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