Communication Based on Mutual Trust and Responsibility

Basic Stance

Working to Ensure Long-Term, Stable Employment

DENSO believes that worksites where associates continue to work proactively with a sense of pride and a high level of motivation will lead to sustainable growth of the DENSO Group. Guided by this belief, we build good relationships with our employees through sincere Company-employee dialogue. We also hold discussions with our employees regarding improvements to working conditions, including not only working hours, holidays, and salaries, which are compliant with laws and regulations, but also maintaining a living wage and promoting efforts to reduce overtime hours. We are also taking steps to deepen the bonds of mutual trust and responsibility by creating a sense of organizational unity, enhancing each associate’s morale, and improving the workplace environment to make it a better place to work. In these ways, we strive to ensure long-term, stable employment.

Furthermore, we engage in these kinds of initiatives toward long-term, stable employment in accordance with the laws and regulations of each country and region by sharing information on these initiatives between our headquarters and each Group company.

Number of Associates by Region [DENSO Group]

Fiscal year 2019 2020 2021 2022 2023
Japan 76,770 77,589 75,068 74,677 79,304
Asia/Oceania 50,099 49,139 39,803 40,319 45,568
North America 25,126 25,117 20,634 21,328 22,722
Europe 16,688 16,254 13,122 12,700 14,142
Other regions 3,309 2,833 2,832 2,835 2,836
Total 171,992 170,932 151,459 151,859 164,572
Average Service Years, Retention Rate, and Turnover Rate [DENSO CORPORATION]
Fiscal year 2019 2020 2021 2022 2023
Average service years 21.76 years
22.66 years
16.07 years
21.67 years
22.58 years
16.08 years
21.69 years
22.60 years
16.41 years
21.75 years
22.59 years
17.01 years
22.95 years
23.90 years
17.40 years
Turnover rate *1 0.84%
Retention rate *2 97.76%

*1 Turnover rate: Resignation due to personal reasons
(For reference) Fiscal 2022 turnover rate (manufacturing industry): 5.5% (Ministry of Health, Labour and Welfare, Survey on Employment Trends, 2021)
*2 Retention rate: Figures taken from turnover rate of associates in their third year since joining the Company

Specific Initiatives

Creating channels for global communication

DENSO encourages active communication between managers and associates to ensure the mutual sharing and understanding of management policies, issues related to management, and issues related to the workplace environment, in addition to solving these issues. To realize this basic policy, we hold regular meetings and round-table conferences both Company-wide and at each individual workplace. We also work to promptly share information through the various channels for communication, such as messages from the CEO and in-house bulletin boards.

    • communication-img-briefing-session

      Employee briefing session on Company business plans (U.S.)

    • communication-img-Internal-promotional-material

      Internal promotional material “DENSO Connection (Chinese Version)”

Measures to Improve Employee Engagement

More than achieving DENSO’s continuous growth, ensuring that all employees gain job satisfaction and actively take on challenges and grow on a steady basis is crucial.

For example, DENSO CORPORATION conducts an annual engagement survey of all of its employees on matters including their job satisfaction, eagerness to take on challenges, and workplace communication. The results of the survey are shared with all employees, with each workplace endeavoring to create even better working environments through communication between employees. The results are also used to refine and improve various personnel measures. In addition, Group companies conduct employee engagement surveys.

Meanwhile, labor and management hold joint labor-management conferences and roundtable discussions throughout the year to continuously communicate and take action to promote employee self-reliance and independence and create workplaces that facilitate good communication.

In addition, each individual workplace reviews the results of its own survey and strives to create an even better working environment by promoting discussions between employees and steadily implementing a PDCA cycle.

Evaluation, Compensation, and Awards Systems That Help Enhance Employee Engagement

DENSO strives to realize the happiness of people and society as a whole through the provision of new social value. We believe the starting point of this endeavor is our employees and their ability to execute as a team. Based on this belief, in 2021 we formulated PROGRESS, a vision and action plan for our people and organization that aims for us to become a group of professionals with the ability to turn ideas into reality. As part of our efforts under PROGRESS, we revamped the wage system for managerial personnel in 2021 and for union members in 2023. For management positions, we introduced a compensation system based on rank, which focuses on the significance of the roles and duties for which each individual is responsible, providing compensation that varies according to results. For union members, we greatly reduced components of the wage system that involved seniority-based salary increases and introduced a performance-based system where wages fluctuate significantly in accordance with performance and role.
We also have in place a framework that fairly evaluates personnel on their pursuit of achieving personal goals, which are linked to our organizational targets and policies, and can provide wages that exceed the limits of an employee’s position or rank if certain conditions are met. Through this framework, we are enhancing employee engagement and pursuing new value creation.
In addition, we have introduced other systems that lead to better employee engagement on a Groupwide basis, including the President’s Award, which is given to business divisions and Group companies that have contributed to corporate value enhancement.

Increasing Employee Awareness of Participation in Management through the DENSO Employees’ Shareholding Association and Encouraging the Building of Medium- to Long-term Assets

We established the DENSO Employees’ Shareholding Association with the aim of improving employee benefits and enhancing employee awareness of participation in management. This association targets full-time employees, employees rehired after retirement, and full-time contract employees. In addition, to encourage employees to build assets by holding shares, we provide them with subsidies for holding company shares.
Through this system, we will strive to further improve corporate value in unity with our employees by encouraging them to have a high level of interest in the status of the Company’s management.

Compliance with Laws and Regulations on Management of Working Hours and Labor

Along with promoting labor management in accordance with the laws and regulations of various countries and regions in relation to labor, such as working hours and pay, DENSO strives to improve working conditions and create employee-friendly work environments while maintaining dialogue with employees so that they can work with satisfaction and enthusiasm.

For example, DENSO CORPORATION implements initiatives designed to curb long working hours in order to promote workstyle reform and maintain the physical and mental health of its employees. In addition to abiding by the Article 36 Agreement on which labor and management have reached an accord, DENSO CORPORATION implements monitoring and management on a year-round basis so that employees do not overwork. DENSO CORPORATION achieves this goal by setting in-house indicators and targets for overtime hours and the taking of paid leave, with the progress of these efforts reported to the Management Deliberation Meeting. (Average number of days of paid leave taken in fiscal 2023: 19.1)

We will continue to promote workstyle reforms while placing due importance on dialogue with employees. In addition, we will endeavor to increase job satisfaction among employees by taking appropriate measures, such as revising fixed-term employment regulations, to curb long working hours and comply with developments including changes in laws and regulations and minimum wage revisions in conjunction with the establishment of equal pay for equal work.

Initiatives Aimed at Preventing Harassment

Besides clearly prohibiting harassment in its Code of Conduct for DENSO Group Associates, DENSO promotes awareness-raising activities, such as the training and development of employees at all Group companies with the aim of ensuring that employees act based on the DENSO Group Human Rights Policy.

For example, DENSO CORPORATION holds harassment prevention training for section managers or higher, who are workplace managers, as well as for all team leaders and assistant managers. In addition to direct harassment prevention measures, such as learning about recent trends in and measures against harassment using case studies, DENSO CORPORATION provides training on how to create a harassment-free workplace and how to deal with harassment when it occurs in one’s immediate surroundings. Moreover, our general employees receive training and engage in various activities aimed at acquiring a proper understanding and knowledge of harassment and preventing its occurrence.

Welfare Programs

Based on associates’ needs and the laws and customary practices of each country, DENSO is working to expand welfare programs that foster a comfortable workplace as well as improve the motivation of associates and support their lifestyles.
For example, since 2001 DENSO CORPORATION has been introducing a selection-based welfare program called the DENSO Cafeteria Plan to meet diverse welfare needs. In addition, the Company has established new recreational facilities, cafeterias, and other facilities, as well as an asset building assistance program and a Group insurance system.

Note: Applicable persons differ by facility and program.
• DENSO Cafeteria Plan and asset building assistance program: Employees
• Cafeterias: Employees and workers within facilities on the Company’s grounds (Group employees, contract employees, and temporary employees, etc.)
• Recreational facilities: Employees and their families
  * Certain recreational facilities can be used by Group employees and retired employees.
• Group insurance system: Employees and retired employees

    • Employee cafeteria (China)

      Employee cafeteria (China)

    • Recreational facility (Japan)

      Recreational facility (Japan)

Future Initiatives

Sustainable growth of the DENSO Group is essential in continuing to secure long-term stable employment. By placing even more importance on communication with our associates and further reinforcing the bond of mutual trust and responsibility, both associates and we will make efforts together to realize growth and development of the DENSO Group.