Initiatives with Employees

Policy and Approach

Problems concerning human rights and labor are critical global concerns, and in Japan the rectification of long working hours and the promotion of women and elderly people have become significant social issues as the labor force shrinks alongside a declining birthrate and an aging population.

We believe that employing diverse and excellent people and supporting the continued development of their abilities is not just a source of competitiveness for the company but also the duty of the company towards its employees.

MHR and MIM respect human rights and it is our policy to not discriminate against employees based on their beliefs, religion, age, gender, origin, mental and physical disabilities, etc.

We will work to establish a diversity-oriented working environment where our staff can be effective.
We will introduce multifaceted systems and measures so that each and every employee with diverse lifestyles and values can maximize their abilities and grow their career in a healthy and safe manner.

Talent Development Policy / Program

Policy and Approach

In order to realize MIM's company mission (“MIM is dedicated to the creation and development of major metropolitan cities and MIM will provide investment opportunities in high-quality urban assets to investors both in Japan and overseas as a leading professional in the real estate investment fund business"), MIM believes that it is essential to attract and retain a diverse and capable workforce and to continuously support their career growth and self-development.
To cultivate human resources with flexible thinking and high ethical standards together with a high degree of expertise, mainly in real estate and finance, MIM introduces essential knowledge and skills through on-the-job-training (OJT) and conventional training.
In addition, in order to improve staff effectiveness, to clarify company issues and to constantly improve management methods, MIM conducts a semi-annual staff assessment program - "Personnel Assessment and Feedback" as a core component of our talent development strategy.

Talent Development Program

To allow employees to step up and grow steadily and continuously improve their capabilities as an employee of the Asset Management Company of a J-REIT, MIM established a clear image of "a position to aim at each hierarchy" with “assumed image and eligibility requirement”.
In addition, MIM constructed a series of programs to realize that growth.

＜Model of talent development policy＞

① On-the-Job-Training (OJT)

The basic principle of OJT within MIM’s human resource development strategy is to establish appropriate goals and work habits in the course of daily business operations, to communicate core job specific support, and to improve the overall knowledge and ability of each person.

② Study and Training

MIM conducts training in accordance with the roles and abilities of employees to acquire the knowledge and skills necessary for further life-long, career growth.
MIM also has a subsidy system for qualification acquisition. (Refer to "Training programs and subsidy system")

③ Personnel Evaluation, Feedback and Variable Pay Compensation

MIM believes that feedback is an essential process to promote the fulfillment of each employee’s talents and potential. MIM seeks to concretely convey the problems and remedial measures discovered during business activities through a process of regular communication with employees.
Personnel evaluation consists of "performance evaluation" which evaluates the degree of achievement for goals set semi-annually, and "capability evaluation" which is conducted from various perspectives that evaluate the compliance adherence and the efforts towards ESG Evaluation.
Managers providing the evaluation and the director in charge discuss the feedback thoroughly beforehand in order to deliver precise, objective and actionable guidance to employees.
By clarifying the improvement points on an individual basis, MIM intends to improve employees’ ability.
Employees are promoted based on personnel evaluation. Variable pay compensation is rewarded annually based on satisfying clearly defined criteria.

＜Training programs and subsidy system＞

MIM also has a subsidy system for various training and qualification based on experience and linked to personnel evaluation aspects.

 

Compliance, ESG training

The training is conducted to improve knowledge and ability of various themes that are fundamental to society, such as compliance, environment, human rights, diversity, etc. to handle the business as a member of society.

Real estate / financial training

A lecturer explains the latest real estate and financial market trends along with future prospects, etc. by utilizing various data and facilitating a question-and-answer session and group discussion.

Various ability improvement training

This training utilizes external organizations based on experience to improve various abilities (logical thinking ability, explanation capability, etc.) linked to personnel evaluation items.

Investor Relations (IR) training

IR is recognized as an important task for a listed investment corporation. Therefore, MIM provides a lecture to selected members of senior management on presentation skills and the model answers for anticipated questions.
To prepare for IR activities, MIM conducts drills to master necessary skills through a simulated IR meeting.

Leadership training for General Managers

The leader's ability to oversee each department creates an extremely large influence on the performance of the entire company, therefore, MIM conducts the training session for General Managers about "Managerial knowledge as a leader", "Labor management", "Plan formulation, task setting and execution" and "Guidance training of subordinates".
These training includes the use of external institutions to deepen knowledge and understanding and make use of it in business execution.

Next-generation management training

With the CEO acting as a lecturer and a facilitator, the General Managers brainstorm the prospects for various management tasks and economic and financial scenarios.

〇 Employee talent development training time

	FY 2021			FY 2022			FY 2023
	Number of times (days)	Total hours/ employee	Average number of participating employees	Number of times (days)	Total hours/ employee	Average number of participating employees	Number of times (days)	Total hours/ employee	Average number of participating employees
Compliance training	4	4	21	4	4	21.2	4	4	23
ESG training	2	2	20.5	2	2	20.5	2	2	19.5
Real estate training	4	4	20.5	4	4	20	4	4	22
Financial training	2	1.6	21.5	1	1	20	2	2	21
Investor Relations (IR)   training	2	3.5	5	2	4	5	2	4	6
Leadership training for    General Managers	-	-	-	2	2	1	-	-	-
Next-generation   management training	4	4	6	5	7.6	4.4	5	5.5	6.5

Average number of days   per employee	13.8 days	13.0 days	13.8 days
Average time per employee	13.8 hours	14.3 hours	14.8 hours

Subsidy System for Qualifications

In order to improve employees' skills as professionals in the real estate fund business, MIM subsidizes the expense for acquiring licenses and qualifications by public and private organizations necessary for work.
The target is all employees (including part-time and contractors).

(Number of employees receiving subsidy)

FY 2019	FY 2020	FY 2021	FY 2022	FY 2023
13	14	14	14	14

Breakdown of qualifications held by employees as of the end of March 2024 is as follows:

• ARES Certified Master: 9
• Real Estate Appraiser: 4
• Real Estate Transaction Agent: 11
• Certified Building Administrator: 2
• Certified Public Accountant: 4
• Chartered Member of Securities Analysts Association of Japan: 1

Benefits and work/life balance

We focus on employee benefits and work-life balance, and make the following efforts for all employees (including part-time and contractors).

Survey of employee satisfaction

MIM conducts an employee satisfaction survey by third-party research organizations once a year for all MIM's emplyees to realize a more comfortable workplace environment by understanding the employee's awareness of work and the current situation of the working place.
MIM anonymously collects responses to questions such as "Sympathy for management philosophy", "Meaning and challenge of work", "Human relationships and atmosphere at the working place" etc. MIM provides feedback on the results to all employees and strives to enhance degree of satisfaction by implementing new policies.

• Overall satisfaction score (5-point scale)  〔Target: 3.5 points or more every year〕

FY 2020	FY 2021	FY 2022	FY 2023	FY 2024
4.0	4.2	4.1	4.1	4.0

※The survey was conducted in-house and response averaged on a 5-point scale.

Employee Stock Ownership Plan (ESOP)

MHR established the "Employee Stock Ownership Plan (ESOP)" by aligning the interests of MHR’s investors and MIM’s employees aiming to improve unitholders' value over the medium to long term, and to improve welfare benefits for MIM’s employees.

Special Leave System

In addition to annual paid holidays, MIM offers a special leave system (Season vacation system).
MIM offers an Expired Annual Paid Holidays Reserve System.

Child-care Leave System

MIM is promoting compatibility between employees' child-care and work by providing leave systems etc. for employees' childcare.

• Child-care leave systems
• Child-care leave allowance
• Spouse maternity leave system

		FY 2019	FY 2020	FY 2021	FY 2022	FY 2023
The number of employees who took childcare leave	Male	0	0	1	1	1
	Female	1	0	1	1	0
Percentage of employees returned to work during above period		100%

Child-care Short-time Work System

Employees living with and raising children until the end of the third year of elementary school can shorten their daily working hours.

Care Leave System

Employees are able to take care leave for family members in need of nursing care.

Flexible time system

We have established a system that allows each employee to flexibly set the time of start and end of work within a certain range according to their convenience and particular lifestyle needs.

Promotion of paid holiday acquisition and overtime work reduction

We promote the acquisition of paid holidays and the reduction of overtime in order to improve employee's work/life balance and be cognizant of employee's health.
We constantly take into consideration the pervasive social dynamics while at the same time making thorough efforts to improve work efficiency.

Paid holiday acquisition rate   Overtime working hours

〔Target: 85% or more every year〕 〔Target: less than 15 hours per month〕

	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023
Paid holiday acquisition rate	90.1%	89.1%	86.2%	99.7%	94.5%
Monthly overtime hours worked / employee	7.8 hours	10.7 hours	11.6 hours	10.7 hours	9.6 hours

Safety and Health Management

Safety and health management regulations are set up and a plurality of qualified persons such as hygiene promoters and fire and disaster prevention managers are placed in the company to establish a system for employee safety and health management with regular inspections at normal times and ensuring safety when there are emergencies.

Health Checks

We conduct health checks once a year which cover more than the number of items legally required.
In addition, we have a system that allows employees to consult on diagnosis results and mental health, etc. at all times.

• Percentage having health checks  〔Target: 100% every year〕

	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023
Percentage having health checks	100%	100%	100%	100%	100%

Promoting Respect for Human Rights and Diversity

Respect for Human Rights

We have set the following human rights policy at Mori Building Investment Management Co., Ltd., the Asset Management Company.
In addition, we make sure that all executives and employees are informed of the policy by regularly holding training covering each theme in compliance training, etc.
We have set a policy to respect human rights and not discriminate against people based on their belief, religion, age, gender, place of birth or mental or physical disability.
Also, we believe that the creation of a work environment focusing on diversity and where diverse human resources can be active will lead to the improvement of business performance and contribution to social development and are pursuing formation of such environment.
Moreover, the policies and action principles regarding labor issues stipulated by MIM will also be prepared in languages other than Japanese, as necessary, and we plan to spread understanding of them in a thorough manner.

＜Human rights policy＞

We support the respect for human rights based on the “International Bill of Human Rights,” “Declaration on Fundamental Principles and Rights at Work” of the International Labor Organization (ILO), and “Guiding Principles on Business and Human Rights” of the United Nations, and make efforts to put it into practice.
The policy applies to all executives and employees. In addition, we also request our business partners to support the policy and respect human rights. 

1. Prohibition of discrimination
   We forbid various forms of discrimination based on race, religion, gender, age, sexual orientation, physical disability, nationality, etc.
   
   
2. Prohibition of harassment
   We do not allow any form of harassment that inflicts physical and mental pain to others, including sexual harassment, power harassment, maternity harassment, paternity harassment and care harassment.
   
   
3. Approval of freedom of association and collective bargaining rights
   With regard to the freedom of association and collective bargaining rights, we comply with laws and regulations as well as support and respect such rights.
   
   
4. Prohibition of forced labor
   We do not allow forced labor against the will of workers through violence, intimidation, etc.
   
   
5. Prohibition of child labor
   We respect the rights of children and do not allow child labor.
   
   
6. Payment of wage exceeding the amount of minimum wage and compliance with the “equal pay for equal work” principle
   We pay wages exceeding the minimum wage stipulated in laws and regulations as well as make wage payments that will lead to the improvement of living standard by also taking into consideration commodity price. In addition, a fee system complying with the “equal pay for equal work” principle will be applied.
   
   
7. Reduction of excessive working hours
   We comply with laws and regulations including the labor-management agreement on overtime work (36 Agreement) and strive to cut overtime work and control excessive working hours.
   
   
8. Health and safety of workers
   We comply with laws and regulations and cultivate a working environment where workers can work in good health and safety.
   
   
9. Respecting Regional Communities
   In addition to respecting the rights of adult residents and children and protecting human rights in regional communities, we are working to make these communities more dynamic by promoting local recruitment and procuring goods and services from local companies.

Grievance Reporting and Response to Labor Issues

We have established a confidential reporting system that enables all employees (including part-time and contractors) to report when they are subjected to an act by a third party that violates the human rights policy, regulations and action principles including discrimination and harassment, or when they have various other complaints and dissatisfaction.
The submitting party shall report details to the General Manager of the Administration Department, the compliance officer, or the president. If the General Manager of the Administration Department or the compliance officer is notified of such details, they shall report these to the president, discuss the issue with related parties, and respond in a prompt manner. The individual who has caused the problem shall be subject to disciplinary action, including dismissal, demotion and pay cut, or transfer to another position, etc. depending on the content.
In addition, we have also established a “whistleblowing system” that enables employees to report directly to outside attorneys acts that may violate laws and regulations, internal rules, action principles, and other corporate ethics. The system is official and anonymous and provides legal protection under the Whistleblower Protection Act. In the event of whistleblowing, the Investigation Committee with members appointed by external lawyers will conduct necessary investigations and countermeasures in accordance with MIM’s "Whistleblower Protection Regulations" by considering the confidentiality of the whistleblower and the privacy of the concerned parties. We prohibit retaliatory actions such as detrimental treatment and harassment due to whistleblowing and take appropriate measures to protect whistleblowers and to make "Whistleblower Protection Regulations" works properly. Appropriate measures will be taken so that the work environment will not deteriorate after whistleblowing.
Furthermore, in order to prevent occurrence of problems and to take proper measures in the case of such occurrence, training for managers and employees is conducted regularly.

(Number of cases of response to labor issues, discrimination and harassment reported)

FY 2019	FY 2020	FY 2021	FY 2022	FY 2023
0	0	0	0	0

(Related training programs)

• Implementation of training on human rights, bullying, and harassment     [Target: once every two years]

Promoting Women’s Participation

We are aiming for a workplace environment where each employee can fully demonstrate their individuality and abilities and we are working on creating a pleasant working environment for women.
A child-care leave system and flexible working hours are provided and we promote active use of a short-time work system and paid holidays.

• Implementation of training on diversity for all employees  〔Target: once every two years〕
• Realization of improvement in the ratio of female managers  (No quantitative target: need to be confirmed)

Employment system for the elderly

In order to train young employees and improve corporate vitality by utilizing abundant knowledge and experience, we have introduced a system to reemploy employees who wish to continue working among those who reached the retirement age until the age of 65.
Reemployed workers are able to use the same leave system and flextime system as those of general employees.

LGBT

We aim to create a workplace environment where everyone deepens their understanding on LGBT and diverse personnel will be able to play an active role without facing discrimination. We hold training on LGBT regularly as part of our training programs for human rights and diversity.
FY 2019: once
FY 2023: once

Labor-Management Relations / Collective Bargaining Agreement

In its Working Rules, etc., MIM acknowledges basic labor rights such as freedom of association and the right to collective bargaining, and we support and respect those rights.

Although note that at this time no labor union has been formed at MIM, labor-management relations remain positive, and we have never implemented large-scale dismissals, nor have we experienced any merger or acquisition activity and accompanying restructuring.

In addition, MIM has concluded Labor-Management Agreements (36 Agreements) on overtime work with employees, and strives to support employees’ well-being and improve labor productivity by managing working hours appropriately.

Personnel Data

• Percentage of full-time employees among all employees: 100% (All of the following periods)

	FY 2019	FY 2020	FY 2021	FY 2022	FY2023
Number of executives and   employees	21	22	23	23	22
Male	15	16	17	17	16
Female	6	6	6	6	6
Number of retired employees	4	1	0	4	3
Ratio of retired employees	19.0%	4.5%	0%	17.4%	13.6%
Ratio of female officers and    employees	28.6%	27.3%	26.1%	26.1%	27.3%
Number of female managers	0	1	1	1	1
Ratio of female managers	0%	16.7%	16.7%	14.3%	16.7%
Number of female executives	0	0	0	0	0
Ratio of female executives	0%	0%	0%	0%	0%
Percentage of employees with   disabilities	0%	0%	0%	0%	0%
Merger or acquisition	0	0	0	0	0
Layoffs	0	0	0	0	0

*Number of executives and employees as of the beginning of the fiscal period.
*The ratio of retired employees is the figure calculated by dividing the number of retired employees by the number of officers and employees.
*The ratio of female officers and employees is the figure calculated by dividing the number of female officers and employees by the number of officers and employees.
*The ratio of female managers is the figure calculated by dividing the number of female managers by the total number of managers.
*The percentage of employees with disabilities is the figure calculated by dividing the number of employees with disabilities by the total number of employees.