The Hodogaya Chemical Group regards human resources as a source of corporate competitiveness and the driving force behind sustainable growth, and views investment in human capital as a key management priority for enhancing corporate value as it works to realize its Management Philosophy, PURPOSE, and VISION. Under the new Mid-term Management Plan CODE/CHORD 2030, which began in FY2026, we will promote investment in human capital with the strategic goal of enabling all officers and personnel to experience job satisfaction (motivation to work and ease of work) while enhancing organizational capabilities.
We have set our strategic objective as “enhancing organizational capabilities by ensuring that all executives and employees experience true fulfillment in their work—a combination of job satisfaction and a supportive work environment.” To achieve this, we are pursuing the following three goals:
(1) High engagement through personal commitment to our strategies
(2) A well-balanced environment featuring psychological safety, shared vision, growth opportunities, and fair evaluation and compensation
(3) A corporate culture that combines flexible “resilience” with the “toughness” to overcome challenges
The Hodogaya Chemical Group seeks to recruit strategic talent capable of contributing to the enhancement of our corporate value through their capabilities, skills, and experience. Regardless of personal background or attributes, we actively hire “individuals who can learn, think, and act on their own,” driven by a desire for growth and a willingness to take on challenges.
In our recruitment of new graduates, we proactively hire from high schools located near our manufacturing plants. We are also actively pursuing mid-career recruitment, with mid-career hires accounting for 36% of all new hires in FY2025 (non-consolidated).
To enhance corporate value, the Hodogaya Chemical Group pursues the principle of “the right person in the right place,” ensuring that each employee can fully demonstrate their abilities, skills, and experience.
We also take into account each employee’s career aspirations and needs for skill development when making placement and transfer decisions.
To drive the enhancement of corporate value, the Hodogaya Chemical Group actively provides a wide range of training opportunities, from daily on-the-job training in the workplace to off-the-job training programs. Through these initiatives, we support employees in improving their skills and building their careers according to their respective developmental stages, while fostering an organizational culture of continuous learning.
| Programs | |
|---|---|
| Global Training | To foster globally competent personnel, the Hodogaya Chemical Group offers regular language training and overseas study programs in English-, Chinese-, and Korean-speaking countries. |
| Position-based Training | Training programs are provided at the time of promotion to managerial positions (department managers, section managers, team leaders, etc.) to equip employees with the knowledge required for their new roles. |
| Grade-based Training | Educational programs such as management training are implemented to enhance employees’ ability to perform their duties effectively. |
| Job Function-based Training | Training programs tailored to specific functions—such as sales, development, and manufacturing—are provided to strengthen the skills necessary for each role. |
| Basic Training | All employees of the Hodogaya Chemical Group receive essential training on compliance, sustainability, and diversity to build a solid foundation of knowledge and enhance practical skills. |
| Self-development Support | The Group supports employees’ continuous learning through correspondence courses, web-based e-learning, and assistance for obtaining professional qualifications and licenses. |
The Hodogaya Chemical Group operates a fair personnel evaluation system designed to develop the strengths of each employee, address areas for improvement, and appropriately reward their contributions to the company.
FY2025
FY2024
FY2023
FY2022
FY2021
We are implementing the following initiatives to achieve “CODE/CHORD 2030.”
The Hodogaya Chemical Group recognizes that the purpose of promoting diversity is to promote innovation in a challenging competitive environment, flexibly reorganize businesses, and strengthen adaptability to changes in order to enhance corporate value. In particular, to promote the active participation of women, we conduct training for female employees to help them develop their aptitudes and abilities and become aware of their role as leaders, and we also conduct training for male employees to reform their awareness, thereby working to create an organizational culture where both men and women can play active roles without distinction. Regarding mid-career hires, we make appointments based on a comprehensive assessment of experience, abilities, and skills without any difference between Japanese and non-Japanese and new hires and mid-career hires. At the same time, we are working to create an environment in which personnel can maximize their individual talents and skills. The election of a female Outside Director was approved at the Annual General Meeting of Shareholders in June 2023, and in June 2024, we promoted a female Executive Officer from within the company.
The Hodogaya Chemical Group expects all employees to thrive in every aspect of our business, including managerial and supervisory roles, based on their capabilities, skills, and experience, without any distinction between men and women.
We have set the following targets to be achieved by FY2030:
(1) Ratio of female managers (consolidated): 15.0% or higher
(2) Ratio of female managers (non-consolidated): 13.0% or higher
Female managers are actively performing in key roles, such as general managers and plant administration department managers. As of March 31, 2026, the ratio of female managers stood at 13.0% on a consolidated basis and 10.7% on a non-consolidated basis.
In order to acquire personnel with diverse values and specialized expertise, we actively strive to hire mid‑career professionals.
Our (non‑consolidated) ratio of mid‑career hires in FY2025 was 35.5%, with these professionals contributing to manufacturing, R&D, sales, management and other areas.
In order to acquire personnel with diverse values and specialized expertise, we actively conduct mid‑career recruitment.
As of March 31, 2026, mid‑career hires accounted for 36% (non‑consolidated), and they are contributing to manufacturing, R&D, sales, and management.
Our target employment rate for persons with disabilities is 2.7%. To achieve this, we select candidates through recruitment activities such as visiting schools near our offices, exchanging information with Hello Work (public employment security office) and private support organizations, and receiving referrals from staffing agencies. Candidates then undergo a probationary period and trial employment at each office. As of March 31, 2026, the employment rate of persons with disabilities reached 2.9%, thereby achieving our target.
The Hodogaya Chemical Group has in place a Reemployment Program for retired personnel, under which a senior employee system is available for employees who wish to participate. In addition, personnel can continue to work as contract employees even after the age of 65, provided that there is a business need and the employees themselves are willing. Many middle-aged and older personnel actively contribute in various fields, leveraging their extensive knowledge, skills, and established networks.
| FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | |
|---|---|---|---|---|---|
| Number of employees (persons) (consolidated) |
834 | 890 | 922 | 942 | 946 |
| Ratio of female managers (%) (consolidated) |
10.8 | 11.0 | 11.3 | 12.1 | 13.0 |
| Ratio of female employees (%) (consolidated) |
18.0 | 19.5 | 20.5 | 21.2 | 22.1 |
| Ratio of non-Japanese employees (%) (consolidated) |
26.0 | 31.0 | 32.0 | 35.0 | 35.5 |
| Ratio of mid‑career hires (%) (non-consolidated) |
34 | 35 | 35 | 35 | 36 |
| Ratio disability employment (%) (non-consolidated) |
2.5 | 2.6 | 2.6 | 3.2 | 2.9 |
The Hodogaya Chemical Group regards initiatives to promote the health of officers and personnel as a management priority. The President serves as the Chief Health Management Officer of the Hodogaya Chemical Group, and the executive officer in charge of the Personnel Department serves as Deputy Chief Health Management Officer. By strategically implementing health management—through guidance and education for health promotion, and collaboration with the Hodogaya Chemical Health Insurance Society and industrial physicians—the Group was certified as a “Health & Productivity Management Outstanding Organization 2026” in FY2026 (for the sixth consecutive year).
We achieved 100% participation in health checkups and over 99% participation in stress checkups, and share employees’ health information with industrial physicians to promote early recovery and prevent serious conditions. In addition, we conduct health enhancement training and health events for all personnel, and provide health literacy content to partner companies to deepen understanding of health management.
Going forward, we will continue to place the highest priority on the physical and mental health of all officers and personnel.
The Hodogaya Chemical Group considers the physical and mental health of its employees a top priority. As a way to increase engagement, we consider initiatives to improve health as a management issue. Therefore, we actively promote health management. The President is the Group’s Health Management Supervisor and the executive officer in charge of the Personnel Department is the Health Management Supervisor Representative. They work with the Hodogaya Chemical Health Insurance Society to actively contribute to instruction and education to promote health.
The Hodogaya Chemical Group aims to achieve both further corporate growth and enhanced job satisfaction for officers and personnel by respecting diverse lifestyles and creating a motivating work environment. To this end, we implement various programs and policies that enable officers and personnel to work productively while maintaining a balance between work and personal life (work-life balance).
In FY2022, we made remote work permanent in response to the COVID-19 pandemic, and even for officers and personnel who come to the office, we promote a year-round business casual dress code without ties to create a more comfortable workplace.
In addition, we actively pursue work-life balance initiatives, including increasing the rate of paid leave utilization and male childcare leave, introducing a 5-day consecutive refreshment leave system separate from annual paid leave, establishing telework regulations, and expanding the flex-time system. By supporting a balance between work and life, we continue to enable all officers and personnel to maximize their abilities and skills.
The Hodogaya Chemical Group stipulates respect for human rights and the prohibition of discrimination in its Compliance Code of Conduct. The Hodogaya Chemical Group’s policy on employee compensation is grounded in the principle of equal pay for equal work, with a foundational commitment to fair treatment aligned with individual capabilities and roles.
Our wage regulations also ensure a gender-neutral compensation system.
The Hodogaya Chemical Group complies with statutory minimum wage requirements and pays wages that exceed the minimum wage to its employees. In addition, to ensure that employees can maintain a decent standard of living, we provide various allowances as part of our compensation, thereby paying wages at a living wage level. We continue to implement base salary increases, comprehensively considering factors such as our corporate performance, market benchmarks, inflation trends, and the need to secure outstanding talent. Building on this, we are shifting away from a seniority-based structure and promoting a transition to a “fair and highly acceptable compensation system” based on roles, expertise, skills, and performance.
Specifically, under the competency-based grading system applied to all employees, salaries are determined by evaluating the achievement of individual goals, demonstrated competencies, and behaviors. We also strive to enhance transparency and employee understanding through one-on-one feedback meetings with supervisors.
For managerial staff, effective April 2026, we introduced a “Hybrid Job-Based HR System” that integrates a job-based framework with our traditional competency-based system. Under this new structure, we established “position-based pay” commensurate with roles, responsibilities, expertise, and skills. The objectives of this system are: (1) fair and transparent talent appointments with compensation that reflects contributions; (2) the enhancement of expertise, skills, and organizational capabilities; and (3) the transformation of our corporate culture.
Additionally, we conduct 360-degree assessments to foster individual self-awareness and encourage self-directed growth, aiming to improve management and communication. In addition to these initiatives, we have introduced a stock compensation plan (J-ESOP) as part of our expanding investment in human capital.
Across our supply chain, as part of our procurement activities, we verify that our business partners comply with applicable minimum wage requirements in each region through a survey on the implementation of our Procurement Guidelines.
As initiatives to reduce working hours, we have designated Wednesdays and Fridays as “No Overtime Days” and instruct employees to leave work on time. In addition, the Head Office promotes a latest departure time of 9 p.m., and although this is not formally institutionalized, we encourage a 12-hour interval between shifts.
The flextime system is also applied to some administrative departments at the Head Office.
In 2020, we established “Work from Home Regulations” to respond to the COVID-19 pandemic; these were revised to the permanent “Telework Regulations” on the occasion of the relocation of the head office in May 2022. Under the revised regulations, telework—up to four days per week, including working from home or at a shared office—is allowed. The main purposes are to (1) improve employees’ workstyles and engagement by helping them achieve a work-life balance, (2) promote efficient use of time to improve work efficiency, and (3) ensure the ability to continue business operations in the event of large-scale earthquakes, water- and wind-related hazards, infectious diseases, or other disasters.
Annual paid leave can be taken in half-day or hourly increments. The usage rate of paid leave is 72%, and all Group personnel have taken five days or more of leave. Going forward, we will continue to review various systems to achieve further improvements.
Unused annual paid leave at the end of the previous fiscal year can be carried over as “Separately Accumulated Leave,” up to a maximum of five days per year. This leave may be used not only for personal illness or injury but also for nursing care, medical checkups, volunteer activities, and other purposes.
“Refresh Leave is a system in which personnel are eligible to take five consecutive business days off in addition to annual paid leave. This leave is aimed at refreshing the mind and body, and by combining it with Saturdays and Sundays, personnel can enjoy an extended vacation.
Personnel are required to use a certain number of annual paid leave days prior to taking Refresh Leave in order to promote a balanced use of annual paid leave and Refresh Leave.”
“The Group implements various programs to support childcare, including short working hours during pregnancy and the childrearing period, long-term childcare leave, and nursing leave when a child is sick. To promote better understanding and use of these programs, we provide briefings on corporate programs, financial support, and necessary procedures related to pregnancy, childbirth, and childcare.
In FY2025, eleven male personnel whose spouses gave birth took long-term childcare leave (usage rate: 92%).
The Group also provides programs to support nursing care, including both long-term nursing-care leave and short-term nursing-care leave.
Since FY2018, we have introduced a reemployment registration system called the Come-back Entry Program for personnel who voluntarily left the Company due to childcare, nursing care, or similar reasons, thereby creating an opportunity for them to rejoin the Company.”
This system allows employees to use the Shinkansen and limited express trains for commuting, aiming to (1) reduce commuting time for long-distance commuters, (2) make effective use of commuting time, and (3) expand the options for residential locations. While certain requirements, such as commuting time and distance, must be met to use the system, it is implemented as part of initiatives to enhance work-life balance.
| Programs | |
|---|---|
| Long-term childcare leave | Until a child turns one year old, in principle, but extendable until the child turns two under special circumstances |
| Long-term nursing-care leave | Up to 180 days per family member requiring care |
| Childbirth leave | Six weeks before childbirth/eight weeks after childbirth |
| Spousal maternity | Three days in case of spousal maternity |
| Short working hours | Up to 180 days until a child reaches the 3rd grade (childcare) or within three years (nursing care) |
| Nursing care for children | Five days/year (a max. of ten days) per child until he/she reaches the 3rd grade |
| Short-term nursing-care leave | Five days/year per family member requiring care |
| Separately accumulated annual leave | Annual paid leave that expired at the end of the previous fiscal year is accumulated separately up to 5 days per year and apply it to time off for such uses as personal illness/injury, nursing care, and voluntary services |
| Half-day leave | Paid leave on a half-day basis (four times/month, up to 24 times/year [a max of 12 days]) |
| An hourly leave | Paid leave on an hourly basis (up to five days/year) |
| Telework | Telecommuting, shared office work up to 4 days a week |
| Flextime | Trials are underway to increase the number of applicable departments. |
| “Come-back” entry | Reemployment Applicants Registration System for persons who resigned for unavoidable reasons such as childcare and nursing care. |
| FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | ||
|---|---|---|---|---|---|---|
| Ratio of usage of childcare leave (non-consolidated) (%) |
Male | 56.0 | 83.0 | 109.0*1 | 82.0 | 91.7 |
| Female | 100 | 100 | ー*2 | 100 | 66.7*2 | |
| Average monthly overtime per employee (non-consolidated) (hours) |
11.6 | 11.3 | 10.0 | 12.0 | 11.3 | |
| Ratio of usage of paid holidays (non-consolidated) (%) |
69 | 71 | 74 | 72 | 74.1 | |
| Ratio of usage of refreshment leave (non-consolidated) (%) |
93.0 | 93.0 | 96.0 | 96.0 | 96.4 | |
*1 In FY2023, the ratio of male employees taking childcare leave exceeded 100% due to a timing shift in when leave was taken.
*2 Ratio of female employees taking childcare leave had no eligible employees in FY2023.
In FY2025, the rate was effectively 100% due to a timing shift in when leave was taken.
The Hodogaya Chemical Group has set as a goal enhancement of engagement such that all officers and personnel can feel job satisfaction. In order to gauge employees’ perception of job satisfaction, the Group is conducting assessment and analysis of engagement scores, as well as developing and implementing policies to address issues (including personnel dispatched overseas). The results revealed that there is a strong resonance with the Company’s philosophy and strategies among employees, while there are still challenges in terms of getting help from one’s surroundings and receiving acknowledgment for one’s comments and opinions. It is our goal to create a psychologically safe workplace where everyone feels comfortable speaking up.
Target
Gradually raise engagement score
Result
Items showing improvement since assessment
(rate of improvement from FY2022 to FY2025)
| Key driver: item | Initial score | Recent score | Rate of improvement |
|---|---|---|---|
| Organizational culture: embracing challenges | 50 | 56 | 12.0％ |
| Health: workload | 53 | 58 | 9.4％ |
| Environment: work-life balance | 59 | 64 | 8.5％ |
| Health: stress response | 54 | 58 | 7.4％ |
* Trends include an emerging culture that recognizes and celebrates taking on challenges, as well as reduced workloads and stress resulting from improved work-life balance.
The Hodogaya Chemical Group appropriately manages the following human capital risks that could impede stable growth, striving to prevent, avoid, and mitigate potential losses:
(1) Violations of labor-related laws and regulations
(2) Workplace harassment
(3) Mental health issues and extended medical leave resulting from these factors
(4) Individual disputes and grievances concerning personnel and HR management
(5) Delays in acquiring expertise and specialized skills, as well as the loss of talent
Hodogaya Chemical Co., Ltd. and the Hodogaya Labor Union (hereinafter collectively referred to as “management and the union”) have maintained a healthy relationship based on mutual trust since entering a labor agreement in 2001.
Under the labor agreement, the company acknowledges and respects union members’ fundamental labor rights, including collective bargaining rights, while the union acknowledges and respects the company’s management authority.
Based on the union shop system, the labor union participation rate is 100%, except for management and certain employees specified in the agreement.
Management and the union hold regular meetings once a month, during which the company provides explanations and engages in discussions on the Group’s business conditions, policy revisions, and overtime work. Every March and April, meetings are held almost weekly to discuss requested revisions to working conditions.
In FY2024, in addition to regular agenda items, discussions were held on wages in light of the economic situation, the progress of the mid-term management plan SPEED 25/30, and the optimization of working hours. Furthermore, each business site holds monthly discussions between management and the union to address issues such as workplace environment and labor-hour management.
| Index | Target range | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| Number of people in union*1(persons) | non-consolidated | 310 | 336 | 340 | 332 | 330 |
| Union membership rate*2(%) | non-consolidated | 100 | 100 | 100 | 100 | 100 |
*1 The number for each fiscal year on March 31
*2 Number of people in the union divided by the number of eligible people (excludes management and people exempt from the agreement)
The Hodogaya Chemical Group concluded various COVID‑19 countermeasures on May 8, 2023, following the reclassification of COVID‑19 as a Category V infectious disease under the Infectious Diseases Control Law.
Going forward, we will continue to implement appropriate infection prevention measures as needed to prepare for potential pandemic risks. We recognize that such measures not only fulfill our responsibilities as a manufacturer to maintain supply, but also contribute to preventing the spread of infections in society.
The Hodogaya Chemical Group has set the strategic goal of enabling all officers and personnel to experience job satisfaction (motivation to work and ease of work) while enhancing organizational capabilities. Since April 2026, we have introduced a hybrid job-based personnel system and a student loan repayment support program and expanded J-ESOP eligibility. Going forward, we will remain attuned to developments in human resource management and respond to a wide range of HR challenges and changing values.
HR Department
N.K.
Employee training not only serves to develop skills and support the growth of every employee, but it also plays a pivotal role in enhancing job satisfaction and performance across the whole organization. We believe that creating an environment where employees can continue to learn independently while feeling fulfillment is one of the important roles of the Human Resources Department in achieving SPEED 25/30.
Going forward, we will further focus on developing the next generation of leaders to ensure the organization’s sustainable development while maintaining and enhancing its competitiveness. Simultaneously, the Human Resources Department aims to create an environment that balances job satisfaction with organizational growth and leads to improved engagement by focusing on motivating employees and establishing systems to encourage learning.
Manufacturing Department,
Koriyama Plant
S.H.
In July 2023, my second daughter was born, and I took 3 months of childcare leave. When my first daughter was born by emergency C-section, my wife struggled to even move for a while due to postoperative pain, and considering that we didn’t have any relatives nearby to rely on, as well as taking care of our energetic first daughter, I decided to take 3 months off.
I am very grateful to my supervisor who readily agreed and to my colleagues who supported me. I feel that the understanding of men taking childcare leave has deepened to the point where it’s already becoming the norm, which greatly contributed to my ability to take it without hesitation.
My wife thanked me, saying, “I’m really grateful that you took childcare leave.” In the future, I will support those taking childcare leave as someone who can provide support.
General Affairs Department
K.O.
Using the head office relocation in 2022 as an opportunity, Hodogaya Chemical is implementing various measures to improve the feeling of motivation and ease of work. Among a host of initiatives, we consolidated all departments (including officers) to a single floor, introduced an office system where employees are free to change desks at all work stations, eliminated fixed-line phones, and made telework a regular practice. This approach to workplaces and work styles directly enables those in their child-rearing years and female employees to play an active role. With this in mind, we believe a bright and open atmosphere is also very important. The new head office features minimal walls and pillars, large open spaces and a lounge area, and a system that allows personnel to connect with anyone at any time. However, there are still many issues to consider, such as better communication and the appropriate scale for each area. I want to continue helping to improve engagement from a woman’s perspective.
Nanyo Plant
T.F.
It felt like the month went by very quickly, but I was able to take advantage of our childcare leave program. The reason I utilized the childcare leave was because I wanted to increase the amount of time I spend with my wife and child and I wanted to try helping with the housework and childrearing that I usually leave to my wife.
I was glad that I used this program since it let me have more freedom in my schedule, allowed me to prepare meals and baby food (which were two things I had not been able to do well), and made it easier for me to tend to the baby in the middle of the night.
I am not sure that I was of much help, but I think it lessened the mental and physical burdens on my wife. I hope that our society will become better at accepting and accommodating both men and women who are working while taking care of household chores and childrearing.
Deputy General Manager of Intellectual Property Dept. Research & Development Department
J.C.
My job is patent practice. It requires highly specialized knowledge and a strong sense of responsibility. In doing my job, I am required to master the legal knowledge on intellectual properties inside and outside of Japan and technical knowledge on areas in charge. In such environment, the responsibilities and pressure of being a female manager of a foreign nationality are not small, but I try to handle the domestic and international patent practices by utilizing the unique sense I have as a woman and language skills I have as a foreigner in the practical management of intellectual propertyrelated activities.
Also, my husband and I are a working couple with elementary school kids, so there are many challenges in balancing my career and housework. However, I think I am able to work full-time by using the various programs that support childcare and thanks to the support of my colleagues.
I wish to continue contributing to the development of the Company on my own without being conscious about gender or nationality.
HODOGAYA (SHANGHAI) TRADING CO., LTD.
T.K.
I spent one year from April 2015, my fifth year with the Company, in Shanghai to participate in the overseas language training (trainee program), and now I am based in Shanghai engaging mainly in sales operations of our dyestuff products within China. Three and a half years have already gone by since I began living in Shanghai.
Back then, I was bewildered by my first experience living abroad, and I had to study Chinese almost from zero. But thanks to all the support, the environment to focus on studying the language was already there, and I was able to dive straight into my Chinese studies, which I feel became the foundation of the greater ability I have now.
China is growing with such speed that I am often perplexed by the speed of things changing. But with the support of my colleagues and local staff, I am able to do my job in a foreign country.
I am truly grateful for this valuable opportunity to gain work experience abroad while I am still young. Meeting such people whom I could rarely meet in Japan is a real pleasure of working abroad, so I will continue to work hard on what I can do where I am.
Head of Administration
Department, Nanyo Plant
N.M.
At the plant I work, the majority of employees are male. In such an environment, I sometimes feel the pressure of being a female manager, but in carrying out my job, I always try to think what I need to do and what I am expected to do while using my sensibilities as a woman. My husband and I are a working couple, so it was difficult to balance my career and housework when the children were young. I couldn’t have continued working without the support of my family.
The Company has many programs for female employees to actively participate, and I think they could be improved with ideas from a female perspective, which should lead to improving the quality of our business. Looking forward, I hope that there will be more opportunities for female employees to participate actively, with the recognition that male and female are working partners.