​Human Resource Development

Human Resource Development

Based on our corporate philosophy of "Bridging to a brighter tomorrow,　we cherish individuality,　cultivate values through innovation and creativity,　and commit to a positive and smart future,” the company is committed to fostering a participatory management approach and cultivating an inclusive work environment that values each other's human rights and dignity. 

We will foster innovation, improve employee satisfaction and work environment, and make a positive impact on talent acquisition and retention by encouraging diverse perspectives and experiences in the workplace.

Governance

The following is our governance structure for human resources development and working environment creation.

• ・Human resources strategies for the sustainable growth of our business, such as organizational restructuring, key personnel appointments, the development of management executives and global human resources, diversity, are reviewed and deployed by management executives including executive officers at the Business Strategy Meeting. Besides, the Workplace Safety and Health Committee, which is made up of representatives from each department, plays a role in improving holistic employee engagement and promoting workplace health management.
• ・We review such personnel development efforts to ensure that they are actually effective, based on opinions and views raised at the the "Employee Representative Committee," which is operated by employees themselves, as well as on face-to-face conversations between staff members and management executives during their onsite visits to group business bases. 

<Governance and Risk Management Structure>

Policy and Strategy

In the mid-term management plan, we have set out our goals of shifting from "IRISO for automotive" to "IRISO for future mobility", increasing our global presence in the industrial market as our second pillar business, as well as in the automotive market as the first pillar, and improving technological development capabilities, cost efficiency, productivity, capex efficiency, and product and service quality. Besides, we are aiming to build a market-competitive pay system, including the basic pay raise, to boost employee motivation, to improve sales force, technology, and productivity, and to bolster organizational culture through visualizing and sharing necessary information across the company.

We also recognize that it is important to secure necessary personnel (recruitment, retention, and development), as well as to build an organizational structure and work environment, where people who have a global mindset and diverse values can perform well (diversity initiatives), and to create a safe and secure work environment.

①Human Resource Development Policy and Strategy

We are encouraging employees’ independent career development and fostering a positive work environment to ensure that those with various backgrounds and values, including women, foreigners, and experienced hires, as well as technical and administrative staff, etc. can achieve better outcomes and enhance performance through leveraging their individual strengths and characteristics. Specifically, our human resource development includes the following activities.
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• ・ Running training programs tailored to employees in different career stages, mid-level employees, leaders, newly appointed managers, etc.
• ・Offering training opportunities for employees to develop necessary work skills to carry out their duties
• ・Providing trainings to all employees for increasing their basic knowledge of diversity and inclusion, harassment prevention, and others.

②Working Environment Development Policy and Strategy

We are improving our working environment to ensure that all employees can continue to work despite a range of life events such as childcare and nursing care. We believe that fostering employee autonomy in the workplace leads to the improvement of productivity and employee engagement. Specifically, our working environment development includes the following activities.
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• ・Introducing work-from-home and flexible working hour schemes
• ・Setting up an unused paid leave accrual scheme for childcare, nursing care, volunteer activities, etc.
• ・Introducing a paid leave scheme for child nursing care

③Diversity and Inclusion Policy and Strategy

We believe that substantial value is created through showing respect for the uniqueness and diversity of individuals, which leads to future company growth in the long term. To increase mid- and long-term corporate value, we encourage the growth of individuals with unique qualities, attributes, and experiences, which is not limited to women, foreigners, and experienced hires, and make appointments and personnel decisions based on fair assessments of how well employees demonstrate their abilities.

④ Workplace Safety Policy and Strategy

We are committed to our "safety comes first" policy. Our topmost concerns are to prevent injuries and illnesses, and to provide a safe and healthy working environment for all employees, for creating a positive working environment where everyone can work with strong motivation and achieve good outcomes. We ensure such working environment where everyone participates and freely shares ideas through open discussions.

⑤ Salary Policy and Strategy

We believe that employee growth drives the long-term success of the company. Therefore, we ensure that employees are compensated fairly based on their capabilities and contributions. Employee salaries are determined in accordance with the following policy.

Basic Salary Policy

Employees are assigned to a salary grade based on the responsibilities of their job. Based on an annual evaluation, employees who demonstrate expected competencies for their grade and continue to develop their skills are rewarded through salary increases and career advancement. The system is designed to recognize not only business results, but also employees' efforts to develop their skills and grow professionally. 

Base Salary Increase Policy

We regularly review and increase base salaries by taking into account factors such as inflation, cost of living, and the company's financial performance. In addition, if salaries for certain job grades are significantly lower than market levels, the company gives priority to adjusting those grades to ensure pay remains competitive. The goal is to provide fair compensation that helps attract and retain talent while also supporting employees' long-term growth and development.

Bonus Policy

Bonuses are determined based on how successfully each employee achieves the goals set for them at the beginning of the year. These goals are aligned with the company's business objectives and organizational priorities and are established through discussions between employees and their managers. Employees who achieve or exceed their goals receive higher evaluations, which are reflected in their bonus payments. By linking bonuses to individual performance, we encourage employees to continue growing, contributing to the organization, and helping achieve business results.

Gender Wage Gap

As of March 2026, IRISO has 2,842 employees, with 588 in Japan and 2,254 overseas. The pay gap between men and women has become smaller for non-managerial employees. However, among managers, female employees still earn less on average than male employees. One reason is that many female managers have been promoted relatively recently and therefore have less than one-third the lengths of services male managers have. Because salaries generally increase with experience and tenure, female managers still leave more room for individual salary growth within the given pay band.

(Gender Wage Gap) (FY2025)

Measure

We believe that the contributions of employees from diverse backgrounds are essential to the company's future growth. Therefore, we have been working hard to reduce gender inequalities and create a workplace where employees can maintain a healthy balance between their work and personal lives. To support these goals, we took the following measure during the fiscal year 2025. 

•    ‣We clearly defined what a successful employee looked like at each job level, including the roles, responsibilities, and behaviors expected for each grade and then updated the performance evaluation and promotion systems. In this way, employees would better understand what was required to advance their careers. In addition, we expected the evaluation system to serve not only as a tool for determining pay and promotions, but also as a way to support employee learning, development, and career growth.

Risk Management

To keep our business going for future development, it is important to secure human resources. It is crucial to revitalize the organization through securing the talent we need, developing human resources for employee growth, and ensuring a work environment where each and every employee can demonstrate his or her skill and ability. Potential risks arise when it is difficult to recruit the talent we need, when human resources development does not go well owing to employee turnover or worsening employee health, and when each and every employee cannot demonstrate his or her ability for lack of diversity within the work environment. To mitigate these risks, we ensure that safe and healthy working conditions are provided to employees and a diverse work environment is created.

• ・We identify, evaluate, and manage human capital risks in the Business Strategy  Meeting of the company.
• ・The Workplace Health and Safety Committee and the Employee Representative Committee discuss issues reported by each department and business site with departments involved. Some of the issues are also reported in the Business Strategy  Meeting after considering whether certain responsive measures are necessary or how to prioritize them. 
• ・After discussions, important issues and responses with potential major impacts are reported to the Board of Directors, which discuss them and make a decision on them. 
• ・The Human Resources Department and the Workplace Health and Safety Committee develop and implement risk mitigation plans under the guidance and directions of the Business Strategy Meeting and the Board of Directors.
• ・Besides, our company has set up a workplace safety and health management system based on the ISO 45001 standard, and legal and compliance risk monitoring based on this management system is included as a part of human capital risk management.

Metrics and Targets

We have goals set out in the medium-term management plan, such as building the second pillar of business expansion along with business in the automotive market, strengthening R&D capabilities, as well as improving manufacturing capacity, cost competitiveness and product quality. To meet these goals, we need to secure and develop necessary human resources, currently increasing the recruitment of engineers and technical specialists, hiring both new graduates and experienced professionals, promoting M&As of tooling manufacturing companies, strengthening recruitment for overseas operations, and gradually increasing salary levels to attract and retain talent.
We have recognized that we need to improve workforce diversity. Although women hold 26.2% of management roles across the entire IRISO Group, they hold only 1.2% of management positions within IRISO Electronics alone. We take this gap seriously as an important issue that needs to be addressed. Therefore, we have established targets and performance indicators specific to IRISO Electronics alone as shown in the table below to improve its workplace diversity and environment and aim to meet them.

  Workplace Diversity Targets

①Female employees

The company is a manufacturing company and recruits mainly for technology/engineering-related jobs, which are male-dominated. However, we have not been satisfied with this situation yet. We have set the following targets to create a positive and open working environment for women and to increase the number of female employees who wish to be promoted to managerial and executive positions. The following is our targets to increase personnel needed for business growth.

• ・Share of female graduates hired at the headquarters (in Japan): 30% by 2025.
• ・Share of female managers and executives at the headquarters (in Japan): 5% by 2030

②Non-Japanese employees

The percentage of non-Japanese employees at the entire group level is higher than that of Japanese employees, and non-Japanese employees have played a core role at group companies and plants outside Japan. Nevertheless, to increase the level of diversity and inclusion at the headquarters in Japan, we have set the following targets to increase the ratio of non-Japanese officers, including Executive Officers, at the headquarters by developing and appointing human resources available at the group bases worldwide. The targets have been set as follows.

• ・The share of non-Japanese executives including executive officers: per 10% by 2025

③Mid-career experienced hires

Every year, we hire a certain number of mid-career experienced people whose talent readiness for immediate business needs is expected, which serves as a human resources strategy for the group business that has been growing. We have positively promoted them to managerial positions and others, according to their demonstrated skills and abilities. As a result, the share of mid-career experienced hires promoted to managers is already over 65%. We believe that the target share of mid-career experienced hires in managerial positions should reach at least 50%, and thus do not see any problem with the present share.
In the future, we will continue to promote employees to managerial positions by maintaining a balance between graduates and mid-career experienced hires, taking into account the characteristics and personalities of each employee.

Investment in Human Capital and Intellectual Property

For developing human capital and intellectual property necessary for driving sustainability in our business, we are focusing our efforts on:

• ・Providing incentives for those who hold qualifications and licenses, such as language or quality certification, or auditor license and others.
• ・Sending future executive candidates, who are hired at subsidiaries outside Japan, to the headquarters where they learn technical and organizational management skills.
• ・Sending engineers to research institutions, including universities, for the purpose of technological development and joint research.
• ・Investing in human resource development and technological development, such as incentives for patent applications and registrations.