https://www.lmi.ne.jp/english/

HUMAN CAPITAL REPORT 2022

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Link and Motivation Group Profile
MissionBusiness Structure

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

Organizational
Development Division

Individual
Development Division

Support for creating organizations that
individuals choose(Motivation Companies)

Support for creating individuals
that organizations choose(i-Companies)① Consulting & CloudBusiness② IR Support
Business③ Career School
Business④ Cram School
Business

Corporate Slogan

MOTIVATIONENGINEERING

Individual Passion Inspires the World
Matching Division

Basic Information

Providing opportunities to linkorganizations and individuals(As of December 31, 2022)

Chairman and Representative Director: Ozasa Yoshihisa
Paid-in capital:
1,380,610,000 yen
Stock code:
2170 (Prime Market, Tokyo Stock Exchange)
Head office:Kabukiza Tower 15F, 4-12-15 Ginza,
Chuo-ku, Tokyo 104-0061, Japan
Established:
April 7, 2000
Revenues:¥32.7 billion (consolidated)
Adjusted operating income: ¥4.1 billion (consolidated)
Number of employees: 1,505 (consolidated)⑤ ALT Placement
Business⑥ Personnel Placement
Business

Overview by Division(Year ended December 31, 2022)

Revenues(billion yen)

Gross Profit(billion yen)

Number of
Employees

Organizational Development Division

120

82

599

Individual Development Division

69

27

576

Matching Division

145

57

329

HUMAN CAPITAL REPORT 202202

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Year One for Human Capital Management
Our certification was followed by a positive reaction from many of our“motivation” was an academic term in Japan, not a word used commonly bystakeholders. In the capital market, Link and Motivation has been highly rated forall. Just over 20 years later, it has become a word that even children might

its leadership in human capital management in Japan. In the product market, wespontaneously use.

have received inquiries from many companies looking to benefit from ourWe then arrived at 2022, which has been called “year one for humanexpertise so they can also obtain certification. It has been very gratifying tocapital management” in Japan. Human capital management is an approach

receive such a reaction, which shows the high level of interest in human capitalthat treats human resources as capital and works to maximizes their value,

management in Japan.

leading to improvement in corporate value over the medium to long term. We

With the release of this year’s Human Capital Report, we are communicatingview this approach as virtually synonymous with the message that we haveour approaches and results in the area of human capital management. I hope thebeen communicating to society since our founding: “Management that makes

report provides all our stakeholders with a better understanding of the Link andemployee motivation a growth engine will win the day.” I feel that society has

Motivation Group as we continue our efforts to lead human capital management

begun to recognize this concept, which Link and Motivation has been

in Japan.

emphasizing since its own day one.
To further accelerate social trends related to human capital management,
in March 2022 Link and Motivation acquired ISO 30414 certification,

becoming not just the first company in Japan, but in all of Asia, to do so.

Ozasa Yoshihisa
Chairman and Representative Director
Founder

HUMAN CAPITAL REPORT 2022

When we founded Link and Motivation in 2000, the English word

HUMAN CAPITAL REPORT 202203

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HUMAN CAPITAL REPORT 2022

CHAPTER 1
4

CHAPTER 5
Corporate Culture

CHAPTER 2
10

CHAPTER 3
01 Cultivating Management Personnel to Support the Group’s Future
02 Updating Literacy for Contemporary Needs

22

01 Creating Opportunities for Making Connections as a Group
02 Creating a Corporate Culture That Spurs Individual Desire for Growth

01 Recruiting United by a Common Philosophy
02 Attracting the Talent We Want to Hire

Training

18

01 Linking Corporate and Employee Visions
02 Growth at Four Times the Speed of the Rest of the World

01 Management Approach
02 Core Management Metric: Productivity
03 Core Themes of Our Organizational Strategy
04 Priority Indicator for Organizational Capabilities
05 Priority Indicator for Human Resource Capabilities

Recruiting

Systems

HUMAN CAPITAL DATA26

CONCLUSION

40APPENDIX

42

14

HUMAN CAPITAL REPORT 2022

Strategies

CHAPTER 4

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Strategies

Training

Systems

Corporate
Culture04

Recruiting

STRATEGIESCorporate
CultureStrategies

Systems

Training

HUMAN CAPITAL REPORT 2022 - CHAPTER 1

CHAPTER 1

Recruiting

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Strategies

Recruiting

Training

Systems

Corporate
Culture05

CHAPTER 1 Strategies
O1 Management Approach
High-Level Linkage of Business andOrganizational Strategies to Accomplish Our Mission

MissionSome take the view that organizations are determined by business strategy,
but we also believe that a business strategy is determined by the organizations
to which it applies. That is why we give equal value to our business andorganizational strategies, and consistently link them in order to achieve ourBusiness
Strategy

Organizational
Strategy

LINK

Maximize Customer Value

Maximize Human Capitalmission.
We have made productivity (human capital ROI) the core management
metric for monitoring the degree of linkage between our business strategy andour organizational strategy.
To carry out both our business strategy and organizational strategy, and thus

Productivity
Human Capital ROI

improve productivity, we conduct a variety of measures in four domains:
recruiting, development, systems and corporate culture.
All our organizational strategies are designed and implemented based on

Management Areas of Organizational Strategy

Motivation Engineering, our core technology and the source of our competitive
advantage. We continuously apply Motivation Engineering in our own
organizations with the aim of being a role model for all other companies.

Recruiting

Training

Systems

Corporate
CultureHUMAN CAPITAL REPORT 2022 - CHAPTER 1

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

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Strategies

Recruiting

Training

Systems

Corporate
Culture06

CHAPTER 1 Strategies
O2 Core Management Metric: Productivity
Human Capital ROI

41.1％

We emphasize productivity as a metric that shows the degree of optimization%of the linkage between our business strategies and our organizational

50

strategies. In particular, the Link and Motivation Group monitors human capital

return on investment (ROI) as a core management metric.
45

41.1%

In 2022, human capital ROI for the Group was 41.1%. Human capital ROI
decreased in 2020, and the operating margin temporarily declined due to the40

COVID-19 pandemic. However, improvement in the operating margin resulted
in a high level of human capital ROI in 2022.

35

We consider it important to invest appropriately in human capital in order to
33.0%

improve organizational results as a return on that investment. Based on this30

stance, we will continue to conduct management that aims to balance
investment and returns.

25

24.2%
20
2020

2021

2022

Note: Human capital ROI = Adjusted operating income ÷ Human capital costs
Human capital costs are calculated as total expenditures including employee salaries andbonuses, statutory internal and external welfare expenses, commuting expenses and otherexecutive compensation.

HUMAN CAPITAL REPORT 2022 - CHAPTER 1

Human Capital ROI in 2022:

Ongoing Pursuit of Productivity from Linking
Our Business and Organizational Strategies

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Strategies

Recruiting

Training

Systems

Corporate
Culture07

CHAPTER 1 Strategies
O3 Core Theme of Our Organizational Strategy
Business
Strategy

Maximize Human Capital

Enhancing Both Organizations andHuman Resources to Maximize Human Capital
In implementing our organizational strategy, we aim to maximize humancapital. In the Link and Motivation Group, we believe that ongoing efforts tocreate conditions in which highly skilled employees can work with a high level ofengagement will improve the value of human capital and thus lead to businessgrowth.
That is why the core themes of our organizational strategy are organizational
capabilities and human resource capabilities. We monitor these capabilities
Core Theme of Our Organizational Strategy

using two priority indicators. For organizational capabilities, we use
Engagement Ratings, which are an indicator of employee engagement. For

Organizational
Capabilities

Engagement Rating (ER)human resource capabilities, we use level-specific role survey scores, which areGroup companies with AAA rating

an indicator of the extent to which individuals are fulfilling the roles required of

10 out of 11
Level-Specific Role Survey Score

Human Resource
Capabilities

Percentage ranked “A” or higher

56.8%

them at their respective levels.
To maximize the value of human capital and improve productivity, we will
maintain our focus on improving both organizational capabilities and humanresource capabilities.

HUMAN CAPITAL REPORT 2022 - CHAPTER 1

Maximize Customer Value

LINK

Organizational
Strategy

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Strategies

Recruiting

Training

Systems

Corporate
Culture08

CHAPTER 1 Strategies
O4 Priority Indicator for Organizational Capabilities
Group companies with AAA rating

10 out of 11

Engagement Survey Results

A High Level of Employee Engagement
Increases the Effectiveness of Business Strategies

2020(Feb.)
10

2021(Feb.)
112022(Feb.)
92023(Feb.)
10

Less than 67

AA

3

1

1

1

Less than 61

A

ー

ー

ー

ー

which ranks companies based on their employee engagement results. Currently,

Less than 58

BBB

ー

1

1

ー

10 out of 11 Group companies have the top AAA rating, and we believe thisLess than 55

BB

ー

ー

ー

ー

high level of employee engagement is a competitive advantage of the Link andLess than 52

B

ー

ー

ー

ー

Less than 48

CCC

ー

ー

ー

ー

Less than 45

CC

ー

ー

ー

ー

In addition, the Group positions “philosophy” as a priority factor in increasing

Less than 42

C

ー

ー

ー

ー

employee engagement. This is because philosophy is correlated with theLess than 39

DDD

ー

ー

ー

ー

DD

ー

ー

ー

ー

engagement score, and we want to create an organization that is united by aLess than 33

To increase our organizational capabilities, we focus on improving employee
engagement. As the priority indicator, we monitor our Engagement Rating,

Motivation Group.

corporate philosophy as well as our management philosophy in order tocontinue providing value over the long term. The most recent results are shown

Positioning of Priority Factor “Philosophy” by Company

on the left, and some issues remain.

5 companies

INK BLOT

IDLE LINE

3 companies

1companies

Organizational
climatePhilosophy
and strategies

Human
resources

Business
content

Facilities andenvironment

Work content

Systems andbenefits

Toward theboss

2 companies

Company
foundation

Toward theworkplace

INTERLINK(Strength)
Satisfaction

ICE BLOCK(Weakness)

Toward the company

Expectation
Provision of
information

Decisionmaking

Collection of
information

SupportExternal
adaptation

Transformation
activities

InternacohesivenessSuccession

Note: Engagement factors cover 16 areas.

We will continue to promote various organizational measures for further
improvement

HUMAN CAPITAL REPORT 2022 - CHAPTER 1

67 or higher

Engagement Rating(Companies)
AAA

Engagement ScoreHUMAN CAPITAL REPORT 2022

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Strategies

Recruiting

Training

Systems

Corporate
Culture09

CHAPTER 1 Strategies
O5 Priority Indicator for Human Resource Capabilities
Level-Specific Role Survey Results
2021
Number of eligible respondents

Development of the Stance Expected at Each Level
Increases the Effectiveness of Business Strategies

2022

1,386

1,137

713

646

51.4%

56.8%

Number of eligible respondents

159

146

Rank A to AAA

111

110

In the Link and Motivation Group, we believe that “stance” should be given

Percentage of total

69.8%

75.3%

the highest priority in development among the basic skills required of working

Managers and above

Level-Specific Role Surveys

Upper management

Plato Survey

Management

Lincoln Survey

Leaders

Einstein Survey

Mid-level employees

Columbus Survey

Junior employees

Darwin Survey

Senior employees

KOSI Surveyrole survey scores.

adults. Stance refers to an employee’s attitude and sense of his or her role in
Framework of Requirements
for Human Resources

an organization. Without a good stance, no matter how many other skills
employees acquire, they will be unable to develop the awareness to deploy
High

Technical Skills

Literacy

Portable Skills

Stanceon level-specific role survey scores, which measure the degree of developmentof an employee’s stance.

The results for 2022 are shown in the table on the left. The percentage of
people with a rank of “A” or higher increased compared with the previous year
both for all employees and for those in managerial positions. We therefore
believe that the human resource capabilities of the Link and Motivation Groupare improving.
By further increasing the percentage of people with a rank of “A” or higher
going forward, we will increase the human resource capabilities of the

Potential
Low
Motivation

those skills, so acquiring more skills will not lead to results. We therefore focus
Possibility of Subsequent Acquisition

We organized the skills required of working people
into our Framework of Requirements for Human
Resources.
Level-specific role surveys measure the degree ofagreement between the expectations and satisfactionof those who work with the survey subject with regard
to that employee’s “stance,” which we consider to be
the most important element in the Framework ofRequirements for Human Resources.
Since the expectations for an employee’s stancediffer by level, we conduct a survey for each level.
Results are divided into 11 levels, the same as in theengagement survey, and we calculate the percentage
of survey subjects with a rank of “A” or higher.

To increase human resource capabilities, we focus on improving level-specificorganization, promote our business strategy and improve productivity.

HUMAN CAPITAL REPORT 2022 - CHAPTER 1

Rank A to AAA
Percentage of total

All employees

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Strategies

Training

Systems

Corporate
Culture10

Recruiting

RECRUITING
Corporate
CultureStrategies

Systems

Training

HUMAN CAPITAL REPORT 2022 - CHAPTER 2

CHAPTER 2

Recruiting

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Strategies

Recruiting

Training

Systems

Corporate
CultureIt is said that the competency level of the Junior employees a company hires

We also believe that recruiting activities have the effect of improving thedetermines its future five to ten years down the line. Among the four areas ofmotivation of existing employees. Because we emphasize sympathy with ourrecruiting, development, systems and corporate culture, we invest most heavily inphilosophy, recruiting becomes a forum for applicants and existing employees torecruiting.

discuss their visions for the future. Employees tell applicants in their own words

Of course, acquiring capable human resources with a high level of ability andpotential is one aspect of recruiting. However, beyond that aspect, we consider

recruiting to be a way to welcome like-minded people who sympathize with thetheir thoughts on the future of society and their company, which in turnincreases the employees’ own commitment.
In this way, our recruiting is not just a matter of acquiring human resources,

Group’s mission and who will work with us toward our goals. We therefore

but also an important measure for generating a high level of employee

consider a high level of sympathy with our philosophy to be an essential condition

engagement in the Group.

in recruiting employees for the Link and Motivation Group. Without sympathy with
our philosophy, prospective employees cannot be expected to perform at theirbest, no matter how capable they may be.

HUMAN CAPITAL REPORT 2022 - CHAPTER 2

Recruiting Like-minded People to Achieve the Group’s Mission

11

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Strategies

Recruiting

Training

Systems

Corporate
Culture12

CHAPTER 2 Recruiting
O1 Recruiting United by a Common Philosophy
Results of Entry Management Survey of New University Graduate Employees
Positioning of Priority Factor “Philosophy” by Company
INTERLINK (Strength)

0 companies

7 companies

INK BLOT

IDLE LINE

0 companies

0

To achieve a high level of employee engagement, at the recruiting stage weinsist on a high level of engagement. In the Link and Motivation Group, we
Satisfaction

ICE BLOCK (Weakness)believe that sympathy with our philosophy will lead to a high level ofengagement, so we give sympathy with our philosophy the greatest emphasis
in our recruiting.

companies

Note: Results for 7 Group companies that recruit new university graduates

We measure the degree of mutual affinity between our Group companies andapplicants in recruiting activities based on the Entry Management Survey, adiagnostic tool that can quantify the degree of mutual commitment between

Number of New University Graduates Hiredcompanies and applicants. The results of the 2022 survey indicate that in eachGroup company, new employees are sympathetic with the Group’s philosophy

147

142

when they join.
As shown in the chart on the bottom left, the Link and Motivation Group hired
108

100

93

147 new university graduates in 2022 and plans to hire 108 people in 2023. In
2024, we plan to recruit at least another 100 people who sympathize with ourphilosophy.

0
2020

2021

2022

2023
（Plan）

HUMAN CAPITAL REPORT 2022 - CHAPTER 2

Expectation

Recruiting United by a Common Philosophy
to Increase Engagement

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Strategies

Recruiting

Training

Systems

Corporate
Culture13

CHAPTER 2 Recruiting
O2 Attracting the Talent We Want to Hire
Attracting the Talent We Want, Rather Than
Choosing from People Who Want to Work for Us

New Graduate Recruiting Process (Example: Link and Motivation Inc.)
Selection

Formation of Candidate GroupInternship“JAMP”TOP FORUM

Selection support by Entry Manager(Understanding the company, motivation,
self-reflection support)
Internship“SPiRAL”
Managerinterview

Event forIT engineers

Director
interview

Finalinterview(President)

Number of employees involved in the recruiting process250

We approach recruiting with the stance of attracting the talent we want,rather than choosing from among people who want to work for us. We believe
it is important for our recruiting activities to lead people with potential andcompatible values to feel that we want them to join our company.
That is why the entire company, from upper management to the youngest
employees, works together in recruiting. The idea is not to put people into thecompany, but to put the company into applicants. Therefore, a variety of
employees interact with applicants during various aspects of the recruiting
process to give applicants a deeper understanding of the Group. We believe thisenables our hiring to emphasize the connection between the applicant’s vision

for the future and the philosophy of the Link and Motivation Group.
Conducting recruitment as a Group-wide endeavor has enabled us to build
strong recruiting capabilities. At the same time, it is also an opportunity for
TOP FORUM

SPiRALAt this event, the presidents of GroupIn this program, interns are involved incompanies gather to talk about theirplanning for organizational transformationcompany’s business and outlook. Speaking

based on actual customer case studies.

directly to the students, they each convey

Working side by side with Link and Motivation

the philosophy of their own company.

Group consultants in confronting the mostdifficult corporate issues gives participants afeeling for our one-of-a-kind value.

current employees to take a fresh look at their day-to-day work and increase
their motivation.

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Strategies

Training

Systems

Corporate
Culture14

Recruiting

TRAINING
Corporate
CultureStrategies

Systems

Training

HUMAN CAPITAL REPORT 2022 - CHAPTER 3

CHAPTER 3

Recruiting

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Strategies

Recruiting

Training

Systems

Corporate
CultureOne key element for increasing organizational and human resource

For all these reasons, the Group provides abundant opportunities for each ofcapabilities is the development of independent human resources. We emphasize

its employees to develop an i-Company. LM College, our in-house institution forthat each employee should adopt the viewpoint of being the manager of their

human resource development, provides opportunities for employees to consider

own “i-Company” to independently develop their careers. By thinking in thisthe expectations of others as they hone all the skills required of working adults.

way, they will develop the ability to objectively grasp their current situation

Since 2021, we have been concurrently conducting a new program to develop

from the perspective of their i-Companyʼs customers, partners and competitors.

the next generation of managers to ensure our sustainable corporate growth.

This provides an accurate understanding of the expectations of others, as well as

Given that the growth of the Group is accelerating, we are focusing on

their own strengths and challenges. It also leads to independent anddeveloping human resources who will support that growth and expansion.

autonomous career development.

HUMAN CAPITAL REPORT 2022 - CHAPTER 3

Developing i-Companies

15

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Strategies

Recruiting

Training

Systems

Corporate
Culture16

CHAPTER 3 Training
O1 Cultivating Management Personnel to Support the Group’s Future

Selective Training Program (Excerpt)
Program｜1

Program｜2

Program｜3

Proposal Presentation
Meeting

Survey Feedback Training

Group Dinner

Presentations to directors on various
themes and feedback

Setting tasks and targets with Group
Representative Director Ozasa
Yoshihisa

Sharing views from various angles andsocializing with Group Representative
Director Ozasa Yoshihisa

Class

Objective

Cultivating management personnel to lead the organization is indispensable
for business expansion and growth. The Link and Motivation Group’s
management personnel are expected to be able to adapt to product, labor and

No. of Participants

capital markets, and to think from a Group-wide perspective. However, in

2021

2022

carrying out day-to-day duties, there is a tendency to adapt only to the productCorporate officers

Raise the level of corporate officersー5Company presidents
and managers

Cultivate future officer candidates

10

14

General employees

Cultivate the next group of manager
candidates

market and to take the perspective of one’s own particular field. Therefore,
since 2021 we have been implementing the selective training program Top Gun
Selection as an opportunity for growth separate from actual work. The yearlong program selects participants from each level, from general employees to

6

Prospective Management Personnel (As of December 31, 2022)6

senior managers, to learn the perspective and approach a manager should have.
In 2022, we provided training at all levels for a total of 25 people. We felt thetraining helped participants develop as future management personnel, withcomments including, “Now I understand the different standards required to be

22 candidates / 27 current appointees (Successor
Executive ・・・・・・・・・・・・
coverage rate: 81.5%)

candidates

Company president
candidates

ready to take on a management role,” and “I came to strongly feel that I want
to play a role in creating our future.”・・・・・・・・

106 candidates / 41 current appointees (Successor
coverage rate: 259.0%)(Breakdown of candidates)
Ready in less than 1 year: 5
Ready in 1 to 3 years: 29
Ready in 4 to 5 years: 72

HUMAN CAPITAL REPORT 2022 - CHAPTER 3

Cultivating Human Resources Who Can Adapt to
Product, Labor and Capital Markets for Discontinuous
Corporate Growth“TOP GUN SELECTION” Training for Management Personnel

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Strategies

Recruiting

Training

Systems

Corporate
Culture17

CHAPTER 3 Training
O2 Updating Literacy for Contemporary Needs
Updating Literacy for Contemporary
Needs to Improve Productivity
Skills and competencies in areas such as foreign languages and IT that areTransformation

required across industries and businesses are referred to as literacy. We
Professional

Operation

Training
attendance

Advanced
Identify current skill level
using DX Survey Basic

Basic

Knowledge

Acquisition ofqualification(IT Passport)believe literacy must be updated in line with contemporary needs. This issimilar to the concept of reskilling, which has been attracting attention
recently. Employees must continue acquiring essential skills, even as what
constitutes “essential” changes.
Lately, improving the IT literacy of each employee has become crucial forincreasing productivity as an organization. Therefore, since 2021, we haveDX Survey Results

Number oftrainees
Average DX
Score

People

2021

2022

1,367

1,499

Overview of Level-SpecificTraining Courses
Level
Professional

Points

98.9

123.3

Note: DX score is the sum of the scores for digitalknowledge and Excel skills. Since each has amaximum of 100 points, the maximum DX score is
200 points.

Advanced

Training

been working to improve individual IT literacy by rolling out DX support
measures for individuals at companies, which is provided by the Individual
Development Division.
The average score on the DX Survey, which measures individual IT

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

knowledge and IT operation proficiency (DX score), was 123.3 out of 200 for
the Link and Motivation Group in 2022, surpassing our target for the year of
110 points.

Basic

Excel basics, PowerPoint
basics, typing basics, etc.

We will continue working to further improve productivity through reskillingof individuals in line with contemporary needs.

HUMAN CAPITAL REPORT 2022 - CHAPTER 3

Diagnosis

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Strategies

Training

Systems

Corporate
Culture18

Recruiting

SYSTEMS
Corporate
CultureStrategies

Systems

Training

HUMAN CAPITAL REPORT 2022 - CHAPTER 4

CHAPTER 4

Recruiting

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Strategies

Recruiting

Training

Systems

Corporate
CulturePersonnel systems play an important role in showing employees a company’s
expectations and the direction of its growth.

As another expectation, our personnel systems contain the message that wewant employees to increase the speed of their growth. Based on our unique

As one of our expectations, our personnel systems convey the message thatview of time, in which three months for the rest of the world is one year for the

we want to link the direction the Group intends to take with the vision of each

Link and Motivation Group, we have designed various systems with theemployee. To improve employee engagement, we consider it crucial that each

expectation that our employees will grow at four times the speed of the rest of

employee feels that they are getting closer to achieving their own vision while

the world.

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

many measures that provide opportunities for aligning these elements.

We believe that incorporating messages on what we consider most importantin our personnel systems in ways like these enables us to increase employee
engagement as we conduct management.

HUMAN CAPITAL REPORT 2022 - CHAPTER 4

Conveying Messages from Management
through Our Personnel Systems

19

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Strategies

Recruiting

Training

Systems

Corporate
Culture20

CHAPTER 4 Systems
O1 Linking Corporate and Employee Visions
Timeframe

3 years

Management plansubmission rate

Linking Corporate and Employee Visions
to Improve Employee Engagement
To improve employee engagement, we emphasize the connections between

2020

2021

2022

the company’s vision and the vision of each employee. We believe that

98.7％

98.2％

97.4％

clarifying the career path an individual will follow and how they will grow whileworking at a company—and as a result how this will get them closer toachieving their own vision—helps to improve employee engagement.
1 yearSurvey Feedback
Based on the results of the level-specific role survey, employees receive
advice from employees at the same level, superiors and other colleagues
to clarify growth issues and their action plan.

Therefore, we provide opportunities on various timeframes for individuals toalign their visions with the company’s, as shown above. We have employees
set targets and evaluate them for every three-month period, provide survey
feedback to clarify targets for the next year, and conduct the i-Company

3 months Target Setting/Evaluation
Targets are set along two axes: performance, which indicates the degreeof contribution to the company’s business results and the employee’sorganization; and a stretch goal, which indicates the degree of individual
growth.

Average individual
evaluation score

Branding System for targets three years in the future. Each of these measurescommunicates the company’s intended direction and expectations of eachindividual, then offers an opportunity for individuals to make clear theirintentions and growth objectives.

2020

2021

2022

Performance

4.7

4.8

4.7

We believe that these measures allow employees to reaffirm what working

Stretch Goal

5.0

5.0

5.0

for the company means to them, and consequently help to improve employee

Total

9.7

9.8

9.7

engagement.

Note: Performance and the stretch goal are evaluated on a scale of 1 to 9, with 5 being “metexpectations.”

HUMAN CAPITAL REPORT 2022 - CHAPTER 4

i-Company Branding System
Each employee creates a “management plan” for their i-Company tooutline their career direction, then aligns their ideas with the company’s.

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Strategies

Recruiting

Training

Systems

Corporate
Culture21

CHAPTER 4 Systems
O2 Growth at Four Times the Speed of the Rest of the World

Three-Month Cycle
Jan.
▲

Sense oftime at
LMG

▲

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

▲

★
●
◆

▲

Dec.
★
●
◆

（●）（▲）
★
●
◆

Nov.

★
●
◆

▲

★
●
◆

A unique perspective toward time has supported discontinuous growth at the
Link and Motivation Group since its founding. Based on our belief that runningon a cycle with a short span is important for growth, we share a unique view oftime, in which three months everywhere else is one year at the Link andMotivation Group. Accordingly, we set milestones every three months. By doing▲：Target setting

Employees set targets for individual achievement (performance) and growth (stretchgoal) for a three-month period. Since the cycle is a short period of 3 months, employees
can remain constantly aware of their targets.
●：Evaluation and compensation

Evaluations are conducted according to the targets that have been set, with promotions
or demotions based on the evaluation results. Bonuses (premium compensation) arealso paid every three months.
★：Group General Meeting

Treated the same as other companies’ end-of-year general meeting, including a review
of business results and awards for MVPs.
◆：Paid vacation

Employees receive “pit stop” vacation days that correspond to other companies’ yearend and New Year holidays. A three-day holiday after every Group General Meeting
gives a sense of having reached a milestone.

so, we aim to create an environment where employees maintain a high level ofmotivation as they continue to grow and to achieve speedy businessdevelopment.
All organizational operations, including management of business results,
target setting, personnel evaluations, promotions or demotions, payment ofbonuses, the Group General Meeting, and vacations (year-end and New Yearholidays), are divided into units of three months and conducted four times ayear. This intentional division of time acts as a mechanism that makes us
conscious of using time to the fullest every day.
As a result, Link and Motivation has a very high score of 4.9 out of 5 for theitems “growth environment for employees in their twenties” and “employee
morale” in OpenWork’s survey. We believe this is proof that our employees aremaking full use of their time.

HUMAN CAPITAL REPORT 2022 - CHAPTER 4

Generalsense of
time

Feb.

Treating Three Months as a Year for Growth
at Four Times the Speed of the Rest of the WorldHUMAN CAPITAL REPORT 2022

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Strategies

Training

Systems

Corporate
Culture22

Recruiting

CORPORATE CULTURE
Corporate
CultureStrategies

Systems

Training

HUMAN CAPITAL REPORT 2022 - CHAPTER 5

CHAPTER 5

Recruiting

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Strategies

Recruiting

Training

Systems

Corporate
CultureWhen blood flow is blocked, the human body develops various disorders andHowever, increasing specialization in an organization gives rise to a host ofillnesses. Similarly, when communication is blocked in an organization, various

problems. A sense of distance naturally increases, both vertically in the hierarchy

issues arise. Just as it is important to maintain good blood flow in our bodies, weand horizontally among functions, the intentions of senior management are notconsider it extremely important to enhance communication within an

communicated, and cooperation between departments weakens, among otherorganization.

issues. To resolve these issues and maximize results, we promote specialization

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

within our organization and invest in communication to achieve the seemingly

to create connections within an organization, both vertically in its hierarchy andcontradictory goals of integration and mutual understanding.

horizontally among functions, to facilitate both integration and mutual

We also consider communication crucial for increasing employee motivation.

understanding. Growing the Link and Motivation Group necessitates

Investing in communication is essential for us to maintain a high level of

specialization into organizational hierarchies and functions.

employee engagement as we continue to grow.

HUMAN CAPITAL REPORT 2022 - CHAPTER 5

Communication: The Lifeblood of an Organization

23

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Strategies

Recruiting

Training

Systems

Corporate
Culture24

CHAPTER 5 Corporate Culture
O1 Creating Opportunities for Making Connections as a Group
Communication Measures
Group General Meeting
Average participation in 2022

1,156 people

Web-Based In-House Newsletters
Average access rate in 2022

93.1%

Name

Content

Top
Comment

Posted once each month to deliver a message to employees from
Chairman and Representative Director Ozasa Yoshihisa, covering
the Group’s current direction and recent developments, in orderto share the views of senior management

LM TIMES

Timely transmission of Group issues and topics for sharing with theaim of creating Motivation Companies and i-Companies

LM JOB
STORY

Conveys the appeal of different jobs through stories from
employees working in various positions, with the aim ofbroadening career options

To maintain employee engagement, the Link and Motivation Group considers
it crucial to enhance vertical and lateral communication within the organization.
We have therefore developed various opportunities for communication thatconnects senior management to the field, department to department, and all
employees to each other.
Representative examples include the Group General Meeting, a web-based inhouse newsletter, and measures to instill the Group’s heritage. Through welltimed sharing of a Group-wide perspective and the creation of a common
language, we aim to create a situation where everyone works toward common
goals.

Our investment in communication exceeds ¥100 million each year. This costhas been declining as we have shifted to holding the Group General Meeting
online and cut back on printed materials, but we will continue to actively invest
in communication as a way to increase employee engagement.

Measures to Communicate the Group’s Heritage2022 DNA Test average score

91.2/100 points

Our DNA Book contains Link and Motivation’s reasons for existence, vision,
management concepts and philosophies. It is designed to help employees
understand various ideas and put them into practice. To ensure that
employees do so at a high level, we plan and implement tests, reports andother measures every year.

HUMAN CAPITAL REPORT 2022 - CHAPTER 5

Held once every three months in order to share views of the Group as awhole. In addition to a review of business results and presentation of MVP
awards, meetings also cover timely topics and share management policies
going forward.

Creating Opportunities for Mutual Understanding
between the Company and Employees

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Strategies

Recruiting

Training

Systems

Corporate
Culture25

CHAPTER 5 Corporate Culture
O2 Creating a Corporate Culture That Spurs Individual Desire for Growth
List of Awards
The Link and Motivation Group gives awards to individuals in the following five categories,
each with a different target group.

Creating a Corporate Culture That Spurs Individual
Desire for Growth by Providing Emotional Rewards

First to third year
General employees
Managers
Entry managers(recruiters)
Administrators

ROY「Rookie Of the Year（1st／2nd／3rd）」Young employees who achieved outstanding results

BMC／MC「（Best）Motivation Creator」
General employee who achieved outstanding results

BMM／MM「（Best）Motivation Manager」

to broaden their own roles based on a desire for personal growth. We havetherefore established an awards system to recognize employees who havedone so.
Awards are presented at the Group General Meeting held once every three

Manager who achieved outstanding resultsmonths. Criteria for selecting employees as award winners cover a

EOY「Entry manager Of the Year」

comprehensive range of factors, including level of performance, degree of

Entry manager (recruiter) who achieved outstanding results

AOY「Administrator Of the Year」
Administrator who achieved outstanding results

growth and change, and extent of influence on others. A certificate with thereasons for the evaluation and relevant anecdotes is read in front of all
employees, and the winner has the opportunity to make a speech. This not

2020

2021

2022

only helps to encourage the further growth of the award recipient, but also

Total number of awards

34

40

37

spurs a desire for growth among other employees.

Awards for individuals

24

27

24

Note: Awards are also given to projects and Group companies
in addition to individuals.

By continuing to maintain an environment that facilitates individual growthand supports people who want to grow, we aim to implement our businessstrategies and improve productivity.

HUMAN CAPITAL REPORT 2022 - CHAPTER 5

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

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HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATAHUMAN CAPITAL
DATA

26

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HUMAN CAPITAL DATAS tr a teg ies

Productivity

T r a in in g

S y s tem s

Co r p o r a te
Cu ltu r e

Costs
Unit
%

2020
24.2

2021
33.0

2022
41.1

Total workforce costs

3

External workforce costs4

Business Results per Employee

Total costs of employment
Unit

2020

2021

2022

Revenues

Thousand yen

Gross profit

Thousand yen

Net income (loss)

Thousand yen

17,7138,060△535

18,675
8,775
583

19,067
9,347
1,225

There was a downturn in business results in 2020 due to the COVID-19 pandemic,
but solid recovery in performance since 2021 has resulted in two consecutive years
of increases in human capital ROI and business results per employee.
We will continue to monitor the balance between investment and returns as we
invest appropriately in human capital with the aim of improving productivity.
1. Human capital ROI = Adjusted operating income ÷ Human capital costs
Human capital costs are calculated as total expenditures including employee salaries and bonuses,
statutory internal and external welfare expenses, commuting expenses and other executive compensation.
2. Calculated based on the number of employees when their hours are converted to full time
(40 hours a week).

5

Unit

2020

2021

2022

Million yen

19,875

21,34921,445

Million yen

11,54812,125

11,793

Million yen

8,893

9,724

10,373Since 2020, we have seen the COVID-19 pandemic as an opportunity to scale backinvestment in offices and ramp up investment in human resources and IT. Because ofthat, total workforce costs and total costs of employment have generally been
increasing.
3. Total costs the Group paid directly to employees.
Defined to include total costs for the external workforce4 in addition to people the Group employs directly.
4. Total costs paid to outsourcers, temporary staff and other workers the Group does not employ directly.
5. Total costs incurred in employment. Defined to include costs that indirectly benefit employees(training costs, benefit expenses, etc.).

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATA

Human Capital ROI1

Per
employee2

Recruiting

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HUMAN CAPITAL DATAS tr a teg ies

Engagement Survey Results by Group Company*

Recruiting

T r a in in g

ER

By Division

Link and Motivation Inc.

437

AAA

Organizational Development Division

564

AAA

Link Global Solution Inc.

22

AAA

Individual Development Division

506

AAA

Link Event Produce Inc.

27

AAA

Matching Division

281

AAA

Link Corporate Communications Inc.

78

AAA

Link Academy Inc.

456

AAA
Female586

AAA

Link Interac Inc.

159

AAA

Link Japan Careers Inc.

12

AAA

OpenWork Inc.

71

AA

Japan

Link Agent Inc.

19

AAA

Link-i Inc.

20

AAA

INTERLINK(Strength)

2 companies

5 companies

INK BLOT

IDLE LINE

3 companies

1companies

Satisfaction

ICE BLOCK(Weakness)

ER
AAA

AAA

Expectation

Subjects
759

50

Positioning of Priority Factor “Philosophy” by Company

ER

By Nationality (Region)

Subjects

ER

1,196

AAA

Asia (excluding Japan)

16

AAA

Oceania

3

BBB

North America

29

AAA

Central and South America

5

AAAEurope16

AA

We emphasize 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
employee engagement, and that a high level of employee engagement enables eachindividual employee to play an active role and generate innovation. We pay close
attention to employee engagement across a variety of attributes and take pride in
the high level that each employee has achieved.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATA

By Gender

Subjects

Male

Motivation Academia Inc.

* Results from the engagement survey conducted in February 2023.

Co r p o r a te
Cu ltu r e

Breakdown of Engagement Survey Results*
Employees

Group Company

S y s tem s

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HUMAN CAPITAL DATAS tr a teg ies

Level-Specific Role Survey Results1
2021

2022

Number of respondents

Persons

1,386

1,137

Rank A to AAA

Persons

713

646

%

51.4%

56.8%

Persons

159

146

Persons

111

110

%

69.8%

75.3%

Percentage of total
Number of respondents
Managers and above Rank A to AAA
Percentage of total

T r a in in g

Nationality (Region)

Europe 1%
North America 2%

S y s tem s

Age Structure

Other 2%

71～99

0.1%

61～70

2.4%

51～60
Female
44％

Male
56％

Co r p o r a te
Cu ltu r e

Japan
95％

8.9%

41～50

25.2%

31～40

25.2%

21～30
0～20

38.2%
0%

Note: Excludes non-responses

Total Workforce Absenteeism (Unplanned Leave) Rate
2020

2021

2022

28

30

32

1,498

1,493

1,505

381

403

381

3

ALTs

3,378

3,304

2,857

Total

5,285

5,230

4,775

Full-time

1,537

1,518

1,567

Executives2
Total
workforce

Full-time/ Part-time4

Group company employees
Part-time staff

Part-time

370

408

351

Full-time equivalent (FTE)5

1,738

1,748

1,719

0.9

0.9

0.9

Absenteeism (unplanned leave) rate (%)

1. Results of level-specific role surveys conducted during July-December 2022.
2. Total of directors, managing directors and corporate officers, including outside directors.
3. ALT: Assistant Language Teacher
4. Contractual working time of at least 40 hours a week is considered “full-time” and less than
40 hours a week is considered “part-time,” regardless of the form of employment. (Excludes ALTs.)
5. Number of employees when converted to full-time (40 hours a week). Calculatedby dividing total working hours per week of all employees by 40 hours. (Excludes ALTs.)

We conduct hiring, evaluation, promotion, and other corporate functions based oneach individual’s performance and growth, irrespective of attributes such as gender,
nationality or age. Workforce diversity ratios at the end of 2022 with respect to each
attribute are shown above.

Employees with Disabilities
Employees with disabilities6

2020

2021

2022

1.35%

1.52%

1.41%

Some Group companies meet the legally mandated employment rate for people
with disabilities of 2.3 percent of total employees, but the Link and Motivation Groupoverall still falls short. We will continue to step up recruiting to address thismanagement issue.
6. 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.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATA

All employees

Male-Female Ratio

Recruiting

HUMAN CAPITAL REPORT 2022

HUMAN CAPITAL DATA
Span of Control

Group Hierarchy Chart130

https://www.lmi.ne.jp/english/(Number of General Employees
per Management Position)

S tr a teg ies

Recruiting

T r a in in g

S y s tem s

Co r p o r a te
Cu ltu r eManagement Position Male-Female Ratio2

Executives

Directors and corporate officers

27
Company managers

Managers

41
Unit managers and group managers

86
Other
employees

55.7

Company managers

35.7

Unit managers andgroup managers

16.0

Female

25.5％
Male

74.5％

General employees

1,377

1. 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.

The appropriate span of control at each hierarchical level differs depending on
various factors such as business model, management maturity, composition ofmembers, and organizational relationships, so we do not target a flat standard acrossthe Group. Results for 2022 are as shown above.
Productivity is improving, and the numerical results of employee engagement andmanager role surveys have been high, so we consider the span of control shown
above to be appropriate.

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

As mentioned previously, treatment of employees in the Link and Motivation Groupis based on each individual’s performance and growth, irrespective of gender. The
ratio of males to females in management positions is as shown above.
The ratio of women in management positions is 25.5%, about one-third that ofmen. We believe that this is due to two factors: fewer women than men are
employed in positions on a management track, and women take maternity andchildrearing leave at a higher rate and for longer periods, resulting in a comparatively
longer time to promotion to a managerial position. We will continue working tocreate an environment in which employees can play active roles regardless ofgender.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATA

2022
Directors andcorporate officers

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HUMAN CAPITAL DATAS tr a teg ies

Recruiting

T r a in in g

S y s tem s

Co r p o r a te
Cu ltu r e

Leadership Team Skill Matrix
Current Position

Corporate Management
Managerial
Employee
Experience
Engagement

Industry
Knowledge

Ozasa Yoshihisa

Chairman and Representative Director

○

○

○

Sakashita Hideki

President and Representative Director

○

○

○

Ohno Shunichi

Director

Yuasa Tomoyuki

Outside Director

Kakuyama Takashi

Outside Director

Kuriyama Hiromi

Audit & Supervisory Board Member

Tominaga Kenji
Matsuoka Yasumasa

Outside Audit & Supervisory Board
MemberOutside Audit & Supervisory Board
Member○○Finance &Accounting

Areas of Expertise
Legal & Risk
Research &Management Development

○

○

○

○
○

○

○

○

○

○

○

○

○
○

○

Sales &
Marketing○○○

DX & IT○

The Board of Directors of Link and Motivation Inc. is composed of five directors (including two outside directors). The three internal directors make management decisions thatlink business and organizational strategies as professionals in organizational transformation, with extensive experience as organizational and personnel consultants. The twooutside directors leverage their deep insight into corporate management and expert knowledge of industrial and organizational psychology, which has affinity with the Groupʼsbusiness.

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HUMAN CAPITAL DATAS tr a teg ies

New University Graduate Recruiting

T r a in in g

S y s tem s

Co r p o r a te
Cu ltu r e

Entry Management Survey Results

Unit

2020

2021

2022

People

142

93

147

Thousand yen

443,973355,000

336,989

Cost per hire3

Thousand yen

－

－

－

Average length of time
to fill vacant position4

Days

72.1

56.1

55.2

Quality per hire5

－

10.1

10.1

10.0

Mid-Career Employee Recruiting
Unit

2020

2021

2022

Number of hires1

People53

42

63

Recruiting costs2

Thousand yen

200,514180,085

159,704

Cost per hire3

Thousand yen

3,783

4,287

2,535

Average length of time
to fill vacant position4

Days

－

－

－

Quality per hire5

－

9.8

9.9

9.8

1. Total number of employees who joined the Group in the relevant year.
2. Total recruiting-related costs recorded in the relevant year.
3. 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.
4. 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
mid-career applicants is not calculated because some Group companies hire throughout the year.
5. 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.”

Expectation

ICE BLOCK (Weakness)

INTERLINK (Strength)

0 companies

7 companies

INK BLOT

IDLE LINE

0 companies

0

Satisfaction

Recruiting costs2

Positioning of Priority Factor “Philosophy” by Company

companies

We strongly believe that expenditures on recruiting are an investment, not a cost.
As mentioned elsewhere, we are committed to quality in recruiting, so we emphasize
devoting time and money to recruit the talent we want.
The Link and Motivation Groupʼs recruiting costs are shown in the table on the left.
As in the previous year, recruiting of new university graduates was mainly conducted
online, so costs were low.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATA

Number of hires

1

Recruiting

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HUMAN CAPITAL DATA
Training Participation Rates

StanceStance(Level-specific role
survey training)T r a in in g

S y s tem s

Co r p o r a te
Cu ltu r e

Unit

2022

2021

2022

Top Gun seminars

Not heldNumber of respondents

Persons

1,367

1,499

Negotiation training

Not held

Average DX Score

Points

98.9

123.3

Logical thinking training

Not held(Breakdown)

Digital knowledge

Points53.8

57.9

Self-motivation control training

Not held

Excel skills

Points45.1

65.4

Leadership training

Not held

Career design training

Not held

New company president training

100.0

New manager training

100.0

New employee stance training

100.0

Survey training for upper management

91.1

Survey training for management

87.9

Survey training for senior employees

85.7

Survey training for leaders

84.9

Survey training for mid-level employees

88.8

Survey training for junior employees

95.9

Total Human Resource Development and Training Costs
Unit

2020

2021

2022

Actual costs

Thousand yen

146,799

94,793

190,536

Converted to amount charged
for services to customers

Thousand yen

404,515

385,674

411,749

The tables on this page show our initiatives conducted to develop employees andthe amount we invested in 2022. We did not implement some training programs in
2022, focusing instead on strengthening IT literacy. Although this change accounted
for the increase in costs, it resulted in improved employee IT literacy, so we believethat we achieved the effect we intended. Training hours per employee were 38.9
hours* in 2022.
•

Calculated by dividing the total hours spent for all training in 2022 by the number of employees at the endof the year.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATA

Portable Skills

Recruiting

DX Survey Results
Name of Training

Technical Skills

S tr a teg ies

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HUMAN CAPITAL DATAS tr a teg ies

Number of Participants in ”Top Gun Selection” Training for Management Personnel
Class

Company
president/Manager
General employee

T r a in in g

Co r p o r a te
Cu ltu r e

S y s tem s

Leadership Development

Unit

2021

2022

Type

Objective

Unit

2021

2021

2022

Personsー5

New manager
training

Understand the role expectedof a manager

%

100.0

100.0

100.0

Persons

10

14

Level specifictraining for
managers

Persons6

6

Understand current situation
to set tasks and targets

%

94.2

91.0

87.9

%

ー

100.0

94.1

Managers General Broaden perspective as a
Meetingmanager

Prospective Management Personnel
Confidence in Leadership (Results of Role Surveys on Managers*)
22 candidates / 27 current appointees

Five Sources of Influence Expected of a Manager

Executive ・・・・・・・・・・・・(Successor coverage rate: 81.5%)
candidates
Company president
candidates

・・・・・・・・

106 candidates / 41 current appointees(Successor coverage rate: 259.0%)(Breakdown of candidates)
Ready in less than 1 year: 5
Ready in 1 to 3 years: 29
Ready in 4 to 5 years: 72

Expertise

AppealReciprocity

Consistency

Strictness

4.5

4.5

4.5

4.4

4.3

We monitor how others evaluate managers’ leadership based on results of role
surveys on those managers. In 2022, results for all five metrics remained at 4.0 or
higher (of a maximum of 5), so we feel that the managers of the Link and Motivation
Group are functioning well as junction points between those above and below themin their organizations.
•

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 andsuperiors of the subject managers. The figures above are the averages for all managers.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATA

Corporate officer

Objective
Raise the level of corporate
officers
Cultivate future officer
candidates
Cultivate the next group of
manager candidates

Recruiting

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HUMAN CAPITAL DATAS tr a teg ies

Appointment to Positions

Recruiting

T r a in in g

S y s tem s

Co r p o r a te
Cu ltu r eTransfers
2020

2021

Unit

2022

2020

2021

2022

68.7

73.1

78.3

Average period in the same field5

Percentage of critical positions2 (%)

1.5

1.6

1.7

Internal mobility rate6

Percentage of critical positions filled internally3 (%)

100

100

100

Succession effectiveness rate4

100

100

100

0

0

0

0

0

0

We emphasize appropriate transfers so that employees acquire a full range ofcompetencies in order to cultivate their i-Companies. Experiencing multiple fields
and occupations broadens a personʼs range of competencies and skills. Therefore,
the Link and Motivation Group focuses on how long an individual is assigned to thesame field, and conducts transfers once every four years as a rough guideline.

Percentage of vacant critical positions
in relation to all vacant positions (%)
Average length of time
to fill vacant critical position (days)

In the Link and Motivation Group, we define critical positions as “directors (except
outside directors), managing directors and corporate officers, including those ofGroup companies.” However, when a vacancy arises, we either appoint animmediate replacement or eliminate that position, so positions are never left vacant.
Accordingly, the “percentage of vacant critical positions” and “average length of time
to fill critical vacant positions” are zero.
All appointments to critical positions have been filled internally. We believe thatthese results are an indication of our systematic approach to successor development.
1. Calculated as the number of vacant positions filled through internal recruiting divided by the total numberof vacant positions filled through internal plus external recruiting.
2. Calculated as the number of critical positions divided by the total number of positions.
3. Percentage of critical positions that opened up during the year that were filled through internal recruiting.
4. Percentage of critical positions filled through internal recruiting as of the end of the year.

Years

3.7

4.1

3.6

%

56.4

69.7

68.8

5. Group businesses are categorized into specified fields, and the period an individual spends in each fieldis calculated.
6. Transfers among occupations and the fields in note 5, 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 the year.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATA

Percentage of positions filled internally1 (%)

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HUMAN CAPITAL DATAS tr a teg ies

i-Company Branding System

%

2020
98.7

2021
98.5

2022

Link and Motivation Inc.
Link Global Solution Inc.
Unit

2020

2021

2022

Performance

ー

4.7

4.8

4.7

Stretch goal

ー

5.0

5.0

5.0

Total

ー

9.7

9.8

9.7

Compensation
Unit

Ratio of executive compensation tototal salaries paid4 (%)

Group Company

97.4

Average individual evaluations1

Average annual wage

S y s tem s

Co r p o r a te
Cu ltu r e

Thousand yen
Thousand yen
％

2020
344
4,677
4.3

2021
371
5,302
4.9

2022
379
5,301
5.2

1. Each employee’s performance and stretch goal are evaluated on a scale of 1 to 9,
with 5 being “met expectations.”
2. The sum of all taxable payments for salaries and allowances.
3. Calculated as average monthly wages plus bonuses paid four times a year.
4. Calculated as total of executive compensation as a percentage of total compensation of all employees.

Male/Female Wage Differential (%)
Part-time staff and
Full-time
fixed-term
All workers
employees
82.4
162.9
74.4
89.0

101.0

83.3

Link Event Produce Inc.

77.9

ー

6

77.8

Link Corporate Communications Inc.

82.4

57.9

76.8

Link Academy Inc.

81.8

68.2

77.9

Motivation Academia Inc.

79.4

82.6

64.5

Link Interac Inc.

97.3

59.1

82.6

Interac North Co., Ltd.

74.8

98.4

96.8

Interac Kanto North Co., Ltd.

71.1

92.8

90.6

Interac Kanto South Co., Ltd.

90.7

92.6

92.4

Interac Kansai & South Central Co., Ltd.

74.9

95.5

94.2

Interac West Co., Ltd.

63.3

87.9

86.8

Link Japan Careers Inc.

66.6

ー6

64.4

Link Agent Inc.

75.5

ー

6

66.3

Link-i Inc.

76.2

503.1

72.2

5. Full-time: Applies to indefinite-term employees only.
Part-time: Applies to fixed-term employees, part-time staff and ALTs.
Calculated by dividing the average annual wage for women by the average annual wage for men,based on definitions set by the Ministry of Health, Labour and Welfare.
6. Calculation is not possible because employees are exclusively either male or exclusively female.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATAManagement plan submission rate3

T r a in in g

Male/Female Wage Differential5
Unit

Average monthly wage2

Recruiting

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HUMAN CAPITAL DATAS tr a teg ies

Priority Communication Measures

T r a in in g

S y s tem s

Co r p o r a te
Cu ltu r e

Health and Safety
Unit

2021

2022

2020

Persons908

1156

Web-based in-house newsletters access rate

％

92

93.1

Points

ー

91.2

％

100

ー

DNA test average score
DNA report submission rate

Number of occupational accidents 1(per million work hours)
Lost time for injury1(total lost time in hours per million work hours)

2021

3.74

4.15

3.2

12.80

3.80

82.86

0

0

0

Number of people killed during work1
2020

Number of Group Awards
Unit

2020

2021

2022

Total number of awards

Persons

34

40

37

Awards for individuals

Persons

24

27

24

2022

2021

2022

Illness/injury leave rate (%)

1.9

2.8

2.3

Percentage of employees
who participated in training2 (%)

87.4

92.4

88.2

Maternity leave rate3 (%)

100.0

100.0

100.0

Paternity leave rate3 (%)

13.6

25.7

38.9

The above table shows health and safety-related results for the Group. All
occupational accidents occurred while commuting or traveling.
In addition, the rate of taking paternity leave has been increasing each year. We willcontinue striving to create an environment that facilitates work in order tostrengthen the capabilities of our organizations and human resources.
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.
3. Calculated based on total number of Group company employees and part-time staff.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATAGroup General Meeting average participation

Measures to communicate
the Group’s heritage

Recruiting

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HUMAN CAPITAL DATAS tr a teg ies

Recruiting

T r a in in g

S y s tem s

Co r p o r a te
Cu ltu r eCompliance
2020(Type)

8

3

11

Harassment

3

0

6

The Link and Motivation Group strives to practice Management with

Workplace environment

2

1

2

Integrity (i.e., management with no illegality or dishonesty toward any of its

Other

3

2

3

5

5

6

Reprimands/pay cuts

5

5

6

regulations, corporate ethics and social norms, and understand that individual

Suspensions/demotions

0

0

0

employees must also make efforts to avoid transgressions.

Requests for resignation/disciplinary
dismissal000

Our performance in the area of compliance is shown in the chart on the left.

0

0

0

At the Link and Motivation Group, we believe that our emphasis on employee

100.0

100.0

100.0

engagement helps to strengthen compliance, and see our high performance in

100.0

100.0

100.0

ー

ー

98.5

Number of concluded disciplinary actions2(Type)

2022

Number of unresolved external audit findings 3
Percentage of employees who have completed
training on compliance (%)
Information management training participation
rate4
Harassment training participation rate 4

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

stakeholders, including customers, business partners, employees andshareholders). We are proactively strengthening compliance and ethics, which
are prerequisites for achieving this. As a company, we abide by laws,

these metrics to be a result of our high level of employee engagement.
By continuing our efforts to raise every employee’s awareness ofcompliance as we improve employee engagement, we are creating aworkforce that embodies Management with Integrity.

HUMAN CAPITAL REPORT 2022 – HUMAN CAPITAL DATA

Number of grievances filed 1

2021

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HUMAN CAPITAL DATAS tr a teg ies

Recruiting

T r a in in g

S y s tem s

Co r p o r a te
Cu ltu r eTurnover Rate
2020

2021

2022

9.8

10.0

13.3

Voluntary turnover rate (%)

9.6

9.8

13.0

Voluntary turnover rate (management)2 (%)

0.6

0.3

0.7

0.3

0.3

0.4

The Link and Motivation Group works to create organizations thatemphasize a mutually selective relationship, in which companies and2

Voluntary turnover rate (IT engineers) (%)

individuals choose each other as they deem appropriate rather than amutually binding relationship based on lifetime employment.
Therefore, we focus not on the Group’s overall turnover rate, but on the

Reasons for Leaving

turnover rate for employees with attributes we deem important in terms of

Rank

Reason% of total

Year-on-yearchange

1

Work

43.7%

+0.5 pts.

2

Family14.9%-3.5 pts.

is rising, and the year-on-year increase in turnover rates for management and3

Health14.4%+5.6 pts.

IT engineers was low, we consider the situation to be acceptable.

4

Treatment/Pay

11.5%-4.5 pts.

5

Corporate culture

6.9%+4.5 pts.

6

Retirement age

3.4%+1.0 pt.

culture—which we are particular about—was low. We therefore think we have

7

Philosophy

2.9%-5.9 pts.

achieved appropriate mutual selection.

our management strategy. Specifically, we monitor the turnover rates ofTo advance career,
to change type of work, etc.

management and IT engineers. In 2022, the overall turnover rate increased by
3.3 percentage points from the previous year. However, because productivity

We also keep a close watch on reasons for leaving. Continuing from theprevious year, the main reasons for leaving in 2022 were work-related, while
the percentage of people leaving because of our philosophy and corporate

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 REPORT 2022 – HUMAN CAPITAL DATA

Turnover rate1 (%)

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This is our second Human Capital Report, in which we communicate our

We have utilized our core technology of Motivation Engineering to support

approaches and performance to our stakeholders. As a result, we have been able

human capital management at a wide range of companies. We have also utilized

to maintain our ISO 30414 certification, and we would like to take thisour expertise gained in 2021 in becoming the first company in Japan and all ofopportunity to express our sincere gratitude to everyone involved in helping us

Asia to obtain ISO 30414 certification to begin offering ISO 30414 consulting toachieve this goal.

support disclosure of information on human capital. We believe that ouractivities will accelerate the trend toward human capital management in Japan,

We believe that the importance of human capital management will continue
to grow in corporate management in Japan. It has become a topic that managers

thus bringing us closer to achieving our mission of creating a more meaningfulsociety.

can no longer avoid due to factors including the shrinking labor force resulting
from the declining birthrate and aging population, the shift to intangible products
and services, diversifying motivation for work and growing interest in ESG
management. This is best evidenced by the accelerating trend among companies
toward human capital management and ISO 30414 certification.

We sincerely appreciate all the stakeholders who back us in this challenge,
and hope for your continued support.

HUMAN CAPITAL REPORT 2022

Conclusion

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HUMAN CAPITAL REPORT 2022

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HUMAN CAPITAL REPORT 2022 - APPENDIX

APPENDIX42

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APPENDIX
Correspondence with ISO 30414 Metrics
No.
1

MetricPage(s)No.
5Compliance and ethics

1-1

Number and type of grievance filed

38

5-1

1-2

Number and type of concluded disciplinary action

38

5-2
6

MetricPage(s)Organizational culture
Engagement/satisfaction/commitment
Retention rate

No.
9

MetricPage(s)Skills and capabilities

9-1

Total developing and training costs

33

39

9-2

Training participation rate

33

9-3

Average formalized training hours per employee

33

9-4

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

33

Workforce competency rateーOrganizational health, safety and well being

1-3

Percentage of employees who have completed
training on compliance and ethics

38

1-4

Disputes referred to external partiesー

1-5

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

38

2-1

Total workforce costs

27

7-1

2-2

External workforce costs

27

7-2

Human capital ROI

2-3

Ratio of the average salary and remuneration

36

8

Recruitment, mobility, turnover

2-4

Total costs of employment

27

8-1

Number of qualified candidates per position

ー

11

2-5

Cost per hire

32

8-2

Quality per hire

32

11-1

Number of employees

29

2-6

Recruitment costs

32

8-3

Average length of time to fill vacant position

32

11-2

Number of employees: full-time and part-time29

Turnover costsー

8-4

Average length of time to fill vacant critical position

35

11-3

Full time equivalents

29

11-4

Contingent workforce: independent contractor

ー

11-5

Contingent workforce: temporary workforce

ー

11-6

Absenteeism: unplanned leave

29

2

2-7
3

Lost time for injury

37

6-2

Number of occupational accidents

37

6-3

Number of people killed during work

37

9-5

6-4

Percentage of employees who participated in training

37

10

7

Costs

Diversity

3-1

Workforce diversity ratio with respect to age

29

3-2

Workforce diversity ratio with respect to gender

29

3-3

Workforce diversity ratio with respect to disability

29

3-4

Workforce diversity ratio with respect to otherindicators of diversity

29

3-5

Diversity of leadership team

31

4

6-1

Leadership

Productivity
EBIT/revenue/turnover/profit per employee

Succession planning

10-1

Succession effectiveness rate

27

10-2

Succession coverage rate

16、34

6, 27

10-3

Succession depth rate: ready now

16、34

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

16、34

10-4

8-5

Transition and future workforce capabilities
assessment

ー

8-6

Percentage of positions filled internally

35

8-7

Percentage of critical business positions filledinternally

35

8-8

Percentage of critical positions

35

8-9

Percentage of vacant critical business positions inrelation to all vacant positions

35

4-1

Leadership trust

34

8-10

Internal mobility rate

4-2

Span of control

30

8-11

Employee bench strength

4-3

Leadership development

30

8-12

Turnover rate

39

8-13

Voluntary turnover rate

39

8-14

Voluntary critical turnover rate

39

8-15

Exit/turnover reasons/leaving employment by reason

39

35

16, 3435

Workforce availability

HUMAN CAPITAL REPORT 2022 - APPENDIX

8, 28