Human Resource Management

At NIHON CHOUZAI, we consider the people who underpin a company as critical resources for management, and we actively invest in their recruitment, training, evaluation and engagement. Among these initiatives is our effort to strengthen training and organizational strength with an eye toward achieving the dramatic business expansion set forth in our long-term vision for 2030.

｜　Recruitment　｜　Development of Human Resources　｜　Evaluation　｜　Engagement　｜

Recruitment

Recruiting human resources, starting with pharmacists, is critical. These are the people that offer high-quality pharmacy services and heighten our competitive capabilities, thus leading to the organizations’ expansion. We are striving to strengthen our ability to recruit pharmacists, certified dieticians, medical administrators and administrative department personnel, both as new graduates and mid-career hires, in order to respond to changes in the external environment such as revisions to laws and industry restructuring.

Strengthening Recruitment of Newly Graduated Pharmacists

Person-to-person work is becoming a common part of the duties performed by pharmacists more than ever, whether it is family pharmacists, for at-home medical care, or throughout the range of specialized fields. We believe that securing high-quality human talent is a key issue for enabling us to implement our growth strategy to survive as the industry undergoes reconstruction. Although the number of pharmacists hired decreased from the previous fiscal year due to the raising of our hiring standards, we are hiring close to 400 pharmacists each year. In addition, in the “Mynavi/Nikkei 2023 popularity rankings of Japanese companies

among job-seeking students graduating in 2023” targeted at university and graduate school students scheduled to graduate in March 2023, we came number one in the dispensing pharmacy and drugstore industry for four categories related to our company.

Conveying Workplace and Career Information

We created a recruitment website for each occupational category and provide abundant information with regard to employee interviews and careers. Also offered is a rich variety of contents, such as movies, that clearly demonstrate the daily routine of employees. We have also created an official LINE (popular social media app) account, in an effort to proactively convey information to pharmacy students.

Internship

We offer internships in all of our occupational categories, providing opportunities for interns to experience working and career opportunities at NIHON CHOUZAI. This also provides a venue where interns can interact with employees. A total of approximately 1,500 people participated in this internship program for pharmacist students for the year.

Managerial resources

We are also strengthening the recruitment of personnel in managerial positions who are capable of mapping out solid strategies for future growth, including new business generation and new operating frameworks. We are capitalizing on a wide range of recruiting channels to attract both new graduates and mid-career personnel, with the aim of securing the best talent in each discipline, from HR and business development to marketing and engineering.

Percentage of career hires in new hires

FY2020

29%

FY2021

15%

FY2022

32%

as of July 21, 2023

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Development of Human Resources

Regardless of what position a person fills, at the heart of NIHON CHOUZAI’s stance on human resources is the “medical professional.” These are individuals that possess a keen awareness of responsibility to provide medical care and a sense of mission, while responding to the growing medical needs that confront an ultra-aging society. We aim to develop human resources that aggressively work to find solutions to social issues, such as keeping medical costs in check, thereby becoming an essential presence for patients, their families and the local community while contributing to healthcare in Japan and to society. Conducted by job type as well as grade seniority, we offer training by individual topic and career planning, and we provide opportunities for each and every employee to acquire necessary knowledge and skills.

Framework of education and training

The ideal Nihon Chouzai pharmacist and career possibilities

We seek pharmacists who can contribute to the true separation of drug prescribing and dispensing services, as expressed in three concepts: Be Active, Commitment, and Professionalism.

Be Active

Can act independently with a sense of ownership

Commitment

Possesses a strong desire to contribute to medical care in Japan

Professionalism

Specializes in community-based medical care, athome medical care, advanced medical care, or other fields

The ideal Nihon Chouzai pharmacist and career possibilities

Enhancing Training of Increasingly Needed Expert pharmacists ⇒Differentiation from Competitors

As the Dispensing Pharmacy Business has already achieved “recruitment of high-quality pharmacists,” we have moved on to the next step, which is the phase for “high-quality education.” We have launched the Pharmacist Stage System in April 2018, recommending acquisition of internal credentials. The Company also provides full support so that employees can step up to acquiring more advanced external credentials. Because hospital training in addition to pharmacy work experience is essential for acquiring external credentials, we conduct hospital training for over 100 pharmacists each year.

Training for New Hires

We endeavor to provide new employees with meaningful training that will form their foundation as members of society and medical professionals. Training programs offer practical content and focus on role playing and discussions, and seek to sharpen the knowledge and skills needed in each occupational category.

Training for Newly Assigned Store Managers

We actively exchange opinions through group work between store managers tasked with the management of their businesses, covering a range of topics including their roles as leaders, guidance of subordinates, and marketing aimed at enhancing business performance. We aim to enhance their awareness and abilities as managers, while also placing an importance on creating horizontal connections within the Company.

Mentor System

This is a program in which third-year employees and their seniors from other departments are paired up for regular mentoring sessions. We have been conducting trials since 2018, and are preparing the system for a full-scale introduction as we expand its scope of coverage.

Cultivating Leaders

Nihon Chouzai has five programs in place to cultivate leaders.

Mid-career employee training

We provide separate training for two groups of employees aiming to become future managers: career-track new graduates and mid-career employees. We identify required skills from annual training charts and incorporate these into the training program. We also provide support before and after the training, including preparatory and follow-up assignments involving superiors, and career interviews.

Information Technology training

Launched in 2021 as part of our digital transformation strategy, this program seeks to secure and develop technologically savvy personnel. Participants chosen from each department attend training, give a digital transformation proposal presentation, and generate new proposals.

Evaluator training

We conduct this training for management leaders. They learn the key points of fair, impartial staff evaluations, and how to use the evaluation system to boost motivation and foster the development of subordinates.

E-learning

Used for training in digital transformation, Privacy Mark business certification, and other learning for the purpose of understanding various systems and learning efficiently.

Talent management

We are preparing a talent management program to further develop a cadre of next-generation leaders. As Nihon Chouzai expands its business to achieve the long-term vision for 2030, the need for leaders is growing. We are working to build up a pipeline of employees who can operate from a management perspective, planning to be able to assign needed personnel to key positions at any time. After clarifying the ideal qualities and qualifications demanded of a next-generation leader, we will assess, review, and identify talented employees, and implement a capacitybuilding plan to generate leaders who can assume responsibility for the future of Nihon Chouzai.

Compliance

To strengthen compliance and prevent corruption, we provide employee training.

● E-learning on insider trading regulations

● Compliance education for new employees

● Starting June 2021: Compliance lectures held as part of training for newly appointed pharmacy managers

● Distribution of compliance learning materials on a monthly basis, monitoring of learning compliance

● Compliance education using case studies of industry misconduct at the Pharmacy Department managers' meeting

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Details of Employee Development Training and Education(FY2022)

Training hours per employee※

92.4hours

Employee development training hours per employee

64.8hours

Total training time※

598873.8hours

Employee development total training time

419959.9hours

Training costs per employee

19525.9yen

※Including position-based education

Evaluation

NIHON CHOUZAI created the internal Pharmacist Stage System JP-STAR to evaluate and promote the specialized expertise of pharmacists with regard to their knowledge and skills. As requirements to advance to the next higher stage, the pharmacist should acquire disease-specific in-house credentials for the five major diseases the Japanese government targets for priority measures, as well as eight fields including palliative care, at-home medical care and dementia. In addition, it will also be mandatory for the pharmacist to obtain certification for the higher stage with external pharmacist credentials, demonstrating a high level of specialized expertise. Evaluation of the pharmacist’s advanced level of knowledge, skills and attitude facilitates an increased degree of motivation and enhanced skills.

Customer Satisfaction (CS) Award

More than just a high level of expertise to provide outstanding pharmacy services, we believe it vital to offer outstanding care and to communicate with skill. Through the use of customer satisfaction surveys, we select those pharmacies and staff that excel at providing services, and after evaluating their care and service we recognize them with the JP-CS Award (store award and individual award), and we provide the JP-CS Role Play Award to those who have demonstrated role playing service to patients. We offer a variety of programs to individual recipients of awards, such as experience to learn hospitality, which provides an opportunity for them to further enhance their skills.

Best pharmacy of branch
Award for pharmacies that provide superior service
Every year we select and recognize those pharmacies that have provided superior services. This selection is based on our customer satisfaction survey of patient-supplied questionnaires, followed by recommendations by supervisors and a final check from the person in charge of customer satisfaction.

Best staff of hospitality
Award for staff who provide superior service
Every year we select and honor staff who have provided superior services. Selected pharmacy staff are primarily those who have been highly rated according to patient questionnaires. The supervisor then performs a “blind” check.

Role-play awards
Award staff who have superior care capabilities
The Role Play Award selection process consists of a first-round comprised of 100 participants, which is narrowed down to 20 in the main selection. Performances of care giving to patients are judged. Recipients are selected for the Grand Prize and Outstanding Performance Award in the Pharmacist Category, Operator/Registered Dietitian Category, respectively, as well as the Audience Award across categories.

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Engagement

Diversity & Inclusion

Promoting women’s advancement in our workplaces

The percentage of women in managerial* positions

13% or more (from April 2022 through March 2025)

*Percentage of women assigned as area managers and administrative section managers

Supporting work-life balance and childbirth/childrearing

We provide support to help employees who have experienced a life event continue on with their jobs. This support is provided through a variety of systems and initiatives that facilitate the balance between an employee’s work and personal life. NIHON CHOUZAI has many employees that balance both “work” and “child-rearing,” creating an atmosphere in which they can cover one another.

1 Various systems

● Prenatal/Postnatal leave

● Childcare leave: 1 year (available until the child is 2 years old if the child cannot be admitted to a nursery)

● Childbirth congratulatory money

● Working time reduction for childcare (finishing time can be shortened in 30-minute increments, up to 2 hours per day, until the child enters elementary school)

● Nursing leave system (leave may be taken for nursing when a child becomes ill, receiving vaccinations or medical examinations)

● Maternity leave system for spouses (in order to encourage male employees to participate in childcare, a leave system is provided separately from paid leave)

Take a look at this! “Maternity trousers”

We make “maternity trousers” available for expectant pharmacists who are working while protecting their babies until they go on prenatal leave. Since the white garment has a rubber part on the abdomen with less tightening, they can work comfortably, and it also helps prevent cold and swelling in the abdomen and feet.

2 Support for work-life balance

With the membership-based health and welfare benefits service, a wide variety of menu items that are useful for daily life and holidays are available at a reasonable price. Services such as monthly childcare facility subsidies, childcare facility vouchers and babysitter subsidies are included in the menu, in addition to subsidies for babysitting expenses through Discount coupons for babysitter dispatch services by the Cabinet Office and securing priority admission slots through cooperation with company-initiated childcare facilities. We are working to enhance systems that support employees who want to balance their work and raising children.

Cooperation with company-initiated childcare facilities

Priority admission for the children of NIHON CHOUZAI employees

Discount coupons for babysitter dispatch services by the Cabinet Office

Subsidy program for employees

Payment of various subsidies

Childcare facility vouchers

Monthly childcare facility subsidies

Babysitter subsidies

3 Flexibility of career plans

We have introduced a system that affords employees flexibility in changing their employment contracts so that they can easily shift from a full-time employee status to a contracted or part-time employee status in accordance with life events and changes in their living environments. In addition, we have created a system which will enable employees to preferentially return to the Company after they have retired on account of compelling personal reasons, such as marriage, childbirth, child rearing, caregiving, or the work transfer of a spouse.

Results of Efforts to Promote Women’s Advancement in the Workplace

Traditionally, the pharmacist profession has a high ratio of females, and of the pharmacists employed at NIHON CHOUZAI about 70% are female. For that reason, we endeavor to support the careers of female employees and raise awareness among management, and take Company-wide efforts to promote their active participation. The roles female employees play has become an important management issue. We are moving forward on providing opportunities for education, regardless of gender, and nurturing women who will be store managers and supervisors.

（FY2022）

Female employee ratio

72.9%

Number of people using reduced working hour system for childcare

560

Rate of return from childcare leave

100%

Acquisition of “Eruboshi” certification

As a result of continuing our efforts to create opportunities for both men and women to play a role in the Company, and with the development of an easy-to-work-in environment for females, in 2018 we obtained Grade 3 of “Eruboshi,” * a certification, recognizing excellent companies for the active participation of women, that is based on the Act of Promotion of Women’s Participation and Advancement in the Workplace.

* Eruboshi, or “L Star” (the L represents Lady, Labour and Laudable), is a certification under the Act on Promotion of Women’s Participation and Advancement in the Workplace. The Minister of Health, Labour and Welfare (delegated to the Labour Bureau head) grants Eruboshi certification to corporations with an outstanding implementation of their action plan for initiatives to promote the active participation of women. There are five evaluation criteria, namely, recruitment, employee retention, working hours and other work conditions, rate of women in management, and diversity of career progression, with three levels of certification based on the number of criteria met. At NIHON CHOUZAI we have fulfilled all criteria and have received Grade 3.

Acquisition of “Kurumin” certification

In 2021 we obtained “Kurumin” certification for creating a supportive workplace for employees with children, in accordance with the provisions of the Act on Advancement of Measures to Support Raising Next-generation Children.

* Under the Kurumin system, the Ministry of Health, Labour and Welfare accredits companies, which have achieved objectives included in their General Employer Action Plans, that was formed based on the Act on Advancement of Measures to Support Raising Next-Generation Children, and meet the certain standards.

Acquisition of “Tomonin” certification

In 2021 we obtained “Tomonin” certification to demonstrate that we provide a workplace environment where employees can balance work and nursing care.

"Tomonin" certification is a symbol mark promoted by the Ministry of Health, Labor and Welfare. In order to prevent unavoidable quitting of work for the care of parents and family members, it indicates that the company will create a work environment where both work and long-term care can be achieved.

Survey

The Nihon Chouzai Group believes that greater engagement between the company and its employees is essential to increasing corporate value by generating and drawing on group synergies.
We carried out our first engagement survey for the entire Group in 2021. Survey scores in areas regarding the future of the company were extremely high compared to survey data for other companies. This result represents a significant advantage for the Group in terms of achieving stable, ongoing growth. We carried out a follow-up survey in 2022. Without worrying about small fluctuations in response values, we will use the surveys to accurately analyze where the Group stands and work to ensure that all employees understand Group policies and are empowered to put the Group philosophy into practice.
We will continue to conduct regular surveys, and take steps across the Group to improve employee engagement.

Target

All Group companies

Number of questions

142

Response rate

93.04%

Work-Style Reform

Planned paid leave system

We have introduced a system whereby employees can take paid leave in a planned manner. This system works to support the taking of paid leave based on an employee’s preferences, and it facilitates the creation of an environment in which paid leave can be taken.

Work-Style Reform Committee

We have established a Work-Style Reform Committee so as to address changes in the law and further enhance workplace productivity. This committee follows up with employees who work long hours and responds to issues of work safety and health.

Proactive dissemination of personnel rules to worksites

From the perspective of reducing overtime work and strengthening our efforts to promote the acquisition of paid leave, we are regularly providing opportunities for Area Managers and Store Managers to receive explanations from HR staff, aiming to change mindsets such as the thorough enforcement of attendance rules at worksites.

Health Management

In order for Nihon Chouzai to provide the best possible medical services to the communities we serve, health management aiming to maintain and improve the health of our own employees is a priority.

We have issued a Declaration of Health and established performance indicators striving to promote health, improve productivity, retain staff, and recruit talented employees. We have also built an organizational framework to allow industrial physicians to be involved in our health promotion from a professional standpoint. We are creating a system in which all employees are conscious of their own health and can contribute to fostering a vibrant workplace culture.

Influenza immunization subsidy

From fiscal 2018 we have strengthened measures with regard to disease prevention. In addition to the health insurance association providing subsidies to those employees who have received their influenza immunization, NIHON CHOUZAI also grants a subsidy.

Prohibition of smoking and installation of disinfectant at all sites

Smoking is prohibited at all locations, including headquarters, branches, and pharmacies. In addition, from the perspective of disease prevention, disinfectants are installed at the entrances and exits of all pharmacies, headquarters, and branches.

Promoting Hiring of the Disabled

We employ approximately 130 workers with disabilities. By achieving the rate of 2.33% (as of June 2022), we have surpassed the statutory employment rate. We are expanding relevant occupational areas while promoting active employment.

Expansion of occupational categories
In addition to the traditional occupational categories of pharmacist, medical administrator and office worker, we are expanding occupational categories, such as employees who are tasked with being the driver when a pharmacist is making a home visit.

Using sign language to provide care and medication guidance
Pharmacists who are deaf provide service at their pharmacies using sign language. In addition, we provide e-learning contents within the Company so that pharmacists can learn the sign language required for providing the pharmacy services needed to assist deaf people.

Dedicated support staff system
We assign dedicated support staff to every employee with disabilities, from the time of the initial job interview through to a follow-up period after joining the company. Dedicated support staff receive the job coach training, and are taking other steps to provide more robust support for job retention as company-based
job coaches.

Job retention measures
After an employee with disabilities joins the company, the dedicated support staff member conducts regular interviews and follows up by telephone. Public health nurses also provide support, working with managers in the workplace to address any issues early as possible. In these ways, we are working to create an environment where employees can work without worry.

Mid-career Recruitment (career recruitment)

In addition to hiring new graduates, we are strengthening the career recruitment of human resources required by each department. By acquiring highly specialized human resources from outside, we are not only fulfilling the positions in need of human resource, but also strengthening the expertise of the entire organization and creating new value which is different to existing employees.

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