Creation of fair and rewarding workplaces

Approach and Policies

The Nomura Real Estate Group believes that creation of fair and rewarding workplaces is essential for employees to demonstrate their individuality and maximum capabilities.
Accordingly, we promote the creation of workplace environments where employees can work with reassurance by pursuing fair employee evaluations, remuneration including a guarantee of living wages, and equitable social benefits, and by respecting fundamental rights such as the freedom of association and the right to collective bargaining. We also aim to be a company in which each employee can actively work and is kept motivated.
Furthermore, the Nomura Real Estate Group signed the UN Global Compact in May 2019 to enhance the protection of employees' rights and make work more fulfilling for employees.
We will comply with the four labor principles of the UN Global Compact and take additional measures.

Management

Management Structure

In July 2020, for the purpose of promoting wellness, work style reforms and diversity in an integrated manner, the Group established the Group Wellness Promotion Council, which comprises Nomura Real Estate Holdings and Group company presidents and others and is chaired by the Nomura Real Estate Holdings president.
Each Group company will also establish a similar council. The Group will establish a system whereby Nomura Real Estate Holdings and each company will discuss wellness measures and work together so that a unified Group message can be delivered and each company’s efforts can be shared.
As part of such efforts, the Group is also carrying out measures relating to the creation of fair work environments with meaningful work.
In addition, the Sustainability Committee, which comprises Nomura Real Estate Holdings and Group company directors and others and is chaired by the Nomura Real Estate Holdings executive vice president and Group COO, deliberates and decides on related policies and action plans and reports to the Board of Directors.

Targets

To create fair workplaces with meaningful work, the Group strives to raise employee satisfaction.

Fair Evaluations and Remuneration

The Group does not differentiate remuneration on the basis of gender.
Moreover, the Group implements fair employee evaluation and remuneration programs by creating mechanisms for the opinions of employees to be heard by human resource divisions and supervisors and for communicating with employees.
In addition, the Group complies with laws and regulations that set minimum wages in Japan as well as countries worldwide and pays adequate salaries to employees in accordance with the price index in each region.

Target Management System

The Group introduced a target management system so that employees can take the initiative in their jobs and work with managers and supervisors towards achieving their targets.
Every six months, employees set their own targets with advice from supervisors, and bonuses are paid based on the degree of achievement of those targets.
In addition, reviews of the abilities and conducts that serve as the basis for promotions and raises are also conducted every six months.

Evaluation of Superiors and Career Development

Once a year, Nomura Real Estate Development employees complete a questionnaire regarding the skills, performance, personality, and so on of their supervisors and submit the questionnaires to the Human Resources Division.

Creating Fair Work Environments

Labor-Management Dialogues

The Group respects employees' freedom of association and the right to collective bargaining, and even at Group companies that do not have labor unions, labor representatives and officers responsible for human resource divisions hold periodic meetings and work to improve the workplace environment.
Currently, Nomura Real Estate Development, Nomura Real Estate Partners and UHM have labor unions, and the labor union membership rate among employees of the three companies as a whole is 48.21% as of April 1, 2020.

Communication with Employees

The Group communicates with employees so that employees can gain an accurate understanding of company policies regarding labor standards.
Documents or explanations regarding employment rules, personnel evaluation systems, and social benefits are provided in Japanese, or in English if necessary, to employees including those of overseas Group companies during their initial training.

Provision of Social Benefits

The Group provides various social benefits to employees such as childcare and family care support and an employee shareholding program with the aim of creating fair work environments with meaningful work.

Main Social Benefits Provided by Nomura Real Estate Development

Social Benefits Overview
Maternity leave Six weeks prior to childbirth (14 weeks in the case of a multiple pregnancy) and eight weeks after childbirth (with pay)
Childcare leave Until the child reaches the age of three years
Family care leave to care for children Preschool children: 5 days/year for one child and 10 days/year for two or more children
Family care leave Up to one year in total
Volunteer leave Five days for volunteer activities related to a severe natural disaster
Mental health support Health Consultation Office, Physical and Mental Health Consultation Office, appointment of an industrial physician of psychosomatic medicine
Measures to ensure good health Appointment of nurses and industrial physicians, implementation of personnel interviews and medical examinations
Rehiring elderly workers Up to age 65 (one-year extensions)
Retirement benefit program* Payment of retirement benefits pursuant to a defined benefit pension plan
Health insurance association High medical expenses, lump-sum childbirth benefit, injury and disease benefit, comprehensive medical examinations, etc.
Allowances Family allowance, reassignment allowance*, reassignment without family allowance*, housing subsidies, etc.

* Only career-track employees are eligible.

Implementation of Employee Satisfaction Survey

Nomura Real Estate Development conducts an employee satisfaction survey every year. The survey collects suggestions to management and employee opinions on work and the workplace.
Satisfaction is measured on a five-point scale with regard to (1) sense of fulfillment concerning work, (2) satisfaction with the workplace, (3) satisfaction with superiors, (4) loyalty to the company, and (5) development in the market, and (6) sense of being stuck in the same routine at work, as well as regarding understanding and practice of work style reform and wellness management.
In fiscal 2019, the response rate was 97.8% (2,067 out of 2,113 eligible employees responded).
Issues regarding employee satisfaction and work style reforms, which were obtained from the survey, are reported to officers and higher-level management at each headquarters conference, and provided individually to a supervisor to actively utilize the results.

Fostering a Corporate Culture that Encourages Challenges

Nomura Real Estate Group Awards Presented

The Group has presented the Nomura Real Estate Group Awards every year since 2016 to foster a corporate culture where employees are willing to tackle the challenges of value creation through innovation, encourage group synergy, and raise individual and organizational motivation.
Under this program, exceptional businesses, products and services of the year are recognized. In fiscal 2020, award winners included “YUKAIfull” a floor chamber air conditioning system which sends air from the air conditioner to the entire house while ventilating through a space under the double floor.
“YUKAIfull” is an initiative for realizing healthy and comfortable living while reducing CO2 emissions. It provides air conditioning not only in the living room but also in the hallway, bathroom and other rooms, enabling pleasant living 24 hours a day, every day of the year.

News Release (Japanese only)

【Evaluation Criteria】
・Reform and innovation
・Improvement in customer satisfaction
・Group synergy
・CSR activities and social contribution
・Continuity and perseverance

First Place Award“YUKAIfull”
First Place Award“YUKAIfull”

Business Idea Proposal Program

Beginning from 2017, the Group launched the Business Idea Proposal Program (commonly called “NEXPLORER” within the Group), which allows all employees to propose new businesses, products, or services that go beyond the boundaries of their ordinary work at any time.
There has been a total of 60 entries (including five entries made in 2019), with seven projects under consideration and four projects having already been commercialized or realized.
To date, proposals realized under the program include co-creation service platforms such as “Minna no Igokochi Kaigi.

Please click here for details on “Minna no Igokochi Kaigi” (Japanese only)

Performance

Promotion Measures

Fiscal 2019 performance against the set targets was as set forth below.

Improvement in employee satisfaction

Nomura Real Estate Development: Results of Employee Satisfaction Survey

Item FY 2016 FY 2017 FY 2018 FY 2019
Employee satisfaction level (5-point scale) 3.81 3.81 4.03* 4.05*
Number of responses/number of eligible employees (persons) 1,648 / 1,738 1,930 / 2,028 2,013 / 2,066 2,067 / 2,113
Response rate (%) 94.8 95.1 97.4 97.8

*Beginning from fiscal 2018, "Satisfaction with the workplace" is used as the reference index.

Turnover rates

Item FY 2017 FY 2018 FY 2019
Turnover rates (total)(%)* 3.85 3.99 5.13
Male (%) 3.57 2.49 4.69
Female (%) 4.46 6.57 5.99
Turnover rates for personal reasons (%) 3.40 3.54 4.43

* Turnover rates include number of employees retired at mandatory retirement age.

The average tenure of employees*

Item FY2019
The average tenure of employees(total)(years) 12.40
Male(years) 14.71
Female(years) 8.42

* Nomura Real Estate Development performance

Responses to Legal and Other Violations

In 2017, the Nomura Real Estate Development Head Office and four regional offices (Kansai Branch, Nagoya Branch, Sendai Branch, and Fukuoka Branch) received a recommendation for corrective action and guidance from the Labor Standards Inspection Offices with jurisdiction regarding the discretionary work system for planning work that applied to some employees.
We take this matter extremely seriously and are conducting comprehensive labor-management and taking measures to improve workplace environments so that this type of incident does not occur again.
We will continuously promote measures to improve workplace environments in fiscal 2018 and thereafter.

For further details, refer to the following.
Appropriate Labor Management and Measures for Improving Workplace Environments
"Health and Safety of Employees"