Policies and Basic Approach

The Taisei Group’s greatest asset is its human capital, and the vitality of our employees is the driving force behind enhancing corporate value. We set forth “the realization of a society and workplace environment where everyone can work lively” as one of the materiality and aim to foster innovation and create value by recruiting talent with diverse capabilities, respecting diversity, and cultivating an internal environment where every executive and employee can actively contribute while maintaining high levels of engagement. Moreover, in the [TAISEI VISION 2030] Achievement Plan, the fundamental policy is to “recognize that human capital is a source of our competitiveness, and swiftly implement the necessary measures.”

Risks and Opportunities

Policies / Commitments

• Action Guidelines for Taisei Personnel and the Taisei Group as a Whole: Cultivating an open corporate culture / Respect for fundamental human rights and diversity
• Human Resources Development Policy (Diversity, Equity & Inclusion Policy)
• Human rights Policy
• [TAISEI VISION 2030] Achievement Plan / Fundamental Management Policy: Human Capital

Goals

Initiatives to Achieve [TAISEI VISION 2030]

To achieve [TAISEI VISION 2030] by developing and structuring human capital in alignment with management strategies and business plans.

• To create an environment in which employees can realize their full potential to enhance their engagement.
• To expand human capital investment to support the Group’s sustainable growth.
• Physical, mental, and social health and feelings of happiness (well-being), and realization of diverse career paths.

KPIs

• Engagement score: [FY2026] BBB55 / [FY2030] A60
• Percentage of newly employed female graduates: [FY2026] 27% / [FY2030] 30%
• Implementation rate of an 8-day site closure per 4 weeks (Building Construction and Civil Engineering): [FY2026] 100% / [FY2030] 100%

Annual Targets

• Rate of paid leave utilization: [Annually] 60%
• Rate of milestone leave*¹ utilization: [Annually] 100%
• Rate of refresh leave*² utilization: [Annually] 100%

• *1Special leave granted to employees at construction sites.
• *2A program that grants leave to employees who have been with the company for 10, 20, or 25 years and those who have reached 55 years old or other designated milestones.

Initiatives

• United Nations Global Compact, “Human Rights” and “Labor”
• The Valuable 500
• My Declaration of Human Rights (Ministry of Justice)
• Male Leaders Coalition for Empowerment of Women (Gender Equality Bureau, Cabinet Office)
• Action Plan for the Act on the Promotion of Female Participation and Career Advancement in the Workplace (Cabinet Office)
• Voluntary action plans on the promotion of women to managerial and board positions ([Keidanren] Japan Business Federation)
• Ikuboss Corporate Alliance (Fathering Japan, a nonprofit organization)
• Human Capital Management Consortium
• Overtime Work Reduction Guideline ([Nikkenren] Japan Federation of Construction Industry)
• Plan to Realize a Five-day Working Week ([Nikkenren] Japan Federation of Construction Industry)
• “Barrier-Free Mind” support company registration (Tokyo Metropolitan Government)
• Challenge to 30% by 2030 (Keidanren)

Structures and Systems

Promotion System

Activities / Efforts

Improvement of Employee Engagement

Since fiscal year 2022, we have been conducting engagement surveys for our company and major group companies.
The results of the five surveys conducted by fiscal year 2024 show that there is a disparity in engagement between management and employees across the group. Therefore, we have held numerous discussions to promote mutual communication and share management policies and operational challenges. Concurrently, we incorporate employees' opinions into company initiatives. Furthermore, as the engagement significantly varies by organization, each organization analyzes the survey results and develops and implements initiatives for improvement. As a result of these initiatives, satisfaction levels have improved since the first survey conducted in June 2022 (B50.0) in areas such as "business growth potential and future prospects," "benefits and compensation," and "management by supervisors," leading to improved employee engagement (BBB55.0 in December 2024).
We aim to build a highly engaged organization that provides both job satisfaction and a comfortable work environment without being significantly impacted by the business environment and other external factors.

Initiatives to Correct Long Working Hours

The Taisei Group establishes a Human Rights Policy that ensures compliance with local laws and regulations, safety and health for all employees, executives, subcontractors and suppliers, and a reduction of long working hours. Furthermore, we focus on maintaining and promoting employee health, and reducing excessive labor and overtime work. We have also established the Working Hours Reduction Committee and the Working Hours Reduction Promotion Committee as internal organizations to discuss strategies for reducing working hours.
Additionally, we utilize the Overtime Visualization System to manage hours for legal compliance and health management purposes by tracking monthly and annual overtime hours, the remaining time until the upper limits set by law (The 36 Agreement), and other details.

Ensuring a Comfortable Working Environment for Everyone

At construction sites, which are at the forefront of manufacturing, establishing an environment where a diverse range of individuals—including employees and workers—can work comfortably and fully utilize their abilities is not only essential from the standpoint of respecting human rights and considering working conditions, but it is also crucial for improving productivity, work engagement, and ultimately, each individual’s well-being.
At the Company, we are not only attentive to the needs of female engineers and workers, but we are also committed to ensuring that all employees and workers can work together seamlessly in our manufacturing efforts. To achieve this, we are promoting the spread of “Wellness Worksites.” Specifically, we advance worksite wellness by implementing the most appropriate measures for each site, selected from the “Wellness Recipes,” a collection of 100 items devised by our Design Division.

Work-Life Balance

Taisei Corporation has put in place a variety of systems to help employees raise children in a better work environment, including the Childcare System and Flexible Working Hours for Employees During Childcare.
Since 2016, we have also placed emphasis on men's participation in childcare and achieving a 100% utilization rate of childcare leave by males is placed as one of key measures of employee work style reform. We promoted this initiative on a company-wide basis with the involvement of affiliated departments and superiors.
In April 2017, we joined the Ikuboss Corporate Alliance, a network whose goal is to nurture the ideal boss for the new age. In addition, we received the Ikumen Enterprise Award 2016 as well as recognition for achievements based on the Act on Advancement of Measures to Support Raising Next-Generation Children. As a result of implementing various measures that include sending congratulatory messages to male employees and their direct superiors when the employee has had a child born, encouraging the employee to take childcare leave, and enhancing the childcare leave system, the childcare leave usage rate by applicable male employees reached 100% and the average number of days taken in FY2023 was 17.3 days (11.6 days in FY2022).
To support employees who have worries about balancing work and nursing care, we have established systems for nursing care holidays and nursing care leave, etc. that exceed legal requirements, and also distribute an original nursing care guide and hold regular individual counseling sessions where employees can consult specialists free of charge. In addition, we have also established a detailed follow-up system that includes a "web-based nursing care seminar" that employees can participate in with their families when they are on the long leave, and seminars on preventing employees from retiring due to nursing care system, which our core corporative partner companies can attend.

Acquisition and Retention of Human Resources

In terms of labor standards such as wages and working hours, the Taisei Group comply with each country's minimum wage laws and regulations and pay wages above those standards to ensure that we recruit and retain talented people to achieve sustainable growth.
In addition, we hired 428 new graduates in FY2024 (316 in FY2023). We provide work descriptions in detail during the recruitment process to avoid mismatching. For young new employees, we offer the opportunity for private interviews after joining the Company, including a trial of a mentor system in some cases. We are enhancing our internal job posting system and a range of other systems to support the continued engagement of our employees, so that each employee can maintain high motivation and demonstrate their full potential over a long period.

Labor-Management Relations

Taisei Corporation respects workers' rights including freedom of association, the right to organize and collective bargaining rights, and we have instituted a labor negotiation system to ensure dialogue between employee representatives and senior management. Under the system, the company's directors and the labor union meet regularly each year to hold discussions and exchange views regarding wages, working conditions and so on. Thorough discussions with employee representatives of the labor union help to ensure healthy labor-management relationships.
Taisei Corporation also has a union shop agreement with the Company’s employee union, which has a membership rate of all employees covered by the collective bargaining agreement is 89.6% (non-consolidated), with a 100% membership rate of those eligible for union membership (non-consolidated).
To facilitate labor-management relations and business activities in the Company, we conduct questionnaire surveys and various dialogues between labor and management every year. Changes in working conditions and so on are determined in advance through discussions between labor and management.
In addition, Taisei Corporation recognizes that the enhancement of human capital is an investment in the future of the Group, and in FY2022 and FY2023, in consultation with the employee union, we implemented wage increases for all employees through base increases and increases in starting salaries for new graduates. Going forward, in accordance with the "Multi-Stakeholder Policy" established in March 2023, we will continue to aim for sustainable returns to our employees and strive for comprehensive compensation improvements that enhance the "ease of work" and "job satisfaction" of our employees, with an emphasis on diversity, fairness, and inclusiveness.

Compliance with various basic working conditions established in Japan and other countries

• Prevention of child labor: Taisei employs persons 18 years of age or older.
  Ensures thorough age verification when recruiting.
• Prevention of forced labor: Entry by applicant is a prerequisite; after screening, applicant is notified that he / she has been hired.
  In addition, working conditions are presented upon company entry, and employee is hired based on his / her agreement to those conditions.
• Living wage support: Beginning salary for new graduate hires (university graduate / main career track) is at a level exceeding the national weighted average for the minimum wage in that region.
  

  Note: In FY 2024, it was equivalent to approximately 171% (155% compared to the minimum wage in Tokyo).