Human Capital
Our Basic Approach
For our group, which has established the majority of its value chains, spanning from basic research and product planning and development to materials procurement, production and sales, using the resources within our group, recognizing “talents” as capital and striving to maximize its value is an important management initiative. We believe that realizing an attractive corporate culture in which each of the employees of our group can work while “being emotionally fulfilled,” “feeling fulfillment in their work,” and “maintaining motivation” will enable each employee to maximize his/her potential, produce organizational results such as improved productivity and competitiveness, and eventually lead to sustainable growth.
System for promoting Human Capital
In developing human resource strategies based on the business strategies of each operating company, the human resources department of each operating company takes the initiative in formulating and implementing specific measures to address human resource issues, monitoring progress, and evaluating and examining the status of achievement. At the same time, in order to ensure the effective functioning of governance concerning human capital of the entire group, we regularly monitor the status of initiatives at each operating company, mainly from the perspective of human rights, diversity, equity & inclusion (“DE&I”) and compliance, and provide instructions and requests as appropriate.
Wacoal Corp., our core operating company, has established the “Human Resources Development Committee,” attended by the President and other Directors, to discuss and formulate policies regarding talent strategies and confirm the direction of efforts to resolve individual human resource issues.
Talent Strategy
As the business environment is becoming increasingly uncertain, the strategies related to talents, which will play a key role in the rapid transformation of the business model, will only increase in importance. In Japan, in particular, as the working population declines due to the aging of the population and the declining birthrate, competition for talents is certain to intensify more than ever before, and it is therefore necessary to formulate and implement a talent strategy to be an attractive company. To advance the formulation and implementation of decisive structural reforms and growth strategy in parallel and at higher speed, the Company will pursue measures that contribute to further growth of individual employees as well as reforms to create an environment and culture that enable employees to use their individual strengths, thereby leading to strengths of the organization.
At Wacoal Corp., in parallel with measures to quickly improve profitability, we will promote initiatives based on the three axes of (i) talent development (supporting career autonomy and providing growth opportunities), (ii) organizational development (strengthening management capabilities to maximize teamwork), and (iii) culture development (creating systems and mechanisms that support job satisfaction, DE&I and well-being) in order to be a company that will continue to be chosen over the medium to long term in the aspects of acquisition and retention of talents. In addition, for beauty advisor positions (sales positions), which account for more than 60% of employees, unique initiatives are carried out to solve individual human resource issues.
Human Capital Strategy (Target: Wacoal Corp.)
| Basic policy | Conduct “talent development and organizational development for enhancement of the corporate value” and realize virtuous cycle between “growth of the company” and “investments in human capital and growth of talents.” Particularly for the current revised medium-term management plan, focus more on initiatives to connect individuals’ strengths to organizational results, in addition to individual growth, thereby creating a path for virtuous cycle |
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| What we look for in our employees | “Autonomous and innovative talents” Talents who respect and can embody our management philosophy. Talents who can rethink existing concepts and current frameworks and innovate with enthusiasm. Talents who can build good teamwork and contribute to organizational goals. ETalents who can practice healthy and sound lifestyles. |
| Human capital issues based on management strategies | ＜Direction＞ Realization of organizational management by a small group of highly skilled employees = individual growth x improvement of organizational strength x fostering an attractive culture Implementing talent development, organizational development and culture reform for medium- and long-term growth while, at the same time, pursuing personnel plan management to improve profitability at an early stage. ＜Priority issues＞ (i) Improve profitability: Continue to implement personnel plan management
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| Initiatives to maximize human capital | Ⅰ. Recruit talents |
| Ⅱ. Support growth (training, reskilling, career development) | |
| Ⅲ. Strengthen management capabilities | |
| Ⅳ. Promotion of DE&I | |
| Ⅴ. Achievement of well-being |
Initiatives to Maximize Human Capital
Metrics and Targets
| Human Capital Issues based on Management Strategies | Initiatives to Maximize Human Capital |
Metrics and Targets (KPI) | ||
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| Metrics | Targets | Results for the fiscal year ended March 31, 2024 | ||
| Recruit, train and promote talents who will be responsible for the company’s growth | I.Acquisition of talents II.Support growth (training, reskilling, career development) |
Status of lateral hires (career-track positions) |
Achieve lateral hires of 30% - 50% in total hires of career-track positions | Total number of hires: 28 Of which lateral hires are 16 persons (57%) |
| Investment costs in talent development and training Number of participants in programs and hours invested in learning (as compared to working hours) |
Not yet formulated (to be formulated during fiscal year ending March 31, 2025) |
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| Number and percentage of employees reassignment through internal recruitment and Job Challenge | Not yet formulated (to be formulated during fiscal year ending March 31, 2025) |
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| Degree of achievement of proactive career development | To obtain 60% or higher positive responses for questions related to career achievement in engagement survey | An environment where a variety of career options and opportunities to take on challenges are provided and can be utilized: 44.2% | ||
| Improve management capabilities to connect individuals’ strengths to organizational results | Ⅲ.Strengthen management skills | Contribution of management that leads to sustainable growth | To obtain 60% or higher positive responses for questions related to potentials and future prospects in engagement survey |
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| Foster organizational culture of high engagement and psychological safety | Foster a feedback culture | To obtain 60% or higher positive responses for questions related to approval/praise and fair evaluation in engagement survey |
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| IV.Promotion of DE&I V.Achievement of well-being |
KPI achievements under Wacoal GENKI project 2025 | https://www.wacoalho ldings.jp/news/files/ news211203.pdf (Japanese only)  |
Results for fiscal year 2024 | |
| Employment of people with disabilities | Statutory employment rate of 2.5% for fiscal year 2024 | 2.59% (as of March 2024) | ||
Relationship with Labor Union
The Wacoal Group has a labor union. The Wacoal Labor Union, organized by employees for Wacoal Corp. and some other Wacoal Group companies, is run under the union shop system. (A total of 3,198 union members as of April 1, 2024)
The preamble to Wacoal's labor agreement made between the labor and management clearly states that under a spirit of mutual trust, the development of the Wacoal Group and the improvement of working conditions for union members will be promoted through productivity enhancement. In Labor-Management Council meetings, the progress of medium-term management plans is reported and the operation of the talent management system is checked and confirmed, thus promoting better relations between the labor and management.