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Employee Relationship

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.

 Our efforts for employee training, capability development, and improvement of the working environment follow.

 Our attempts to cultivate a corporate culture where every person’s personality and characteristics are respected irrespective of their gender, age, or physical differences.

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. 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 March 2016, the average age of employees was 35.4 years old and the average employment term was 10.0 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 reemployment 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.

Promotion of Work-life Balance

 To improve the working environment so as to enable employees to work with good conditions, Yamada Denki considers 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 child-care 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.

Employee Training and Capability Development

 Yamada Denki evaluates employee capabilities and performances based on the internal qualification system we developed. Internal qualification tests are conducted twice a year to review whether employees have the knowledge necessary for sales activity at stores and knowledge on management philosophy.

 To enhance customer service, we also actively provide training for new recruits, in which they spend three months learning how to serve customers and gaining basic product knowledge. Since fiscal 2008, we have conducted group training with the support of outside experts in order to cultivate younger managers’ understanding of management philosophy and CSR.

Education for Candidate Managers

 Targeting level-1 assistant store managers, level-1 chiefs, and level-1 general staff, education is provided to encourage them to seek higher positions. They are provided with e-learning education on basic knowledge for managerial staff and also receive training by accompanying delivery or construction service staff to ascertain customer needs and satisfaction. After that, they take tests and go through interviews by area managers before being appointed to higher positions. Contract employees are also given chances to be full-time workers. These incentives raise their motivation and improve their satisfaction.

e-Learning Education

 Specialized content of the training concerning product knowledge is supplemented with e-learning education. Specific details vary by major educational themes as determined by the Sales Office and target trainees are selected accordingly. As the rate of participation is in conjunction with the criteria for evaluating managerial staff’s achievement in fostering subordinates, a 100% participation rate has been maintained and the system has been working to improve employees’ skills.

Training at the Sosei Juku for Improving Management Skills of Store Managers and Assistant Store Managers

In order to improve management skills of store managers and assistant store managers, training is provided at the Sosei Juku, a training center. The training starts with lectures on management philosophy, implementation guidelines and CSR, and goes on to how to ensure communications and show leadership as managerial staff, and then to role playing activities concerning on the job training. Furthermore, trainees learn planning, designing and operation of working shifts and store management skills, and methods of profit and loss management at stores from the managerial standpoint.

Management-Labor Cooperation through Companywide Participation in Management

 In order to promote labor-management dialogues, labor management consultation is held once a month. The management side presents managerial indices, such as sales, to the labor union, and both sides discuss managerial issues and problems based thereon. In the meantime, the labor union provides information obtained through observing working places from their standpoint and makes activity reports.

 As a concrete system to promote company-wide participation, Yamada Denki introduced the improvement proposal system in 2007, under which employees in various positions consider the company’s business challenges from their standpoint, respectively, and make proposals for resolving them.

Mental and Physical Health Management

 Yamada Denki tries to raise employees’ awareness of their mental and physical health management and gives guidance so as to ensure that all employees can fully exercise their capacity in performing their respective duties.

 We started telephone counseling services with the cooperation of medical institutions to enable employees to freely get counseling on their mental health. Furthermore, we provide supervising personnel with life care education by an industrial doctor to have them acquire correct knowledge on mental health and learn proper responses in the event their subordinates have any mental problems.

 Regarding employees’ physical health, we conduct regular health checkups to reduce adult diseases risks and provide specific health guidance based on the results thereof.

Approach to Respect Human Rights

 In Article 5 of the Code of CSR Ethics, which was established in June 2007, Yamada Denki clearly states as its basic approach concerning human rights that it aims to be a company in which employees respect each other’s personality and characteristics and which banishes sexual and power harassment. The Code of CSR Ethics is cited in textbooks used in the training for new recruits so that these ideas are thoroughly shared among all employees as indispensable awareness as members working for the company.

 Group companies also share Yamada Denki’s business attitude based on respect for human rights, clearly stating their business attitude to respect human rights in their code of conduct.

TOPICSKyushu Tecc Land Co., Ltd.: To Achieve Cohesive Society where All People Can Show Their Ability and Originality

 Kyushu Tecc Land considers that efforts to make the workplace friendly to people with disabilities result in creating a favorable workplace for all employees, and has been promoting the employment of people with disabilities. Company-wide efforts have been made to adjust duties depending on each person’s ability and personality and to ensure good communications among employees. The number of employees with disabilities is constantly increasing and their percentage reached 4.55% of all staff as of June 1, 2015. Kyushu Tecc Land was awarded by Kagoshima prefecture as a leading company with a positive attitude toward hiring people with disabilities.

Response to the Enactment of the Act of Promotion of Women’s Participation and Advancement in the Workplace

 Yamada Denki considers that women’s participation is the key element for sustainable growth.

 In response to the enactment of the Act of Promotion of Women’s Participation and Advancement in the Workplace (April 1, 2016), we ascertained the current status and analyzed issues concerning the program to foster female managers, which we had carried out so far, and established an action plan.

● Action Plan
Period April 1, 2016 to March 31, 2021 (five years)
Issues (1) The ratio of female managers is small.
(2) The ratio of female staff engaging in the sale of home appliances, which is our major business, is smaller than that of male staff and the ratio of female staff seeking to assume managerial positions is also smaller.
Goals The ratio of females among general staff promoted to managerial staff should be increased to 15%, the same as the male-to-female ratio among all employees.
Concrete measures and schedules (1) Change awareness concerning gender roles and equalize the ratios of male and female staff serving customers to sell home appliances
April 2016:
Collect and tabulate data on deployment of all store staff by region
May 2016:
Share the results among related departments and reshuffle the personnel as needed
October 2016:
Tabulate data again (repeat tabulation and sharing of data semiannually thereafter)

(2) Increase the number of female candidate managers who have received internal education for candidate managers
April 2016:
Publicize the number of candidates approved in the previous fiscal year and share the male-tofemale ratio by region within the company
October 2016:
Start education for candidates for the current fiscal year
April 2017:
Publicize approved candidates
( Continue carrying out the same procedures every year)

(3) Provide career advancement training to female candidate managers
From April 2016:
Examine the training details and set up concrete objectives and goals
From May:
Select target trainees according to the objectives and goals
October:
First career advancement training
November:
Second career advancement training
( Continue carrying out the same procedures every year)

Prevention of Harassment

 At training and study sessions targeting managerial staff, themes concerning sexual and power harassment are taken up regularly to direct those managerial staff to take the initiative to create workplaces free from any and all harassment.

 This approach of having managerial staff take the initiative is shared among all group companies and the opportunities of such training and study sessions and board meetings are utilized to first raise the awareness of senior staff members.

Participation in Project Y, an Initiative to Prevent Bullying

 Project Y is an initiative organized by the Human Rights Promotion Center to raise people’s awareness to create a society without bullying. Based on the Act on the Promotion of Bullying Prevention Measures enacted in 2013, this project aims to request society to prevent and detect bullying at an early stage and make proper responses. Yamada Denki also participates in this project and offers cooperation by posting awareness-raising posters at stores to promote the prevention of bullying and widely provide information on telephone counseling services.

Annual Commendation System

 Yamada Denki has 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 2015, a total of 51 individuals and 21 stores and offices were commended.

Initiatives by Group Companies

Best Denki Co., Ltd.

Established the Committee to Promote Activities of Female Staff

 Best Denki established the Committee to promote activities of female staff, consisting of 18 members, mainly female managerial staff of stores, the headquarters, and affiliated companies. The Committee meeting covers all our group companies and aims to develop working conditions under which female staff in different life stages can prove their skills, thereby contributing to the growth of the company as a whole. Once every two months, members gather and discuss problems that hinder comfortable working conditions for female staff and make proposals to the company. In fiscal 2015, the Committee positively carried out activities such as compiling recommendations on the employment support system, launching public relations activities using posters, and achieving the amendment of employment-related rules.

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.

Yamada SxL Home Co., Ltd.

Product Development from the Viewpoint of Female Staff

 Yamada SxL Home has promoted product development based on diverse opinions of female staff irrespective of their affiliation or age.

 Since FY2015, a team of female staff has been developing original cupboards with the concept of kitchen storage, jointly with a kitchen equipment manufacturer, and is also deliberating sales promotion measures for diverse proposals on storage equipment.

 Those storage-related proposals have become widely known within the company and have also been highly evaluated by customers. They are adopted as standard specifications in new products and developed products are installed in new houses for sale and in renovated kitchens. They have become indispensable items to reduce the burdens of housework in planning new or renovated houses and their sales volume is increasing year by year. The team will further endeavor to improve convenience and functions in response to changes in people’s lifestyles to seek higher quality.

Safety Management in Using Company-owned Vehicles

 Yamada SxL Home provides training for reducing traffic accidents targeting administrative officers, safe-driving managers and safedriving assistant managers of branch offices.

 Under a program for reducing accidents, which was established based on past accident reports and data by non-life insurance companies, the training is intended to have trainees intensively experience traffic accident prevention measures in order to grow accustomed to them, with the aim of efficiently decreasing the number of traffic accidents.

 The company introduced a new vehicle management system (e-Telema) in fiscal 2015. The system extracts individual data on sudden acceleration, sudden braking and excessive speed on a daily basis, which enables personal guidance and instruction. Thanks to the introduction of this system, traffic accidents while using companyowned vehicles decreased by around 40% from the previous year.

Housetec Inc.

Training for Fostering Personnel and Developing Their Capacity

 Housetec provides training mainly to staff in the sales division and CS division for fostering personnel and developing their capacity. In fiscal 2015, the following training was provided.