A Rewarding Workplace | Diversity & Inclusion | Impact

Our Approach

LIXIL strives to create an environment that inspires pride in the company and enables each employee to maximize their productivity and potential. To support this aim, we are developing various measures to ensure employee wellbeing and striving to foster a comfortable and rewarding work environment.

We also aim to increase employee engagement by focusing on Employee Experience, namely any value that employees experience when working in our organization. Part of this focus involves strengthening the Employee Listening strategy.

In Japan, we have been gradually revising its qualifications and job grade systems, personnel evaluation systems, and compensation systems, etc. since FYE2023 with the aim of fostering a growth-oriented mindset and firmly established meritocracy, and pursuing Diversity & Inclusion (D&I) so employees can continue to feel inspired and enthused by their work.

LIXIL’s Purpose and Behaviors

LIXIL’s Purpose is the North Star that guides LIXIL’s employees in performing their daily work with enthusiasm and pride, and it inspires us to become more agile and entrepreneurial for sustainable growth. We have established the LIXIL Behaviors that guide how each employee should think and act in their daily work, regardless of the nature of their work or its location, and incorporated them into our personnel evaluation element.

In order to promote the LIXIL Behaviors, we hold workshops, display posters and stickers in our offices and factories, and actively incorporate discussions of the LIXIL Behaviors at meetings and other occasions to encourage greater awareness on a daily basis.

These activities give employees the opportunity to share their own ideas about LIXIL Behaviors along with specific stories, and to learn how to best incorporate those behaviors into their own actions.

Learn more about LIXIL’s Purpose and Behaviors >

LIXIL's Purpose and Behaviors

Ensuring the Wellbeing of Each and Every Employee

LIXIL is committed to creating an environment where every employee can enhance their wellbeing and lead a rich and fulfilling life. To enhance employee wellbeing, we are implementing the following initiatives to help foster a comfortable and rewarding work environment.

Company-wide Initiatives

Japan Initiatives

In Japan, we have introduced a cafeteria plan to support employee wellbeing, adjusted various systems to ensure employees can feel safe and comfortable at work, and revised our retirement allowance system and other asset-formation frameworks.

System/Measures	Eligible Employees	Overview
Introduced a cafeteria plan	Regular and contract employees of LIXIL Corporation and its subsidiaries	Introduced a point system that employees can put toward various welfare programs, including travel, self-learning, and comprehensive medical checkups.
Expanded our Bereaved Family Compensation System	Regular employees of LIXIL Corporation and its subsidiaries	Reorganized our Bereaved Family Compensation System and expanded survivor compensation in the event of the death of an employee.
Introduced Group Long-Term Disability (GLTD) Income Compensation insurance		Reorganized income compensation systems in the event of injury or illness and introduced Group Long-Term Disability (GLTD) Income Compensation insurance.
Revised our retirement allowance system		Ensured the system was easy to understand, was linked to basic salary, and reflected employee roles and contributions. Changed the system to a 100% defined contribution (DC) pension plan.

Sharing Information and Promoting Dialogue

In addition to asking managers for their understanding and support in relation to these initiatives, we have also established an information platform called the Wellbeing Knowledge Library to help raise awareness among all employees. The library introduces company-wide wellbeing initiatives, regional activities, consultation services, and recommended work styles.

We have designated the 14th of each month as Wellbeing Day, in which we share various information to help create an environment that supports the open discussion of wellbeing-related issues.

Global Wellbeing Knowledge Library

Formulating Initiatives and Measuring Their Impact

The opinions of our employees are crucial to the formulation and development of measures for ensuring wellbeing. LIXIL analyzes the results of our LIXIL Voice employee opinion survey and reflects those opinions in future policies. We have also specified wellbeing as one of the key metrics in the survey, and measure the effectiveness of any measures that are introduced.

Enhancing Employee Experience

LIXIL has been introducing specific measures around its Employee Experience initiatives with the aim of enhancing employee engagement. To better understand the processes and experiences that make employees like our company and feel job satisfaction, we are developing an Employee Listening strategy to actively gather employee opinions. Part of that strategy includes conducting our annual LIXIL Voice employee opinion survey of all employees^*1.

We have determined the following outcome metrics for the survey to measure whether we are indeed providing an excellent employee experience^*2.

LIXIL Voice employee opinion survey: Response rate

Employee Experience Outcome Metrics in Our Employee Opinion Survey

Engagement
Inclusion
Wellbeing

*1 Scope: Directly hired employees of LIXIL Corporation and its subsidiaries (including part-time employees).

*2 We define engagement, inclusion, and wellbeing based on the percentage score calculated from the proportion of employees who choose 4 or 5 on a response scale of 1 to 5 for the relevant statements. The following four statements are used to measure engagement:
1) I would recommend LIXIL to people I know as a great place to work
2) My work gives me a feeling of personal accomplishment
3) LIXIL motivates me to contribute more than is normally required to complete my work
4) I am proud to work for LIXIL

FYE2024 Survey: Key Findings

Response rate: 89.4%
Engagement: 71%
Inclusion: 70%
Wellbeing: 76%

Please see below for survey response rates and engagement figures over the past four years.

Scope and details of our social data >

Please visit the following links for more information on inclusion and wellbeing.

Learn more about working to establish an inclusive culture >
Learn more about ensuring the wellbeing of each and every employee >

Formulating and Implementing Action Plans

In Japan, we conduct an in-depth survey of specific employees in addition to conducting the LIXIL Voice employee opinion survey, and we determine and implement more effective actions based on those survey results.

Initiative (1): Survey on Attitude Toward the Company’s Future

Background: The engagement score declined in a survey conducted in June 2023, so we decided to conduct a survey on employee attitude toward the company’s future due to the strong correlation between that subject and engagement.

Target: 2,445 randomly selected employees in Japan (response rate: 72%)

Result: The survey revealed that employees’ understanding of business strategy and transformative measures influenced their expectations towards the company’s future more than business performance or external factors. Furthermore, regression analysis confirmed that managers who act as a bridge between team members and the company are vital for increasing the number of employees with an optimistic view about the company’s future.

Action: Develop a medium- to long-term training program to enhance managers’ communication skills with regard to company strategy.

Overview of Talent Development: Programs for Managers >

Initiative (2): Survey of Employee Attitude Towards Different Work Styles

Background: The number of in-person meetings has been increasing since COVID-19 subsided, but we have also noted the voicing of various positive opinions about working remotely through LIXIL Voice and other employee surveys, so we decided to visualize the attendance rate and conducted a survey to explore opinions and issues on current work styles related to it more deeply.

Target: 2,500 randomly selected employees in Japan who can work remotely (response rate: 89%)

Result: Currently, 80% of employees who are able to work remotely come to the office a maximum of one day a week, which helps reduce time and stress associated with coming into the office. This trend was particularly noticeable among women in their 30s, reaffirming our view that current work styles help secure and retain diverse human capital. Having said that, the survey also highlighted communication-related issues associated with remote working.

Action: We want to increase opportunities for employees to communicate, collaborate, and network, and to nurture a greater sense of belonging. To that aim, we are encouraging employees to participate in ongoing LIXIL Community Day activities, and creating new opportunities for employees to interact with each other through in-person meetings, welcome events for mid-career hires, and head office visits. This should help promote work styles that combine the benefits of both online and in-person interaction.

We are also establishing frameworks that will enable us to take high quality action at the department level. We provide senior managers with dashboards to communicate the survey results to their teams and conduct training programs.

Example: Sash & Door Division, LIXIL Housing Technology

Background: When we analyzed the survey results, we noted a drop in engagement scores among people in their early 30s. When we dug deeper into this phenomenon, we identified challenges relating to communication and feedback opportunities with their immediate supervisor on career development.

Action: The division approached managers as well as employees in their 30s. We conducted training programs for managers on psychological safety, assertive communication, one-on-one meeting, and other areas. For the employees in their early 30s, we provided training on career development and communication that included an element of networking. We continue to provide training programs that prove effective on an annual basis, expanding the scope of such programs.

Impact: Engagement and all other outcome metrics in the LIXIL Voice employee opinion survey increased for employees in their 30s, who were the focused target of these measures.

Employees attending the training sessions

We share these positive cases on our internal social media to help advertise best practice more effectively and ultimately improve employee experience across the company.

Award System

LIXIL believes that employees experiencing a sense of satisfaction and achievement through tackling challenges together to shape the future of living will lead to fresh innovation and further growth for the company. We have introduced the company-wide LIXIL AWARDS^*, a program to create a working environment where employees around the world can recognize each other’s daily efforts and contributions and celebrate achievements together.

To strengthen the link with our management strategy, we have adopted the strategic initiatives of the LIXIL Playbook as evaluation criteria for this award. Each time, initiatives are nominated from each division for consideration. Then, executive officers and senior managers select initiatives that contribute most to the strategic initiatives for special commendation. The winners are also presented with a monetary reward. We have also introduced an interactive framework where award recipients are interviewed after the announcement of the results and teams selected by an employee voting system get to share more details about their activities with the entire company.

LIXIL Playbook >

At the LIXIL AWARDS held in June 2024, over 850 projects were commended and 4,300 winners received a monetary reward. Award-winning projects included initiatives to promote the Impact Strategy that underpins the LIXIL Playbook, and help achieve its relevant targets. We continue to create a working environment that inspires all employees, the ultimate drivers of value creation, to work together toward the same goals with the aim of enhancing corporate value through business activities and growth and having a positive impact on social and environmental issues.

* For all employees (including part-time employees). In Japan, the awards have been presented annually since FYE2018. In FYE2021, we expanded the scope to cover LIXIL International.

Encouraging Individual Employee Growth

In Japan, we have been reforming our human resources systems since April 2022 with an emphasis on developing qualifications and job grade systems that drive people to challenge themselves, personnel evaluation systems that encourage personal and organizational growth, and performance-linked compensation systems. Through these systems, we aim to create an environment that enables everyone to demonstrate their full potential, regardless of age, gender, and other factors and supports the individual growth of all employees.

Overview of Reform of Human Resource Systems

System/Measure	Eligible Employees	Overview
Revised job grades and remuneration system	Regular employees (managers only) of LIXIL Corporation and its subsidiaries	Revised the grade system based on duties and responsibilities. Aiming to eliminate personal factors, increase transparency of grade setting, and promote the active appointment of young talent and female talent. Introduce a system that more strongly reflects individual contributions and business performance in compensation decisions.
Abolished our work location-specific employment system (regional wages)		Eliminate wage differences that reflect the possibility of future job transfers or regions where employees work, and focus on building a merit-based remuneration system based on individual duties and responsibilities.
Abolished our housing allowance	Regular employees of LIXIL Corporation and its subsidiaries	Eliminate personal factors and ensure remuneration more strongly reflects individual job responsibilities and contribution to business performance.
Expanded child allowance	Regular employees (excluding managers) of LIXIL Corporation and its subsidiaries	Expand support for employees with children to accelerate our efforts to promote D&I.

Labor-Management Relationship

LIXIL believes that efforts to build a relationship of trust between the union and the company and to establish good working environments help create a fair and rewarding workplace and lead to improved business performance. LIXIL Corporation has established a labor union which adopts a union shop system for regular employees of the company and achieved a membership rate of 100% (as of March 31, 2024).

The fundamental labor-management agreement includes items relating to health and safety and working environments. Labor-management consultations are conducted in the form of regular discussions and information-sharing on business status, working conditions, health and safety issues, etc., and we work to resolve any issues.

The union and the company are working together on issues related to the reform of human resources systems that LIXIL Corporation is promoting by setting up a dedicated committee consisting of select labor and management representatives and holding repeated discussions. When working conditions and/or other systems are newly introduced or revised as a result of labor-management consultations, the union and the company cooperate to ensure employees are aware of the changes. This is facilitated by posting the information on the company intranet, sharing the information through the Human Resources Department, and distributing copies of the Union Guide compiled by the union to all members.

Creating Local Employment, Nurturing Local Talent

To help revitalize local communities, LIXIL employs graduates from technical colleges and high schools in the areas in which we operate to work in our Japanese plants. Encouraging employees to contribute to local communities through their work gives them a sense of fulfillment and pride, which then boosts motivation. They can also help with passing on manufacturing technology, expertise, and other skills to future generations when they continue to work in the same region for a long time. In recent years, we have expanded these initiatives to include sales and professional positions as we seek to actively secure and nurture local human resources.

Local Employment in Japan

ESG Data

Please see below for the scope and details of our social data.

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