Fostering Workplace Diversity

In 2021, Nabtesco made a statement about its approach to ensuring diversity in the workplace.

As a precondition to enhance the sustainability of society and companies alike, it is necessary to innovate continuously. In order to innovate in this age of VUCA, which is characterized by the intensification of global competition and progress of IT, it is important to accept and fuse together a range of values.

We have since been proactively creating an environment where diverse talent can thrive by promoting women in the workplace, developing digital and global talent, leveraging the experience and expertise of senior employees, and implementing other measures regardless of attributes such as age, gender, nationality and desired form of employment. Through these efforts we are striving to provide them with jobs that they can perform with high motivation, demonstrating their respective abilities to the fullest. To this end, we are committed to improving our workplace environment and providing our managers with the education they need.

In order to achieve “Innovation in Action,” as upheld in our long-term vision for 2030, we will promote human resource-related measures, thereby helping diverse employees enjoy and be excited about taking on challenges as part of their work.

For details, please refer to the Social Data section of the ESG Data.

In particular, we believe that non-Japanese employees bring fresh perspectives rooted in diverse cultural backgrounds, values, and experiences, generating new ideas and insights within the organization. At the same time, they serve as a catalyst for employees to respect diverse values and reexamine their own working styles and mindsets. Assuming communication in Japanese, we are actively recruiting not only talented individuals with advanced expertise and skills, but also those who think for themselves, take proactive action, and drive results while engaging those around them.

For new graduates employed by Nabtesco as career-track employees in and after 2023, the company has set the target of increasing the proportion of non-Japanese nationals to 20%. For managerial positions, it has set the target of increasing the proportion of non-Japanese nationals to 2% by 2030. In order to attain these targets, we will proactively recruit non-Japanese nationals while supporting our existing non-Japanese employees in their career development allowing each individual to fully demonstrate their capabilities.

The following table shows the gender pay gap for recent fiscal years. For all workers, both the average and median have remained in the 80% range over the past three years.

• *Note: Figures show the average or median female wage as a percentage of the male wage.

(Unit: %)

□Over 80%（Small Gap） ■80% or less（Medium Gap） ■50% or less（Large Gap）

An analysis of the gender pay gap by attribute and wage component revealed a certain gender disparity in base pay. It also became clear that the primary cause of this disparity is not a difference in remuneration for the same role, but rather a difference in grade distribution, where more men occupy senior management and higher grades. Furthermore, given that gender differences are also observed in variable compensation such as overtime pay, we recognize the possibility of unconscious bias in providing challenging or high-load work opportunities and in placement/assignments. Following the transition to a role-based HR system in FY2025—which reduced seniority-based elements and shifted toward compensation corresponding to roles—the gender gap temporarily widened in the first year of implementation. Under this role-based HR system, we will thoroughly link roles with compensation, and promote the planned development and appointment of female managers and managerial candidates through the provision of fair opportunities, diversity training, and the enhancement of evaluation capabilities, thereby working to correct the gender pay gap.

In consideration of the need to foster women’s empowerment and from the viewpoint of career development and work style reforms, we deem it crucial to provide workers with opportunities to fulfill their potential and truly thrive regardless of gender and to foster measures to support them in maintaining a good work-life balance.
Accordingly, based on the Act on the Promotion of Women’s Active Engagement in Professional Life (enforced on April 1, 2016), we formulated a new four-year action plan to start from April 2023 and will work to achieve the goals set therein.

In order to avoid our employees quitting work due to childcare or nursing care, we are improving and extending systems to support them in balancing work and childcare/nursing care.

In terms of childcare, we are striving to create safe workplaces where employees can balance work and raise a family by providing facilities for breastfeeding and lactation, issuing a Childcare Support Handbook, and establishing a Childcare Support Consultation Desk to help them take childcare leave, and by providing all employees with an e-learning program on childcare leave.

In terms of nursing care, we have a Nursing Care Support Handbook and a leave system that can be taken multiple times within a two-year period, and we also give consideration toward letting employees relocate. Through these support systems, employees can flexibly balance work and nursing care.

Nabtesco have also been proactively employing mid-career workers who have high levels expertise and broad experience gained by working for other companies, aiming to increase their number to 30% of newly hired employees. The increasing mobility of the workforce is accelerating competition especially for hiring IT engineers and electrical/electronic technicians. To response this, we will continue our career recruitment using a range of employment methods, including recruitment through referrals, comeback recruitment, and the hiring of freelance workers. We will also pursue the same 30% target for the proportion of mid-career hires in managerial positions.

Nabtesco has established a Career Transition Support Program to assist employees who have reached a certain age and length of service and choose to pursue a second career path, such as entrepreneurship or reemployment, of their own accord.

The program provides financial support at the time of retirement, as well as carrier transition support to assist employees with job searches and career development. In addition, employees are granted company-specific paid leave to help them prepare for their career transition.

In recent years, reflecting longer working lives and increasingly diverse career aspirations, Nabtesco has continuously reviewed and enhanced the program, including expanding eligibility and strengthening support measures to better address changes in the social environment and employees’ career needs.

Through these initiatives, we support employees in maintaining and enhancing their long-term employability while enabling a smooth transition to the next stage of their careers.