Principal Initiatives

Daifuku has stated that our management philosophy, “Focus on healthy, growth-driven global management under a diverse and positive corporate culture," where we place our employees at the core of management. By enhancing the skills of each employee and performing to our utmost abilities as an organization, we believe we will be trusted by our stakeholders, which includes our customers and society as a whole. Since the environment surrounding our management is changing rapidly, we also believe that it is important to build a working environment that responds to globalization and diversity.
Based on this premise, the Daifuku Group respects international standards such as the Global Human Rights Declaration*, and as signature company of the UN Global Compact, we support the Ten principles of the UN Global Compact.

  • *Declaration adopted in 1948 by the UN General Assembly (in Paris) recognizing that all humans are born with basic human rights

Initiative Materiality and relationship to SDGs

SDGs pursued by Daifuku

SDGs pursued by Daifuku

Materiality

  • Promote diversity
  • Create a comfortable workplace environment
  • Promote human resource development

CSR Action Plan KPIs and targets for 2020

  • Ratio of female recruitment: 20%
  • Number of female employees in managerial positions: 20
  • Employment rate of persons with disabilities: 2.2%
  • Average paid leave utilization rate: 70%
  • Surveys of employee awareness (overall satisfaction points): 3.80 points (5 points max.)
  • Number of people who have TOEIC scores over 600: 200
  • Number of people certified by the Global Business Trainee Program: 300
  • Number of people enrolled in self-development e-learning programs: 300

Human rights initiative

We joined the Global Compact Network Japan (GCNJ), a local network of the UN Global Compact (UNGC) in April 2014, which hosts events focusing on various subcommittees based on 10 principles in four fields: human rights, labor, environment and anti-corruption, with the aim of realizing a sustainable society with other participating companies and organizations. In fiscal 2018, we took part in the Anti-Corruption Subcommittee, Supply Chain Subcommittee, Environmental Management Subcommittee, GC Internal Awareness Research Subcommittee, ESG Subcommittee, and Kansai Subcommittee. Daifuku strives to leverage knowledge gained through each subcommittee to solve various issues.

Promotion Framework

The Human Resources and General Affairs Division is in charge of the establishment and promotion of cross-organizational initiatives related to human resources. In particular, it promotes the cultivation of human resources to support the global development of our business and the enhancement of our management. We have also set up the Mental & Physical Health Promotion Committee to establish a working environment that allows employees to work safely, as well as to promote various initiatives. In April 2017, we set up the Work-Style Reform Committee, with the aim of achieving work-life balance by providing a working environment suitable for diverse human resources and for improving productivity. We will continue to promote effective initiatives through the sharing of information with each department.

Employment

Total number of employees by region (as of the end of March 2019)

Employee Data (Daifuku Co., Ltd.)

Employee Data (Daifuku Co., Ltd.)
  FY2016 FY2017 FY2018
Number of employees Male 2,214 2,335 2,444
Female 267 297 328
Total 2,481 2,632 2,772
Average age Male 42.4 42.2 42.0
Female 40.7 40.7 40.9
Total 42.3 42.0 41.8
Average years of service Male 17.0 16.5 16.1
Female 15.1 15.0 14.6
Total 16.8 16.3 15.9

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Recruitment

Recruitment
  FY2016 FY2017 FY2018
Male Female Total Male Female Total Male Female Total
New graduate recruitment 63 9 72 71 9 80 70 14 84
Mid-career recruitment 62 6 68 87 5 92 95 7 102

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Employment of persons with disabilities KPI

As of June 1, 2019, we have not achieved the legally stipulated employment standard (2.2%) for employing persons with disabilities. We will continue regular recruitment while collaborating with the Public Employment Security Office, Employment Security Association, schools, etc., through which we will focus our efforts in accordance with the situation at each site to realize early achievement of the target.

Employment of the persons with disabilities
  FY2016 FY2017 FY2018
Target Results
Employment rate 1.9% 1.9% 1.9% 2.1%

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Post retirement re-employment rate of retirees

In April 2003, we instituted a re-employment system for which the age of 62 was defined as the upper limit. This system is intended to enable employees to exhibit their abundant knowledge and experience to the full after they have reached the age of 60. In 2005, the age limit was raised to 65. In April 2013, this system was reviewed for compliance with amendments to the Act on Stabilization of Employment of Elderly Persons. As a result, under our re-employment system, we succeeded in continuing the employment of at least 80% of the target individuals.

Re-Employment Rate of Retirees
  FY2016 FY2017 FY2018
Re-employment rate of retirees 87.5% 83.9% 93.8%

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Labor

We promote initiatives to encourage a positive work-life balance, in order to improve the quality of both the work and personal lives of our employees while contributing to the sustainable growth of Daifuku as a whole.

Work-Style Reform Committee

Our Work-Style Reform Committee started their activities in April of 2017. Our approach in reforming work styles is to proceed with reforms to 1.Work Systems, 2.Time Management, 3.Workplace Culture/Employee Awareness while working to achieve a work-life balance.

Collective Agreement

We support our employees' rights of collective bargaining. Daifuku has a labor union that works on behalf of the rights of all non-management employees who work at our Japan locations.

Work-Life Balance

We promote initiatives to encourage employee awareness of the need to maintain a positive work-life balance. This is intended to improve the quality of the work lives and personal lives of individual employees while contributing to the sustainable growth of Daifuku as a whole.
Under amendments to the Labor Standards Law and the Child Care and Family Care Leave Law as well as the enacting of the Women’s Active Participation Promotion Law, etc., we are taking steps to revise our personnel system and implement a system to accommodate more diverse work styles.

Improving systems according to various ways of working

Improving systems according to various ways of working
  System Content
Employee Refreshment Flex-time system We introduced a flex-time system to increase time consciousness through self-management, improve efficiency and productivity, and promote work-life balance.
Leaving work on time Daifuku designates every Wednesday as Health Day and encourages employees to leave work on time.
Daifuku promotes this through an internal communications and regularly checking offices.
Planned paid leave system We encourage employees to take three days of paid leave (five or more continuous days including the weekend) between June and September every year. We monitor paid leave at the company with the union and aim for 100% acquisition rate.
Long leave system Daifuku has introduced a long leave system so that each employee can take a maximum of 60 accumulated days of leave for volunteer activities, treatment of non-occupational injuries, childcare, family care, and nursing care.
Refreshment leave Daifuku grants employees 20 continuous days of leave, including Saturdays and Sundays, to employees that turn 50 years old so that they can temporarily leave their work, design their future life plan, and return refreshed to their work.
Childcare support Maternity leave (employee's childbirth) 6 weeks before childbirth (14 weeks for multiple pregnancy), 8 weeks after childbirth
Paternity leave (spouse gives birth) 2 days when the employee's spouse gives birth
Childcare leave system Up to the end of the month in which the child turns 1 year old.
(It is possible to extend the term up to 1 year and 6 months of age if daycare service is unavailable. The term can be extended up to 2 years of age if daycare service is still unavailable at the 1 year 6 months point.)
System supporting early return to work after childcare leave For employees who have returned to work early after taking childcare leave (not to exceed 11 months following childbirth) and are making use of a childcare service for a child under 1 year, we assist them with the associated costs.
Shortened workday system In cases where an employee is raising a child who has not yet reached the end of the third grade of elementary school, a shortened workday schedule can be applied for up to six years. (Otherwise, a flextime system with no set core time can be applied)
Sick childcare leave For a child in the third grade of elementary school or younger who is being treated for an illness, childcare leave can be taken for five days a year (for two or more children, 10 days a year). (earnings in full day or half day units are possible)
Job Return Entry System For employees who have retired for reasons of childcare, the company offers opportunities for re-employment under certain specific conditions.
Other We offer a system to support the cost of babysitting services, and a system offering information on entering a childcare facility or using outsourced welfare services.
Support for family care Family care leave system A maximum of 1 year is available to provide care for a family member
Shortened workday system For employees who are caring for a family member, a shortened workday program can be applied for up to three years. (Otherwise, a flextime system with no set core time can be used)
Family care leave 5 days per family member requiring care. 10 days if the employee has 2 or more family members requiring care. (earnings in full day or half day units are possible)
Job Return Entry System For employees who have retired for reasons related to family health care, the company offers opportunities for re-employment under certain specific conditions.

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Average paid leave utilization rate KPI

The expansion of "Work-Style Reform" activities throughout the company has improved the rate of taking paid holidays. We will continue to promote work-style reform in the future.

Average paid leave utilization rate
  FY2016 FY2017 FY2018
Target Results
Average paid leave utilization rate 56.4% 55.9% 60.0% 62.3%

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Surveys of employee awareness KPI

Surveys of employee awareness (Satisfaction Survey) are conducted in order to understand the current state of our employees and the company, as well as clarify issues that need to be addressed. These surveys are anonymous questionnaires that deal with the experiences of our employees (satisfaction, workload and future prospects of the company) and our employees’ perspectives on the company’s current state (work, working environment, supervisors and the overall company). Based on these results we give feedback to executives and employees, which then leads to initiatives that aim to create a workplace where staff members are enthusiastic, and where the organization is invigorated.

Surveys of employee awareness
  FY2016 FY2017 FY2018
Target Results
Surveys of employee awareness
(Overall satisfaction points)
3.66 Every other year 3.7 3.7
  • *This survey is conducted through an Employee Satisfaction Survey provided by Recruit Management Solutions Co., Ltd.
  • *Number approximately indicates as follows, Low: Below 3.00, Average: More than 3.00 and below 3.50, High: More than 3.50 and below 4.00, Very high: More than 4.00
  • *Implemented every other year from 2017.

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Human resource development

To facilitate effective human resource development, Daifuku formulated human resource policies and implemented systematic, focused training programs based on these policies across the Group. In addition to position-specific training for new hires, mid-career employees, and managers, we also conduct training for a selected number of highly experienced employees. Moreover, we not only encourage employees in Japan to take the TOEIC English proficiency exam, but we also provide systems, such as a Global Business Trainee Program, to foster global talent and a workforce capable of engaging in global business.

Daifuku HR Training System

Creating a working environment where women can play an active role KPI

We aim to be a company that enables all employees to participate actively, but a lack of balance in terms of the number of male and female employees and managerial staff is regarded as an issue that needs addressing. Therefore, in order to promote diversity, we have implemented a variety of measures to create an environment in which women can play an active role. Since 2016, we have held Female Leadership Training Sessions three times each year as an initiative to support the career development and active participation of female employees. Moreover, we hold Childcare Leave Management Seminars for managerial staff at workplaces with staff who are returning to work after childcare leave or who have shortened work hours.

We achieved our fiscal 2018 target of 14 female employees in managerial positions. Although we saw an increase from the last fiscal year, due to an ineffective approach in recruiting new female graduates, we fell short of our target for the ratio of female recruitment. In the future, we plan to strengthen our recruiting approach to meet this target.

Number of female employees
  FY2016 FY2017 FY2018
Target Results
Number of female employees in managerial positions 8 11 14 15
Ratio of female recruitment 11% 8% 18% 11%
  • *The number of female employees in managerial positions is calculated based on the people who are the equivalent to section manager or higher.

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Number of employees who have TOEIC scores over 600 KPI

Our efforts in encouraging employees to study English (including self-study) were insufficient, resulting in this target not being reached. In keeping with our globalization, we are annually increasing the number of TOEIC test-takers, and we plan to reinforce our language study activities, while raising the overall standard of English proficiency of our company.

Number of employees who have TOEIC scores over 600
  FY2016 FY2017 FY2018
Target Results
Number of employees who have TOEIC scores over 600 105 121 160 126

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Number of employees certified by the Global Business Trainee Program KPI

We have Global Business Trainee Program for employees who can be expected to work overseas. We mainly support their continuous learning of a foreign language that will be required when working overseas.

However, due to stricter conditions for in-house approval of Global Business Trainee Program, we failed to meet our targets in this respect. In the future, we plan to continue our efforts for Global Employee Training.

Number of employees approved by the Global Business Course
  FY2016 FY2017 FY2018
Target Results
Number of people certified 120 142 200 161

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Number of people enrolled in self-development e-learning programs KPI

Influences from changes in learning mediums brought about by internet environment, particularly in terms of language study courses, as well as the proliferation of smartphones, resulted in targets not being met. To halt the decline in the number of enrollees, we plan to conduct a review of courses and course support to achieve our enrollee number target.

Number of people enrolled in self-development e-learning programs
  FY2016 FY2017 FY2018
Target Results
Number of people enrolled in self-development e-learning programs 126 139 160 101

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Global Leadership Training

Global Leadership Training

In October 2018, we held skills improvement training for staff on the executive track from our overseas subsidiaries. Fifteen individuals of the 8th class were selected from the U.S., UK, Canada, Taiwan, Thailand, Singapore, South Korea, China, India, and New Zealand and invited to Japan. Our curriculum focused on personnel development, safety, information security, intellectual propriety, and other topics in addition to lectures on management policy, business strategy, and IR initiatives of the Daifuku Group. Also, group workshops were held with Japanese employees to facilitate understanding and communicating with foreign cultures with the goal to deepen each employee opinions and knowledge as leaders.