Creation of fair and rewarding workplaces

Approach and Policies

Group Policy (Human Resources)

To create fair and rewarding workplace environments as outlined in the Group Policy, we pursue fair employee evaluations, remuneration including a guarantee of living wages, and equitable social benefits, and respect fundamental rights, such as the freedom of association and the right to collective bargaining. Furthermore, we 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.

Targets and Results

Targets

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

Results

Improvement in Employee Satisfaction

Nomura Real Estate Development: Results of Employee Satisfaction Survey
Items FY2017 FY2018 FY2019 FY2020
Employee satisfaction level (five-point scale) 3.81 4.03* 4.05 3.96
Number of responses/number of eligible employees 1,930/2,028 2,013/2,066 2,067/2,113 2,209/2,259
Response rate (%) 95.1 97.4 97.8 97.8

Beginning in fiscal 2018, “Satisfaction with the workplace” is used as the reference index.

Turnover Rates

Items FY2017 FY2018 FY2019 FY2020
Turnover rates (total)* (%) 3.85 3.99 5.13 4.78
Male (%) 3.57 2.49 4.69 4.84
Female (%) 4.46 6.57 5.99 4.79
Turnover rates for personal reasons (%) 3.40 3.54 4.43 3.88

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

Average Tenure of Employees*

Items FY2019 FY2020
Average tenure of employees (total) (years) ―(12.40) 10.42(11.88)
Male (years) ―(14.71) 11.53(13.90)
Female (years) ―(8.42) 7.90(8.56)

Figures in parentheses indicate the performance of Nomura Real Estate Development.

For more details, see the ESG data (Society).

Initiatives

Fair Evaluations and Remuneration

To ensure equity in working conditions, the Group does not differentiate remuneration on the basis of gender. Moreover, it operates fair employee evaluation and remuneration programs by creating mechanisms whereby the opinions of employees can be heard by human resource divisions and supervisors and for communicating with employees. As for wages, the Group complies with laws and regulations that set minimum wages in each country and pays reasonable salaries that allow employees to maintain a certain standard of living in accordance with the consumer price index of their country or region. In fiscal 2020, the average annual salary of Nomura Real Estate Holdings was 10.12 million yen.

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 toward achieving their targets. Every six months, all 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 regularly to maintain fairness and strengthen employee motivation.

Evaluation of Superiors

Once a year, Nomura Real Estate Development employees complete a questionnaire regarding the skills, performance, personality, etc., 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.
As of April 1, 2021, Nomura Real Estate Development, Nomura Real Estate Partners, UHM, and some overseas subsidiaries have labor unions, and the labor union membership rate among Group employees is 49.58%.

Understanding and Disseminating Policies on Labor Standards

To ensure that all employees can gain an accurate understanding of company policies regarding labor standards, the Group provides documents or explanations regarding employment rules, personnel evaluation systems, and social benefits in Japanese, or in English, if necessary, to employees, including those of overseas Group companies, during their initial training.

Promoting the Hiring of Local Human Resources and Ensuring They Play Active Roles

Considering business characteristics, the Group places emphasis on connections with local communities across the country and carries out recruitment activities in those places. Some Group companies have also established programs where the workplace can be selected from across the country or locally so that employees can choose diverse work styles based on their work-life balance.

Provision of Social Benefits

The Group has established and is working to enhance employee social benefit programs, such as childcare and family care support and an employee shareholding program, so that employees can enjoy their lives as members of society with peace of mind at every stage of their lives so they can develop fulfilling life plans.

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: five days/year for one child and ten 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 (Nomura Real Estate Development’s contract-type defined benefit pension plan), payment of contributions by Nomura Real Estate Development, at no cost to employees
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, (5) development in the market, and (6) sense of being stuck in the same routine at work, as well as regarding the understanding and practice of work style reform and wellness management. In fiscal 2020, the response rate was 97.8% (2,209 out of 2,259 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 so that the results are actively used.

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 in which employees are willing to tackle the challenges of value creation through innovation, strengthen Group synergy, and raise individual and organizational motivation. Under this program, exceptional businesses, products and services of the year are recognized. In fiscal 2010, award winners included a promotional YouTube video created in the Residential Development Business Unit as a means for raising brand recognition among young people.

Evaluation Criteria
Reform and innovation Improvement in customer satisfaction Group synergy Sustainability Continuity and perseverance

Grand Prize Winning Team

Business Idea Proposal Program

Beginning in 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 nine in 2020), with six projects under consideration and five having already been commercialized or realized. TOMORE and PRE KITCHEN, which are currently in service, are primary examples that have been realized through this program.

A shared house and office business that offers a new real and virtual space where people work, live and enjoy time with their friends in an age where more and more people are open to different ways of working.

Click here for details on TOMORE (Japanese only)

A side-dish service offered at a fixed price and using the common use areas of condominium buildings to meet the residents’ needs. The concept of the service is to enrich the minds of child-rearing families through daily meals.

Click here for details on PRE KITCHEN (Japanese only)

Responses to Legal and Other Violations

In 2017, the Nomura Real Estate Development head office and four regional offices (Kansai, Nagoya, Sendai, and Fukuoka branches) 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 while 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.
Our actions regarding appropriate employment management and improvement of working environment
Health and Safety of Employees

Sustainability