Sustainability Policies -Attractive working environment-

Recruiting, Employee Retention and Career Advancement

Basic views

Recruiting, employee retention and career advancement is one of our material issues. Kenedix Group is promoting initiatives to develop capabilities of employees by providing trainings and educational programs to maximize individual productivity. Employees receive the opportunities to discuss whether they are satisfied with their jobs and their career plans twice a year, which are used to improve the efficiency of the operation and distribution of personnel at the most desirable place.

Workforce diversity and stability

As a relatively new business sector, the real estate asset management industry developed by bringing together specialists with experience in many areas of the real estate and finance sectors in its early days. Kenedix takes over and utilizes the know-how, expertise, philosophies, and human networks cultivated by the Kenedix Group. Furthermore, Kenedix continues to recruit new employees so that it can secure appropriate human resources in a timely manner in accordance with business conditions and environmental changes.
In addition, we have been recruiting new university graduates continuously since 2005.
Moreover, to forecast hiring needs and proactively develop new pools of talent, Kenedix has adopted a referral recruitment strategy (an employee placement system whereby current officers and employees are encouraged to recommend personnel suited to the Kenedix Group, such as acquaintances and friends) in February 2021 in addition to regular new graduate recruitment and mid-career recruitment.
By securing various human resources, Kenedix promotes sustainability management as a real estate asset management company.
Kenedix Group have never conducted lay-offs or other employment adjustment since their establishment in 1995.

Total benefits package

Kenedix Group strives to create a comfortable working environment through various benefit programs for all of its employees (including contract and part-time employees).

Human resource development system

At Kenedix, Inc., originally hired employees as new graduates are assigned to one-month entry training and then rotate several times in six years to make them grow up to human resources that have broad insight. Furthermore, to continuously improve the operational skills of employees, the company provides external seminars that are structured for specific job categories, such as managers, mid-level employees and new employees.

Examples of human resource development programs by position and level

Employee talent development training percentage

(Note) In 2020, the figure declined sharply due to the COVID-19 pandemic. The figure rebounded in 2021 by utilizing online training.

Training cost per employee

(Note) Calculated for employees directly employed by Kenedix, Inc.

Training programs

Job-specific skill development training program

Kenedix provides seminars arranged by a third party for specific job categories, such as managers, mid-level employees and new employees to give them opportunities to acquire the skills required at each level.

Self-development program

Kenedix provides opportunities to all of its employees to attend seminars and trainings arranged by third parties to acquire specialist knowledge or skills required for their jobs.

English language training

Kenedix provides English language training by teachers from educational institutions to employees who apply for these classes. Students participate in discussions every week. An online-speaking program is also available so employees can utilize this opportunity with more flexibility.

Study abroad program

Kenedix provides opportunities to obtain a broad range of knowledge, personal connections and international viewpoints by sending employees to study in oversea graduate schools where they acquire skills to become the next generation of management.

Encouragement to obtain professional certifications

To keep the status of leading company with professionals that provide high quality services, it is encouraged for its employees to obtain various certifications to develop capability and career and improve organizational power. All the executives and employees, including contract employees, are eligible to receive full subsidies for registration, maintenance, and renewal costs of recommended or supported certifications, with the aim of promoting skill development and career formation of employees who are the future leaders of the company and improving the vitality of the organization. In addition, additional incentives are provided for the acquisition of certain recommended certifications to promote the acquisition thereof by executives and employees.

Qualified individuals

(as of December 31, 2023)

(Note) Calculated for employees directly employed by Kenedix, Inc.

Persons Eligible for Subsidy

All executives and employees, including contract employees

Detail of Subsidy

All registration, maintenance and renewal costs for recommended and supported qualifications
Separate incentive payments for acquisition of certain recommended qualifications.

Internal job announcement

Kenedix Group has internal job application program to provide its employees with the opportunity to demonstrate the best of their ability and to exploit human resource within the company. Employees are allowed to apply for the jobs they wish and design their own career.

Evaluation system to encourage employees’ career development

Employees performance is evaluated through objectives management evaluations. Managers interview individuals to discuss their performance and career opportunities at the beginning, half year and end of the fiscal year.

At the fiscal year end, all employees undergo an evaluation of achievement of contribution responsibility. The supervisor evaluates the performance of each employee in terms of their contribution responsibilities and the degree to which they have achieved them, and the results are fed back to the employee after reflecting the assessment results of the Personnel Evaluation Committee.

Engagement survey

We conduct regular engagement surveys every year as a measure to make the Kenedix Group a rewarding place to work and a company of choice for our employees. By measuring employee satisfaction, we are working to strengthen engagement by continuously examining improvement measures to realize an attractive workplace. Based on the results of the survey, we take organizational issues seriously, analyze them, and respond to them.

Investment Unit Ownership Program (ESOP)

We have introduced investment unit ownership program (ESOP) for KDX Realty Investment Corporation for the employees and senior executive officers.
The purpose of the introduction of the program is to promote welfare benefits by providing opportunities to acquire the Kenedix group REIT’s investment units and facilitating their wealth building as well as to enhance unitholder value over the medium-to long-term by promoting further alignment of interests with Kenedix group REIT’s unitholders. In addition, the program allows for the purchase of investment units through payroll deductions and provides a 10% incentive on the purchase amount.

Health and Wellbeing of Employees

Basic views

The health and wellbeing of employees is one of our material issues. We have been promoting initiatives to maintain work / life balance, provide working environment that is pleasant and advantageous in soft and hard to maximize employee's ability. In addition, the company has prepared the non-salary benefits for all of its employees to reflect a variety of personal needs.

Work style reform

We have been improving its working environment by encouraging employees to take paid holiday, reducing overtime work and introducing various internal rules to allow flexible work style.

Paid vacation in excess of statutory requirements

20 days of paid vacation are granted to all employees after their second year of employment (the first year of employment, the number of days is granted according to the length of employment)

Promoting the use of paid vacation days

On top of annual paid leave, we have a program that allows employees to take consecutive days off. Department managers encourage the people they supervise to go on an extended vacation and to use all of their annual leave.
In addition, in the year following the attainment of 10, 20 or 30 years of continuous service as a regular employee, refreshment leave is granted, which is added to the number of consecutive days off, and a rewards for commemoration of service is provided to those who take refreshment leave.

Hourly paid leave

We have an hourly paid leave system that allows employees to choose a flexible working style. Annual paid leave, sick/injured childcare leave and elderly parent care extended leave can all be taken in one-hour increments.

Flexible working hours

All employees can choose different start and end times for their workday except a core-time from 10 a.m. to 3 p.m. to enhance their working arrangements.

Remote work

All employees can work from home or in a shared office for their greater flexibility in working style.

Initiatives to reduce overtime work

Managers in each department are monitoring working hours and in their team and adjusting workloads of employees to minimize overtime. If an employee has worked more than certain hours, a check-up by doctor shall be arranged upon employee's request, reported to the Health Committee.

Health and wellbeing

We have been endorsing health management to support health of employees and preparing comfortable working environment through establishing rules as follows.

Health committee

Kenedix has established health committee and organized monthly meeting to discuss and take measures to promote health and prevent disorder for its employees. Also, the committee sends email every month to all employees on relevant topics to enlighten them on health and wellbeing.

Annual physical check-up

All employees including contract employees are to receive annual physical health checkup by doctor on company cost.

Mental health care

All employees have access to counseling service provided by the company where employees are allowed to report any personal issues or issues regarding the company to external counselors, in order to raise their mental literacy. Newsletter with relevant topics on mental health is sent every month to notify of this service.

In addition, the company provides annual stress check to all employees including contract employees to prevent illness of which result are provided to each employee and, if necessary, checkup by doctor is arranged.

Diverse working styles

We make the working environment more flexible and provide a variety of working styles and options to suit each individual.

Positive working environment for workers

We are located at “Hibiya Parkfront”, the building we participated in its development. The transportation of the building is excellent since it is directly connected to 2 metro stations, Kasumigaseki and Uchisaiwaicho, through the neighboring building. Taking advantage of its rare location near Hibiya Park, abundant trees are planted inside and outside the building under the concept of an "office in the park". In addition, by providing services and facilities to support office workers, the building has become an ideal office where "people can feel nature and work comfortably".

Introduction of an Activity-Based Workplace (ABW)

We have redesigned our head office to realize a new way of working by adopting an Activity-Based Workplace (ABW), in which employees can choose where they work according to the nature of their work, without fixed seating.
The “activity-based type,” which has been attracting attention in Japan following Europe, the U.S., and Asia, is a development of the free-address type, with the same features of a designated workplace shared by all employees without fixed seating, but with a variety of seating and space arrangements, allowing employees to choose an environment that suits their working style and work content. Since Kenedix group handles highly confidential information such as client asset management and personal information, it clearly separates the space for each group company and the space shared by the entire company, and adopts ABW for the company-wide shared space, while introducing a flextime system to support diverse employee work styles.

Harmonization with the nature of Hibiya Park

In order to harmonize with Hibiya Park, the landscape was developed for greening with over 100 plants and trees. Trees and plants are also placed inside the building to achieve park-like comfortable space in the building.

Hibiya Centrium unified with landscape in Hibiya Park

To protect biodiversity, over 100 kinds of trees and plants were selected after thorough examination of landscape in Hibiya Park. The area has become the oasis for tenants and workers from the nearby office.

Use of workcations

We started the operation of PerkUP Karuizawa as a base for team building and other activities in a scenic area of Japan far from big cities.

Other initiatives

Employees meeting

Employees meetings, both online and off-site, are held to promote interaction among group employees. All employees of the Kenedix group participate in the meetings and share various topics such as messages from the president, introductions of each department, and awards for projects implemented during the fiscal year in order to promote friendship.

Proposal Project

We have implemented a project to solicit a variety of proposals that will contribute to the achievement of the Mid-term Management Plan, positive working and contribution to society from all employees of Kenedix group. Winners are selected through employee voting, and those proposals deemed desirable to be promoted as a project are promoted toward realization with resources, etc., provided by the company.
“Kolet,” the newly built single-family properties for rent, was commercialized through this proposal project. In addition, various initiatives are underway to contribute to positive working and contribution to society, such as group exchange party, measures to improve the rate of paid leave used, the introduction of office music and the provision of donated study session to universities and other organizations.

Support for group activities outside of work

Kenedix subsidizes for group activities such as futsal or golf, which help employees make personal connections beyond his/her job scope.

Certification of health & productivity management outstanding organizations

Through the implementation of various initiatives related to health management, etc., we have been accredited as a “health & productivity management outstanding organization 2024 (large enterprise category)” by Nippon Kenko Kaigi, which recognizes organizations that practice excellent health & productivity management.
The certified health & productivity management outstanding organizations recognition program is a program that recognizes large corporations, small and medium-sized companies, and other corporations that practice particularly excellent health management as "organizations that think about employee health management from a managerial perspective and engage in it strategically," based on initiatives that meet local health issues and health promotion initiatives promoted by Nippon Kenko Kaigi.

Diversity and Equal Opportunities

Basic views

Kenedix has established diversity and equal opportunities as one of its material issues. We promote various initiatives related to diversity, equity & inclusion. Also, we welcome diversity regarding race, religion, creed, gender, age, sexual orientation, disabilities and nationality and respect the rights of individuals. We are dedicated to operating workplaces where all people at the Kenedix Group can realize their full potential.

Respect for human rights, prevention of all forms of discrimination and harassment

The Kenedix Compliance Manual clearly states that we will respect human rights and reject all forms of discrimination and harassment. There are compliance and other training programs to be certain that everyone at the Kenedix Group understands and observes these standards. We recognize the ILO (International Labor Organization) declaration on fundamental principles and rights at work, including the elimination of discrimination, prohibition of forced labor, prohibition of child labor, freedom of association, and the right to collective bargaining, as important social issues, and we are also working to prevent overwork and pay wages that exceed the minimum wage. In addition, we are thoroughly prohibiting harassment, and we provide training for all officers and employees on how to deal with harassment.

Promotion of women employees’ activities

We believe that it is important to revitalize the workplace through the participation of a diverse range of employees. In addition, from the perspective of effectively utilizing human resources to cope with the future decline in the working-age population, we are particularly promoting the activities of women. In order for women to realize their full potential, we have established a workplace environment that is easy for women to work in, as well as systems to support childbirth and childcare, and we aim to become a company where women and their families can play an even more active role.

Kenedix Declaration of Conduct for the Promotion of Women Advancement and Improvement of the Workplace Environment

Each and every one of our employees is the source of Kenedix’s corporate value. We respect the abilities of all employees and aim to create a workplace environment where they can work with peace of mind.

1. We will create a workplace where all employees, regardless of gender, occupation, or age, can improve their skills and fully demonstrate their individual abilities.
2. We will create a workplace where employees can respect each other and freely and openly exchange opinions regardless of hierarchy, departments, age, or gender.
3. We will provide opportunities for motivated women employees to gain a wide range of work experience.

General business owner action plan based on the law for the promotion of women's activity

In order to create an employment environment in which all employees, regardless of gender, can improve their skills and fully demonstrate their individual abilities, we have established the following action plan.

Targets

1. Increase the percentage of female employees in management positions to at least 15% by the end of 2025, with a view to achieving 20% by the end of 2030.
2. Continue to have 100% of female employees take childcare leave, and increase the number of male employees taking childcare leave.

Initiatives

1. Training and career support for female employees
   • Promotion of measures through the Women's Activity Promotion Project
2. Creation of a workplace environment for flexible and efficient work and leave styles
   • Introduce a permanent telework system
   • Promote flexible and efficient work styles by use of PerkUP Karuizawa, shared offices, etc.
   • Promote the use of various types of leave, including annual paid leave
3. Establishment and dissemination of an environment that facilitates the use of childcare leave
   • Promote internal awareness of childcare-related programs
   • Gathering information on case studies of other companies, etc.

Employment system for seniors

From the perspective of revitalizing the workplace through the participation of diverse employees and effectively utilizing human resources in response to the future decline in the working-age population, we have established a system for rehiring employees who have reached retirement age of 60 until the age of 65, we expect that the knowledge and expertise of our senior employees, who have been at the forefront of the real estate asset management industry since its dawn, will be passed on to the organization.

Support for employees through their life event

We have prepared various programs to support employees to work through their life event such as having children or nursing elderly.

Childbirth and childcare

We have a number of programs for women during a pregnancy, such as time off for medical check-ups, working hours that avoid times when trains are most crowded, and days off for good health. At childbirth and afterward, we provide time off for women and their husbands.

Employees can receive time off for the care of a baby or when a preschool age child is sick or requires other care. We also offer flexible working time so employees can care for family members. For example, employees can limit overtime and late-night assignments, reduce working hours, or use staggered hours. There is also a subsidy for expenses for child-related transportation needs before and after work and a discounted babysitter service.

Nursing elderly

Employees taking care of an elderly parent or other relative can use extra days off or extended leave. We also limit overtime and late-night assignments, reduce working hours, or use staggered hours so that an individual can fulfill family responsibilities. Support for nursing care goes beyond requirements by providing more than the legally mandated time off and special days off to care for an elderly parent or other relative.

Relevant Data

Relevant Data (Employment)

• Note1: Calculated for employees belong to Kenedix, Inc.
• Note2: Calculated for employees directly employed by Kenedix, Inc.

Relevant Data (System Use, etc.)

• Note1: Calculated for employees belong to Kenedix, Inc.
• Note2: Calculated for employees directly employed by Kenedix, Inc.