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.

1. Training Human Resources

　We understand that training the human resources who will shoulder the next generation of employees is an important issue in aiming at medium- to long-term improvements in our corporate value. That is why we are conducting human resource training that integrates management toward the realization of our third medium-term management plan by 2025 and our long-term business vision by 2030. Substantively, we are progressing with unified management of human resource information to ascertain the gap between what we are aiming for with human resources and what we currently have, and we renewed our training scheme from FY2022. We are fostering human resources that will be a foundation for growth with education that was systemized from the viewpoint of medium- to long-term human resources training, job rotation with the purpose of training selected human resources and active assignment of projects and internal tasks.

Unification of human resource information

We have introduced a talent management system that comprehensively handles human resource information. In addition to basic information on our employees, the system stores all information, like their training history, skills and what kind of career they are aiming for, and we are aiming to maximize performance by utilizing this in taking employees from hiring to appointment, in developing their abilities and in promptly promoting them. Additionally, this system will be used for grouping future management human resources by generation, selective training and policy-based job rotation, as well as for their appointment as project leaders.

Training scheme to foster people from a medium- to long-term viewpoint

　Our model employees are those who autonomously engage in self-education. To support our employees so they can achieve this ideal, we have provided an environment where all employees can engage in self-study. Substantively, we have introduced tools that allow training videos created internally to be watched online anytime, anywhere and as many times as an employee chooses. Additionally, for those who want more, we provide a partial subsidy for video services through which employees can learn a vast array of business skills, including those related to their work.
　In the training of future management human resources aimed at our long-term business vision, the scheme we have created is one in which normal graded training programs are conducted for candidates who have been listed by generation. It also provides networking opportunities with other companies and focuses on training next generation executives learning liberal arts. This is all to ensure that we have a healthy supply of human resources who have both broad perspectives and a high degree of insight.
　Additionally, to acquire human resources with specialized knowledge and an array of skills, we are conducting training aimed at specialized education and the acquisition of certifications. In particular, we have determined that it is of particular importance to acquire IT human resources, and we have prepared a system at our system subsidiaries that allows the career hires to act as immediate assets and work together with full-time employees to learn from one another.
　We have full-time human resources becoming able to manage projects three years after hiring as a substantive goal, and are engaging in fostering these human resources by providing them with special training and OJT training from career hires, as well as video training and having them acquire IT certifications.
　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.

2. Support for certification acquisition

　Our long-term business vision sees us aiming at transforming from a business that sells goods into an integrated business that comprehensively makes people’s lives more comfortable with lifestyle enrichment. It also sees the acquisition of certifications as a means toward the realization of our long-term business vision. Home improvement retailing has many product categories with a high degree of specialization, and highly specialized knowledge and skills are required to meet with the vast array of customer needs. In order to make lifestyle suggestions to customers, it is not enough to simply sell them products; we also need to improve our service skills and hone them.
　We understand that it is necessary for our employees to learn not only specialized knowledge through work experience over time but also highly specialized knowledge and skills through the acquisition of certifications. Understanding that certification is a necessity in the fostering of human resources, we are aiming to cultivate a mindset of self-study, establish a climate that encourages self-development, and foster employees who can confidently interact with customers.
　This is why we established the “DCM Certification Acquisition Program” and are actively promoting the acquisition of a variety of certifications. We have expanded company support for test fees, increased the scope of those who are applicable, and the program now includes more certifications to create an environment that makes it easier for employees to acquire certifications. In fact, by continuing to actively engage in DIY, the mainstay of our company, we have the highest number of DIY advisors accredited by the Japan DIY & HC Association in the industry and we are proud of the fact that we have been able to distinguish ourselves from other companies.
　Additionally, to further strengthen our specialties, we have enriched support for the acquisition of certifications in gardening, bicycles, pets, welfare and renovations. To give an example, we actively encourage our employees to become Class 2 electricians and to work as trusted professionals that can not only sell products but that can also, with a high degree of specialized knowledge and skills, provide comprehensive support to customers through suggestions, advice, and even professional services that are in line with their needs.
　Additionally, as we streamline work systems and promote digital transformation, we are working toward the strategic acquisition of qualifications, like systematically moving forward with the active acquisition of IT passports to ensure that we have the basic IT knowledge needed to work in an IT society.

Utilization of internal certification system “DCM Adviser”

　　In addition to the “DCM Certification Acquisition Program,” we have established our own “DCM Adviser” internal certification system that measures understanding of basic product knowledge.
　The goal of establishing the “DCM Adviser” was to cultivate an attitude of continual self-study by providing opportunities for all employees to improve their product knowledge. This is part of our effort to foster human resources that do not simply have basic product knowledge but that can also respond appropriately to customer requests.
　This is why we have established an educational environment through product knowledge collections and videos that acts as a support for the acquisition of the “DCM Adviser” certification. Additionally, in our workshops designed for learning product knowledge by actually using products, employees can garner knowledge and skills through lectures as well as through experience of actually drawing upon the knowledge and skills gained through our internal certification “DCM Adviser” system.
　“DCM Adviser” was introduced from FY2021 as an internal certification system. The opportunity is provided on an annual basis and open to all employees, including part-time employees. It is on the internal system, so anyone can take on the challenge anytime they like.
　As the certification system allows employees to interact with customers with confidence, part-time employees have also willingly taken on the challenge and as of FY2022, 1,500 (cumulative) employees have been certified. We are going to continue to expand and evolve this as a part of building an organization with a self-study mindset.

3. Promotion of the activities of a diverse array of human resources

　By having employees accept one another and mutually respect their individuality, we promote diversity and inclusion that allows employees to maximize their abilities while making the most of their diversity.
　We are engaging in three major initiatives toward the promotion of diversity and inclusion and those are: 1) more active female involvement, 2) more active senior involvement, and 3) more internal recruitment.

Promotion of more active female employee involvement

　In the promotion of diversity and inclusion, we believe that the employment and active involvement of women is of particular importance in meeting the needs of a diversifying market. Currently, women make up 14.3% of our full-time employees, having grown by 3% in recent years. Recent years have seen nearly half of new hires being women, and as we estimate that the proportion of female employees is going to increase, we believe that it is imperative that we create an environment where women can be more actively involved. We are working to create an environment where they can form careers, so they can continue being active long after life events like marriage, childbirth, and childrearing.　
　To actively tie this into an environment that women find easy to work in, we surveyed female employees with the goal of raising awareness related to the work of current female employees, to gather opinions and to ascertain the current state of things. Based on the survey, we identified what needs to be done for more active involvement of our female employees in the workplace.
　One of the measures being implemented is the creation of a networking event for our female employees. The purpose is to form a new community for female employees, to allay concerns that they may have about career formation and work-life balance, to allow for the sharing of insights and mutual understanding, and to use this as something that can be tied into future changes to systems and corporate climate.
　Additionally, we conduct networking events that are separate from our internal ones with female employees from other companies. This allows our female employees to gain insights and stimuli that they otherwise could not were these events simply internal, and provides them with an opportunity to tie that into the formation of their own careers.
　While creating these environments, we are also conducting training on diversity, inclusion, and the child-rearing support system for all managers so as to promote understanding among all employees through the managers. In this way, we are trying to promote more active involvement of female employees from two sides: the creation of an appropriate environment and the promotion of understanding by all employees.
　Through these, we have created an environment where women can be active in the workplace and are aiming at having over 7% (3.2% as of March 2023) of our managers be women by FY2030.

Promotion of more active senior employee involvement

　For employees who have reached retirement age for their role or retirement age in general, we have a system that allows them to announce the sort of work they want to do after retiring and their own fields of expertise so that they can continue working with vigor while making the most of their strengths in a second career. They will work, for example, as an internal lecturer making use of their experience and knowledge, as part of a special team to remodel stores or as an adviser that responds to inquiries from stores. Recently, we have had many employees requesting to work at Hodaka, one of our retail brands for which we are trying to open more stores.
　As it is forecast that the population of those in Japan’s productive age is going to drop, we are planning to reinforce current systems to allow experienced senior human resources to remain active.

More opportunities for internal recruitment

　We’ve introduced an internal recruitment system that allows partner employees to apply for full-time employment with the purpose of allowing those employees who want to advance their careers and become full-time employees to feel a sense of satisfaction and self-realization.
　By expanding the areas in which employees with abilities or drive can be active, the internal recruitment system also serves to find promising human resources with the potential to work as store managers or professionals at the head office.
　For example, in 2008, a male employee who moved from part-time to full-time built up experience at stores and at the head office and is now active as a manager. In a similar manner, a female employee promoted to full-time employment in 2011 built up experience at the store and is now in charge of a store after her promotion to store manager in 2023.
　In FY2022, 40 employees passed the internal recruitment test. Moving forward, we are going to continue promoting internal recruitment as a part of career formation, and to increase the diversity of human resources.

4. Promotion of a variety of work styles

Employee division system

　We have introduced an employee division system that allows each and every employee to delimit possible transfer destinations that suit their values, lifestyle, family situation, and their own work style. There are three employee divisions, and employees can select from one of those: 1) East Japan, Central Japan and West Japan are “blocks” that employees can select to work in; 2) employees can choose to narrow down “areas” in which they work in; or, 3) they can choose a “district,” out of which they will not be transferred. As applications for employee divisions can be made once a year, the system allows employees whose individual situation has changed to change their work style. Further, there is also the division of “national” that allows employees to work all over the country, and we believe it will tie in to individual growth for employees as they broaden their experience by interacting with a variety of cultures in different parts of the country. Additionally, we have introduced a “Temporary Workplace Limit System” that grants a special dispensation allowing an employee to work in the area of their choosing for the time being if transfer becomes difficult for certain special reasons (nursing care, child-rearing, etc.) The position before the granting of the permission will be maintained while the special dispensation is in place to reassure employees and allow them to feel at ease when using the system.

Child-rearing and nursing care support system

　We have introduced a child-rearing and nursing care support system that goes above and beyond what is required by law to create an environment that makes it easy to use, allowing all employees to be at ease when engaging in childbirth or child-rearing, as well as nursing of family. In FY2022, 26 male employees took statutory childcare leave. Combined with those who used our own childcare leave system, the proportion of men who took some kind of childcare leave has seen large growth to 60.5% over the last few years. In recent years, we have become aware of the importance of work life balance, and we will continue to work on initiatives and systems that allow us to respect a diversity of values and further support the self-realization of our employees.

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.
　The proportion of those reporting high stress was 12.6% in FY2022, and we are aiming to drop that to under 10% by FY2025.
　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.

*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