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: 13.3%(As of end of February 2023)

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'19/2FY'20/2FY21'/2FY'22/2FY'23/2
Retention rate (Full time staff employees voluntary and forced turnover rates are assumed)87.9%
(12.1%)
89.0%
(11.0%)
89.1%
(10.9%)
84.8%
(15.2%)
87.4%
(12.6%)
Retention rate (Full time staff employees voluntary turnover rates are assumed)87.9%
(12.1%)
89.0%
(11.0%)
89.1%
(10.9%)
84.8%
(15.2%)
12.6%
(12.6%)

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 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.

■Philosophy training by level and problem-Solving training
We have a variety of training programs for regular employees by level (S1 to S5, TE1),  designed to strengthen human capital based on our philosophy, including third-year philosophy training, philosophy leadership training, and philosophy practice/critical reflection training. For employees to “create a better society” as stated in our Corporate Philosophy, it is important to cultivate in them theoretical problem-solving ability as they gain work experience. From their third year, all employees take part in problem-solving training in which they take up problems related to their respective jobs and workplaces and propose solutions to them.

■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.

■Selective training for managers
 In order to further enhance the skills needed to grow as a manager, we also offer a variety of selective training programs (participation is voluntary). Each selective training program draws around 50 participants per session. Employees think critically about real concerns at their respective workplaces and develop initiatives to make improvements. By discussing issues and other matters in this way, they help enhance one another’s skills.

■“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 FY2022/2, 15 people were selected as executive candidates and received the training, and for FY’23/3, 21 people have been selected.

■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

■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.

■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.


■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'22/2FY'23/2
Total time of trainingApproximately 200 hoursApproximately 220 hours
Time of training per employeeApproximately 5 hoursApproximately 5.5 hours
Average of days per person0.8 days0.8 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, PD training, theme-based training, problem-solving skills training, and coaching training.

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.

【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. 2,359 employees (including 2,356 employees eligible for the stock compensation plan) were eligible for the full stock compensation plan in the fiscal year ended February 28, 2023.


※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 Granted to all full-time employees enrolled at the time of introduction of the system in August 2020 (August 2020). Thereafter, it is granted once a year to directors, new graduates, and mid-career hires.

【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 March 2023, in recognition of our health and productivity management initiatives, we were certified as a 2023 White 500 Certified Health & Productivity Management Outstanding Organization. Only the top 500 companies are recognized from among the 2023 Outstanding Health & Productivity Management Organizations as jointly selected by the Ministry of Economy, Trade and Industry and the Japan Health and Health Council.

[Creating a better work environment]

Promotion of health and safety
The President and CEO is responsible for health management, the Representative Director and COO is responsible for promotion of health management, and the Health Management Promotion Committee and the Health Committee (CHO: Executive Officer in charge of operation) have been established directly under the President and CEO. The Committee holds monthly discussions on various issues related to the workplace environment and health to ensure that the health of all employees working for the Company is not compromised by their work. The Committee also reports regularly to the Board of Directors and the Executive Committee and makes recommendations to management. In addition, with the aim of ensuring that health management initiatives reflect the opinions of employees, "Health Management Promotion Leaders" are appointed from each office as a member of the Committee.

Management restrictions on long working hours
 dip aims to build an environment that will permit its employees to continue working in good health in the long term. Efforts are underway at the company to eliminate overwork by reducing overtime in compliance with labor laws. When an employee’s work hours exceed a certain threshold, the attendance management system notifies their manager in real time to make sure that an immediate adjustment is made to the employee’s work hours, and operating efficiency is improved. If the labor-management agreement is violated, the affected employee will be given a health interview, and their immediate manager is obliged to submit a report describing planned improvements. In addition to these initiatives, the Company encourages improvement and thoroughness throughout the company by developing reports for managers and above to monitor working hours in their own departments. This information is regularly reported to the Board of Directors to make sure that adjustments are made wherever necessary.

One-on-one meeting conducted once a month
All regular full-time employees are individually required to have a one-on-one meeting with their immediate reporting managers once a month with the aim of helping them to find solutions to issues confronting them and achieve their targets. These meetings serve to support reflection by providing more opportunities for face-to-face communication outside of usual work situations.

Office environment with open communication
Efforts are underway to establish an office environment that is capable of maximizing the potential of individual employees with open communication and enhanced individual creativity, embracing the concept of creating the best office in terms of open communication in Japan. Our office features functionality, comfort, creativity and flexibility with areas dedicated to stand-up meetings, an office station for casual exchanges among employees, soundproof workspaces, and a café for relaxation, with the aim of enhancing employee motivation and productivity at work.

[Initiatives to improve employee health]

Mental healthcare
To prevent mental health issues from arising among employees, dip strives to improve the level of related knowledge among managers through training programs. In addition, the company has established a system that permits employees to seek consultation, including professional counselling services with our advisory doctor, for their issues or anxieties. Further, the company conducts a stress check every year in accordance with the provisions of the Industrial Safety and Health Act. The company encourages employees to examine their own mental health, identify workplace stress, and take measures to prevent stress-related health problems.

Online healthcare support for employees and their families
To support the health of our employees and their families, we have introduced a health medical consultation chat service. Employees can conveniently consult with our medical professional team of doctors, nurses, and pharmacists online 24 hours a day, 365 days a year.

Flu injection cost covered in full
A mass infection of the flu would constitute a significant risk to the company’s business. All employees are encouraged to receive the flu vaccination to minimize possible harm associated with infection, and the company covers the cost of the flu injection in full.


5. Initiatives to Achieve Further Improvements in Employee Satisfaction

Making improvements in employee satisfaction is extremely important for the company because it could impact the quality of customer services provided. dip conducts an employee satisfaction (ES) survey with questions to all employees once every six months. The survey results are sent back to the general managers and the leadership team in order to help them understand the status quo and work out corrective measures or adjust operating policies.

Introduction of cloud social media (web magazine) for internal communication
The company issues Enjoy!dip, an internal magazine, based on its belief that enhanced employee engagement will positively impact corporate management. In 2011, the company stopped printing the magazine on paper and introduced an online version. This has enabled employees all over Japan to read the magazine on a real-time basis. In 2018, with the number of employees exceeding 2,000 and the number of branch offices increasing to 33, the company introduced a cloud social media network for company-wide communication, aiming to promote closer two-way communication. With active communication between the management and branch offices, and between employees from different areas and divisions, the company encourages collaboration and understanding between all employees.