Human Capital Management

 A Human Resources Strategy That Is Interlocked With Business Strategy

 Based on our “Do Create Mystyle: Giving Shape to Your Dreams for Life” management philosophy, we are aiming at transforming into an integrated business that comprehensively makes people’s lives more comfortable with lifestyle enrichment. Through store strategy that has made their roles clear, development of products that help customers have fulfilling lives, and the establishment of a new mode of purchasing brought about through the combination of the convenience of both real stores and EC sites, we are working to create a new generation of home improvement retailers that are able to realize a higher level of convenience for customers.
 We believe that the driving force behind that realization is the diversity, creativity, and desire for self-improvement of our human resources. By creating an environment where differing values are respected and a diverse array of human resources can be active, and actively providing support for the fostering of human resources and toward self-study, we are moving forward with the formation of an organization where each and every person can leverage their abilities to the utmost. Through increasing engagement via support aimed at realizing employee well-being and fostering an employee mindset focused on increasing corporate value, we are working to sustainably improve our corporate growth and value.

HR strategy linked to business strategy

1. Training Human Resources

 We view the development of human resources who will lead the next generation as an important issue in terms of enhancing corporate value over the medium to long term. Accordingly, we are developing human resources in tandem with management in order to realize our medium-term management plan through 2025 and our long-term business concept for 2030. To ascertain gaps between current human resources and the ideal we are aiming for, we centralized the management of human resources information. In addition to systematized training for the development of human resources from a medium- to long-term perspective, we reassign select human resources for training purposes and proactively appoint them to projects and internal tasks in an effort to develop human resources that will serve as a foundation for growth.

Centralized management of human resources information

 We utilize a talent management system to centrally manage human resources information. By centrally managing basic employee information as well as training history, skills, area of specialization, and career goals, then utilizing this information for recruitment, job assignments, skills development, and rapid selection for placements in new positions, we aim to maximize performance. Further, future management personnel candidates are grouped by generation for use in selective training, policy-based assignments, and promotion to various project leadership positions.

Systematized training for the development of human resources from a medium- to long-term perspective

 We emphasize the importance of employees who are capable of autonomous self-development, and in support of this ideal we have created an environment in which all employees can learn on their own. In terms of specific efforts, we utilize tools enabling employees to view educational videos created in-house, and facilitate an environment in which learning can take place anytime, anyplace, and as often as necessary. Learning through videos has become widespread throughout the company, with the average monthly usage rate over the past year standing at 75.4%. Additionally, by subsidizing a portion of the course fees for a video service providing educational content centered on business skills, employees can learn both operational skills as well as a wide range of other business-related skills in an environment that makes learning easy.
 In this era of rapid changes in the business environment, the role and responsibilities of senior management responsible for steering the company are becoming greater. We have launched the Senior Management Training Program as a curriculum for systematically developing management talent. Participants are encouraged to develop a desire for self-innovation, and we are strengthening our training from a management perspective. From fiscal 2024, the program has been revamped, with three levels of classes established according to desired skills and generation, with training conducted long term over a two-year period per class. Participants apply on their own or are recommended by others and selected through a screening process, and we enure a diverse range of people are able to voluntarily participate. Through training, we systematically develop human resources who will pave the way for the future, leading to enhanced corporate value and sustainable growth.
 With respect to the evaluation system, we have introduced a goal achievement evaluation system that encourages independence and growth through the pursuit of goals set by employees themselves with the support of their superiors. The evaluation system is designed to evaluate both the results and the process of achieving the set goals by establishing a performance evaluation to assess the degree of achievement and a process evaluation to assess the actions taken to achieve the goals. In addition, we have introduced a competency assessment system in which superiors determine whether or not an employee has the qualities and behavioral characteristics appropriate for his/her current role, and this system is designed to clarify points for praise and points for improvement to motivate and encourage growth.
 We develop human resources through an evaluation system that sets goals and formulates effective measures, and then looks back at the results and makes improvements over and over.

Our Education System Chart

Supporting the acquisition of qualifications

 Home centers have many highly specialized product areas, and meeting the diverse needs of customers requires high levels of expertise and skill. To provide customers with lifestyle propositions rather than simply selling products, we must improve our level of customer service and skills. To this end, the DCM Qualification Acquisition System was established to actively encourage employees to acquire various qualifications. We established an environment that facilitates the acquisition of qualifications by increasing company subsidies for examination fees, expanding the scope of eligible employees, and adding supplementary qualifications. We remain particularly active in DIY, which is one of our strengths, with 1,238 advisors (as of end of May 2024), the largest number of Japan DIY•HC Associationcertified DIY advisors in the industry, which differentiates us from our competitors.
 To enhance our expertise, we are also expanding support for the acquisition of qualifications in gardening, bicycles, pets, social welfare, remodeling, and other areas. As an example, we are proactively engaged in the acquisition of second-class electrician certifications with the aim of ensuring employees not only sell products but are also professionals that customers can rely on, possessing highly specialized knowledge and skills and an ability to provide comprehensive assistance, from customer-centric proposals to advice and installation. Further, while streamlining and promoting DX in business systems, we encourage employees to strategically acquire qualifications, including efforts to systematically promote the proactive acquisition of IT passports, to obtain the basic IT knowledge required to work in an IT society.

DCM qualifications acquisition system Recommended qualifications

DCM Qualification System Scholarship Qualification

Utilizing the DCM Advisor in-house qualification and certification system

 In addition to the DCM Qualification Acquisition System, we established DCM Advisor, an in-house qualification and certification system unique to DCM, to measure the degree of understanding with respect to basic product knowledge. DCM Advisor aims to provide all employees with opportunities to improve their product knowledge and cultivate continuous self-learning. We strive to develop both basic product knowledge as well as personnel who can respond appropriately to customer requests.
 To this end, we have prepared an educational environment using books and videos to improve product knowledge in support of DCM Advisor certification acquisition. Additionally, product knowledge workshops, in which participants learn by using actual products, aim to help employees acquire knowledge and skills through classroom lectures as well as hands-on experiences.
 DCM Advisor was introduced as an annual internal certification system in fiscal 2021, with all employees, including partner employees (part-time employees), subject to this examination. Anyone can easily take this examination using DCM’s in-house system.
 As certification enables employees to respond to customers with confidence, partner employees are proactively taking on the challenge, and since the system began, the number of people taking the exam and being certified has increased on an annual basis, with approximately 5,500 people certified in fiscal 2023 .
 DCM will continue to expand and advance this program as part of its efforts to create an organization where employees can continue learning on their own.

DCM Advisor examinees and certifications (total people)

DCM Advisor examinees and certifications (total people)

2. Promoting the active participation of diverse human resources

 We promote diversity and inclusion so that all employees recognize and respect each individual so every employee can maximize their abilities while making the most of diversity.

Promoting the active participation of women

 In promoting diversity and inclusion, DCM believes that the employment and active participation of women in particular is essential for responding to increasingly diverse market needs. As of March 2024, there were 658 female employees, accounting for 13.3% of full-time employees. Nearly half of the new graduates who joined the company in the past three fiscal years have been female, and we expect the ratio of female employees to continue to increase going forward, as we believe that creating an environment where women can play an active role is a pressing issue. We are striving to create an environment in which women can develop their careers so they remain active long after marriage, childbirth, raising children, and other life events.
 As part of our efforts to create a comfortable working environment for women, we hold in-house exchange meetings for female employees. The aim is to create a new community among female employees, dispel anxieties female employees may have about their careers and life plans, gain mutual awareness and empathy, and create opportunities with the potential to lead to future systemic and cultural reforms.
 In addition to exchange meetings held internally, we also conduct exchange meetings with female employees from other companies. These are opportunities to gain insights and motivation leading to individual career development that internal meetings alone cannot provide. A total of 283 employees participated in female employee exchange meetings in fiscal 2023.
 As a new initiative in fiscal 2024, we invited female employees from other companies to give seminars on career advancement for women. A total of 114 female employees voluntarily participated in the seminar, which provided them with an opportunity to think about their own career development.
 Along with the creation of this environment, we conduct training for all managers on diversity and inclusion and childcare support systems to promote an understanding of these issues among employees through their managers. In this way, we are working on two fronts, creating an environment that promotes the success of female employees and encouraging understanding among all employees. Through these efforts, we are working to create an environment facilitating the active participation of female employees, with the goal of achieving a ratio of 7% or more female employees in management positions by fiscal 2030 (3.4% as of end of March 2024).

Promotion of more active female employee involvement

Promoting the active participation of seniors

 DCM has established a system facilitating the self-reporting of “desired work going forward” and “areas of expertise” to enable employees who have built up a variety of careers and experience within the company to continue playing active roles while utilizing their strengths in a second career. This includes positions such as in-house instructors who leverage past experience and knowledge, specialized teams responsible for store renovations, and advisors who respond to consultations from stores. Recently, there has been an increase in the number of employees who want to work as in-house craftsmen in the Sumairu Helper business, which is responsible for repairing and renovating housing equipment.
 As Japan’s working-age population is expected to decline, we intend to further strengthen this system to enable experienced senior personnel to play active roles.

Promotion of Senior Human Resources

Promoting internal appointments

 DCM has introduced an internal appointment system allowing partner employees to take on the challenge of becoming full-time employees with the aim of enabling employees who wish to advance their careers to full-time status to engage in rewarding work and achieve selfactualization.
 The internal appointment system is also intended to expand opportunities for capable and motivated employees to play active roles, thereby uncovering promising future store managers and head office specialists. For example, a male employee promoted from partner to full-time employee in fiscal 2008 who gained experience in stores and at the head office, then from fiscal 2018 worked as a store manager, is now active as a manager in the head office division. Similarly, a female partner promoted to full-time employee in fiscal 2011 also gained experience in stores and advanced to store manager in fiscal 2023, taking charge on the front lines.
 In fiscal 2023, a total of 16 employees passed the internal full-time employee appointment exam. DCM will continue to promote internal appointments as part of our career development efforts to increase the diversity of our human resources.

Side job system

 In January 2024, we introduced a system enabling employees to request permission to engage in side jobs, with the aim of promoting career development and personal growth. We hope to create opportunities for employees to acquire knowledge and skills that cannot be gained within the company that will lead to personal growth, synergies with their main career, and the promotion of innovation.

3. Promoting diverse workstyles

Increase in number of annual holidays

 To improve work-life balance and promote mental and physical health, starting in fiscal 2024 we increased the number of annual holidays for employees by eight days, to a total of 122 days. As holidays are critical for maintaining health and the ability to work, we will continue improving this system.

Transfer classification system

 We have introduced an transfer classification system enabling all employees to apply for a range of possible transfers according to their personal values, lifestyle, and family situation, allowing each employee to choose their own workstyle. There are three transfer classifications: “area-free,” which allows enables to work anywhere in the country; “area,” which limits the place of work to a specified area; and “local,” which limits the place of work to an area within commuting distance of the employee’s place of residence.
 Further, we have introduced a “temporary work location restriction system” enabling employees to temporarily change their workplace to a desired location when they encounter difficulty relocating due to special reasons (nursing care, childcare, and other life events). Employees can utilize this system with peace of mind during the approved period, as the treatment they received prior to approval is maintained.

Area coverage

Blocks, area coverage

My City system

 The My City system, which enables employees to choose their base of operations, was introduced in fiscal 2024. This system enables employees eligible for nationwide transfers to select theair desired location, respecting the wishes of individual employees while enabling them to play active roles.
 Additionally, if an employee's workplace is located far from My City, we provide extra compensation in support of lifestyles and returning home, so that employees working far from My City can work with peace of mind.

Childcare and nursing care support system

 Our childcare and nursing care support system benefits exceed all statutory mandates, and we are working to create an environment facilitating easy use of this system so that all employees can give birth, raise children, and care for family members with peace of mind.
 In fiscal 2024, we introduced the Iku-boss/Care-boss certification system in an effort to create a work environment in which employees feel comfortable consulting with their superiors.
 In fiscal 2023, 43 male employees utilized childcare leave and DCM’s maternity leave system, and the male childcare and nursing care leave utilization rate has increased substantially over the past several years to 69.4%.
 We will continue to promote diverse workstyles to further support the self-realization of all employees while respecting the diverse values of each employee.

Health management initiatives

 We believe that the health of our employees is vital in the realization of our “Do Create My Style: Giving Form to Lifestyle Dreams” management philosophy and in the creation of fulfilling lifestyles together with our customers.
 As an initiative for that sake, we prevent not only long work hours, but are working to ensure that 100% of employees undergo health check-ups by providing such opportunities and managing schedules at each store. Regarding specific health guidance related to the prevention of lifestyle-related diseases, we see it as an opportunity for raising the awareness of health improvement and are actively promoting it by providing employees with an environment that allows them to receive such guidance during work hours or online from where they work. As a result of this, the rate of employees who have received health guidance has been rising year after year.
 Additionally, while we have traditionally only conducted stress checks at workplaces of 50 or more people, we implemented them at all of our workplaces from FY2022 as a means to ascertain the situation and bring about improvements at each workplace.
 In FY2023, the percentage of high-stress individuals was 13.3%, and the goal is to bring this percentage below 10% by FY2027.
 We will continue to actively promote health management initiatives so that each and every employee can be healthy both mentally and physically and be enthusiastic about working.

Health Management Promotion System
*Health Management Declaration:https://www.dcm-hldgs.co.jp/grp/english/company/health.html
Item FY2023 Numerical value
Cultivation Hours of Education and Learning 133,411 hours
Number of participants in training by tier 692 persons
Engagement Engagement (eNPS)*1 -57.4
Average number of days of earned leisure 8.92 days
Liquidity Number of years of continuous service 20.30 years
Turnover rate 4.38%
Diversity Percentage of female regular employees 15.53%
Ratio of female managerial staff 3.20%
Hours for training related to women's activities, and hours for female employee social events 533 hours
Percentage of male employees taking childcare leave 73.00%
Wage difference between men and women (regular employees)*2 77.90%
Wage difference between men and women (non-regular employees)*2 90.50%
Wage differentials between men and women (all employees)*2 56.5%
Health & Safety Percentage of health checkups conducted 99.50%
Labor Practices Training hours on human rights 1,232 hours
Holding of labor-management council meetings, etc. 18 times

*1 Engagement figures are for FY2022 (including Hodaka Co., Ltd. and DCM advanced technologies Co., Ltd.)
*2 Calculated based on the standards of the Act on the Promotion of Women's Work Activities