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ESG-related Initiatives: Social
Efforts to Improve Employee Satisfaction

Yamada Denki believes that human resources are the key element of management. Therefore, we always make an effort to improve our whole framework that enables employees to work with strong motivation. We are endeavoring to foster personnel, develop their capability, and improve the working environment with the aim of cultivating a corporate culture in which every person's personality and characteristics are respected irrespective of their gender, age, or physical differences.

Improvement of Employee Satisfaction

Personnel and Working Environment Policy

 We have a fair and transparent evaluation system based on individual performance, depending on the acquisition of internal and external qualifications, etc. We support the development of business skills and experience, and are building a good working environment for continued employment that will increase motivation.
 Our recruiting policy is based on operational features, and we are recently hiring people who can invigorate the organization. As of the end of March 2018, the average age of employees was 37.7 years old and the average employment term was 11.8 years.
 Moreover, we are promoting the re-employment of contract workers as regular workers by harmonizing with the internal qualification system, the employment of people with disabilities, and the re-employment of elderly workers. The employment rate of people with disabilities has been higher than the legal standard since January 2009. Regarding the employment of elderly persons, we are making adjustments to meet the revised Act on Stabilization of Employment of Elderly Persons enforced in April 2013 that stipulates the obligation to continue employing all employees who wish to work until the age of 65.

▶Number of Employees

  Fiscal2015 Fiscal2016 Fiscal2017
Number of
managers
Men 3,021 2,996 2,998
Women 65 67 79
Total 3,086 3,063 3,077
Number of employees 10,725 10,568 10,249
Average number of temporary employees 8,487 7,902 7,778
Number of employees with disabilities 395 387 385

* The above figures represent the number of employees at Yamada Denki on a nonconsolidated basis.

Recruitment of New Graduates

 In 2018, we hired around 100 new graduates to invigorate the organization. As we are opening new types of stores, such as "Kaden Sumairu Kan", we try to hire personnel with the capacity to respond to such new moves, while training young new recruits. We will continue seeking personnel suited to new businesses and personnel with expertise on corporate systems for reinforcing the operations of the headquarters.

Introduction of the Area-Specific Employment System

 We had previously hired personnel who can work nationwide, but in response to increasing needs of employees who want to have a baby or who have to take care of their children or elderly family members, we introduced an area-specific employment system free from job transfers involving moving in April 2017.
 This new system aims to ensure an environment in which employees with such personal circumstances can work without anxiety. Those hired under this new system are transferred only within their respective areas, apart from employees on the main career track who may be transferred nationwide. Employees can select their own working styles depending on their life plans and household circumstances.

Start of the New Performance Evaluation System

 We have launched an in-house campaign titled "CS Improvement & Personal Development Campaign" with the aim of enhancing the quality of employees' customer services and having them acquire knowledge on a variety of goods, thereby further improving customer satisfaction. At the same time, we have reviewed the performance evaluation system to make the system fairer and more transparent. Specifically, the new system adds points of "evaluation by job type," "evaluation concerning qualifications," "evaluation concerning CS," and "evaluation concerning proposals" to points of the conventional evaluation system (achievement evaluation). The acquisition of around 100 external qualifications is considered in evaluation. The addition of CS-related evaluation and personal development-related evaluation has made employees aware of the importance of CS improvement and personal development, not only the importance of prioritizing sales achievements. Furthermore, evaluation items were thus clarified and the performance evaluation as a whole has been made more transparent.

Promotion of Work-Life Balance

 To improve the working environment so as to enable employees to work with good conditions, we consider it important to provide workplaces under the concept of "work-life balance."
 Under our child-care and nursing-care support systems, we allow expanded pre-childbirth leave (two weeks more than the legally prescribed minimum) and expanded childcare leave (until the child reaches three years of age), and have introduced systems to provide support for employees who have returned from childcare leave, and re-employ employees who left work to concentrate on child care. Through these systems, we provide a better working environment in which employees can adjust their work-life balance depending on their major lifetime events, such that the needs for child care or nursing care for their families are to be met.

 Furthermore, in order to enhance the safety and health environment at workplaces, we set a Safety and Health Committee at each store to have them respectively discuss issues on occupational safety and health, which are presented by the headquarters every month. These efforts have worked to enhance employees' satisfaction.

▶Number of Employees Taking Special Leave

  Fiscal
2013
Fiscal
2014
Fiscal
2015
Fiscal
2016
Fiscal
2017
Number of employees taking childcare leave Total 201 204 169 159 163
Male employees 4 6 2 5 3
Number of employees taking nursing care leave 4 7 13 11 8
Number of employees on short working hours 100 152 148 134 151
Rate of employees receiving medical checkup 94.0% 95.1% 95.3% 95.9% 95.1%

* The above figures represent the number of employees at Yamada Denki on a nonconsolidated basis.

Annual Commendation System

 We have created a fair and impartial personnel evaluation system based on individual performance rather than on the basis of seniority. As part of such personnel evaluation system, it commends stores and offices having recorded excellent annual sales by store size, individuals having recorded superior sales, and stores and individuals having made excellent improvement proposals. In fiscal 2017, a total of 56 individuals and 22 stores and offices were commended.

Start of the Corporate Defined Contribution Pension "CoDeCo"

 The Yamada Denki Group launched an individual pension system for its employees, "Yamada CoDeCo," in October 2017, with the aim of ensuring employees' income after retirement and supporting their voluntary efforts to stabilize their everyday lives.

 "CoDeCo" is the public nickname of corporate defined contribution pensions. This is a system to save funds for the future of corporate workers, taking advantage of the tax-saving effect and investment effect. Taxes and social insurance premiums are withdrawn from wages, but premiums for CoDeCo are non-taxable, which has a tax-saving effect. Additionally, the interest rates on time deposits are currently around 0.01% per year, but the average investment profit rate of CoDeCo is 2.44% and investment profi ts are also non-taxable.

Employee Satisfaction Improvement Activities by Group Companies

Yamada SxL Home Co., Ltd.

Product Development Reflecting Women's Views

 Yamada SxL Home has promoted product development based on diverse opinions of female staff irrespective of their affiliation or age.
 In fiscal 2017, in addition to proposals concerning storage, on which the emphasis has been placed so far, the company actively made proposals reflecting women's views regarding new lifestyles utilizing HEMS (Home Energy Management System; see p.35 for details) and IoT. IoT provides convenience to housewives but the term itself may put them off. Therefore, the company prepared a leaflet to show the whole image without using technical terms, thereby helping with working staff's sales activities. The leaflet, which intuitively makes sense and is easy to understand, is popular among customers, mainly housewives, and is also appreciated by sales personnel. Yamada SxL Home will continue efforts for expanding opportunities for female staff to actively participate not only in developing products but also in making proposals, with the goal of developing a better working environment to enable them to demonstrate their abilities.

BEST DENKI CO., LTD.

Commendation System for Encouraging and Motivating Employees to Improve Their Careers

 Best Denki has the commendation system to grant the Special President Awards to stores and offices having recorded excellent annual sales, the Best Sales Awards to individuals with superior sales records, and the Improvement Proposal Awards to stores and individuals that have made excellent improvement proposals. Through the system, the company has tried to encourage and motivate its employees to improve their careers.