chapter 3

INTERVIE W

Recruitment

Creation at Other Companies
Makes Our Own Strengths

More Apparent

Recruitment

Training Systems

Corporate
Culture49

What are the features of the Group's measures?
People are both the core of the Link and Motivation Group and its competitive advantage.
Therefore, before it implements any measures, the Group considers how the individuals in theGroup will grow and find fulfillment through their implementation.

Eliminating Gaps in Time and Space
The Group emphasizes communication as the “bloodstream” of the organization. What do
you think about its communication measures?

Matsuda Yoshiko
President and Representative
Director
Link Event Produce Inc.

Reason for Continuing

I feel that they are consciously working to eliminate gaps within the Group in terms of time andspace. As for space, when the growth of each individual leads to the growth of the company, it isusually likely to lead to a situation in which each person accumulates knowledge on their own,

Employee Interview

creating gaps between employees. However, my impression is that the Group consistently works
to Work at LMG
I want to use Motivation
Engineering to do work thatleaves a lasting impression on
people. I also hope to create
opportunities for the Group aspresident.

to avoid conflicts between individuals or departments by encouraging relationships between them,through methods such as creating a common language that unites its diverse employees andproviding regular opportunities for making connections.
The Group has also eliminated gaps in the experience employees accumulate over time throughefforts to connect the past to the future, such as ongoing measures to convey the thoughts of thefounder and the history of Link and Motivation.

Integrating the Organization through Motivation Engineering
Connecting through Comprehensive Communication
Link Event Produce Inc. provides support for other companies in creating their corporate
culture. From your company’s perspective, what are the strengths of the Link andMotivation Group’s own corporate culture?
The Group’s businesses are conducted by three different divisions, and the workforce is diverse,
so it is great that it has created a culture that maintains a sense of unity as a group while
respecting specialized expertise. In terms of the specific aspects of creating a corporate culture,
the Group employs various measures, but the underlying philosophy of Motivation Engineering is“One for All, All for One,” and the measures are modified based on that idea. Therein lies thestrength of the Group’s corporate culture. I believe that is why the measures are structured so that

What specifically does the Group do to eliminate those gaps?
For instance, the Group General Meetings that are held once every three months include a lookback at the past and talk about the future, rather than just a simple announcement of businessresults. For Group-wide communication, including between the management team and theworkplace, there is LandMark (page 47) and opportunities for interdepartmental training,among other initiatives. Training measures create diagonal connections that transcend Group
companies and departments. This ability to comprehensively cover vertical, horizontal anddiagonal relationships and create communication opportunities is a unique feature of the Link andMotivation Group, whose business centers on people.

all employees understand the significance of implem enting them from their own
respective viewpoints.

?What Is the Business of Link Event Produce Inc.?
Support for companies in transforming their corporate culture centered on their vision
through consulting, event planning and cloud services

Human Capital Report 2023 - Chapter 3

INTERVIE W

Supporting Corporate CultureChapter

The Foundation Supporting
Human Capital Management
51

Governance Structure

52

A Board of Directors with Expertise in Organizationaland Personnel Matters

51

The Foundation Supporting Human Capital Management

Governance Structure
Based on the concept that human resources are the greatest, most powerful type of capital,
the Link and Motivation Group has built a management structure that views the promotion oforganizational strategies to maximize human capital as a core management issue.
Approach to CHRO Selection

Governance Structure
Efforts to maximize human capital are regularly reported on and discussed at

In managing a Motivation Company, which uses employee motivation as its growth

meetings of the Group Management Committee, and the Board of Directors

engine, the CEO should concurrently serve as the CHRO because the business andsupervises related business execution.

the organization are treated as equals.

Audit

Board of Directors
Instruct/Supervise

1986 Graduated from Faculty of Political Science and Economics,

Audit & Supervisory
Board

Waseda University
Joined Recruit Co., Ltd.

ReportAssigned to the Human Resources Development Department
to handle internal recruiting of new university graduates

Group Management Committee

1994 Launched the Organizational and Human Resources Consulting Office

ReportInstruct/
Instruct/Supervise Report Supervise

ReportEstablished the Company, and assumed the position of President andAudit

2000 Representative Director(Risk Analysis and Evaluation)

ReportManagement
committees ofGroup companies

2013 Chairman and Representative Director (to present)

ReportHuman Resources
Department/Accounting Department

Approach to Executive Compensation

Content of Board of Directors and Group Management Committee Agendas

7.4％

In the Company’s view, the role of a director is to increase corporate value by
formulating management policies and strategies for the entire Group and providing
advice and supervision to corporate officers and employees in conducting business.
Therefore, our basic policy is to structure a compensation system for directors thatconsists of both basic and performance-based compensation. The types ofcompensation and the purpose and overview of each type are as follows.

3.0％
Type of Compensation

9.6％
41.0％
38.9％

■ Management
strategy/Monitoring■ Human capital■ Finance/Capital policy■ Governance/Riskmanagement■ Other

Fixed

Variable

Purpose/Overview

PolicyMonetary
compensation paid
Basicmonthly ascompensation remuneration for the
execution of duties asa director

The representative directors prepare a draft proposal based on evaluation
criteria including the Group’s business performance, degree of contribution to
the promotion of business and organizational strategies, and employee salarylevels. Following prior explanation to outside directors and a thoroughexchange of opinions, a final decision is then made by the Board of Directors.

Monetary
Performance- compensation paid
based
every six months ascompensation remuneration forresults

The representative directors prepare a draft proposal based on the degree ofachievement of key management indicators in areas including humanresource capabilities and engagement, which are important metrics fororganizations, in addition to the Group’s revenues and operating income. Following
prior explanation to outside directors and a thorough exchange of opinions, a final
decision is then made by the Board of Directors and payments are made within a set
timeframe every six months. Key management indicators used as metrics and theirvalues are reviewed by the Board of Directors as appropriate in response to changes
in the environment.

Human Capital Report 2023 - Chapter 4

Ozasa Yoshihisa
Chairman and Representative Director

52

The Foundation Supporting Human Capital Management

A Board of Directors with Expertise in Organizational and Personnel Matters
The directors of Link and Motivation Inc. have extensive experience in organizational and personnel matters and are able to makemanagement decisions that link business strategy and organizational strategy.
The two outside directors use their deep insight gained through corporate management and professional knowledge in industrial

and organizational psychology, which is pertinent to the Group’s business.
Directors

Yuasa
Tomoyuki
OutsideDirector
2000

Joined Recruit Co., Ltd.
Established the Company, andassumed the position of
Director
President and Representative
Director (to present)

1991
2000
2013

1992

Joined Aoyama Audit Company（Price Waterhouse）

1998

Joined PwC Consulting Co., Ltd.

2002
2008
2015

(currently IBM Japan, Ltd.)
Joined the Company
Director (to present)
Outside Director, Youji Corporation(to present)

2005
2010
2016

Note: Concurrently serves as director of sevenconsolidated subsidiaries and Audit & Supervisory
Board member of OpenWork Inc。

2018

Kakuyama
Takashi
Outside Director

Joined Andersen Consulting, Ltd.
(currently, Accenture Japan Ltd.)
Joined Revamp Corporation
Director, Revamp Corporation
Outside Director, the Company (topresent), President,
Representative
Director and CEO, Revamp
Corporation, Outside Director, K’s
Holdings Corporation
President and Representative
Director, Chief Executive Officer,
RevampCorporation (to present)

1991 Professor, Tokyo International University
1992 Visiting Researcher, Michael G. Foster
School of Business, University of Washington
2003 Dean of Faculty of Human and Social Studies,Tokyo International University
2009 Dean of Graduate School of Sociology, Tokyo
International University
2011 Professor and Director of Motivation
Laboratory, Tokyo Future University
2012 Dean of School of Motivation and Behavioral
Sciences, Tokyo Future University
2018
President, Tokyo Future University (topresent)
2020
Outside Director, the Company (to present)

Skill Matrix
Corporate Management
Name

Ozasa
Yoshihisa
Sakashita
HidekiOhno Shunichi
Yuasa
Tomoyuki
Kakuyama
Takashi
Kuriyama
HiromiTominaga Kenji
Matsuoka
Yasumasa

Current Position

Areas of Expertise

Managerial
Experience

Organizational andPersonnel Matters

Industry
Knowledge

Chairman and
Representative Director
President andRepresentative Director
Director

○

○

○

○

○

○

Outside Director○○

Audit & Supervisory
Board Member
Outside Audit &Supervisory Board
MemberOutside Audit &Supervisory Board
MemberLegal & Risk
Management

Research &Development

○

○
○

○

○

○

○

○

○

○
○

○

Sales & Marketing

○
○

○

DX・IT

○

○
○

Outside Director

Finance &Accounting○○

Human Capital Repor t 2023 - Chapter 4

Ohno
ShunichiDirector

Sakashita Hideki
President andRepresentative
DirectorChapter

Human Capital Data
54

Correspondence with ISO 30414 Metrics

55

Compliance and ethics / Costs

56

Diversity

57

Leadership

58

Organizational cultures

59

Organizational health, safety and well being /Productivity

60

Recruitment, mobility, turnover

62

Skills and capabilities

63

Succession planning / Workforce availability

64

Other

65

Our Understanding of Human Capital Disclosure
Guidelines

54

Human Capital Data
Correspondence with ISO 30414 Metrics
No.

1

Metri cPage

No.

Compliance and ethics

1-1

Number and type of grievance filed

1-2
1-3

Page

No.

Organizational culture

55

5-1

Engagement/satisfaction/commitment

55

5-2

Retention rate

55

6

9

Metri cPage

Skills and capabilities

17, 58

9-1

Total developing and training costs

62

61

9-2

Training participation rate

62

9-3

Average formalized training hours per
employee

62

Organizational health, safety and well being

1-4

Disputes referred to external partiesー

6-1

Lost time for injury

59

9-4

Percentage of employees who participate
in training compared with total number of
employees per year

62

1-5

Number, type and source of external audit
findings and actions arising from these

55

6-2

Number of occupational accidents

59

9-5

Workforce competency rateー

6-3

Number of people killed during work

59

10

Percentage of employees who participated intraining

59

10-1

Succession effectiveness rate

10-2

Succession coverage rate

34, 6310-3

Succession depth rate: ready now

34, 6310-4

Succession depth rate: ready in 1-3
years/4-5 years

34, 63

2

Costs

2-1

Total workforce costs

55

6-4

2-2

External workforce costs

55

7

2-3

Ratio of the average salary and remuneration

55

7-1

2-4

Total costs of employment

55

7-2

2-5

Cost per hire

55

8

2-6

Recruitment costs

55

8-1

2-7
3
3-1
3-2
3-3
3-4

3-5
4
4-1

Turnover costsーDiversity
Workforce diversity ratio with respect to age
Workforce diversity ratio with respect togenderWorkforce diversity ratio with respect todisability
Workforce diversity ratio with respect toother indicators of diversity

Diversity of leadership team

EBIT/revenue/turnover/profit per employee
Human capital ROI

15, 5915, 59Recruitment, mobility, turnover
Number of qualified candidates per position

11
ー

63

Workforce availability

11-1

Number of employees

63
63

8-2

Quality per hire

60

11-2

Number of employees: full-time and parttime

8-3

Average length of time to fill vacant position

60

11-3

Full time equivalents

63

Contingent workforce: independent
contractor
Contingent workforce: temporary
workforceー

Absenteeism: unplanned leave

63

56

8-4

56

8-5

56

8-6

56

52

Leadership

Productivity

Succession planning

Average length of time to fill vacant critical
positionTransition and future workforce capabilities
assessment

60

11-4

ー

11-5

Percentage of positions filled internally

60

11-6

8-7

Percentage of critical business positions filledinternally

60

8-8

Percentage of critical positions

60

8-9

Percentage of vacant critical businesspositions in relation to all vacant positions

60
60

Leadership trust

57

8-10

Internal mobility rate

4-2

Span of control

57

8-11

Employee bench strength

4-3

Leadership development

57

8-12

Turnover rate

61

8-13

Voluntary turnover rate

61

8-14

Voluntary critical turnover rate

61

8-15

Exit/turnover reasons/leaving employment byreason61

34, 61ー

Human Capital Repor t 2023 - Chapter 5

Number and type of concluded disciplinary
actionPercentage of employees who havecompleted training on compliance andethics5

Metri c55
Compliance and Ethics

Costs

The Link and Motivation Group strives to practice Management with
Integrity (i.e., management with no illegality or dishonesty with regard to
any of its stakeholders, including customers, business partners, employees
and shareholders). As a corporate entity, we abide by laws, regulations,
corporate ethics and social norms, and understand that individual employees
must also make efforts to avoid transgressions. At the Link and Motivation
Group, we believe that our emphasis on engagement helps tostrengthen compliance, and see our high performance in complianceand ethics-related metrics to be a result of our high level of employee
engagement.

The Link and Motivation Group believes that investing in its organization,
starting with investment in communication, is essential for fostering the
motivation, knowledge and brand image that will lead to business results,
even though they may not be immediately apparent. We base ourdetermination of the necessity of each of our costs on this premise.
In addition, we consider expenditures for recruiting to be an investment rather
than a cost. This is because we emphasize investing money and time inattracting the talent we want to hire, based on the idea that recruitment
creates a company’s future five to ten years ahead.

2022

2023

Unit

2021

2022

2023

3

11

13

Total workforce costs*1

Million yen

21,34921,445

21,424(Type) Harassment

0

6

7

External workforce costs*2

Million yen

12,125

11,793

11,790122Compensation

2

3

4

5

6

3

(Type) Reprimands/pay cuts

5

6

1

Suspensions/demotions
Requests forresignation/disciplinary
dismissal
Percentage of employees who havecompleted training on compliance andethics*3 (%)
Percentage of employees who havecompleted training on compliance
Information management training
participation rate
Harassment training participation rate

0

0

2

0

0

0

Workplace environment
Other
Number of concluded disciplinary actions

Number of unresolved external audit
findings*4*2

Average monthly wage *3
Average annual wage *4
Ratio of executive compensation tototal salaries paid*5
Total costs of employment*6

Thousand yen

371

379

381

Thousand yen

5,302

5,301

5,218

4.9

5.2

5.0

9,724

10,373

10,337％
Million yen

Cost per hire*7
New university graduates

Thousand yen

—

—

—

Mid-career employees

Thousand yen

4,287

2,535

2,401

New university graduates

Thousand yen

355,000

336,989

341,092

Mid-career employees

Thousand yen

180,085

159,704

163,287

Recruiting costs*8
100.0

100.0

100.0

100.0

100.0

100.0

—

98.5

100.0

0

0

0

*1 The number of consultations with the hotline that is open to all employees.
Calculated based on total workforce (Group company employees, part-time staff and ALTs).
*2 Calculated based on total workforce (Group company employees, part-time staff and ALTs).
*3 All training content completed by employees.
*4 The number of findings in external audits by the Labor Standards Inspection Office, etc.,that are still unresolved.

*1 Total costs the Group paid directly to employees. Defined to include total costs for the external workforce inaddition to people the Group employs directly.
*2 Total costs paid to outsourcers, temporary staff and other workers the Group does not employ directly.
*3 The sum of all taxable payments for salaries and allowances.
*4 Calculated as salary plus bonuses paid four times a year.
*5 Calculated as total of executive compensation as a percentage of total compensation of all employees.
*6 Total costs incurred in employment. Defined to include costs that indirectly benefit employees (training costs,
benefit expenses, etc.).
*7 Calculated by dividing recruiting costs for the relevant year by the number of hires. Recruiting costs for new
university graduates are not calculated because the amount invested in the relevant year is not directly
linked to the number of hires.
*8 Total recruiting related costs recorded in the relevant year.

Human Capital Repor t 2023 - Chapter 5

2021

Number and type of grievance filed*1

56

Diversity
The Link and Motivation Group conducts hiring, evaluation, promotion and other corporate functions based on each individual’s
performance and growth, irrespective of attributes such as gender, nationality or age.

71-99
61-70

0.1％
Employees withdisabilities*2

2.5％
9.6％

51-60

31-40

2022

2023

1.5%

1.4%

1.5%

with disabilities in 2023 compared with the previous
year, the Link and Motivation Group overall still fell

37.2％

21-30

2021

Although we increased the number of employees

25.2％
25.4％

41-50

0-20

Workforce Diversity Ratio with Respect to Disability

short of the legally mandated employment rate forpeople with disabilities. We will continue to step up

0.0％

recruiting to address this management issue.

Workforce Diversity Ratio with Respect toGender*1

Female
44.0％

Male

56.0％

*1 Excludes non-responses*2 Tabulated based on the content of the Report on the Status of Employment of People with Disabilities
submitted to the Ministry of Health, Labour and Welfare each year. The results shown are as of June 1, in
accordance with the aforementioned report.

Workforce Diversity Ratio with Respect toOther Indicators of Diversity
Europe 0.9％
Asia 0.9％
North America 1.9％

Central and South America 0.6％
Other 0.8％

Japan
94.7％

Human Capital Report 2023 - Chapter 5

Workforce Diversity Ratio with Respect to Age

57

Leadership
The Link and Motivation Group believes that managers play an important role as a junction point in theirorganizations between employees above and below them in rank, between departments, and in otherrelationships.
We therefore proactively conduct initiatives to develop the leadership of managers, including manager training andsurveys of individuals.

4.4

Likeability

Reciprocity

4.4

4.4

Consistency

Number of General Employees
per Management Position*2

Group Hierarchy Chart

Five Sources of Influence Expected of a Manager
Expertise

Span of Control

Strictness

4.3

4.1

2023
Executives

Directors andcorporate officers

24

In 2023, results for all five metrics remained at 4.0 or higher (of a maximum of 5),

Company
managers

so we feel that the managers of the Link and Motivation Group are functioning well
as junction points between those above and below them in their organizations.

Managers

51
Unit managers and group managers

88

Leadership Development
Type

Objective
Understand the
New manager
role expected of a
training
managerLevel specificUnderstand current
training forsituation to set
managers
tasks and targets
BroadenManagers Generalperspective as a
Meetingmanager

Unit

2021

2022

2023

%

100.0

100.0

100.0

%

91.0

87.9

97.6

%

100.0

94.1

95.5

Other
Employees

Directors and corporate
officers

61.2

Company managers

27.8

Unit managers and groupmanagers

15.1

Generalemployees

1,329

Productivity is improving, and the numerical results of engagement and manager
role surveys have been high, so we consider the ratio between the number of*1 Numerical results for overall satisfaction as measured in a role survey on managers (Lincoln Survey).
Satisfaction for each item is evaluated on a scale from a low of 1 to a high of 5 by subordinates and superiorsof the subject managers. The figures above are the averages for all managers.

personnel at each level to be appropriate.

*2 As hierarchy names differ depending on Group company, figures are calculated by classifying positions
within the hierarchy based on certain criteria. Outside directors, part-time staff and ALTs are not includedin the number of people for each level.

Human Capital Repor t 2023 - Chapter 5

Confidence in Leadership (Results of Role Surveys on Managers*1)

58

Organizational Culture
The Link and Motivation Group emphasizes diversity not just in terms of each individual but also in terms of relationships
among diverse individuals. We believe that this is the same thing as engagement, and that a high level of engagement enables
each individual employee to play an active role and generate innovation. We pay close attention to engagement across a variety
of attributes and take pride in the high level that each employee has achieved.

Breakdown of Engagement Survey Results*1

Positioning of Priority Factor “Philosophy”
by Company
Expectation

By Division

558

AAA

Division
Individual
Development
Division
Matching Division
By
GenderMale
Female

479

AAA

274

AA

Subjects
ER
729

AAA

579

AAA

By nationality(Region)Japan
Asia (Excluding
Japan)
Oceania

North America
Central and SouthAmerica
Europe*1 Results from the engagement survey conducted in February 2024.
*2 See page 17 for engagement survey results by Group company.

SubjectsER

ICE BLOCK（Weakness）

INTER LINK（Strength）

1

4

AAA

INK BLOT

IDLE LINE

31

AA

1

2

9

AAA

10

AAA

1,148

AAA

16

AAA

4

company

company

company

company

Satisfaction

Organizational
Development

Subjects
ER

Human Capital Repor t 2023 - Chapter 5

Engagement/satisfaction/commitment

59

Organizational Health, Safety and Well Being

Productivity

To increase human resource capabilities and engagement, the Link andMotivation Group promotes the creation of workplaces where it is easy
for individuals to work by upgrading facilities, establishing systems andother methods.

The Link and Motivation Group emphasizes productivity (human capital
ROI) and gross profit per employee as KGIs for its organizational
strategy. Productivity is a core metric for promoting human capitalmanagement and for realizing the Group’s mission.

2021

2022

2023

Unit

2021

2022

2023

Revenues

Thousand yen

18,675

19,067

20,328Gross profit

Thousand yen

8,775

9,347

10,5950

Net income (loss)

Thousand yen

583

1,225

1,877

Human Capital ROI*2

%

33.0

41.1

48.4

Lost time for injury*1(total lost time in hours per million
work hours)

3.8

Number of occupational accidents *1(per million work hours)

4.1

3.2

4.1

Number of people killed during work*1

0

0

82.8

24.7

Percentage of employees who
participated in training*2

92.4

88.2

91.6

Illness/injury leave rate (%)

2.8

2.3

1.9

*1 Calculated based on total workforce (executives, Group company employees, part-time staff and ALTs).
*2 Calculated based on participation rate in annual stress checks.

Business results per
employee*1*1 Calculated based on the number of employees when their hours are converted to full time (40 hours a week).
*2 Human capital ROI = Adjusted operating income ÷ Investment in human capital adjusted operating income isa profit indicator that measures operating results. It excludes temporary factors such as goodwill, right-of-use
assets, and impairment of fixed assets from operating income. Investment in human capital reflects total
expenditures, including employee salaries and bonuses, statutory internal and external welfare expenses,
commuting expenses and other executive compensation.

Human Capital Repor t 2023 - Chapter 5

Productivity

60

Recruitment, Mobility, Turnover
The Link and Motivation Group works to create organizations thatemphasize a relationship of mutual selection, in which companies andindividuals choose each other as they deem appropriate, rather than amutually binding relationship based on lifetime employment.
Unit

2021

2022

Quality per hire*1
—

10.1

10.0

10.1

—

9.9

9.8

10.0

Days

56.1

55.2

2021

2022

2023

Days

0

0

0

%

73.1

78.3

76.2

%

100.0

100.0

100.0

Percentage of critical positions*6

%

1.6

1.7

1.6

Percentage of vacant critical
positions in relation to all vacant
positions

%

0.0

0.0

0.0

72.4

Years

4.1

3.6

4.0

%

69.7

68.8

58.6

Average length of time to fill vacantcritical position3*3
Percentage of positions filledinternally*4
Percentage of critical positions filledinternally*5

Internal mobility rate
Average period in the same field*7

Days

—

—

—

Internal mobility rate

*8

The Link and Motivation Group focuses on how long an individual is assigned to thesame field, and takes the individual’s wishes into consideration in conducting transfers
once every four years as a rough guideline. To foster a spirit of being proactive andindependent, the Group also emphasizes acquiring portable skills and capabilities
regardless of business field or job type through appropriate transfers.

*1 The six months after joining the company are a probation period. After the probation period ends,
employees are evaluated on a scale of 2-18, with 10 meaning “met expectations.
*2 Total number of days required to hire employees who joined the Group in the relevant year. Calculated
based on the number of days from the application date to the offer acceptance date. Recruiting of midcareer applicants is not calculated because some Group companies hire throughout the year.

*3 Critical positions are defined as directors (except outside directors), managing directors and corporate
officers, including those of Group companies. However, when a vacancy arises, we either appoint animmediate replacement or eliminate that position, so positions are never left vacant.
*4 Calculated as the number of vacant positions filled through internal recruiting divided by the total number ofvacant positions filled through internal plus external recruiting.
*5 Percentage of critical positions that opened up during the year that were filled through internal recruiting. All
critical positions have been filled by internal human resources.
*6 Calculated as the number of critical positions divided by the total number of positions.
*7 Group businesses are categorized into specified fields, and the period an individual spends in each field is
calculated.
*8 Transfers among occupations and the fields (as noted above), as well as changes in roles due to promotions
or emotions, are defined as internal transfers for the purpose of calculating the internal mobility rate for theyear.

Human Capital Repor t 2023 - Chapter 5

New University
Graduate
Recruiting
Mid-Career
Employee
Recruiting
Average length of time to fillvacant position*2
New University
Graduate
Recruiting
Mid-Career
Employee
Recruiting

Unit

2023

61
Recruitment, mobility, turnover
The Link and Motivation Group works to create organizations that emphasize a relationship of mutual selection, in which
companies and individuals choose each other as they deem appropriate, rather than a mutually binding relationship basedon lifetime employment.
2021

2022

2023

Persons—50Persons

10

14

10

Persons664Persons—22

27

Persons

—

27

24

%

—

81.5

112.5

%

10

13.3

13.2

%

9.8

13.0

12.4

%

0.3

0.7

0.6

%

0.3

0.4

0.5

Philosophy

%

8.8

2.9

8.4

Total * 1
Voluntary turnover rate
Turnover rate
Voluntary critical turnoverrate*2

Reasons for Leaving

Voluntary turnover rate
(management)
Voluntary turnover rate (ITengineers)

Work

%

43.2

43.7

31.2

Corporate culture

%

2.4

6.9

9.5

Treatment / Pay

%

16.0

11.5

16.8

Other (Health)

%

8.8

14.4

10.1

Other (Family)

%

18.4

14.9

15.6

Other (Retirement age)

%

2.4

3.4

1.1

Other (Involuntary)

%

—

2.3

7.3

There was a one-time increase in the turnover rate during 2022 and 2023 as structural reforms in the Career School Business (school relocation and closure)
led to retirement by employees with restrictions on their workplace location. Looking at other specific reasons employees gave for leaving, there were few
resignations due to our philosophy, which the Group emphasizes above all, or the corporate culture, indicating that we have been able to create an organization
unified by its philosophy, as has been our aim. However, resignations due to the work itself or treatment/pay have increased. In order to be an organization that
individuals choose (a Motivation Company), in addition to instilling the philosophy that is our strong point, our efforts will include optimizing according toindividual wishes and upgrading systems in line with the external environment.

*1 The annual (12-month period) sum total of the monthly turnover rate (monthly number of leavers ÷ monthly average number of employees)*2 The annual (12-month period) sum total of the monthly turnover rate of defined category of employees (monthly number of leavers ÷ monthly average number of employees)

Human Capital Repor t 2023 - Chapter 5

Unit
Corporate officers
Number of Participants (Raise the level of corporate officers)
in Top Gun Selection
Company presidents/Managers
Training for(Cultivate future officer candidates)
Management Personnel General employees(Cultivate the next group of manager candidates)
Executive candidates
Prospective
Current executives
Management Personnel
Executive candidate coverage rate

62

Skills and Capabilities
The Link and Motivation Group uses its unique human resource development apparatus to provide opportunities forindividuals to develop their careers independently and proactively. We work to instill the ideas and frameworks that should
be shared among Group employees, improve their basic capabilities and skills, and enhance their specialized knowledge.

Training Participation Rates

Unit

2021年

2022年

2023年

Actual costs

Thousandyen

94,793

190,536

190,587

Converted to amount charged
for services to customers

Thousandyen

385,674

325,239

467,657

Name of Training
Technical Skills

Training hours per employee were 27.1 hours* in 2023.
Portable Skills

DX Survey Results
Number of
respondents

2022

2023

Persons

1,499

1,381

Points

123.3

124.3

Digital knowledge

Points

57.9

56.3

Excel skills

Points65.4

67.9

Average DX Score(Breakdown)

Unit

StanceStance(Level specificrole survey
training)* Calculated by dividing the total hours spent for all training in 2023 by the number of employees at the end of
the year.

Unit

2023

Top Gun seminars

%

100.0

Negotiation training

%

97.6

Logical thinking training

%

99.7

Self motivation control
training%

98.7

Leadership training

%

96.6

Career design training

%

98.0

New company president
training%

100.0

New manager training

%

100.0

%

100.0

%

95.9

%

97.6

%

93.3

%

98.5

%

97.5

%

96.4

New employee stancetraining
Survey training for upper
management
Survey training for
management
Survey training for senior
employees
Survey training for leaders
Survey training for mid-level
employees
Survey training for junioremployees

Human Capital Repor t 2023 - Chapter 5

Total Human Resource Development
and Training Costs

63

Succession Planning

Workforce Availability

The Link and Motivation Group works to develop management personnel
who are able to adapt to the product, labor and capital markets, and to
think from a Group-wide perspective.

Based on its belief that human resources are our greatest, mostpowerful type of capital, the Link and Motivation Group secures humanresources with the high level of skill it seeks and strong motivation toachieve the Group’s mission. We believe that the high level of engagementin the Group has also led to a reduction in absenteeism.

2021

2022

2023

%

100.0

100.0

100.0

Succession coverage rate

Unit

2021

2022

2023

Executives*1

Persons

30

32

30

Group
company
employees

Persons

1,493

1,505

1,470

Persons

403

381

385

Company president candidates

Persons

—

106

104

Current company presidents

Persons

—

41

51

ALT*2

Persons

3,304

2,857

2,875

%

—

259.0

203.9

Total

Persons

5,230

4,775

4,760

Full-time

Persons

1,518

1,567

1,530

Part-time

Persons

408

351

355

FTE

1,748

1,719

1,671

%

0.9

0.9

0.5

Company president coverage ratio
Succession depth rate: ready now
Ready in less than 1 year

Persons—

5

5

Succession depth rate:
ready in 1-3 years/4-5 years
Ready in 1 to 3 years

Persons—

29

27

Ready in 4 to 5 years

Persons—

72

72*Percentage of critical positions filled through internal recruiting as of the end of the year.

Total workforce Part-time staff

Full-time/Parttime*3
Full-timeequivalent(FTE)*4
Absenteeism(unplanned
leave) rate

*1 Total of directors, managing directors and corporate officers, including outside directors.
*2 ALT: Assistant Language Teacher*3 Contractual working time of at least 40 hours a week is considered “full-time” and less than 40 hours a weekisconsidered “part-time,” regardless of the form of employment. (Excludes ALTs.)*4 Number of employees when converted to full-time (40 hours a week). Calculated by dividing total working
hours perweek of all employees by 40 hours. (Excludes ALTs.)

Human Capital Repor t 2023 - Chapter 5

Succession effectiveness rate*

Unit

64

Other

Management Position
Male-Female Ratio*1

Unit

2021

2022

2023

Male

％

—

74.5

76.2

Female

％

—

25.5

23.8

Male/Female Employee Wage Differential

Fewer women than men are employed in positions on a management track, andPart-time staff
and fixed-term
employees

All workers

Link and Motivation Inc.

85.7

172.4

77.2

Link Global Solution Inc.

102.8

49.2

74.6
85.4

We believe these are the reasons women take a comparatively longer time to

Link Event Produce Inc.

85.5

—*3

promotion to a managerial position.

Link Corporate Communications Inc.

79.9

67.3

76.8

Link Academy Inc.

83.5

71.1

82.0

Motivation Academia Inc.

82.7

117.8

77.3

Link Interac Inc.

91.0

53.4

79.7

Interac North Co., Ltd.

71.2

99.3

98.6

*1 The percentage of women in all management positions (excluding executives) based on the definition set
by the Ministry of Health, Labour and Welfare.

Unit
Group General
Meeting average
participation

Priority
Communication
Measures

Number of GroupAwards

Persons

2021

2022

2023

Interac Kanto North Co., Ltd.

67.0

92.4

90.2

908

1,156

1,371

Interac Kanto South Co., Ltd.

86.5

91.7

91.8

Interac Kansai & South Central Co., Ltd.

73.6

95.1

93.5

Interac West Co., Ltd.

60.9

90.4

88.7

Link Japan Careers Inc.

62.6

—*3

61.9

Link Agent Inc.

67.5

—*3

39.2

Web-based in-housebulletin Top
Comment accessrate%

DNA test averagescore*2

Points—91.2—

Link-i Inc.

76.1

92.7

74.9

DNA reportsubmission rate*2

%

100

—

100

Consolidated*4

82.4

91.8

84.8

Total number ofawards

Persons

37

37

37

For individuals only

Persons

24

26

27

The main factor in the differentials is the high 80% proportion of women whose salaries havebeen reduced due to leave and/or shortened working hours for childcare or other purposes.

92

93.1

90.1

*2 To align the perspectives of all Group employees, we have employees take a test or submit a report eachyear to promote understanding of our DNA Book, which sets forth the Group’s unique concepts andphilosophy.

*3 There are no female part-time or fixed-term employees.
*4 Excluding OpenWork Inc., Link Japan Careers America and Link Japan Careers Europe

Human Capital Repor t 2023 - Chapter 5

women take maternity and childrearing leave at a higher rate and for longer periods.

Full-time

65
Our Understanding of Human Capital Disclosure Guidelines
The Link and Motivation Group believes that a high level of human resource capabilities combined with ahigh level of engagement leads to business results and increased corporate value.

ISO 30414
Items detailed include the type and number of grievances anddisciplinary actions, and external audit findings. Included in“management area from the perspective of risk avoidance.”

Costs

Items detailed include costs associated with the total
workforce, recruiting and turnover. Included in“Productivity” as intended by the Group.

Diversity

Items detailed are diversity with respect to age and gender, anddiversity of the leadership team. Included in “Human Resource
Capabilities” because an organization requires employees with diverse
abilities (in other words, diversity) in order to improve its humanresource capabilities (degree of alignment between the abilities
required by the organization and the abilities possessed by theindividuals in it).

Leadership

Items detailed are leadership trust and investment in its
development. Included in “Human Resource Capabilities” andas an investment in “Training” as leaders.

Organizational culture

Items detailed are engagement and retention rate. These
overlap with “Engagement” as intended by the Group.

Organizational health,safety and well being

Items detailed are matters related to occupational accidents and thepercentage of employees who participated in health and safety
training. Included in “management area from the perspective of risk
avoidance.”

Productivity

Items detailed are business results per employee andhuman capital ROI. These overlap with “Productivity” asintended by the Group.

Recruitment, mobility,
turnover

Skills and capabilities

Succession planning

Workforce availability

Items detailed include quality per hire, percentage of positions filledinternally, turnover rate and reasons for leaving. Included in“Recruiting” as an investment to increase human resource capabilities
and engagement.
Items detailed include total human resource development costs
and training participation rate. Included in “Training” as aninvestment to increase human resource capabilities andengagement.
Items detailed are matters related to the succession
effectiveness rate and succession coverage rate. Included in
improvement of “Human Resource Capabilities” that canadvance the business and organization and as aninvestment in “Recruiting” and “Training.”
Items detailed include total workforce andabsenteeism rate. Included in “Productivity” asintended by the Group.

* Guidelines for Human Capital Visualization, issued by the Cabinet Secretariat of Japan in August 2022

Training
Leadership
Training
Skills and experience

Included in “Training” as an investment to increase human resource
capabilities and engagement.

Engagement

Overlaps with “Engagement” as intended by the Group.

Mobility

Included as an investment in “Recruiting” to increase human resource
capabilities and engagement, in improvement of “Engagement” toreduce the turnover rate, in improvement of “Human Resource
Capabilities” that can advance the business and organization, and as
an investment in “Recruiting” and “Training.”

Recruiting
Retention
Succession

Diversity
Diversity
Non-discrimination
Childcare leave

Included in “Human Resource Capabilities” because an organization
requires employees with diverse abilities (in other words, diversity) inorder to improve its human resource capabilities.

Health and Safety
Mental health
Physical health
SafetyConsidered a “management area from the perspective of risk
avoidance.”

Labor Practices
Labor practices
Child labor/forced labor
Considered a “management area from the perspective of risk
Fair wages
avoidance.”
WelfareRelationship with aunion

Compliance/Ethics

Considered a “management area from the perspective of risk
avoidance.”

Human Capital Repor t 2023 - Chapter 5

Compliance and ethics

Guidelines for Human Capital Visualization*

66

Human Capital Repor t 2023 - Chapter 5

Scope of Reporting
Reporting Period
Publication Date

Link and Motivation Inc. and consolidated subsidiaries
January 1, 2023 to December 31, 2023 Note: Includes some information from outside the reporting period.

June 2024

Note: Forward-looking statements in this report are forecasts determined by the Link and Motivation Group based on information available at the time of production, and include potential risks, uncertainties and otherfactors.