SUSTAINABILITY Employee Relations

Personnel System

Lawson's Human Capital Concept

Development of human capital that contributes to corporate growth through self-motivation and innovation

Figure for Sustainable Company growth

Both our Group Philosophy and our Code of Conduct [Lawson's Way] formulated to contribute to its achievement have been implemented positively and systematically, with accompanying efforts to develop human capital to become core participants in activities to this end.
The image of human capital Lawson seeks to realize is of personnel capable of manifesting the Company's values through teamwork, continuous innovation to create value and determined action to achieve goals. The key behavioral characteristics of these personnel are self-motivation and innovation.
We have introduced a personnel development program to train all our employees to become more self-motivated and innovative. This equips them to identify appropriate employee behavior for achieving the Group Philosophy and for fulfilling their individual duties in order to complete their objectives for the year.
We have also developed an employee behavior level evaluation program under our personnel management system with the aim of creating a culture that encourages self-motivation and innovation among employees. The program also seeks to clarify the scope of their responsibilities and the roles they must play to fulfill the duties of their respective posts. The manner of fostering employees as human capital is determined based on two evaluations: an evaluation of their behavior on the job and an evaluation of the business results they achieve.
We employ a Career Development Sheet to ensure employees' ability to determine their own career paths, and individual employees are also asked to specify their goals for the future in light of their personal histories and current positions. Interviews are conducted to support their growth as individuals.

Role-based System

We operate a compensation system in which role grades and salaries are determined according to the scope of responsibilities and the roles to be fulfilled.
The system is based on individual merit, regardless of gender, length of service, nationality, etc.

Career Development Interviews

We employ a Career Development Sheet to ensure employees' ability to determine their own career paths, and individual employees are also asked to specify their goals for the future in light of their personal histories and current positions. Interviews are conducted to support their growth as individuals (all employees are eligible; 4,022 employees were interviewed in fiscal 2020).

Flexible Full-time Employee System

In fiscal 2018, we introduced a flexible full-time employee system, which allows employees with reasons such as childcare, nursing care, or cancer treatment to limit their work location and work hours if they need to limit their work beyond the statutory or existing systems.

Active Senior Full-time Employee System

In March 2021, we raised the mandatory retirement age to 65 and introduced the active senior full-time employee system for employees aged 60 and above. This system allows employees to choose from multiple job courses. At the same time, we are conducting career design training for employees who have reached the age of 53.

FA (Free Agent) System

This system is intended to encourage employees to take on ambitious goals.
Employees who meet certain requirements can receive FA privileges, which guarantee that they can be transferred to their desired job type and location.

Varied Work Shifts

We have a system in place detailing the job contents of 21 different work shifts. Each employee can choose 4 shifts according to their work, enabling them to work according to a variety of flexible schedules.

Employee Award Program

Encouraging employee efforts to take up new challenges proactively beyond departmental boundaries

In order to create new customer value, it is necessary for each and every employee to take on challenges on their own initiative. At Lawson, we have set up cross-departmental projects in which employees from different positions share their opinions from various perspectives to create better products and services.

In fiscal 2018, we discontinued LAWSON AWARD, our internal award system, and replaced it with the new L-Challenge (Lawson Challenge) Award initiative that inspires employees to suggest or implement ideas unique to Lawson. We are developing a structure for encouraging employees to take up challenges to improve work procedures and conditions from a companywide perspective, beyond the scope of their own responsibilities, thus sharing their knowledge with others throughout the company as a means of enhancing employee motivation and improving the business performance of the Lawson store chain as a whole.

We are also working on fostering a culture of praise through the President's Award and the Division Good Job Award.

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Developing the Next Generation of Leaders

Next Generation Development Committee Meeting

Since fiscal 2016, department managers at the company have been involved in a committee to prepare plans for the development of the next generation of leaders, to nurture these leaders through interviews and other means, and to confirm their progress. The committee is also linked to the development of female leaders.

Policy on Executive Compensation

Our basic policy as a company is to design a compensation system for directors that is linked to shareholders' profits through incentives to increase corporate value, sustainable growth and performance improvement, and to provide sufficient and appropriate compensation for the duties performed by each director.
In addition to fixed compensation, the basic compensation for directors also includes variable remuneration, which is linked to their performance evaluation. In order to more clearly reflect the contribution of directors to increasing shareholder value, variable remuneration is linked to indicators such as EPS (earnings per share).
In addition, we also incorporate stock-based compensation options, a form of compensation that is linked to the price of stocks, as part of director compensation, thus linking it to the interests of our shareholders.
This indicator has been partially revised from fiscal 2021, and will be determined based on the percentage of budget achievement for EPS and SDGs targets (CO2 reduction rate, etc.). The purpose of EPS is to share more value with shareholders and to link it to the company's performance. The purpose of the SDGs Goals is to achieve the environmental vision set out in Lawson Blue Challenge 2050!