Management Strategy

Management Strategy▶Human Resources Strategy

Drive Innovation with “Human Resource Capabilities”

Human resources strategy that supports theMedium-term Business Plan and key strategies

positions of businesses, we will make a focused allocation tothe fields of the new key strategies set forth in the Mediumterm Business Plan. At the same time, we will (i) strengthen
the recruitment of mid-career specialized talents; (ii) allocate
and use employees across the Group based on their individualstatuses (experience, aptitude, etc.); and (iii) develop newjobs and support career development outside the Group.。

We started the new Medium-term Business Plan in fiscal
2021. The abilities and skills fostered by the past career inthe Department Store, SC, etc. are not enough to implement
our three key strategies including Developer Strategy, Real
Digital Strategy and Prime Life Strategy and achieve results.
And we need to develop new human resource capabilities
for regrowth. To this end, we will actively develop employeesʼ
abilities and strengthen the employment of specialized
talents from outside the Group to build a stronger humanresource structure.
With business model transformation, the roles, abilities
and skills required of employees will change. The Company
will thoroughly face employees based on “human resourcecapabilities” and place the right people in the right jobs
according to their individual aptitudes and potentials so thatthey can succeed in their new roles and positions. In this process,we will appoint young employees to important positions at an
early stage and develop them through jobs and roles.

Human resource development
Premised on the idea that people grow through jobs,
we will link four actions including recruitment, allocation,
evaluation and development and increase the energy that will
become a growth engine to develop human resources. Our
training programs include the ones provided to all employees
at certain career stages and when they are promoted to line
positions and the ones for selected employees such as theJFR Schools that aim to develop the next managerial talents(Some sessions were suspended or provided remotely due
to COVID-19 in fiscal 2020). We also provide extensive
self-development courses named Career Support Collegefor employees. Employees can receive a subsidy from theCompany when they complete the course. A total of 1,038
employees in the Group took these courses in fiscal 2020.
They help develop employeesʼ attitude of “learning bythemselves” and organizational climate. Going forward, we
will rebuild the Groupʼs common development system andprovide versatile content beyond business fields.

The Group human resource structure reform
J. Front Retailing promotes sustainability management as
described in the new Medium-term Business Plan and we
think the greatest management resources to achieve ourbusiness goals are “people” and that a company cannot
grow and develop without the growth of human resources.
Positioning “employees as treasure (assets),” we aim to realize

a “human resource development company” that maximizes
employeesʼ personalities and abilities and develops humanresource capabilities. At the same time, by respecting diversity
and creating an environment that enables diverse and flexible
work styles, we would like to be a company whose individual
employees can feel satisfied, rewarding and happy.

Overview of human resources strategy

Internal
specialized HRsrisk● Transformation of organizational
climate and corporate culture

Medium-term Business Plan

Human resources strategy
Employment of diverse HRs andTough assignment
Identifying the right fields

1 development of specialized HRs

2 Strategic allocation and3 Rebuilding of HR system that

4 Promotion of work style reform

Stretching duties/roles

5 Response to diversified values

6 Response to changes in

7 Creation of safe and secure

8 culture that respect challenge and creation

Creation of organizational climate andExperience in different fields

use of diverse HRs

HR structure

Promotion of diversity & inclusion

From a job performance-based system to a“human resource capabilities”-based systemstrengthens HR capabilities

work environment

Realization of work-life integration

Results/contribution
ActionKnowledge/skills
Development ability

Learning ability

Intention/motivation

Negotiation ability

Influence

Human resource value
Character, values, spirit, orientation/interests

Building a wide varietyof capabilities

Consideringexperiences inother companies
and other divisions
when promoted toupper stages
Justifiedtransfer/assignment
based on thehuman resources
record, etc.

Individuals grow through jobs/roles

reforms, and underlying character and spirit. Particularly, wedefine the ability to perform duties, which directly leads toresults and contributions, and the ability to create new value
as “human resource value” and value it.

Innovation/creativity

In fiscal 2020, our personnel system was converted
from the former job performance-based system to the
one that puts a greater focus on the “human resourcecapabilities” of individual employees. Therefore, ourhuman resource operation, ranging from “recruitment” to“allocation,” “development,” “evaluation and assessment,”
and “treatment and working conditions,” always centers on
human resource development.
“Human resource capabilities” are comprehensive
strengths including actions that lead to the realization ofresults, highly specialized knowledge and skills, underlying
job execution capabilities, energy and learning to promote

48

Deepening the fields
of expertiseTransfer or jobchange every three
to five years

Humanresource
capabilities
Comprehensively grasp
human resource capabilities
through multilateral andexhaustive assessment
Reflect them in allocation,development, evaluation andtreatment● Assessment
Use of human resources data● Human resources record● Changes in HR structure● Lack of the next generation andFocus on a highdegree of expertise

Human resource development program (OJT/Oﬀ-JT)

Communication● Public recruitment● Self-application
Receipt of employee intentions

Externalrisk

Overall diagram of human resource development
Job/roleGroup Vision● Changes in employment environment● Work style reform● Diversity of values● Social demand● Safe and secure work environment

We will tackle organization and human resource structurereform to realize an optimal human resource structure basedon the Medium-term Business Plan. With the business model
reform of existing businesses and changes in the strategic

Expressing thoughts
about career

Career development
Interview
59 years old
Career consulting at 58
54 years old
Training at 53
49 years old
44 years oldCareer consulting at 48
Training at 43
Request-based career consultingfor 40 year olds and older

39 years old
36 years old
33 years old
30 years old
27 years old

3rd year training

Recurrent education

Sending to external companies
Sending to external schools (open/designated)

JFR Business Management School

Development of specialized
human resources

External seminars
Rank-based training
Correspondence courses
Training for newly appointed employees Support for qualification acquisitionRole-based training Lifting the ban on dual/outside employment

JFR Management School

Theme-based training

Development
JFR Womenʼs Schoolof young
human resources

Division schoolMentor
Trainee
Official grading (when the 2nd year ends)
Regular interview with HR staff

JFR Leader School

Human resources to be
developed in a focused manner

JFR Entry School (two years after employed)

Designing own career

Acquisition of human resources
We strengthen the employment of professional people
who have advanced specialized knowledge acquired throughabundant experience as well as new graduates. In fiscal
2020, we hired a total of 49 mid-career people throughout
the Group, in the digital department of the Department
Store, the Payment and Finance Business and others. We also
continue the Mother Recruitment program for women wholeft their jobs for child care but aim to advance their career by
exercising their abilities to the fullest and four women were
hired in fiscal 2020 under this program. Going forward, wewill strive to acquire human resources with a strong sense ofchallenge, competitiveness, innovation, and creativity in orderto form a diverse organization that creates new value.

Acquiring knowledge, skills and stance thatcan be used outside the company

Becoming a leader/
key person in transformation

Materiality issues that support
human resources strategy
The “promotion of diversity & inclusion” and the“realization of work-life integration,” which are identified as
our materiality issues, are the bases of our human resources
strategy. In the “promotion of diversity & inclusion,” werespect the diversity of employees such as nationality,
gender, LBGT and disability and aim to realize businessstrategies by exercising diverse abilities. In the “promotion ofwork-life integration,” we will allow new diverse and flexible
work styles to keep employees physically and mentally
healthy and realize the Well-Being Life of employees andtheir families.

Integrated Report 202149