Sustainability

Social Initiatives

Respect for Human Rights

The Simplex Group considers it a social responsibility to conduct its business in a manner consistent with human rights―in other words, everyone’s right to pursue happiness. To effectively promote this philosophy in each of our businesses, we have established the Simplex Group Basic Policy on Human Rights and strive to conduct our business with the utmost respect for human rights.

Basic Policy on Human Rights

Talent Strategy

Positioning human capital as the most important management capital, we strive to recruit the top 10% of talent in the market and foster them. Hybrid talent well versed in both business and technology work as one team in pursuit of innovation by sharing the 5DNAs and the Simplex Philosophy.

Recruitment

01 New graduate recruitment

Since going public in 2002, we have focused on recruiting new graduates. The most important feature of our recruiting policy is our focus on potential hires. Based on their own experience of our founding members, who acquired technology over the course of their careers, our hiring policy is to emphasize intellectual capabilities and high motivation, without taking into account IT knowledge at the time of interview. This stance, which targets students from a wide range of backgrounds regardless of their academic background, is unique in the IT industry, where a science or engineering background tends to be a prerequisite.

One reason we have focused on recruiting new graduates has been a shortage of top talent in the IT industry. Due to the multi-layered vendor hierarchy in Japan, it has been difficult for talented individuals to find jobs in the IT industry because of unappealing compensation structure and the harsh working environment. In the IT industry, which had these kinds of structural problems, we have refined a system for identifying high-potential in a short period of time. This system is the foundation that supports the Simplex Group and is the driving force behind our growth going forward.

It is also worth mentioning that despite being in the IT industry, we have always seen our competitors in recruitment as the global consulting firms. We have focused both on fostering a culture and developing a compensation structure in order to attract high potential and gifted students who are in the top 10 percent in the HR market. We have designed a compensation structure that allows us to off er compensation at the same level as the global consulting fi rms for those who develop their career at the normal speed, and compensation exceeding that of global consulting fi rms for those who excel. This gives us a significant advantage in our recruitment activities.

02 Mid-career recruitment

The establishment of Xspear in 2021 was the catalyst for us to strengthen our strategic mid-career recruitment, after having long focused on hiring new graduates. Along with intra-group transfers from Simplex, we focused on mid-career recruitment of consultants who are oriented toward practical DX support based on technological expertise.

We have made steady progress in recruiting experienced consultants who can make an immediate impact on our business. Behind such a good progress lies in our corporate culture and compensation structure forged since our establishment by the leadership of our management team, who have working experience at global consulting fi rms. Furthermore, this trend of mid-career recruitment is not limited to Xspear, but is also spreading to Simplex, a tech fi rm. The number of mid-career hires, which previously hovered around 30 each year, has increased to more than 100 per year for the entire group since the establishment of Xspear.

One reason we are strengthening mid-career recruiting is the fact that the IT industry is attracting more and more attention every year due to the rise of FinTech ventures and other factors. This has created momentum for talented individuals with high potential who would not have considered IT in the past, but who now aspire to enter the IT industry. These external changes are creating a tailwind not only for new graduates, but also for mid-career hiring.

Talent Development

01 Prospective employee training

In this training course, trainees learn the fundamentals of technology and finance as a common principle of the Simplex Group.

02 New employee training

In this training course, trainees learn the basic skills and behaviors of the “Technology x Business” concept. At this stage, the trainees aim to pass various exams such as the Fundamental Information Technology Engineer Examination, AWS Certified Cloud Practitioner, and Class-2 Sales Representative Qualification Exam.

03 Education system after project assignment

In their first year in the field, employees are formed into units of three, consisting of a senior employee called the “unit leader”, who is appointed by management, and two new employees. The system is designed for new employees to quickly grow into high-value-added human resources in the “Technology x Business” field under the guidance of the senior employee.

04 OJT through projects

In contrast to the Japanese IT industry, where a multi-layered vendor hierarchy in the norm, and work is outsourced in stages from prime contractors to subcontractors, we receive prime vendor orders directly from clients. We therefore ensure we maintain a system that does not outsource development to outside vendors.

An environment in which our staff are able to directly communicate with client’s management and users, and engage in daily, in-person discussions to resolve issues, is critically important to understand the true nature of any issues that arise. This environment allows employees to work on projects that affect the success of client’s business with a sense of ownership and contributes greatly to the growth of our employees.

05 Competency team

With the aim of inheriting and refining the competencies, which have been the crux of the Group’s strengths, and strengthening our organizational capabilities, we established the Competency Team, an internal training organization dedicated to specialized areas, and are promoting research and development, technical training, and talent development. Currently, there are six teams, namely Project Management, System Development, UI/UX, Infrastructure/Cloud DX, and Mathematical Engineering, as well as Generative AI, which was newly established in July 2023. Each team further develops talent alongside OJT through projects and maintains a training system, as well as engaging in crossorganizational involvement in various projects as experts in their respective areas of expertise. The teams are also involved in researching trends and cutting-edge technologies. Each team has a high degree of specialization.

In these, employees who have mastered management or specific skills are appointed as a Competency Lead. In addition, mid-career employees who have gained a certain level of experience through OJT on projects are also offered the opportunity to participate as members if they meet requirements set by each team. The Competency Team, in which various team members hone strengths in an apprenticeship-like environment, offers a growth opportunity for employees to acquire both specialized skills, and also leadership skills, solid work ethics, and other diverse skills.

06 Career development support

In parallel with “Simplex Tech Day,” an internal conference where employees share insights and success stories from tackling technical challenges across various business domains, we also host “Simplex Biz Day,” which highlights business-side initiatives such as consulting and project management in business promotion. These events allow employees to attend sessions of interest based on their own judgment, deepening their knowledge and enhancing their capabilities.

In addition, we subsidize the cost of acquiring work-related qualifications and purchasing books, maintain a learning portal site “boost” with training materials required for business promotion, provide access to the e-learning platform “Udemy Business,” and offer a system that allows employees to take leave of absence for purposes such as enrolling in graduate school or studying abroad, thereby supporting their personal development.

Furthermore, to foster creative collaboration and long-term career development within the Group, we organize “Career Sharing Meetings,” where mid-level employees can share their experiences and learnings from their careers with junior employees. We also run an “In-house Short-term Study Program” to promote mutual understanding and explore internal transfer opportunities.

Evaluation System ＆ Corporate Culture

01 Fair and transparent evaluation system

Employee evaluations are conducted through an annual review session that we call "Bidding,“ or fudaire in Japanese. All senior managers involved in the project work for the fi scal year under review evaluate our employees, so the evaluation is not biased toward the subjective opinions of any one supervisor, but rather provides a fair assessment of the employee's performance.

At the bidding process, a theoretical annual salary for the following year is determined based on the evaluation of the employee's reproducible capabilities, refl ecting the degree of diffi culty for projects and past experience. There is no system of salary increases based on years of employment, as is the norm at Japanese companies. Instead, a culture of "Pay for Value" has taken root, in which employees are fairly evaluated on their work output, and not on how long they have been at the company, the number of hours worked, gender, or nationality.

In addition, the fi rst words the CEO tells new employee at training are competition and cooperation. While we encourage competition, which is essential for growth, we also emphasize teamwork to make projects successful. Furthermore, while we adopt a meritocracy, we do not believe growth opportunities should end as a result of poor performance in any one year. Our culture emphasizes "Up or Stay" rather than "Up or Out," and we will continue to give opportunities to and value our employees as long as they share and commit to our 5DNAs.

02 A corporate culture that maximizes individual strengths

We are committed to fostering a corporate culture that supports diverse career paths and maximizes individual strengths. Underpinning this philosophy is the value of Mutual Respect. For the team to achieve the best results, we need to bring together the best talents from various fields. Mutual Respect requires humility, recognizing the talents of others, learning from each other, and respecting each other. Based on these values, the Simplex Group forges a corporate culture that maximizes the potential of each individual and recognizes unique talents.

In addition, from the interview stage at the time of hiring, we emphasize the importance of determining whether candidates can share our 5DNAs code of conduct. To continue being a team of value-creating professionals, we need to ensure we can maximize the power of each individual to make the Simplex Group even stronger by sharing the 5DNAs with all employees.

In addition, in order to maximize the potential of an "edgy" personality of each employee, we consider it important to make a clear distinction between job title and role. In our evaluation system, we have equal appreciation for those both in management positions and specialist positions. Our company has had employees rise to the highest level without having any reporting team members.

Diversity & Inclusion

Since our inception, the Simplex Group has done everything we can to support those who are interested, motivated, and passionate for self-fulfillment in the areas where the company takes on challenges, with no discrimination or categorization whatsoever. We are committed to fostering a corporate culture that enables “meaningful and rewarding work,” and where a diverse range of human resources can work together, have a distinct sense of ownership, and stretch their potential to the fullest.

Main Initiatives

• We hire new graduates and mid-career workers, regardless of gender, age, or nationality.
• Our staff includes many employees of diverse nationalities.
• We aim to increase the proportion of female employees among new graduates and existing staff.
• We regularly check that staff turnover is not skewed by nationality or gender.
• We conduct engagement surveys focused on expanding diversity initiatives.

The results of our efforts are disclosed in the Sustainability Data section, as well as in the Ministry of Health, Labor, and Welfare’s “Database on Promotion of Women’s Participation and Advancement in the Workplace.” For more information on the Database on the Promotion of Women’s Participation and Advancement in the Workplace (Japanese site only), please click here.

Sustainability Data

General Employer Action Plan

The Simplex Group’s general employer action plans under Act on Advancement of Measures to Support Raising Next-Generation Children and Act on the Promotion of Women’s Active Engagement in Professional Life are as follows.

• The Simplex Group’s general employer action plans (the balance of the working and family lives) (Japanese only) 
• The Simplex Group’s general employer action plans (the promotion of women’s active engagement) (Japanese only) 

Establishment date: March 1st, 2016 (Publication date: April 1st, 2016)
Establishment date: April 1st, 2021 (Publication date: June 1st, 2021)
Revision date: March 31st, 2023^＊(Publication date: May 10th, 2023)

The previous plans were terminated due to changes in its period and content.

External Certifications

Simplex Inc., our group’s main business unit, has received “Kurumin Certification” from the Minister of Health, Labor and Welfare (MHLW) as a company supporting childcare. Xspear Consulting, Inc. has received “Eruboshi Certification (2 Stars)” from MHLW as a company for having a good implementation status of their initiatives for the promotion of Women's Participation and Advancement in the Workplace.

Occupational Health and Safety/Health and Productivity Management

For a company to achieve sustainable growth, it is important that its employees are in a state where they can demonstrate their great potential at all times―in other words, they need to be healthy both physically and mentally. The Simplex Group proactively focuses efforts on health and productivity management and is dedicated to providing an environment in which all employees can work with peace of mind and engage in work with health, vitality, and a sense of fulfillment.

Organizational Structure

The President and CEO serves as chair of the Sustainability Council, which establishes a Health and Productivity Management Committee and appoints a chairperson to serve as its advisory body. The chairperson of the Health and Productivity Management Committee, who also oversees the Health Committee, seeks the involvement of occupational health physicians and employee representatives and maintains a consistent operating structure in order to plan, formulate, and implement measures that contribute to the maintenance and improvement of workers’ and their families’ physical and mental health, and thus to the improvement of productivity.

Integrated information on health and productivity management is posted on the corporate website to promote widespread awareness both internally and externally. An independent General Counseling Service has also been established under the chairperson of the Health and Productivity Management Committee in an aim to ensure effective counseling for those requiring it.

Health and Safety

We believe that supporting employees’ optimal mental and physical health is a foundation that allows them to demonstrate their full potential at all times. We actively work to provide an environment where employees can work with peace of mind by providing not only social insurance but also income protection insurance, life insurance, and other safety nets to protect them against unexpected events.

• Regular physical examination: Last year, we had a 100% check-up rate and helped to cover retesting costs
• Stress checks (twice a year): Provision of mental health care
• Occupational health physicians (psychiatry/internal medicine) and certified public psychologists have been assigned
• Health Committee meetings are held monthly with occupational health physicians
• Special paid leave program is available for hospitalization/recuperation, etc.
• Enrollment in income protection insurance and life insurance
• Each business location is equipped with relaxation rooms (massages) and cafeterias
• Health supervisors make patrols, AEDs are installed, and disaster drills are held at each business location
• Establish a harassment reporting and consultation hotline
• Engagement surveys, which focus on mental and physical health management and harassment issues, are administered

Childcare and Nursing Care

We have implemented a number of programs and systems to allow employees to continue working productively during life events such as childbirth, childcare, and nursing care. Our programs are extensive and go beyond legislated obligations with an extended age range for covering child nursing care leave and shortened work hours for childcare.

• Special Paid Leave Program for pregnant employee
• Maternity leave: 6 weeks prenatal [14 weeks for twins or multiples], 8 weeks postpartum
• Establish special leave for the birth of a spouse and a paternity leave system
• Childcare leave: Can be extended until the child is one year and six months old (maximum 2 years and 4 months)
• Reduced or staggered work hours for childcare: Until children reach the 2nd grade of elementary school
• Request to be exempt from night shifts: Until children reach the 6th grade of elementary school
• Child nursing care leave: 5 days per year [10 days for 2 or more children] Special paid leave system, teleworking exceptions are available
• Distribute babysitter discount vouchers
• Nursing care leave: 5 days per year [10 days for 2 or more people] Special paid leave system, teleworking exceptions are available
• Staggered work hours for nursing care: 3 years
• Nursing care leave: 93 days

Creating a Fulfilling Environment Where Employees Can Feel Job Satisfaction

We believe that valuing fulfilling work and a stable life is a responsibility that companies have to their employees. As a company that supports self-actualization, we continuously work to realize a work environment in which individuals can challenge their goals with as much flexibility as possible under existing laws and regulations.

• We provide work environments for office/remote/mobile work
• Flexible and efficient work systems: Systems for flexible working hours and discretionary work
• Work interval system: No return to work until 12 hours after leaving
• Enhance internal communication through increased information dissemination (e.g. company-wide meetings and manage the internal portal site “Simplex Bridge/Navigator”)
• Established the “Hello World, Hello Innovation” management philosophy and “5DNA” code of conduct
• Advocate the “Simple Philosophy” of shared values
• Every three months, we conduct an Engagement Survey that focuses on job satisfaction

Establishment of a General Counseling Service

An independent General Counseling Service has been established under the chairperson of the Health and Productivity Management Committee. Its aim is to ensure effective counseling for those requiring it while gathering the opinions of employees.

• Specific guidance on where and how to get counseling
• Gathering opinions from current and prospective system users
• Flexible programs/systems and rule guidelines to ensure adherence
• Adoption of ways to connect work methods and systems to job satisfaction
• Establish the consultation desk affiliated with the Internal Audit Office, which operates under the authority of the independent Health and Productivity Management Committee chairperson

Challenges and Polices for Health and Productivity Management

“Health” is not a uniform concept for each individual worker. Moreover, it cannot be supported by the individual worker alone. Therefore, the company must deepen the trust relationship while respecting the diversity of each worker. Additionally, collaboration with the surrounding environment to support workers is becoming increasingly important. Based on this understanding, we are continuously working on the following initiatives.

• Enhancing communication methods between the company and employees
• Collecting, analyzing, and integrating data related to health and productivity
• Strengthening collaboration with employee representatives, occupational health physicians, and other professionals
• Collaborating with health insurance associations
• Engaging with families: Hosting Family Day
• Collaborating with society: Discussions with outside directors

Social Contribution

In a changing business environment, we believe that to achieve sustainable growth, we must contribute to solving the challenges that address the future of society as a whole, which is the foundation of our success. Based on this belief, we strive to continuously create innovations and enhance our competitiveness to fulfill our responsibilities while proactively giving back to society.

Contribution to Education

We make donations to Hitotsubashi University, which offers a Master’s Program in Financial Strategy and Accounting (MBA), and also provide endowment lectures—covering topics such as informatization strategies and applications, and risk management and financial education—in collaboration with Simplex Institute, Inc. In addition, we provide donations to Kyoto University to support the advancement of academic fields related to our expertise in financial system development and digital transformation (DX) consulting at client companies.

Social Contribution Through Sports

At the Simplex Group, we support our employees’ participation in various competitions for athletes with disabilities and provide support to both organizations and employees involved in minor sports—as part of our commitment to contributing to society through sports. Both our office-based and athlete employees embody the shared values of the “5DNA” and “Simplex Philosophy,” and leverage their individual strengths to excel in their respective fields.

FY3/2024 Results

• 12 disabled athlete employees(equestrian, table tennis, judo, track & field, basketball, etc.)
• Partnership with the Japan Padel Association

Athlete Employee Introduction (Japanese only)