Enhancing Employee Engagement

Initiatives aimed at improving employee engagement

We consider employee engagement an important factor in increasing the retention rate of human resources and maximizing the Company's productivity and added value. The Group has been conducting the Global Employee Engagement Survey every other year since 2020. Each organization formulates, implements, and manages measures to improve employee engagement based on the quantitative and objective assessment of its own strengths and weaknesses.

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Introduction of the “Nifco-style Job-Based Personnel System”

With the aim of creating a workplace in which a diverse range of human resources can maximize their abilities, Nifco reviews its personnel system and working styles as needed. We introduced the “Nifco-style Job-Based Personnel System” (for the Company) in fiscal 2024, thereby clarifying the role of each managerial position and revising the system so as to promote a person who is able to fulfill the role appropriately, regardless of age or experience, and treat according to the role. At the same time, we reviewed the compensation system and levels to strengthen market competitiveness, control the outflow of talented personnel, and promote hiring from the outside. Also globally, Nifco periodically revises compensation in each country and region to maintain sufficient market competitiveness.

Initiatives aimed at reducing total working hours

With regard to working styles, we continue to engage in efforts aimed at reducing total working hours, and promote the expansion of working style options and enhancement of our leave system globally, such as the introduction of a flextime system that enables you to be released from time management and offers a larger degree of freedom and the introduction of a telework system that allows you to choose where to work to employees except for line workers, in order to promote the creation of workplaces that can contribute to the sustainable development of our business while maintaining high levels of engagement. Respective subsidiaries and sites have also been working to improve the internal environment according to their respective needs, and information is shared for mutual understanding at the Global HR Committee and other forums.

*There is no globally common indicator set because no effective indicators have been identified.

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Introduction of a telework system

We introduced a telework system throughout the company to meet the latest working style trends. Those who wish to do so may telework for a set number of days after consulting with their supervisors. Currently, nearly half of the back-office departments are implementing this system.
Telework is capped at 3 days per week, and a telework allowance of 200 yen per day is provided to subsidize utilities and other expenses when telework is conducted.

Promoting the use of paid leave

We have been promoting flexible working arrangements to improve the work-life balance of our employees, including reviewing the scope of the accumulated paid leave system and the refresh leave system. We are currently working to promote the utilization of these systems and improve their operation.
The paid leave utilization rate was 75%, compared to the target of 80% or higher. The requirement to take five days of paid leave per year, which came into effect in April 2019, has been achieved 100%.

Paid leave utilization rate (target: 80% or higher)

(As of March 31, 2025, Nifco non-consolidated）

*Defnition of taking paid leave:
Number of days of paid leave taken for the relevant scal year÷Number of days of paid leave granted for the relevant year
(Subject: regular employees, contract employees, and part-time employees)

Various systems and welfare benefits

At Nifco(non-consolidated), we are committed to creating a supportive and inclusive work environment where every employee can thrive. To promote the well-being and success of all employees, including non-regular staff, we offer a comprehensive range of programs and benefits.
We provide maternity leave (from eight weeks before the expected delivery date until eight weeks after delivery), childcare leave (available until the child reaches two years of age), nursing care leave (up to five days per year per child until the child completes the third grade of elementary school), and caregiving leave (up to one year per individual requiring care).
To support work-life balance, we also offer a reduced working hours system, which will be expanded in FY2025 to include employees with children from the end of third grade through the end of sixth grade of elementary school. In addition, employees with children up to the sixth grade may utilize a flexible start and end time system to better accommodate their family needs.
Beyond leave and flexibility programs, we provide a wide range of benefits and opportunities, including regular employee conversion, post-retirement re-employment, various insurance and social insurance plans, defined benefit and defined contribution pension plans, savings accumulation programs, an employee stock ownership plan, membership-based welfare services, and scholarship repayment support.
Through these systems, Nifco strives to foster a workplace where employees feel secure, supported, and empowered to achieve their full potential.