① MISUMI HR Strategy, which accelerates "Individual Challenges and Growth"

  To foster the MISUMI MODEL evolution and Customer’s Time Value, our Group has identified the following behavioral competencies that all employees should demonstrate: 

  Employees who exhibit these competencies by taking on challenges, achieving results, and then progressing to the next challenge are generously rewarded. To ensure that these processes work properly and sustainably, an aligned HR strategy is essential. 

  Starting in fiscal year 2023, our Group has defined and is implementing the following framework as the unified “HR strategy of the MISUMI Group.”

  This is a scheme by which employees actively decide “What’s next?” for their own career paths.
This scheme encompasses the following “Next Challenge (XX Next)” formats:

*This system is targeted only in Japan.

  Among these, our Company’s unique schemes are “Do Next” and “Go Next.”
 Employees can essentially decide whether to reassign or not through voluntary career choices. We believe, however, that “fixating” employees in one workplace for many years and turning it into vested interests hinder growth.
 Therefore, in Do Next and Go Next, every year, employees must “reset” their “current position” to a clean slate. Whether they want to continue in their current role or change to new role, they must “apply” to the organization they wish to join to determine their workplace. Organizations are also required to enhance their appeal to gather talent while encouraging their members towards “next challenges”.
 In other words, it turns the Company into a “job market”, enabling diverse career choices and organizational formations aimed at continuous next challenges.
 Moreover, Go Next allows for challenges across countries and job types.
 Additionally, as a metric to gauge “employees’ next challenges,” our Group sets internal mobility as a KPI.

The current mobility rate in Japan (transfer rate through Next Challenge): 15%

Current target value (annual mobility rate): 20%

  It comprises two modules: an evaluation of the demonstration of behavioral competencies defined based on  MISUMI Value's and its outcomes.

  The criteria used in the competency evaluation are established globally as the most crucial elements required of "employees working at MISUMI," regardless of their position or job type.
  In the outcome evaluation, by integrating the same degree of stretch set in the "Business Plan" (described later) of each organization into each individual's goals beforehand, it encourages challenges towards goals that align with the strategy across the entire organization.

  The core principle of remuneration within our Group is to reward individuals who have achieved success-those who have taken on challenges and delivered results- with a total compensation package that is highly competitive in the market.
 We structure remuneration to align with this principle, ensuring it is consistent with the practices  and legal frameworks of each region. For example, in MISUMI's Japan region, the employee remuneration structure and operation are as follows:

  These MISUMI HR strategy initiatives are initially being implemented in Japan.
In the future, adjustments will be made to tailor these initiatives to the specific circumstances of each country.