A Rewarding Workplace

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Page image: A Rewarding Workplace

Progress in FYE2025 (as of March 31, 2025)

Employee feedback survey response rate
90%
Percentage of affirmative responses in the Engagement category
72%

Our Approach

At LIXIL, we believe that providing an environment where every employee can maximize their potential and take pride in their work is essential for LIXIL's sustainable growth. By prioritizing employee wellbeing through various initiatives, we create a workplace that is both supportive and rewarding. This fosters a growth mindset among our employees and promotes diversity and inclusion.

We also see improving our Employee Experience—all the values and experiences an employee has within LIXIL—as a focus area and are committed to strengthening employee engagement. As part of this effort, we are promoting an "Employee Listening" strategy to actively listen to and incorporate employee feedback, which helps motivate and energize the organization.

LIXIL’s Purpose and Behaviors

LIXIL’s Purpose guides us toward sustainable growth, making us a more agile and entrepreneurial organization where every employee can work with great motivation and pride. To achieve our Purpose, we have established the LIXIL Behaviors— three behaviors that guide how employees should think and act in their daily work, regardless of their role or location. These behaviors are also a component of our performance reviews.

To promote the LIXIL Behaviors, we hold workshops, display posters and stickers in offices and factories, and actively incorporate them into conversations during meetings.

Through these activities, employees share their interpretations of the LIXIL Behaviors with specific examples, learning and practicing how to apply them in their daily work.

Learn more about LIXIL’s Purpose and Behaviors >

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 improve their wellbeing and lead a rich, fulfilling life. To foster a workplace that is both supportive and rewarding, we have implemented the following initiatives:

Company-wide Initiatives

Japan Initiatives

In addition to the above, we have revised systems for employees in Japan, including introducing a cafeteria plan to support employee wellbeing, revising various systems for safety and security in the workplace, and establishing asset-building programs like our retirement plan.

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.

In FYE2025, we introduced "Karada-Shiru", LIXIL’s unique health indicator. This was implemented to help employees understand their own health status and proactively engage in their health management. This index encompasses eight key elements essential for maintaining a healthy mind and body, encouraging employees to prioritize their wellbeing and cultivate healthy habits.

The Eight Elements of "Karada-Shiru"

The Eight Elements of "Karada-Shiru"

Sharing Information and Promoting Dialogue

In addition to calling for understanding and support from managers for these initiatives, we have established a new information sharing platform, the Wellbeing Knowledge Library, to raise awareness among all employees. The library introduces company-wide initiatives and regional activities related to wellbeing, and also provides information on consultation services and recommended working styles.

We have designated the 14th of every month as Wellbeing Day and use this as an opportunity to share information to create an environment where wellbeing can be openly discussed.

Global Wellbeing Knowledge Library

Global Wellbeing Knowledge Library

Developing Initiatives and Measuring Results

Employee feedback is central to shaping and advancing our wellbeing initiatives. We analyze the results of our employee feedback survey, "LIXIL Voice," and use them to inform our policies. The survey also sets wellbeing as a key performance indicator (KPI), which allows us to measure the effectiveness of these initiatives.

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 feedback 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 feedback survey: Response rate

LIXIL Voice employee opinion survey: Response rate

Employee Experience Outcome Metrics in Our Employee Feedback 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 three statements are used to measure wellbeing:
1) I feel positive when doing my work
2) I have trusting relationships at work
3) I feel energized at work

FYE2025 Survey: Key Findings

  • Response rate: 90%
  • Engagement: 72%
  • Inclusion: 71%
  • Wellbeing: 77%

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 develop and implement action plans in response to the respective result of LIXIL Voice for each division.

Action Plan Creation and Submission According to Each Division

Background: Following the survey conducted in June 2023, a company-wide in-depth investigation was carried out, and an action plan was created.The survey of the following year indicated an upward trend in the company’s overall engagement score. Based on these results, we decided to place significant emphasis on developing actions tailored to the results of each division for the following FYE2025.

Action: A total of 23 action plans have been created across all divisions. Many of the plans that were created focused on career development and communication. Specifically, numerous divisions created plans to provide more opportunities for employees to speak with leaders and to foster interaction among colleagues.

Case Study 1: "Connect with Kinya"

Background: Our June 2024 survey highlighted a clear need to enhance employees' understanding of our management and strategy, and to boost communication with leadership. In response, we established a forum for employees to engage directly with CEO Kinya Seto.

Action: The inaugural "Connect with Kinya" session was held in December 2024. Over 900 people participated in the hybrid (in-person and online) session.Employees posed numerous questions during the CEO's message and Q&A session. A similar event was held in Germany in March 2025 for our employees in Europe, attended by approximately 300 individuals.

Effect: We successfully provided a platform for employees to directly hear messages from the CEO and engage in dialogue through a Q&A session, all within an event designed for easy participation by anyone. By offering the hybrid format with Japanese and English interpretation, we successfully reduced the perceived distance between our global employees and top management.

Case Study 2: LIXIL Water Technology Japan (LWTJ)

Background: The June 2024 survey showed an increase in LWTJ's overall engagement score. However, many organizations still identified the need for action plans focused on improving understanding of management policies, strategies, and initiatives, and clarifying the connection between these and individual employees' work and goals.

Action: A new company intranet page was launched to help LWTJ management and employees share a common understanding of goals, challenges, and current conditions.In addition to publicizing information, we also provided materials that leaders could use to explain strategies and policies during team meetings and other gatherings.

Effect: Everyone at LWTJ can now share the same understanding of our goals and challenges. We also consolidated and simplified the presentation of management policies, performance, and activities to facilitate understanding.

Internal Awards Program

LIXIL believes that when employees find satisfaction and a sense of achievement in working together to tackle challenges to make better homes a reality, it sparks fresh innovation and leads to further growth of the company. To foster this spirit, we introduced the company-wide LIXIL AWARDS*, a program designed to cultivate a working environment where employees around the world can recognize one another’s everyday efforts and contributions and celebrate achievements together.

To align the program more closely with our management strategy, we have adopted the strategic initiatives outlined in the LIXIL Playbook as the evaluation criteria for the awards. Each award cycle, projects are nominated by divisions for consideration. Executive officers and senior managers then select those who contributed the most to our strategic initiatives for special recognition. Winners also receive a monetary reward in acknowledgement of their outstanding efforts. To enhance employee engagement and motivation, we are also making the experience more interactive—for example, by having the CEO interview the team that received the most employee votes, giving them an opportunity to share their activities in greater detail following the announcement of the winners.

LIXIL Playbook >

At the June 2025 LIXIL AWARDS, over 850 projects were recognized, and approximately 4,800 people were awarded. The winning projects included initiatives that contributed to our Impact Strategy and helped us achieve goals, both of which are central to the LIXIL Playbook. We are committed to simultaneously enhancing corporate value through business activities and creating a positive impact on social and environmental issues. This program systemically supports a workplace where all employees—our driving force—can align their efforts toward this shared direction.

* Open to all employees, including part-time employees. The awards have been presented annually in Japan since FYE2018, and were expanded in FYE2021 to include LIXIL International.

Fostering Employee Growth

In Japan, we are advancing an HR system reform that began in April 2022. This reform focuses on three key areas: a career and grading system that accelerates challenges, a performance evaluation system that fuels individual and organizational growth, and a compensation system that rewards results fairly. These changes are designed to foster an environment where everyone, regardless of age or gender, can unlock their full potential and is empowered to grow.

Overview of our Human Resource Systems Reform

System/Measure Eligible Employees Overview
Revise job grades and remuneration system Regular employees (managers only) of LIXIL Corporation and its subsidiaries
  • Revise the grade system based on duties and responsibilities with the aim 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.
Abolish 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.
Abolish 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.
Expand 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 Relations

LIXIL believes that building a relationship of trust between labor and management and striving to create a positive workplace will lead to improved company performance and a rewarding, fulfilling work environment. In Japan, we have a labor union with a union shop system for all permanent employees of LIXIL Corporation, with a membership rate of 100% as of the end of March 2025.

Our fundamental labor-management agreement includes provisions on safety, health, and the working environment. During labor-management consultations, we hold regular sessions to share information and discuss various issues related to business conditions, working conditions, and safety and health, working together to resolve them.

Moreover, we are advancing our human resources system reform in Japan as a joint effort between labor and management. Representatives from both sides have been selected to establish a special committee for repeated discussions. When working conditions or various systems are introduced or revised following these discussions, we ensure they are clearly understood by employees through the company intranet and information sharing through the human resources department. The labor union also cooperates in these awareness activities, for example, by distributing its own "Union Guide," which summarizes key points for all members.

Creating Local Employment, Nurturing Local Talent

At our plants in Japan, LIXIL employs graduates from technical colleges and high schools in the areas where we operate to help revitalize local communities. Encouraging employees to contribute to local communities through their work gives them a sense of fulfillment and pride, which in turn boosts their motivation. They can also help pass on manufacturing technology expertise and other skills to future generations when they continue to work in the same region for an extended period. 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

Local Employment in Japan

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