Human Capital Report
2021
Link and Motivation GroupLink and Motivation Group Profile
MissionBusiness Structure

Through Motivation Engineering, we provide
opportunities to transform organizations 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)

Consulting & CloudBusiness
IR Support
MOTIVATIONBusiness

Corporate Slogan

ENGINEERING

Career School
Business
Cram School
Business

Individual Passion Inspires the World
Matching Division
Providing opportunities to linkorganizations and individuals

Basic Information

Personnel Placement
Business
ALT Placement
Business(As of December 31, 2021)

Chairman and Representative Director: Ozasa Yoshihisa

Paid-in capital: 1,380,610,000 yen
Stock code:

2170

Overview by Division
Revenues(billion yen)

Gross Profit(billion yen)

Number of
Employees

Organizational
Development Division

108

75

556

Individual
Development Division

74

29

581

150

55

355

(Prime Section of Tokyo Stock Exchange)
Head office:Kabukiza Tower 15F, 4-12-15 Ginza,
Chuo-ku, Tokyo 104-0061, Japan

Established:

April 2000

Revenues:

32.6 billion yen (consolidated)

Adjusted operating income: 3.1 billion yen (consolidated)
Number of employees:

1,493 (consolidated)(As of December 31, 2021)

Matching Division1

Message from Management

Motivation Driven
Our People Are Our Greatest, Most Powerful Asset
When we founded Link and Motivation in 2000, the English wordtransformation, the ones carrying out such initiatives are our“motivation” was an academic term in Japan, not a word usedpeople and organizations. They are the source of our growth.

commonly by all. Now, just over 20 years later, it has become aword that even children might spontaneously use.
The ability to form organizations—their conception and

Employees of the Link and Motivation Group sympathize with
the LM Mission: “Through Motivation Engineering, we provide
opportunities to transform organizations and individuals and create

evolution—is one of humankind’s most important breakthroughs.

a more meaningful society.” They are inspired by that passion

Massive wonders such as the Pyramids and the Great Wall of China

every day as they support the transformation of our customers.

were built not just through the efforts of individual people but alsoThis is clear from a look at the Engagement Ratings we disclose,

through the formation of organizations. When individuals cannot

with nine out of 11 Link and Motivation Group companies scoringachieve something on their own, they bring in others to form

AAA—the highest level.

organizations. Although technology has advanced significantly over

The publication of this Human Capital Report is one aspect of

the years, I believe this ability is still universal, and that it will

our efforts to lead human capital management in Japan. It does

guide us for as long as human beings are around.

so by communicating our approaches and results in this area.

At Link and Motivation, we regard our organizational andhuman resource strategies as core management themes of equal

or greater importance than our business strategies, and wecontinue to invest regularly in them. That is because whether
we are executing a business strategy or engaged in digital

I hope the report provides all our stakeholders with a better
understanding of the Link and Motivation Group.

Ozasa Yoshihisa
Chairman and Representative Director
Founder2

CHAPTER 1
Strategies

501 Management Approach
02 Productivity

Human Capital Report
2021
Link and Motivation Group
Disclosure of Organizational Strategies
CONTENTS

03 Key Organizational Themes
04 Employee Engagement

05 Enhancing Digital Transformation of Organizations

CHAPTER 2
Recruiting

15

01 Attracting the Talent We Want to Hire
02 Recruiting That Creates High Engagement

3CHAPTER 3
Development

CHAPTER 5
20

Culture01 Developing i-Companies

01 Strategic Communication Design

02 Developing Management Personnel

02 Work Styles

34

CHAPTER 4
Systems
01 Evaluation and Compensation That
Connect Motivation to Results

28

Conclusion

38

Appendix

41

02 Management with Integrity

4CHAPTER 1 | Strategies

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

We use Engagement Score (ES), a metric developed by

When we began hiring mid-career employees, we took out an

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

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

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

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

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

the 11 companies in the Link and Motivation Group have an

importance to achieving the “motivation” in our company

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

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

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

world’s foremost company in its commitment to utilizing

too closely on the desires of individuals makes an organization

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

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

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

corporate culture to create organizations that serve as role

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

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

CHAPTER 1 | Strategies
01 Management Approach

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

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

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

Business
Creation of an
Engagement Chain

LINK

Realization of“One for All, All for One”

ーOptimization of people
and technologyーーEnhancement of
employee engagementー

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

Productivity

All our organizational strategies are designed and implemented based

Human Capital ROI

34.0％

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

Organizational Strategy
Focus Areas

Recruiting

Systems

Development

Culture7

CHAPTER 1 | Strategies
02 Productivity

Ongoing Pursuit of Productivity from Linking
Our Business and Organizational Strategies

Human Capital ROI

Human Capital ROI

34.0％

We emphasize productivity as a metric that shows the degree of

optimization of the linkage between our business strategies andour organizational strategies. In particular, the Link and Motivation

50%

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

45%

In 2021, human capital ROI for the Group was 34.0%. Human

capital ROI decreased in 2020, as the Group continued human capital

40%

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

35%

34.1％

same level as 2019 in 2021.

34.0％

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

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

25.0％

25%

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

20%
2019

2020

2021

2022

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

8

CHAPTER 1 | Strategies
03 Key Organizational Themes

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

Organization

Business
Creating an
Engagement Chain

LINK

ーOptimization of people
and technologyー

Realizing“One for All, All for One”
ーEnhancement of
employee engagementー

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

Key Themes for Increasing Productivity
Top priority:

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

Engagement Rating

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

Group companies with AAA rating

9 of 11

Average DX Score

98.9 out of 200

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

Engagement Survey Results

Engagement
Score

Engagement
Rating9 out of 11

2019(Feb.)

2020(Feb.)

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

AAA

11

10

11

9

Less than

67

AA

-

3

1

1

Less than

61

A

1

-

-

-

Less than

58

BBB

-

-

1

1

Less than

55

BB

-

-

-

-

Less than

52

B

-

-

-

-

Less than

48

CCC

-

-

-

-

Less than

45

CC

-

-

-

-

Less than

42

C

-

-

-

-

Less than

39

DDD

-

-

-

-

Less than

33

DD

-

-

-

-

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

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

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

Organizational diagnostic datacompiled since our founding

2,370,000 employees
at 8,740 companies

Organizational
weaknesses

Organizational
strengths

Satisfaction

67 or higher

objective of our organizational strategy.

Note: Patent registration no. JP6298855

10Reference
Correlation between ES and Operating Margin

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

Correlation between ES and Labor Productivity

company’s operating margin.
We conducted joint research with the Iwamoto Laboratory at Keio University’s
Graduate School of Business Administration on the relationship between ES on the

one hand and operating margin and labor productivity on the other. Based on thefinding of a 0.35% increase in the current-year operating margin and a 0.035-point
increase in the labor productivity index for each one-point increase in ES, the study
concluded that improvement in ES contributes to improvements in operating
margin and labor productivity.
Note: In this analysis, labor productivity is defined as EBITDA per yen of salary paid to employees.

11CHAPTER 1 | Strategies
04 Employee Engagement

Engagement Survey Details Part 1

Individual
Development
Division

2022(Feb.)

Link and Motivation Inc.

388

AAA

AAA

AAA

AAA

Link Global Solution Inc.

22

AAA

AAA

AAA

AAA

Link Event Produce Inc.

20

AAA

AA

AAA

AAA

Link Corporate Communications Inc.

79

AAA

AAA

AAA

AAA

Link Academy Inc.

511

AAA

AAA

AAA

AAA

Motivation Academia Inc.

31

AAA

AAA

AAA

AAA

Link Interac Inc.

172

AAA

AA​A

AAA

AA

Link Japan Careers Inc.

17

AAA

AAA

AAA

AAA

Link Staffing Inc.

15

AAA

AAA

AAA

AAA

Link-i Inc.

20

AAA

AAA

AAA

AAA

OpenWork Inc.

74

-

AA

BBB

BBB

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

Engagement Factors and Group Priority Factors
Company baseOrganization

Philosophy

PeopleField

Facilities

Job

Conditions

Explanations

Decisions

Awareness

SupportCustomerInnovation

Integration

Sharing

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

1 company

6 companies

INK BLOT

IDLE LINE

1 company

3 companies

Satisfaction

Matching
Division

2021(Feb.)

DirectTeam
Situation Supervisor

Organizational
Development
Division

Employees

2020(Feb.)

Company Area

Group Company

2019(Feb.)

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

12CHAPTER 1 | Strategies
04 Employee Engagement

High Employee Engagement Facilitates
the Success of Diverse Employees

Engagement Survey Details Part 2

People are intrinsically diverse, and whatever their gender, age or

Engagement Survey Results by Attribute
By Division
Organizational
Development Division
Individual Development
Division
Matching Division

Subjects

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

ER

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

509

AAA

business expansion, the degree of diversity among employees in our

542

AAA

organization will continue to increase as well.

298

AA

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

By Gender

Subjects

ER

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

Male

734

AAA

Female614

AAA

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

By Nationality (Region)

ER

understanding and affinity between a company and its

1,164

AAA

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

11

AAA

between our Group companies and their employees enable each6

AA

North America

34

AAA

Central and SouthAmerica2

AAAEurope

11

AA

Japan
Asia (excluding Japan)
Oceania

Subjects

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

13CHAPTER 1 | Strategies
05 Enhancing Digital Transformation of Organizations

Process for Enhancing Digital
Transformation (DX)Average DX Score

98.9 out of 200

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

Six-Month Cycle

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

Diagnosis

Transformation

provided by the Individual Development Division.

×
Identify current
skill level withDX Survey Basic

Basic

Operation

Advanced

Knowledge

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

More efficientorganizational
operations
More efficientindividual work

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

14

CHAPTER 2 | Recruiting

15

Attracting the Talent We Want to Hire
Common wisdom in Japan says that the quality of the talent a

A January 2022 survey of all our new graduate candidates

company hires determines its future five to ten years ahead.

with conditional offers to join the Group this year showed

Among the four areas of recruiting, development, systems

their decision to accept our offer was the result of theirand corporate culture, we invest the most in recruiting. Link

sympathy with our philosophy and a high level of engagement.

and Motivation has been hiring mid-career employees since it

Recruiting activities are important from the perspective of

was established in April 2000, but as our business expanded,motivating current employees. They are also an opportunity

we also took the unusual step of hiring new university

for dialogue with applicants on their and our visions for thegraduates as early as April 2002 and have continued to do

future. At the Link and Motivation Group, many employees

so every year since.

are closely involved in various aspects of recruiting.

Securing capable talent is the sine qua non of recruiting,

Employees tell applicants in their own words their thoughts

but we also emphasize engagement (mutual understandingon the future of society and the Company, which becomes

and affinity), particularly an applicant’s degree of sympathy

a pledge to the applicants. This in turn spurs current

with our philosophy. We are an organization that has come

employees’ motivation to live up to that pledge. Then, thetogether to realize a mission. Unless prospective employees

newly hired employees tell the next round of applicants theirare sympathetic with our mission, we cannot expect them tothoughts on the future of the Company. This self-perpetuating

perform at their best, no matter how talented they may be.

system has become entrenched as the culture of the

As such, recruiting is key to increasing our core organizational

Link and Motivation Group, and it is a driving force behind themetric of employee engagement, in the sense that it isGroup’s high level of engagement.

management at the initial point of entry.
16

CHAPTER 2 | Recruiting
01 Attracting the Talent We Want to Hire
New Graduate Recruiting Process

Example: Link and Motivation Inc.

Formation of Candidate GroupInternship

Top
Forum

Internship“SPiRAL”
Managerinterview

Event forIT engineers

100 people

that serves as an entryway to the company is critical. Based on the idea

(Understanding the company, motivation,
self-reflection support)

Internship“JAMP”

In creating organizations with high employee engagement, recruitment

Selection
Selection support by Entry Manager“RiSE”

Director
interview

Attracting the Talent We Want, Rather Than
Choosing from People Who Want to Work for Us

Finalinterview(GroupPresident)

that recruiting capabilities will support the company’s future
10 years from now, we approach recruiting with the stance of
attracting the talent we want, rather than choosing from people
who want to work for us. Given that no one in the labor market has
experience in our original technology of Motivation Engineering, we havefocused in particular on recruiting new graduates.

120 people

135 people

Number of employees involved in the recruiting process

We conduct recruiting with the commitment of the whole
company, from upper management to the youngest employees.
The idea is not to put people into the company, but to put thecompany into applicants. On that basis, we each try to give applicants

Recruiting event where heads of each company
speak to applicantsa broad understanding of the Group, including its philosophy, strategies,

Top Forum

businesses, work roles, human resources and systems.
Number ofparticipantsin 2021

1,273

Conducting recruiting as a Group-wide endeavor has enabled us tobuild strong recruiting capabilities. For current employees, it is also an
opportunity to take a fresh look at their day-to-day work and increase
their motivation.

At this event, the presidents of Group companies gather
to talk about their company’s philosophy and business.
Participants can also talk to current employees.

17

CHAPTER 2 | Recruiting
02 Recruiting That Creates High Engagement

Focusing on Increasing Engagement to Enable
Recruiting United by a Common Philosophy

Results of 2021 Entry Management (EM) Survey

To create high employee engagement after joining the company, we

Position of Priority Factor “Philosophy” by Company

focus on high engagement in recruiting. And to maintain that highExpectation

engagement, we place top priority on sympathy with our philosophy

ICE BLOCK (Weakness)

INK BLOT

9 companies
IDLE LINE

0 companies

0 companies

Satisfaction

0 companies

as early as the recruitment stage because of the importance we place

INTER LINK (Strength)

Note: Results for 9 companies that recruit new graduates

on connection with our philosophy.
At the Link and Motivation Group, we measure the degree of mutual
affinity between companies and applicants in recruiting activities basedon the Entry Management (EM) Survey, a diagnostic tool that canquantify the degree of mutual commitment between companies andapplicants. The results of the 2021 EM Survey are shown to the left.
At all Group companies, “philosophy” falls under the category of

Number of New Graduates Hiredstrength, indicating that employees are sympathetic with the Group’s
philosophy when they join the company.

100

128

144

142

We hired 93 new graduates in 2021, which was down from theprevious year due to the COVID-19 pandemic, but plan to hire 144 newgraduates in 2022.

93

0
2019

2020

2021

2022

18

Reference
Other Metrics for Recruiting

Devoting Time and Money to Recruit
Highly Engaged, Capable Talent

New University Graduate Recruiting

As mentioned on previous pages, we are committed to quality in recruiting, so we

2019

2020

2021

Recruitment costs1(thousand yen)

476,797443,973355,000

Average length oftime to fill vacant
position2 (days)

58.7

72.1

56.1

Number of hires3(people)Cost per hire4(thousand yen)because we believe that human capital is an investment, not a cost, and that belief
extends beyond the recruiting process.
The Link and Motivation Group’s recruitment costs are shown on the left. The

Mid-Career Employee Recruiting
Recruitment costs1(thousand yen)emphasize devoting time and money to recruit capable human resources. That ismajority consists of personnel expenses for new university graduate recruiting andthe operating expenses of Link-i Inc., a Group company that conducts new graduate

2019

2020

2021

156,841

200,514180,085

56

53

42

placement. The time and money we invest is substantial.
Overall recruitment costs for new university graduates have decreased as a resultof holding fewer real-world events, transitioning them to online events due to theimpact of the COVID-19 pandemic. Cost per hire has risen because the Organizational
2,800

3,783

4,287

1. Total recruiting-related costs recorded in the relevant fiscal year.
2. Total number of days required to hire employees who joined the Group in therelevant fiscal year. Calculated based on the number of days from theapplication date to the offer acceptance date. Recruiting of mid-career
applicants is not calculated because some Group companies hire throughout
the year.
3. Total number of employees who joined the Group in the relevant fiscal year.
4. Calculated by dividing recruiting costs for the relevant fiscal year by the
number of hires. Recruitment costs for new university graduates are notcalculated because the amount invested in the relevant fiscal year is notdirectly linked to the number of hires.

Development Division is ramping up hiring of capable mid-career applicants for
consultant and IT engineer positions.

19CHAPTER 3 | Development20

i-Company
One key element for creating a high level of employee

Moreover, learning about Motivation Engineering, which isengagement is the development of independent human

our core technology and the source of our competitive

resources. The following is an excerpt from our DNA Book,

advantage, is an opportunity that other companies cannot

through which we pass down our management philosophy.

provide. We have operated LM College as an institution fordeveloping human resources since its establishment in 2004.

As a pro, deepening professional expertise and contributing to

One of its main goals is to develop management skills

the organization are inextricably linked. At a higher level, bothconsistent with our principles and to serve as a model thatare synonymous. Pros are fully aware of their role in theorganization and concentrate on performing to their maximum
ability for the organization. This attitude builds theorganization’s trust in the individual, and consequently, it also

leads to maximizing the satisfaction of his or her needs.

embodies our message to society, “Our people are ourgreatest, most powerful asset.”
We are also committed to nurturing our next generationof managers. To continue to change and grow, we must(Vol. 35: The Team Orientation of a Pro, DNA Book)

continuously develop new leaders. These leaders must be

We emphasize that each employee should adopt theand embody our philosophy, increase employee engagement,

able not only to advance our business, but also to understandviewpoint of being the manager of their own “i-Company” toand link those attributes to successful results. We have

independently develop their careers. By doing so, they gain ainvested considerably in this area, and in 2021 we ramped up

new perspective on their i-Company’s customers, partners

our efforts by launching Top Gun Selection, a new selective

and competitors, as well as its strengths and challenges,

program for developing the next generation of managers.

facilitating independent and autonomous career development.
21

CHAPTER 3 | Development
01 Developing i-Companies

Cultivating i-Companies for
Independent Career Development

Training System Based on Our Frameworkof Requirements for Human Resources

The growth of every employee is essential for carrying out our business

Strengthening IT Skills for
Digital Transformation (DX)strategies. The Link and Motivation Group places great importance on- DX survey, PC skill training by level・・・・・・・・Strengthening Motivation Engineering
Technical
Skillscorporations to independently develop their own careers. We haveStrengthening the Portable Skills
Required of Professionals

therefore systematized the elements necessary for generating individual

・・・・・
Portable
Skillscultivating “i-Companies,” in which individuals regard themselves as- Top Gun seminars

performance as a framework of requirements for human resources and- Negotiation training- Logical thinking training- Self-motivation control training- Leadership training- Career design training

offer numerous opportunities for their development, mainly
etc.

Strengthening the Stance Required at Each Level
Level-Specific Training to Understand Roles

・・ - New company president training(Understanding Expectations for Each Level)

Stanceprovides as services outside the Group.
Total developing and training costs in 2021 are shown on the left.
They are calculated as external expenditures for training and personnel
expenses, but actual costs are not that high because we utilize our own- New manager training- New employee stance training

services. However, when converted to the amount that would be

Level-Specific Survey Training(Setting Tasks for Growth)- Survey feedback training for: upper management;
management; senior employees; leaders; mid-level
employees; junior employees

Total developing
and training costs

through the various types of training that Link and Motivation also

2019

2020

2021

Actual costs (thousand yen)

195,891

146,799

94,793

Converted to amount charged forservices to customers (thousand yen)412,642404,515

385,674

charged for providing the same services to customers, these figures
make it apparent that we invest a considerable sum. Costs decreased
in 2021 compared with the previous year because we switched to online
implementation, but we intend to continue investing in developing ourhuman resources.

22Reference
Rank-Based Survey Training

Accelerating Individual Growth byFrequently Implementing the PDCA Cycle

Diagnosis

Transformation

Evaluation by supervisors
and workplace colleagues
based on items that varydepending on rank

Employees of same rank takepart in multilateral discussions
to provide advice

Strengths andweaknesses

To accelerate the growth of individuals, all employees, including directors, complete atwice-annual 360-degree evaluation survey, a service of Link and Motivation,
to identify individual growth issues and create an action plan.
First, each supervisor and workplace colleague evaluates the individual on 40
items that vary depending on the roles required for the relevant rank. This entails

Goal setting

evaluation on two axes—degree of expectation and degree of satisfaction—to

measure whether the individual is meeting the expectations of those around them.

Action plan
TargetRank

Survey*Conducted

The survey results are then used for training in the form of multilateral discussions to

Number ofParticipants in
2nd Half of 2021

provide advice. Employees of the same rank are grouped randomly, and these fivemember groups give each other advice on issues they are facing. Joining each group

Upper management

Plato Survey

52

is one employee of a higher rank who plays a facilitating role in raising the field ofManagement

Lincoln Survey

106

vision of group members. For example, in the advice session for directors, Link andSenior employees

KOSI Survey

17

Motivation Group Chairman and Representative Director Ozasa Yoshihisa participates

Leaders

Einstein Survey

130

in the facilitation role.

Mid-level employees

Columbus Survey729

New employees

Darwin Survey

209* Surveys conducted are products of Link and Motivation Inc.,and the product names are listed.

In this way, we are putting considerable effort into individual development, andprovide an environment where people can continue to grow no matter theirseniority or position.

23

Reference
Transfers

Accelerating Individual Growththrough Strategic Transfers

Developing Portable Skills through Transfers
Portable Skills
Skills that are transferable regardless of industry or occupation
Task-directedcapabilities

Self-directedcapabilities

Interpersonal
skillsAbility toattempt

Ability tochangeAbility tobe agile

Ability tocreateAbility toplan

Ability topropelAbility toperform

Ability toanalyze

Ability tomake decisions

Ability to deal
with ambiguity

Ability to
act quickly

Ability totake risks

Ability topersevere

Ability tomaintain discipline

Ability topersistAbility to
be prudent

Ability toassert opinions

Ability todeny

Ability topersuade

Ability tolead

Ability tolistenAbility toacceptAbility tosupportAbility tocooperate

In addition to development through training, appropriate transfers to acquire a fullrange of competencies are important for cultivating i-Companies. Human resources
whose experience is exclusively in the same field or occupation find it difficult toachieve a full range of competencies and skills, and thus tend toward specialization.
Experiencing multiple fields and occupations broadens a person’s range ofcompetencies and skills, and we believe that enables us to contribute to thedevelopment of i-Companies. Therefore, the Link and Motivation Group focuses on
how long an individual is assigned to the same field, and conducts transfers once
every four years as a rough guideline.
At the same time, we believe objectives other than individual development should

2019
Average period in thesame field1 (years)

3.4

Internal mobility rate2
(%)

73.2

2020
3.7

2021
4.1

also be considered in making transfers. Considerations include appropriate

allocation of human resources to supplement organizations that lack personnel,
as well as organizational revitalization, in which transfers prevent the human

56.4

69.7

1. Group businesses are categorized into specified fields, and theperiod an individual spends in each field is calculated.
2. Transfers among occupations and the fields in note 1., as well aschanges in roles due to promotions or demotions, are defined asinternal transfers for the purpose of calculating the internal mobility
rate for the year.

resources in an organization from becoming set in their ways. We aim to build moreproductive organizations by considering these various objectives to conduct themost appropriate transfers.

24

CHAPTER 3 | Development

Discontinuous Corporate Growth throughthe Cultivation of Human Resources Who Can
Adapt to Product, Labor and Capital Markets

02 Developing Management Personnel“Top Gun Selection” Training for Management Personnel

Cultivating management personnel to lead the organization is

Selective Training Program (Excerpt)
PROGRAM｜2

PROGRAM｜1
Proposal Presentation
Meeting

Survey Feedback
Training

Presentations to directors on
various themes and feedback

Setting tasks and targets withGroup Representative
Director Ozasa Yoshihisa

indispensable for business expansion and growth. The Link and

PROGRAM｜3

Motivation Group’s management personnel are expected to be able toGroup Dinner
Sharing views from various
angles and socializing withGroup Representative
Director Ozasa Yoshihisa

adapt to product, labor and capital markets, and to think froma Group-wide perspective. However, in carrying out day-to-day
duties, there is a tendency to adapt only to the product market and toClass

Objective

No. of Participants
2021

take the perspective of one’s own particular field. Therefore, since 2021

2022

we have been implementing the selective training program Top Gun

Corporate officer

Raise the level of corporate officersー5Company
president

Cultivate the next group of officer candidates

55

The year-long program selects members from each level, fromManager

Cultivate future officer candidates

512

general employees to senior managers, to learn the perspective

Generalemployee

Cultivate the next group of manager
candidates

66

and approach a manager should have.
A total of 16 participants from all levels received training in 2021.

Prospective Management Personnel (As of December 31, 2021)
Officercandidates

・・・・・・・・

27 candidates / 24 current appointees(Successor coverage rate: 112%)・・・・

116 candidates / 37 current appointees(Successor coverage rate: 314%)

Company president
candidates(Breakdown of candidates)
Ready in less than 1 year:
Ready in 1 to 3 years:
Ready in 4 to 5 years:

Selection as an opportunity for growth separate from actual work.

4
28
84

Comments included, “I felt an urgent need to develop the perspectiveof a manager” and “It prepared me to take charge of my company
someday in the future.” We believe that the program has been effective
in developing human resources as management personnel.
In 2022, 23 people have been selected and training is under way.
We will continue to focus on developing human resources who will be
leaders in the future.

25

CHAPTER 3 | Development
02 Developing Management Personnel

Training for Managers Who Serve as a
“Junction Point” to Broaden Their Perspective
and Fulfill Their Roles

Leadership Development Policy
Managers General Meeting(Held Quarterly)Managers Serve as a
“Junction Point”
Explanations

Decisions

Awareness

SupportWe believe that the role of a manager is to serve as a “junction point”
that connects a company and its members—it is a role crucial for
maintaining a high level of employee engagement while producing

Development
Programbusiness results. To that end, we conduct manager training and monitor
how others evaluate managers’ leadership as a core metric.

Participation Rate (%)

Objective

2019

2020

2021

New manager
training

Understand the role expected of amanager

100.0

100.0

100.0

Level-specifictraining for
managers

Understand current situation to settasks and targets

92.2

94.2

91.0

Managers General
Meeting

Broaden perspective as a manager

-

-

100.0

Our main manager training programs consist of new manager
training so they understand the role they should play,level-specific training so they recognize their current situation
to set tasks, and participation in the Managers General Meeting tobroaden their perspective.
We also monitor how others evaluate managers’ leadership basedon the results of individual surveys. In 2021, results for all fiveManager Leadership Evaluation

metrics scored 4.0 or higher (of a maximum of 5), so we feel thatthe managers of the Link and Motivation Group are functioning

Five Sources of Influence Expected of a Manager
Expertise

AppealReciprocity

Consistency

Strictness

4.5

4.3

4.7

4.3

4.1

well as junction points.
We intend to continue to enhance manager leadership going forward
by conducting the development measures managers need.

Note: Calculated as the average for all managers, based on the results of individual
surveys regarding managers. Responses are scored on a five-point scale from1 (“not satisfied at all”) to 5 (“very satisfied”). Figures are results for 2021.

26

Reference
Leadership Team Skill Matrix
Corporate Management
Name

Current Position

Areas of Expertise

Managerial
Experience

Employee
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

Finance &Accounting

Legal & Risk
Management

Research &Development

●
●

●

●
●

●

Kuriyama Hiromi

Audit & Supervisory Board Member (Full-time)

Kimura Hidekazu

Audit & Supervisory Board Member (Part-time)

●

●

●

Tominaga Kenji

Audit & Supervisory Board Member (Part-time)

●

●

●

Sales &
Marketing●●●

DX & IT

●

●

●

●

Appointing Directors Capable of Making Management Decisions
That Link Business and Organizational Strategies
The Board of Directors of the Link and Motivation Inc. is composed of five

In January 2022, the Company introduced a corporate officer

directors (two outside directors). The three internal directors makesystem with the aim of separating management decision-making andmanagement decisions that link business and organizational

supervision from business execution, thereby enabling the execution ofstrategies as professionals in organizational transformation, withmanagement based on judgments that accurately grasp both theextensive experience as organizational and personnel consultants.

business environment and changes in it. Three managing directors

The two outside directors leverage their deep insight into corporate

oversee the Organizational Development Division, the Individual

management and expert knowledge of industrial and organizational

Development Division and the Matching Division, respectively, and fivepsychology, which has affinity with the Group’s business.

corporate officers oversee various Group-wide functions.

27

CHAPTER 4 | Systems

28

Conveying Messages from Management through Our Personnel Systems
Our style of management, which emphasizes motivation-

Management speed is also important. We manage ourdriven employee engagement, recognizes humans as

business based on our unique perspective on time, in which

emotional beings with limits to their rationality. People dothree months everywhere else is one year at the Link andnot work 24/7/365, absorbed in thoughts only of financial

Motivation Group. We therefore set targets and conduct

reward. There are times when people derive greater

evaluations once every three months.

satisfaction from their own growth or from the feeling ofFurthermore, the Group considers compliance to be closely

contributing to customers and others, rather than fromlinked to employee engagement, which is the degree ofmonetary benefit. Therefore, we invest in providing emotional

mutual understanding and affinity between a company and its

as well as financial rewards to our capable employees to raise

employees. If there is a decline in employee engagement—

their motivation to strive for greater achievements.

that is, if a company is facing organizational issues—compliance will also be affected. We have set “management

Emotional Rewards

with integrity” as one of the three goals of our management
policy, and senior management and all employees work

Desire for Contribution

Desire for Recognition

E.g., words of thanks

E.g., awards for performance

Desire for FellowshipE.g., good teamwork

Desire for GrowthE.g., improvement in know-how
and techniquecontinually to ensure we live up to this goal.
In these and other ways, our management system reflects
what we think is most important. It is ever-visible in our

personnel systems and management policy, and also serves
to raise employee motivation. This is management thatleverages our core technology of Motivation Engineering.
29

CHAPTER 4 | Systems
01 Evaluation and Compensation That
Connect Motivation to Results

Increasing Individual Motivation
by Providing Emotional Rewards

List of Awards

We view humans not as completely driven by economic rationality,
Work

Best Motivation Project
Project that produced outstanding results

but as emotional beings with limits to their rationality. In other

Motivation Creator
Team member who produced outstanding results

they ultimately make decisions based on feelings and emotions. That iswords, although people think and behave rationally to a certain extent,

Motivation Manager
Manager who produced outstanding results

Individuals

Organizations

why we place importance on providing emotional rewards as well asmonetary rewards in order to enhance the motivation and engagement

Rookie of the YearFirst to third year employees hired as new graduates who
produced outstanding resultsof individuals.

Entry Manager of the Year
Entry manager (recruiter) who had a major influence on
applicants and achieved results

emotional reward. This system recognizes outstanding employees andAdministrator of the Year
Administrator who achieved outstanding results in the role ofimproving employee engagement in his/her organization

We judge and select award winners based on a comprehensive range ofCompany of the Year
Company that produced outstanding results over the courseof a year

We have set up an awards system as an important form ofprojects at the Group General Meeting held once every three months.
factors, including level of performance, degree of growth and change,
and influence on others. A certificate with the reasons for the evaluation
and relevant anecdotes is read in front of all employees, and the winnerhas the opportunity to make a speech. This not only helps to spur thefurther growth of the award recipient, but also has a substantial

Number of Awards

positive effect on other employees.
2019

Number of awards

34

2020
40

2021
37

Going forward, we will further enhance employee motivation andengagement by providing appropriate emotional rewards.

30

CHAPTER 4 | Systems
01 Evaluation and Compensation That Connect Motivation to Results
Metrics for Compensation

Three-Month Evaluation Cycle
Three months for the rest of the world is one year at LMG.
We aim for not merely an accurate evaluation, but a satisfying one.
First month

Middle month

Last month

Goal setting interview

Interim interview

Evaluation interview

Coordination of goals
asked of employee

Progress check andclarification ofcorrective action

Review of employee’s
performance andgrowth

2019

2020

2021

Average monthly salary (thousand yen)

361

366

401

Average yearly salary1 (thousand yen)

4,895

4,871

5,505

Ratio of officers’ compensation to theaverage salary and remuneration2 (%)

4.3

4.1

4.7

1. Calculated as monthly salary plus bonus paid four times a year.
2. Calculated as total officers’ compensation as ratio of the average total compensation of all
employees.

Metrics for Evaluation
Evaluation Items
Performance
Stretch2019

Degree of contribution to company
results and the organization
Individual growth and change

Average individual
evaluation score3

2020

2021

Performance

4.7

4.7

4.8

Stretch

4.9

5.0

5.0

Total

9.6

9.7

9.8

3. Performance and stretch are evaluated on a scale of 1 to 9, with 5 being “met expectations.”

Speeding Up the Evaluation and Compensation Cycle
Increases Individual Motivation
The Link and Motivation Group is particular about the speed of management,
and therefore operates an evaluation and compensation cycle that repeats
every three months. Specifically, setting of goals for individuals, decisions onclass promotion, and payment of premium compensation (bonus) all take place
once every three months. This accelerates the growth of individuals andenables satisfying evaluation and compensation. As a result, we believe it
leads to the improved motivation of individuals.
In individual evaluations, we evaluate two axes with equal weightings:
performance, which evaluates contribution to results, and stretch, which
evaluates the individual’s growth. This system plays an important role inaccelerating the growth of individuals.

31

CHAPTER 4 | Systems
02 Management with Integrity

Improving Employee Engagement Is Key toPromoting Understanding of Compliance

Compliance Metrics1
2019
Number of grievances filed2

2020

The Link and Motivation Group strives to practice Management with

2021

10

8

3

Harassment

2

3

0

Workplace environment

7

2

1

Other

1

3

2

Number of concluded disciplinary actions

21

5

5

16

5

5

(Type)(Type)

Reprimands/pay cuts

Integrity – i.e., management with no illegality or dishonesty toward
any of its stakeholders, including customers, business partners,
employees and shareholders. We are proactively strengthening
compliance and ethics, which are prerequisites for achieving this. As acompany, we abide by laws, regulations, corporate ethics and social
norms, and understand that individual employees must also make efforts
to avoid transgressions.

Suspensions/demotions

Requests for resignation/
disciplinary dismissal

2

0

0

Our performance is shown on the left. At the Link and Motivation
Group, we believe that our emphasis on employee engagement

3

0

0

0

0

0

100.0

100.0

100.0

helps to strengthen compliance, and see our high performance inthese metrics to be a result of our high level of employee engagement.

Number of unresolved external audit findings3
Percentage of employees who havecompleted training on compliance (%)

1. The number of grievances filed and concluded disciplinary actions covers officers,
employees, part-time staff and ALTs. The training participation rate covers officers,
employees and part-time staff, but excludes ALTs.
2. The number of consultations with the hotline that is open to all employees.
3. The number of findings in external audits by the Labor Standards Inspection Office, etc.
that are still unresolved.

In the future, we will further deepen understanding of compliancethrough our commitment to employee engagement. We are also
focusing on raising employee awareness in various ways, such as
through compliance training in which management conveys its point ofview, as well as through the Six Codes of LM, which summarize ourvarious rules, and regular communication from the Legal Department
on matters relating to compliance.

32Reference
Resignation System

A Company That’s Easy to Leave because Both Parties
Select Each Other, Not a Company That’s Hard to Leave
because of a Mutually Binding Relationship

2019

2020

2021

Turnover rate1 (%)

12.8

9.8

10.0

The relationship between companies and individuals is shifting from a mutually

Voluntary turnover rate (%)

12.6

9.6

9.8

binding relationship to a mutually selective relationship. For that reason,

Voluntary turnover rate
(management)2 (%)

0.8

0.6

0.3

instead of a system that makes it hard for individuals to leave because of

Voluntary turnover rate
(IT engineers)2 (%)

0.0

seniority-based pay and retirement benefits based on the premise of lifetime
0.3

0.3

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 ofdefined category of employees (monthly number of leavers ÷ monthly
average number of employees)

Main Reasons for Leaving in 2021
Rank

Reason(n=125)

1

Work

43.2％

2

Family18.4％

3Treatment/Pay

16.0％

4

Health8.8％5Philosophy

8.8％

6

Company culture

2.4％

7

Retirement age

2.4％

employment, the Link and Motivation Group has built a system in which
individuals can easily leave so that the company and the individual have arelationship of their own choices, and is focusing on coordinating the diverse
work motivation styles of diverse people.
Therefore, we focus not on the overall turnover rate, but on critical turnover(i.e., regrettable turnover). Specifically, we monitor the turnover rates ofWant to grow in a new job,want to start own business,etc.

management and IT engineers, which are especially critical for the company’sbusiness strategy.
We also keep a close watch on reasons for leaving. As shown on the left, themain reasons for leaving in 2021 were work-related, while the percentage of

people leaving because of the company culture—which we are particular
Human relations in theworkplace, etc.

about—is small. Many people left for reasons of self-actualization, such as adesire to change jobs to achieve growth on a new stage. We therefore thinkmutual selection has been achieved.

33

CHAPTER 5 | Culture

34

Communication
When blood flow is blocked, the human body develops various

Even outside Japan, we think it is rare for a company to bedisorders and illnesses. Similarly, when communication is

so committed to communication. Used with imagination,

blocked in an organization, various issues arise. In short,communication is essential to sharing a variety of feelings:

communication is the lifeblood of an organization.

to inspire emotion, to express gratitude, or to encourage

On the one hand, growing the Link and Motivation Group

reflection. There may be times when employees feel

necessitates specialization into organizational hierarchies andoverwhelmed by their daily workload; however, constantfunctions. However, increasing specialization in an

communication helps engender a Group-wide perspective andorganization gives rise to a host of problems. A sense of

acquaints them with the details of the duties anddistance naturally increases, both vertically in the hierarchy

determination of others who are working to high standards.

and horizontally among functions, the intentions of senior

It is as an opportunity to improve motivation toward work.

management are not communicated, and cooperation

We hold a general meeting attended by all Group

weakens in each department, among other issues. Therefore,

employees once every three months. In addition, senioras we promote specialization within our organization to

management sends out a monthly message, which receives

maximize results. We also invest in communication to achievecomments from many employees. We have also implemented

the seemingly contradictory goals of integration and mutuala variety of imaginative communication initiatives in eachunderstanding. Communication also generates greater

department. We understand the importance of

employee motivation. This investment in communication iscommunicating in such a way and take pride in sharing ouressential for us to maintain a high level of employee

corporate climate and culture, the evolution of which weengagement as we continue to grow.

ourselves promote.
35

CHAPTER 5 | Culture
01 Strategic Communication Design

Active Communication for Mutual Understanding
between the Company and Employees

Communication Measures

We believe communication to be the “bloodstream” of anorganization. Therefore, to maintain motivation in the organization,
we think it is crucial to enhance vertical and lateral communication.

Group General Meeting
Average participationin 2021908 people

The Link and Motivation Group ensures communication opportunities
at various meetings, and focuses particularly on the Group General
Meeting and the Top Comment. The Group General Meeting, whichtakes place every three months, includes a review of business results,
presentation of MVP awards, sharing of management policies going
forward, and more, in order to share views of the Group as a whole.

Note: Due to the business models of some of our businesses, it may be difficult for all
employees to attend, so the number of participants varies each meeting.

The Top Comment, posted each month via our intranet, delivers amessage to employees from Chairman and Representative Director
Ozasa Yoshihisa, covering the Group’s current direction and recent

Top Comment
Average accessrate in 2021

92％

developments, in order to share the views of senior management.
Consequently, our yearly investment in communication exceeds
100 million yen. This cost has been declining as we have shifted toholding the Group General Meeting online and cut back on paper-based
publications, but we will continue to actively invest in communication asa way to increase employee engagement.

36

CHAPTER 5 | Culture
02 Work Styles

Simultaneously Raising Productivity and
Employee Engagement with a New Work Style

New Way of Working: Compatible Work
2021

The Link and Motivation Group responded to the COVID-19 pandemic byApprox. 60% reduction in floor space from office downsizing andrelocation nationwide

relocating and downsizing its offices throughout Japan, and by

Osaka:
Jan. 2021
downsizing
Fukuoka:
Apr. 2021
relocation

Sendai:Jan. 2021
downsizing
Tokyo Head Office:Oct. 2021
relocation

Hiroshima:
Nov. 2020
relocation

Nagoya:Feb. 2021
relocation

establishing a new work style model called Compatible Work.
The idea of Compatible Work is based on transforming the way wework by combining real-world and virtual spaces to increase
productivity and employee engagement.
In Compatible Work, each team schedules days for working at theoffice and for telework, and designs its work processes according torespective work styles. At the office, in-house meetings, quarterly
kickoffs and other such meetings that benefit from real-world interaction

2022
Shifted to Compatible Work while monitoring the COVID-19 situation
Benefits of office work (real world)

are given priority. When teleworking, employees focus on drafting
documents, clerical work, and other activities that benefit from working
virtually. With this approach, we will design our work processes
systematically according to the benefits we seek to obtain.

Cooperation

Chanceoccurrences

Emotion andlogic

SympathyIn this way, we aim to increase productivity by appropriately
designing our work processes, while also enhancing employee

Benefits of telework (virtual)engagement by providing opportunities for real-world communication.
Given how important employee engagement is to us, we will continue toflexibly transform our methods of communication in response toConcentration

Planning

Rationality

Synchronization

the emerging situation.

37

Conclusion

38

Conclusion
The Link and Motivation Group has become the first company

We have utilized our core technology of Motivationin Japan—and indeed Asia—to acquire ISO 30414 certification,

Engineering to support the human capital management of aan international standard for human capital reporting, after

wide variety of companies. With the acquisition of ISO 30414

undergoing a review by HC Produce Inc. and HR Metrics.

certification and the issuance of this Human Capital Report,

We would like to thank everyone involved in helping us to

we reaffirmed that our objective in human capitalacquire the certification.

management is to realize “One for All, All for One,” and to

The importance of human capital management in corporatethat end, our top priority is to increase employee engagement

management is increasing rapidly. The decline in the working(the degree of mutual understanding and affinity between a

population amid the demographic aging of Japan willcompany and its employees). We will continue to effectaccelerate. Moreover, companies are shifting to intangible

various changes in pursuit of the LM Mission. At the same

products and services, and the source of their competitive

time, we will engage in dialogue with employees based on

advantage is becoming more dependent on employees’

measuring employee engagement and working to achieve

creativity, hospitality and motivation. Furthermore, as themutual understanding and affinity. That way, we will all growwork motivations of workers have diversified, increasing their

together as a team.

work motivation and bringing employees together to achieve
the company’s mission has become a key role of managers.

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

39

40

Appendix

41

Appendix
Productivity Metrics

Peremployee1

Workforce Metrics
2019

2020

2021

Revenues (thousand yen)

19,321

17,713

18,675

Officers1

Gross profit (thousand yen)

8,241

8,060

8,775

Employees

Net income (loss)(thousand yen)

659

(535)

2019

Number of
employees

583

In 2020, the decline in revenues due to the COVID-19 pandemic was also
reflected in a decline in per-employee results. However, results per employee
Full-time/Part-time2

improved with the recovery in business performance in 2021.

Employee Attribute Metrics■ Male-Female Ratio

EuropeNorth

FemaleMale

America

45%

55%

2%

1%

Other

2%

71-99

0.0%

61-70

1.8%

51-60

Japan

28

30

1,390

1,498

1,493

516

381

403

ALTs

3,245

3,378

3,304

Total

5,175

5,285

5,230

Full-time

1,452

1,537

1,518

Part-time

478

370

408

1,654

1,738

1,748

1.1

0.9

0.9

Part-time staff

95%

Absenteeism (unplanned leave) rate (%)

In 2020, the number of employees increased because OpenWork Inc. wasmade a consolidated subsidiary. The number of part-time workers fell that

8.7%

41-50

22.7%

31-40

year due to the COVID-19 pandemic but began increasing again in 2021.

25.9%

21-30
0-20

2021

24

Full-time equivalent (FTE)3■ Nationality (Region) ■ Age Structure

2020

40.8%
0.0%

Note: Excludes non-responses

In the Link and Motivation Group, we conduct hiring, evaluation,
promotion, and other corporate functions based on each individual’s
performance and growth, irrespective of attributes such as gender,

We will continue to secure an appropriate number of employees and invest
in them, according to changes in the environment and business conditions.
1. Total of directors and executive officers, including outside directors.
2. Contractual working time of at least 40 hours a week is considered “full-time” and less than 40hours a week is considered “part-time,” regardless of the form of employment. (Excludes
ALTs.)
3. Number of employees when converted to full-time (40 hours a week). Calculated by dividing
total working hours per week of all employees by 40 hours. (Excludes ALTs.)

nationality or age. Workforce diversity ratios at the end of 2021 withrespect to each attribute are shown above.

42

Appendix
Metric Related to Employment of People with Disabilities
2019

2019

2020

2021

Total workforce costs1 (million yen)

19,934

19,875

21,349We have strengthened recruitment of people with disabilities, but although

External workforce costs2 (million yen)

12,013

11,54812,125the number of people with disabilities has increased, we fell short of the

Total costs of employment3 (million yen)

8,775

8,893

9,724

Employees with disabilities* (%)

1.04

2020

Cost Metrics

2021
1.52

1.35

legally mandated employment rate of 2.3 percent. While some Group
companies do satisfy this rate, this remains a management issue for the

Our current policy is to scale back investment in offices and speed up

Group as a whole, so we will further strengthen our recruitment efforts.

investment in human resources and IT. Because of that, total workforce* Tabulated based on the contents 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.

costs and total costs of employment have generally been increasing,although reducing the number of employees had an impact in 2020.
Furthermore, external workforce costs are increasing, reflecting the
temporary increase in the cost of recruiting ALTs in the Matching Division

Metric Related to Hiring

due to the COVID-19 pandemic.
2019

Quality per hire*

10.0

2020

2021

10.1

10.1

To determine whether we are hiring people who meet expectations, we

1. Total costs the Group paid directly to employees.
Defined to include total costs for the external workforce (see note 2.) in addition to employees
the Group employs directly.
2. Total costs paid to outsourcers, temporary staff and other workers the company does not
employ directly.
3. Total costs incurred in employment.
Defined as total costs that directly benefit employees. (Training costs, benefit expenses, etc.)

monitor evaluation results during the probation period. Specifically, ourgoal is 10 or higher, which indicates “met expectations.” The result for
2021 was 10.1. We therefore believe that we are hiring people who
produce results that exceed the company’s expectations.
* 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 “metexpectations.”

43

Appendix
Leadership Metrics■ Group Hierarchy Chart1
Directors, executive officers

24

Training Metrics■ Span of Control (Number ofMembers per Management Position)
Directors and executive
officers

62.2

Company managers

39.4■ Training Participation Rates
Name of Training
Top Gun seminars

98.5

Negotiation training

88.9

Logical thinking training

53.0

Self-motivation control training

100.0

Leadership training

63.2

Career design training

79.2

New company president training

100.0

New manager training

100.0

on various factors such as business model, management maturity,

New employee stance training

100.0

composition of members, and organizational relationships, so we do not

Survey training for upper management

96.2

target a flat standard across the Group. For that reason, we constantly

Survey training for management

91.0

Survey training for senior employees

94.3

Survey training for leaders

95.9

of organizations, and make adjustments as necessary. Currently, given

Survey training for mid-level employees

93.2

that on the whole, organizations in the Link and Motivation Group have

Survey training for junior employees

97.4Management

Company managers

37

Unit managers, group managers

89
Non-management

Members

1,367

Unit managers andgroup managers

15.4

All managers2

10.1

The appropriate span of control at each hierarchical level differs depending

monitor the suitability of our hierarchical structure based on the results ofindividual surveys regarding managers and employee engagement results

Technical Skills

Participation
Rate (%)

Portable Skills

StanceStance(level-specificsurvey)high employee engagement scores, we believe our organizational structure

All employees participated in multiple forms of training, and participation

to be appropriate.

rates for each type of training are shown above. In addition, average

In the future, we will flexibly change our organizational structure asnecessary in accordance with changes in employee engagement.
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 workers and ALTs are notincluded in the number of people for each level.
2. Calculated by dividing the total number of people at all levels by the number of managers.

formalized training hours per employee, including training conducted at the
departmental level, was 31.8 hours.* For Group-wide training, we aim fora participation rate of 100%.
* Calculated by dividing the total hours spent for all training in 2021 by the number of employees atthe end of 2021.

44

Appendix
Health and Safety Metrics

Metrics Related to Appointments and Critical Positions
2019

2020

2021

2019

2020

2021

Number of occupational accidents1(per million work hours)

3.82

3.74

4.15

Percentage of positions filled internally1 (%)

77.6

68.7

73.1

Lost time for injury1(total lost time in hours per million work hours)

10.49

12.80

3.80

Percentage of critical positions2 (%)

1.3

1.5

1.6

0

0

0

Percentage of critical positions filled internally3
(%)

100.0

100.0

100.0

Succession effectiveness rate4 (%)

100.0

100.0

100.0

Percentage of vacant critical positions in relation
to all vacant positions (%)

0.0

0.0

0.0

Average length of time to fill vacant critical
position (days)

0.0

0.0

0.0

Number of people killed during work1

2019

2020

2021

Percentage of employees who participated inhealth and safety training2 (%)

75.5

Percentage of employees who took time off formental health reasons (%)

0.8

0.6

0.9

Maternity leave rate (%)

100.0

100.0

100.0

Paternity leave rate (%)

8.3

13.6

25.7

87.4

92.4

In the Link and Motivation Group, we define critical positions as “directors
and executive officers (except outside directors), including those of Group
companies.” However, when a vacancy arises, we either appoint an

Most occupational accidents in the Link and Motivation Group occurred

immediate replacement or eliminate that position, so positions are neverduring commuting or travel. These results are reasonable since we have aleft vacant. Accordingly, the “percentage of vacant critical positions” andbusiness model where workplace accidents do not easily occur.

“length of time to fill critical vacant positions” are zero.

Moreover, the above results for metrics relating to employee health andRegarding appointment to critical positions, all have been filled

safety and the balance of work and childcare indicate that we haveinternally in the past three years. We believe that these results are an

supportive workplace environments.

indication of our systematic approach to successor development.

1. Calculated based on total number of employees (officers, employees, part-time staff and ALTs).
2. Calculated based on participation rate in annual stress checks.

1. Calculated as the number of vacant positions filled through internal recruitment divided by the total
number of vacant positions filled through internal plus external recruitment.
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
recruitment.
4. Percentage of critical positions filled through internal recruitment as of the end of the year.

45Appendix
Correspondence with ISO 30414 Metrics
No.

Metric1Page(s)No.

Metric5Compliance and ethics

1-1

Number and type of grievance filed

32

5-1

Engagement/satisfaction/commitment

1-2

Number and type of concluded disciplinary action

32

5-2

Retention rate

1-3

Percentage of employees who have completed training
on compliance and ethics

32

1-4

Disputes referred to external partiesー

1-5

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

32

2

6

9-1

Total developing and training costs

22

9-2

Training participation rate

44

9-3

Average formalized training hours per employee

44

9-4

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

44

Workforce competency rate

ー

45

6-2

Number of occupational accidents

45

6-3

Number of people killed during work

45
45

2-1

Total workforce costs

43

7

2-2

External workforce costs

43

7-1

EBIT/revenue/turnover/profit per employee

42

2-3

Ratio of the average salary and remuneration

31

7-2

Human capital ROI

8

2-4

Total costs of employment

43

8

2-5

Cost per hire

19

8-1

2-6

Recruitment costs

19

8-2

Quality per hire

43

2-7

Turnover costsー

8-3

Average length of time to fill vacant position

19

3

Diversity

Productivity

Recruitment, mobility, turnoverー

8-4

Average length of time to fill vacant critical position

45

8-5

Transition and future workforce capabilities
assessment

ー

8-6

Percentage of positions filled internally

45

3-1

Workforce diversity ratio with respect to age

42

3-2

Workforce diversity ratio with respect to gender

42

3-3

Workforce diversity ratio with respect to disability

43

8-7

Percentage of critical business positions filled internally

45

3-4

Workforce diversity ratio with respect to other indicatorsof diversity

42

8-8

Percentage of critical positions

45

3-5

Diversity of leadership team

27

8-9

Percentage of vacant critical business positions inrelation to all vacant positions

45

8-10

Internal mobility rate

24

8-11

Employee bench strength

25

8-12

Turnover rate

33

8-13

Voluntary turnover rate

33

8-14

Voluntary critical turnover rate

33

8-15

Exit/turnover reasons/leaving employment by reason

33

4

Leadership

4-1

Leadership trust

26

4-2

Span of control

44

4-3

Leadership development

26

Page(s)33

Lost time for injury

Number of qualified candidates per position

MetricSkills and capabilities

10, 12, 13

Organizational health, safety and well-being

Percentage of employees who participated in training

No.
9

6-1

6-4

Costs

Page(s)Organizational culture

9-5
10Succession planning

10-1

Succession effectiveness rate

45

10-2

Succession coverage rate

25

10-3

Succession depth rate: ready now

25

10-4

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

25

11

Workforce availability

11-1

Number of employees

42

11-2

Number of employees: full-time and part-time

42

11-3

Full-time equivalents

42

11-4

Contingent workforce: independent contractor

ー

11-5

Contingent workforce: temporary workforce

ー

11-6

Absenteeism: unplanned leave

42

46