Human Capital

Materiality Initiatives, achievements and KPIs (FY2027 - FY2030 Targets)

Category Indicator FY2024 FY2027 FY2030
Targets Results Targets Targets
Evolution of Corporate Constitution Promoting women’s active participation Ratio of women in managerial roles Over 6% 6% Over 14% Over 20%
Ratio of women employees 35% 35% 38% 41%
Ratio of women new graduates hired on a main career track
(excluding those working rotating shifts)
50% 52% 50% 50%
Child-rearing support Men’s paternity leave utilization rate 50% 78% 70% 100%
Corporate culture reform Engagement score 70 points (estimate) 62 points 66 points (estimate) 70 points (estimate)
Work-style reform Annual paid leave utilization rate 75%
(15 days)
73%
(14.5 days)
80%
(16 days)
80%
(16 days)
More details

Personnel System Reform for the Sustainable Creation of Corporate Value

Basic policy In response to changes in the social environment and employee values, we aim to sustainably increase corporate value by building a system grounded in the principles of fairness, reasonableness and transparency; a system that enables individual employees to have a sense of purpose and satisfaction, fully demonstrate their strengths and continue to thrive.

Personnel measures • Embrace diverse values and increase the percentage of people hired mid-career to 50%.
• Establish a group of highly skilled professionals with a strong market value that are compensated on par with line management.
• Design evaluations that reward employees who take on challenges without fear of failure.
• Abolish the traditional job-course system (career track, regional career track and non-career positions). Instead, divide job categories according to role expectations at the company-wide level and introduce a grading system tailored to the characteristics of each category, thereby enhancing consistency and fairness across responsibilities, duties and compensation.
• Link organizational objectives with individual goals by incorporating ambitious targets that accelerate both corporate and employee growth, thereby reinforcing confidence in the evaluation process.
• Minimize seniority-based elements to eliminate mismatches between responsibilities and compensation.
• Expand options that reflect employees’ life stages and personal aspirations and implement placement strategies balancing company and individual priorities and creating systems that enable employees to have long and fulfilling careers.
(effective from FY2026)

Education and training for human resource development

Career Autonomy Promotion Against the backdrop of an uncertain current outlook, we recognize the need to engage in human capital management that regards human resources as “capital,” and the urgency involved in developing human resources who are conscious of their own career and are prepared to act autonomously. Only in this way can we enhance our corporate value.
The Gunze Group encourages each and every employee to pursue diversity and to act on their own initiative in order to realize a career that makes the most of their strengths. In addition to supporting their career development as a company, we strategically assign the right people to the right job.



(1) Implement strategic and appropriate job rotations while assigning the right people to the right job

We initiated Human Resource Share personnel exchange meetings as a forum through which each division can share information on human resources from 2023 and to expand opportunities for individual-led transfers that facilitate autonomous career planning.

(2) Support proactive career development

The Gunze Group has upgraded and expanded a variety of opportunities in an effort to support proactive career development.

Upgrade and expand career training The Gunze Group has a high percentage of senior employees. As such, the need to ensure that its senior employees are able to work energetically and demonstrate their skills is an important human resource issue. With this in mind, we have upgraded and expanded training opportunities at the age of 40 and 56 in addition to existing programs at the age of 50.
Moreover, self-development support programs, including distance learning, which was previously limited to regular permanent employees, have been upgraded and expanded to include post-retirement rehired employees and contract employees to enhance re-skilling and recurrent education opportunities.

Promoting widespread acceptance and use of 1-on-1 meetings The 1-on-1 meetings introduced in 2022 are used to foster psychological safety by increasing opportunities for communication between managers and meeting participants and strengthen trust. Building on this foundation, 1-on-1 meetings provide a place to support growth.
Two years have now passed since introducing 1-on-1 meetings. Based on the verification of issues, Gunze is promoting a raft of improvement initiatives while also taking into consideration methods that mirror the Company’s unique business structure and systems. In this way, we are working to promote the widespread acceptance and use of 1-on-1 meetings.

Upgrading and expanding the career counseling system Human resources staff are encouraged to obtain career-related certifications.
In this vein, the Gunze Group has strengthened its career-related support structure and systems. Established in May 2023, the Career Support Desk helps resolve a variety of work-related issues, including career development, human relations, and skills development.
As of April 2024, the Desk responded to 11 requests, and will work to promote further expansion of its use.

Established Career Support Desk (from May 2023)

As we enter the era of 100-year lifespans, employees must design their own careers, determine their life goals and career vision (life career), and work toward them in order to achieve independent career development. In order to actively support these actions, we have recently established a Career Support Desk, through which the Company helps employees deal with the various issues that arise in their duties together so that they do not have look for solutions alone.

Employee Engagement Engagement is a measure of the trust-based relationships between employees and the Company, in which employees are motivated to demonstrate their capabilities and contribute to the organization’s success.
We conduct monthly engagement surveys to assess the condition of our employees and the organization and apply our findings in future initiatives.
Engagement is influenced by a wide range of factors related to the company and its organizational environment.
To address these factors and enhance engagement, we are implementing the initiatives shown on the right.

Overview of engagement survey results
Engagement Analysis (Main Items)
Areas of strength Satisfaction with salary Cooperation between divisions Pride in the Company’s business and services
Areas with challenges Providing career opportunities Satisfaction and motivation Relationships with supervisors and colleagues
Areas improved in the past two years Work-life balance Satisfaction with salary The culture of taking on challenges

Work-Life Balance Gunze has established various human resources systems to enable people with diverse characteristics, perspectives, and circumstances to work with high performance.
We are reforming to a flexible work style that is not restricted by location or time by promoting telecommuting, flextime, and remote work, as well as introducing time-based annual leave and a comeback system.


Annual Leave (full day, half day, time) In addition to paid leave in units of a day or half a day, employees can also take paid leave in units of hours. We also have a well-developed paid leave system, including the "three-day off system" introduced in fiscal 2017 and an increase in the target number of days to be taken annually.

Flextime In March 2018, Gunze introduced flextime. By leaving the start and end times of work to individual employees, the company aims to increase their independence and initiative and improve productivity through flexibility.

Working from home In March 2018, Gunze introduced working from home to enable a more productive and efficient work style that fits each employee's diverse lifestyle and work style.

Comeback System (Reentry System for Retirees) This is a system that allows employees who left Gunze due to unavoidable circumstances such as child care, family care, or spouse transfer, or for career advancement due to study or job change, to return to work for Gunze.

Career change system Gunze has a career change system to encourage a variety of work styles, such as employees who want to change from a general position to a career track position to take on different challenges, or employees who want to change to a regional career track position because marriage has made it difficult to move to a new city.

Refreshment Year System In order to refresh and further motivate employees to lead a healthy and fulfilling professional life, the company provides consecutive paid leave (Refresh Leave) and incentive payments according to the number of years of service.

Refreshment Year 10

Three consecutive days of refreshment leave for employees with 10 years of service.

Refreshment Year 25

Five consecutive days of refreshment leave and a 25-year service award (100,000 yen) for employees with 25 years of service.

Self-development Support System Employees who obtain the qualifications specified in the "List of Qualifications to be Encouraged to Acquire" or those approved by the company are eligible to receive an incentive (10,000 to 100,000 yen) and assistance with tuition and other expenses.
In addition, under the distance learning support system, employees who complete a distance learning course can apply for support for approximately half of the course fee. These self-development support programs are also available during leaves of absence, allowing those who have taken unavoidable leaves of absence to develop their careers.

Childcare and Nursing Care Support System Since April 2015, managers have been conducting "support interviews for balancing work and childcare," as we believe it is necessary to create an environment in which employees can continue to work while taking advantage of the system. The company has also prepared a Q&A manual for managers so that not only those who use the system, but also managers, can properly understand the system and smoothly manage the entire department.

Childcare Leave You can take childcare leave up to the day before your child's second birthday.

Reduced Working Hours for Childcare In principle, 6-hour days until the end of March when the child enters the sixth year of primary school. If desired, the hours can be reduced in 15-minute increments, from 30 minutes to 2 hours per day, as needed.

Childcare Fee Subsidy

Employees who take childcare leave for two months or longer and, upon returning to work, are in a dual-income household or a single-parent household with a child under six months of age placed in childcare, will receive a subsidy for childcare fees up to a specified limit until the end of March in the year the child turns three.

Extended Childcare Fee Subsidy

Employees who are dual-income households or single-parent households with children, and who incur extended childcare fees due to work while placing children in childcare, will receive a subsidy for these fees up to a specified limit.

Childcare Subsidy

For children up to sixth grade, employees who use babysitters or similar services (including municipal sick child care and family support centers) to secure work hours will receive a subsidy for the usage fees up to a specified limit.

Long-Term Care Service Fees Subsidy Employees caring for eligible family members will receive a subsidy up to a specified limit for fees incurred to secure work hours when using long-term care insurance services.

Nursing Care Leave A period of up to one consecutive year (which may be divided into several periods) to care for an eligible family member, combined with reduced work hours for caregiving.

Reduced Work Hours for Nursing Care When caring for an eligible family member, for a period of up to one year in the aggregate with the period of caregiving leave; may be up to two hours per day in 30-minute increments; may be divided into multiple periods; may be taken concurrently.

Nursing Care Leave Five days per year (10 days for two or more eligible family members) to care for or otherwise attend to an eligible family member.

Single-Person Dormitory & Company Housing System Provision of single-person dormitories and company housing

Housing Assistance Program Rent subsidies through the Housing Assistance Program

Holiday System Two-day weekend system, 115 to 123 annual holidays (varies by workplace), etc.

Retirement Benefits System Three systems: Lump-sum Retirement Payment, Defined Benefit Corporate Pension, Defined Contribution Pension

Employee Perks Gunze Store, Discounted Use of Gunze Sports Facilities

Other Welfare Programs Employee Stock Ownership Plan, Welfare Fund (various congratulatory payments such as wedding gifts, condolence payments, etc.) and other programs available.

Conclusion of labor agreement

Gunze respects the freedom of association and the right to collective bargaining.
Gunze has established the sound development of its business and the improvement of the social and economic status of its employees as common goals of labor and management, and strives to establish constructive and stable labor-management relations.
We have a union shop system, and all employees who are "eligible to join the union" under the labor-management agreement are members of the union.