Enhancing Human Capital

Enhancing Human Capital

Based on the belief that “people are everything and people are assets,” dip focuses intently on human resources—it is among the most important themes of management—and makes active investments in our people. Our philosophy is at the core of our human capital management. It is at once our philosophy of management and our code of conduct, and it was cultivated as CEO Tomita and his employees overcame a variety of challenges following the founding of the company. Even though we are a company of over 2,000 employees, we are able to flexibly and sensitively adapt to change and evolve as if we were a startup company with only several dozen people on staff. The reason is that our employees deeply understand and sincerely embody our philosophy. We will continue to hire and develop human resources connected with our philosophy and will enhance conditions and systems that allow their abilities to be fully demonstrated.

1.Philosophy-Based Recruitment - Strengthening Human Capital Through Large-Scale Recruitment and Training of New Graduates

dip takes a positive stance toward hiring new graduates. Since April 2006, dip has hired hundreds of new graduates, and in April 2023, a record number of 612 new graduates joined dip.
In creating an organization based on our philosophy, it is important to closely examine whether candidates are in sympathy with our philosophy during the hiring process. In order to do this, we spare neither time nor effort. Many employees participate in the hiring process and vividly discuss their real work experiences with applicants. All employees are involved in hiring because they understand that “each employee has a role to play in creating dip.” For senior employees, involvement in the hiring process is an opportunity to think about the meaning of their own work at the company and to reexamine themselves in light of the philosophy, so the hiring process also helps in the further development of existing employees.
In addition, we have introduced a long-term, paid internship system across all divisions, and have established a system for promoting them to full-time employees. Many of our former interns have gained practical experience, honed their skills, and are now actively contributing as full-time employees.

  ・Sales Group: Recruiting consultant
  ・Service Development Group: Writers, engineers, designers, web directors, etc.
  ・Other Groups: New graduate recruitment, management planning, etc.

*1 As of end of February
*2 Average number of employees during the period
*3 Number of new graduates who join dip on April 1st
*4 As of April 1st, 2023

Percentage of dispatch, temporary, and part-time employees among all employees: 9.9%(As of end of February 2024)

Induction Ceremony

dip offers extensive employee training and many other programs as part of its human resources development initiatives, resulting in an employee turnover ratio that is significantly lower than the average for the lifestyle-related service industry.


■ Retention rate ( turnover rates )


FY'20/2FY21'/2FY'22/2FY'23/2FY'24/2
Retention rate (Full time staff employees voluntary and forced turnover rates are assumed)89.0%
(11.0%)
89.1%
(10.9%)
84.8%
(15.2%)
87.4%
(12.6%)
86.3%
(13.7%)
Retention rate (Full time staff employees voluntary turnover rates are assumed)89.0%
(11.0%)
89.1%
(10.9%)
84.8%
(15.2%)
87.4%
(12.6%)
86.3%
(13.7%)

2. Skill Improvement with Employee Training Programs

dip remains focused on employee training programs with the aim of achieving further improvements in customer service. Moreover, dip maintains an active approach in terms of providing position specific training for new employees as well as managers in order to help junior employees demonstrate their best job performance in the workplace, where they constitute a high percentage of the total workforce. Seeing each employee grow toward his/her potential is the key to the business development of dip.

Training System

■Training for new graduates

・New graduate training for deep thinking on our philosophy
In training new graduates based on our philosophy, we are particularly focused on new employee training that takes place in the first week of employment. Board Directors and Executive Officers, starting with CEO Tomita, talk directly with the participants, who learn about the history of dip and gain an understanding of the future to which it aspires. New graduate employees listen to the talks and then hold discussions with their colleagues based on the content with the aim of further deepening their understanding of the philosophy.

・Philosophy coaching for deeper job engagement
We began providing coaching in 2020 to cultivate in new graduate employees the ability to draw on our philosophy to overcome the various difficulties they will face upon starting their jobs. During philosophy coaching, new employees from the same year reflect on events they experienced on the job while asking each other questions and thinking deeply about how to embody the philosophy in their own work.

■New manager training to enhance leadership ability based on our philosophy
 The presence of managers is what supports a strong organization united by philosophy. In developing managers, we are particularly focused on educating new managers through a full slate of programs. The average age of dip’s managers is 36.1, but we also have many young managers who are promoted to managerial positions as quickly as three and a half years after joining the company. New managers take time to think about management techniques based on our philosophy and learn the skills needed to put them into practice.

New managers begin with a program to learn management principles, and then take time to learn the basics, such as labor and compliance training, MBO training, and coaching training. In the first few months after their appointment, they receive critical reflection training, in which they reflect on practical issues and consider how to address them. After one year, they participate in leadership development training based on a 360-degree survey. These step-by-step and ongoing training programs provide new managers with an important foundation for effective leadership in achieving organizational goals and building teams.


■“Leadership journey”: Selective training for aspiring executives
An selective training program called Leadership Journey is held to train executive candidates to be the next generation of dip leaders. The training involves groups of around ten mangers gathering at the company’s recreational facility in Zushi, Kanagawa Prefecture once a month for eight months. There they work to increase their ability to embody our philosophy as leaders by first setting a theme related to transformation at the workplace and then learning and polishing together the skills required for such a transformation. After completing the training, a leadership conference is held where they present the results of their efforts. They give their presentations in front of CEO Tomita and other executives. In FY’22/2, 15 people were selected as executive candidates, and in FY’23/2 and FY’24/2, 21 and 30 people were selected respectively.


■Problem-Solving Training
It is important to acquire problem-solving skills for the age of AI, and participation in problem-solving training lays the foundation for this. The program is available to employees who have been with dip for at least one year, subject to the recommendation of the supervisor and the individual’s willingness to participate. In the training, participants learn the basics of logical thinking, set specific work-related agendas, structure the problem, identify the root problem, formulate and select solutions, and develop an implementation system. We place particular emphasis on problem-solving based on our philosophy, asking each participant about the dream: what you want to achieve, the idea: what kind of idea you will use to achieve it, and the passion: what kind of passion you will have for the task.


■PT* Training
The PT training is designed as a three-month problem-solving project for manager candidates. Several Executive Officers will advise on details of the initiatives and provide leadership throughout the process to help the candidates develop the problem-solving and leadership skills required for managers.
*Promotion Target

■Self-education support
This program is designed to afford employees the occasion to gain knowledge and skills systematically, with the aim of improving their capabilities and motivation, within an environment that provides consistent learning opportunities.

・GLOBIS training for selected employees
This training program is designed for selected employees (60 people per year) with the aim of developing the next generation of leadership team members. Participants are eligible to take the course at GLOBIS Management School, a leading business school in Japan. Around 450 dip employees have attended the course as of February 2023.
  Eligibility:All full-time employees S3 and above
  Subsidy for expenses:Full amount

・Learning support program
This is a system that allows employees to receive education outside the company for self-development through avenues such as correspondence courses or other external courses.
  Eligibility:Permanent and contract employees who meet the following conditions at the time of application
      ・One year of service with the Company
      ・An attendance rate of 80% or better during the period of employment
  Subsidy for expenses : Half of the total amount

・Online learning programs
This is a system that allows employees to systematically acquire basic business knowledge and skills using online videos provided by Schoo Inc. Employees can select from more than 4,600 video courses according to their individual preferences.
  Eligibility:All full-time employees
  Subsidy for expenses:Full amount

・Passion forum
 This is a forum where professionals who are active at the forefront of various fields and who are passionate about their work are invited as guest speakers. By listening to the stories of the twists and turns in the work and life of these guests, with a focus on important themes that match the current trends such as well-being and data science, employees are encouraged to affect change in their own behavior in line with the philosophy.

・Manabiba!
Manabiba! is a company-wide initiative that provides a forum for employees to learn about specific topics on a voluntary basis. By creating an environment where employees can interact and learn from one another beyond organizational and age demarcations, we increase opportunities for internal communication.

■Sustainability training
In line with the corporate resolution to strengthen our sustainability initiatives, we are conducting employee education to promote a better understanding of Corporate Social Responsibility (CSR), Environmental, Social and Corporate Governance (ESG) and Sustainable Development Goals (SDGs) among our employees. In addition to the basic training for managers, we are conducting a program of internal seminars for management conducted by outside experts and lecturers in the various related fields. Important information on sustainability initiatives will be disseminated to all employees through our intranet and internal newsletter. We will continue to make every effort to educate employees on sustainability in order to foster CSR, ESG, and SDGs literacy, and encourage employees to think and take action on their own initiative.


■Management training with awareness of the gender gap
We have conducted joint surveys and research with Akiko Kokubo, an assistant professor at the University of Shizuoka, since September 2020 on promoting women’s active participation at the workplace. Based on the results, it has been found that self-esteem is one of the factors that gives rise to a gender gap in promotion motivation and other areas. Based on this research, we developed training for managers and are conducting management skill training for raising self-esteem among female employees.


■Time spent by employees on training, etc.


FY'23/2FY'24/2
Total time of trainingApproximately 574 hoursApproximately 574 hours
Time of training per employeeApproximately 22.5 hoursApproximately 39 hours
Average of days per person2.8 days4.8 days

*Includes introductory and follow-up training for new graduates, training for managerial positions, training for newly appointed managers, training for newly appointed senior managers, training for promoted employees, theme-based training, problem-solving skills training, and Selective training for aspiring executives ,etc .


■Training participation rate


FY'23/2
FY'24/2
Training for new graduate98%99%
Selective training for managers97%95%
New manager training 100%100%
New department manager training
100%100%
Problem-solving training
100%100%
Selective training for aspiring executives100%100%


3.An HR System to Boost Employee Capabilities

Efforts are underway to establish a system that supports the growth of employees and maximizes the abilities of each individual. In March 2023, we began operating a two-track personnel system, one for sales and staff positions and the other for engineers and specialists.

【Position levels】

There are three career steps based on the stage of career progression: ”basic”, ”autonomous”, and ”transformative”. The ”basic” stage is one where an employee firmly learns the basic patterns of work. Levels S1 and S2 are the ”basic” stages, with new employees starting at grade S1. The "autonomous" stage requires employees to work independently and achieve results without the support of others. In this stages ales and staff positions fall under levels S3, S4, and S5, and engineers and experts fall under level TE1.
At the "transformative" stage employees become an entity with the potential to change the organization, the company, and society. Employees are eligible to become managers from the this stage. They become the standard-bearers of change by demonstrating their own strengths and talents, as well as their desire to be agents of social improvement. At the "transformative" stage there are courses for experts who transform society by their own actions and courses for managerial personnel who will lead and transform their organizations.

【Career development】

Evaluation

There are three evaluation criteria: the ”dipWAY evaluation,” which assesses the embodiment of the philosophy; the ”expertise and skill evaluation,” which assesses the specialized knowledge required for each job; and the ”job performance evaluation”.
The performance evaluation system is designed to reflect short-term results, determine salary increases/reductions and bonuses, as well as promotion and demotion by absolute evaluation. In addition, by utilizing MBO sheets, we ensure that individuals can clearly identify their priority goals and continue to be aware of them, and by respecting ambitious initiatives, they can demonstrate their independence and produce results. The evaluation system is the same for sales/staff positions, engineering/expert positions.

Career development support system (internal recruitment, self-assessment, career interviews)

To promote the training and development of self-reliant human resources, once every half year, regardless of classification or length of service, we provide our employees with opportunities to pursue diverse career paths.

Currently, the following systems are in place.
 ・Internal recruitment: A system that allows employees to voluntarily apply for open positions within the company.
 ・Self-reporting: A system that allows employees to request transfer to other departments or areas within the same department.
 ・Career interview: A system that allows employees to consult with outside counselors for advice on work, career, and personal matters.


Implementation of 1-on-1 meetings
One-on-one meetings with an external counselor are held semi-annually for those who are interested to help them resolve issues they are facing and achieve their goals.

【Compensation】

For general positions, monthly salaries consist of a base salary, a job allowance, and a fixed overtime allowance*. The Company conducts biannual personnel evaluations, and based on these evaluations, the Company conducts salary reviews (salary increases, etc.). Engineers and experts (levels TE1 to TE5) are paid on an annual salary basis.

*Fixed overtime allowance
A fixed overtime allowance is payable to employees based on the assumption that they each work 1.5 hours overtime per day or 30 hours per month.
・The fixed overtime allowance is payable in full, even if the actual number of extra working hours turns out to be less than the amount initially assumed.
・Employees are paid for any additional working hours in excess of the monthly overtime allowance.


・Bonus
Bonuses are payable twice a year (in June and December), commensurate with individual job performance and the overall business performance of the company.


・Incentive program
Those employees in consulting sales positions are paid incentives on a monthly, quarterly or full-year basis in addition to their regular salaries, commensurate with the level of monthly achievements regarding individual or organizational targets. Those who are in Corporate Planning, Creative, Engineering and Corporate Administration Divisions are paid incentives on a quarterly or full-year basis. Moreover, the full-year incentive reward comes with a free trip (e.g. a trip to Hawaii in FY’23/2) as a supplementary prize.


・Director and employee stock compensation plan
dip has introduced a compensation BIP Trust for directors (performance-linked), ESOP (Employee Stock Ownership Plan), retirement benefit plan, ※1 and RS (restricted stock, subject to performance and other conditions) ※2. Through the conversion of employees into shareholders, the Company ensures that profits are returned as each individual demonstrates his or her abilities and increases corporate value. 


FY’24/2

Officer


Number of employees at the end of the year
Award/Allocation
Award/Allocation
rate
BIP Trust for directors
22100%
RS (restricted stock, subject to performance and other conditions)※3
33100%

Employee


Number of employees at the end of the year
Award/Allocation
Award/Allocation
rate
ESOP2,6991,85668.8%
RS (restricted stock, subject to performance and other conditions)
2,6992,60396.4%

*1 Annual points are awarded to employees who have been with the company for at least one year as of April 1 of each year and are enrolled as of May 31 of each year and can be received upon retirement after five years of service.
*2 Allocated to all full-time employees enrolled at the time of introduction of the system in August 2020. Thereafter, it is allocated once a year to directors, new graduates, mid-career hires, and those who have been promoted (additional allocations ceased as of August 2023).
*3: Three directors were granted restricted transferable shares based on a proposal approved at the 24th Annual General Meeting of Shareholders. One among them resigned as a director at the 26th Annual General Meeting of Shareholders due to the expiration of his term of office but was subsequently appointed as a director who is a member of the Audit and Supervisory Committee at the 27th Annual General Meeting of Shareholders held on 23 May 2024. Both until and after his election as a director and Audit and Supervisory Committee Member he continued to hold restricted transferable shares equivalent to a director (executive officer).

【Fringe benefits】

・Comprehensive welfare group term insurance
The company has an insurance policy in case something happens to an employee. The company pays the insurance premiums, but the insurance proceeds are paid to the employee or his/her bereaved family.
 Benefit Station (movie discounts, travel discounts, etc.) is available as a supplementary service to this insurance policy.


・Zaikei program (workers’ property accumulation savings)
dip has adopted the Zaikei (workers’ property accumulation savings) program with the aim of helping employees to make personal and retirement savings and acquire their own houses.


・Defined contribution (DC) plan
The DC plan is a type of corporate pension scheme that enables employees to save for retirement with tax incentives that are more beneficial than those offered by regular bank savings accounts, such as a reduction in taxes (i.e. income tax, residence tax) and fully tax-deductible investment returns.


・Employee stock ownership plan
This program is designed to help employees make savings for the medium to long term by allowing them to regularly acquire and hold the company’s equity shares.


・Subsidized childcare 

This is a discount system for employees who are unable to enroll their child in a daycare center or cannot leave their child at a daycare center due to early morning or night duties.


・Membership resort hotel「XIV」
 Since the company is a corporate member, it is possible to use members-only accommodation facilities such as those at XIV.

4. Development of the Foundations of Our Employees

We believe that employee health management is an important issue that is directly linked to work productivity and employee happiness. Our goal is not only to "not get sick," but also to “be more energetic and happier than ever before." With this in mind, we promote health management based on the concept of "mind and body conditioning”.

In recognition of our health management initiatives, we have been certified as a "White 500" (Excellent Corporation for Health Management in 2024), which is jointly selected by the Ministry of Economy, Trade and Industry (METI) and the Japan Health Council. This is the second consecutive years that the company has been recognized as a White 500, following our selection in 2023.

For details, please refer to the “Health Management Initiatives” page.

5. Embodiment of Philosophy

We emphasize the penetration and practice of our Corporate Philosophy and vision, in other words, the cultivation of

philosophy. This is because all employees should share a common philosophy and vision and work together to realize

them in order to solve social problems and create a society in which people can experience the joy and happiness of work.

With the belief that “people are everything and people are assets,” dip encourages each employee to have their own

dreams, create ideas, and take on challenges with passion. To achieve this, it is important that they deeply understand our

Corporate Philosophy and vision and use them as guiding principles.


■General Meeting of Employees

Employees from around the country gather for the General Meeting of Employees, where CEO Tomita goes over activities and results of the past year and announces goals and management policies for the new fiscal year based on the philosophy. At the meeting, which lasts approximately five hours, there are a variety of creative performances and passionate presentations. The
philosophy contest holds its final presentations to determine the winner, which helps motivate employees to put the philosophy and vision into practice. In addition, the appearance of celebrities featured in our television commercials and surprise announcements greatly excite employees. The theme announced at the general employee meeting is immediately incorporated into the strategies of each Group and business division and shared with all employees via video.


■Philosophy Contest

The philosophy contest was established as a stage for individual reflection, sharing, and mutual admiration of the work that embodies our philosophy. Each contestant will present how their dreams, ideas, and passion have been specifically reflected in their work and how they have benefited users, customers, and society as a whole. This contest is more than just a presentation event; it is an opportunity for each individual to speak proudly of their initiatives and to celebrate the achievements of their colleagues. Top performers are rewarded with an incentive trip to Hawaii.


■Operation of internal social media “TUNAG”

As part of our efforts to instill the philosophy, we operate an internal social media “TUNAG.” Through this network, members of the management team, including Board Directors and Executive Officers, communicate the importance of our philosophy from various perspectives. In addition, various front-line initiatives and interactions are shared, fostering a sense of unity among employees at 35 sites across Japan. In October 2020, we introduced Slack as a new communication tool to promote open communication and enhance collaboration.

6. Employee Satisfaction Survey

We conduct employee satisfaction (ES) surveys twice a year in June and December. The Personnel & General Affairs Group analyzes the survey results, identifies factors based on trends over time, discusses measures and targets with management, reflects the results in personnel policies, etc., and monitors the results on a regular basis.
The results of the ES Survey are sent back to all employees, and the head of each department analyzes the current situation based on past trends and discusses improvements with team members.
Through these discussions, improvement measures are formulated and implemented, and efforts are made to improve employee happiness.


FY'22/2FY'23/2FY'24/2
Engagement indexes( maximum 5)3.823.843.96