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Human Resources

Workplace Diversity

Basic Policy

Daikin believes it is our people who make us competitive. A company can only grow stronger by having a diverse range of employees working within an organization that is conducive to mutual understanding of one another's distinct values and that allows everyone to shoot for a lofty goal.
Our Group Conduct Guidelines state that while respecting diverse values and approaches to work, we shall mutually accept our respective differences, act in harmony, gather the abilities we possess, and strive to be a Group in which each member expresses his or her ambitions and then takes bold actions with great passion and perseverance to realize those ambitions.

Group Conduct Guidelines

10. Respect for Human Rights and Diversity

We shall respect the human rights of each and every employee and shall not engage in conduct that discriminates on the basis of nationality, race, ethnicity, religion, color of skin, age, gender, sexual orientation, or disability. Diversity in individual values is enthusiastically accepted, and we shall work to make the unique talents and abilities of each and every person the driving force of the organization.

Based on this philosophy, we strive for diverse management in which we make the most of the talents of all people, regardless of their nationalities, ages, genders, sexual orientation, gender identity, or disability. This goes for both periodically hired employees and career hires.

Daikin is fundamentally committed to local employment. The Daikin Group's employee make-up is becoming increasingly diverse, with a greater number of non-Japanese and women in our ranks.

Employee Composition (Data for Daikin Industries, Ltd.)*

  2019 2020
Men Women Men Women
Number of employees 7,352 1,440 7,458 1,527
Average range of services (years) 16.9 11.0 16.8 10.9
Average age 42.4 35.2 42.4 35.2
Number of managers 1,100 63 1,110 71
Number of board members 48 1 52 1
Number of foreign nationals 62 31 64 33
Includes employees on loan.
Figures as of fiscal year-end.

Employee Make-up by Region*

  2019 2020
Number of companies Number of employees Number of companies Number of employees
Daikin Industries, Ltd. (Only) 1 7,499 1 7,732
Domestic Group (Excluding Daikin Industries, Ltd.) 29 5,380 30 5,586
U.S. 58 17,497 61 19,812
China 36 18,996 33 19,360
Europe 78 9,407 75 9,947
Asia,Oceania 51 16,456 54 17,367
Others (Latin America,Middle East,Africa, e.t.c) 61 5,134 62 5,066
Total 314 80,369 316 84,870
Figures as of fiscal year-end.

Number of Employees by Gender and Employment Rate of Women*

  2019 2020
Man 58,229 61,046
Woman 22,140 23,824
Total 80,369 84,870
Women as % of all employees 28% 28%
Figures as of fiscal year-end.

Maximizing the Talents of Women

Accelerating Efforts to Maximize the Talents of Women

Daikin Industries, Ltd. considers diversity management as one of the pillars that supports management and has launched projects that are directly under top management since 2011 with a focus on promoting women's participation and advancement at work. We have mainly expanded on efforts including reinvention of the thinking of managers and female employees, early cultivation of female leaders, support for early return from childcare leave, and encouragement of male employees to participate in childcare.

For the early cultivation of female managers and leaders, we have been conducting ongoing training for female leaders along with the sponsor and mentor system. In fiscal 2020, we newly launched leadership training for mid-career female employees in providing an opportunity to modify their thinking and action in order to spark their interest in becoming managers and leaders.
As a result of these efforts, the number of female managers was 71 (6.0%) as of the end of fiscal 2020, which marks an increase by about three times compared to 2011 at 20 (2.1%), when the efforts to promote women's participation were officially launched.

We are expanding on programs to support balance between work and childcare, and above all, early return strategies from childcare leave. At present, the number of people returning from under one year of childcare leave is gradually increasing year on year. This population has grown from approximately 30% (9 employees, 32%) in 2011 to approximately 40% (33 employees, 40.8%) at the end of March 2021.

We are also promoting other programs to advance women's participation such as various trainings, seminars, and exchange meetings.

For efforts such as these to support female employees looking to forge a career, in March 2021, we were granted "Nadeshiko Brand" designation by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) as a company that is exceptional in promoting women's success in the workplace. This was the eighth time, and the seventh consecutive year.

Nadeshiko Brand

Nadeshiko Brand

We established a new action plan to promote women's advancement in fiscal 2020 based on the Act on Promotion of Women's Participation and Advancement in the Workplace. We have set the following quantitative goals.

  • One or more female director from internal hire by the end of fiscal 2025
  • Reach 120 or more female managers
  • Attain 90% or higher rate in taking childcare leave among both genders and 10 or more consecutive days of leave on average for male employees

Hiring Women

Increasing Percentage of Female Employees

As of the end of March 2021, women accounted for 17.0% (1,527) of all employees of Daikin Industries, Ltd.

Starting in fiscal 2013, we began our proactive policy of hiring more women for technical and skills positions. As a result, the percentage women hired accounted for more than 30% of all new employees hired for the sixth consecutive year.

In fiscal 2015, we began collaborating with universities to hold lectures, round-table discussions, and internships that would help prepare women for careers, and we stepped up efforts to hire more women. We have hired 100 women a year through our recruitment with the target of having women account for 17% of all employees as is the average for the entire manufacturing industry.

From 2018, we held internships for women studying sciences and roundtable discussions with employees to provide opportunities for women to think about their careers together.

Number of Hires and Ratio of Women (Daikin Industries, Ltd. only)

Number of Hires and Ratio of Women (Daikin Industries, Ltd. only)
Employees joining company on April 1

Promoting Understanding of LGBT

Daikin aims to create workplaces conducive to working for all employees, regardless of things like nationality and gender.
Daikin Industries, Ltd. has clearly established definitions of human resource rules on marriage and gender to recognize things like common-law marriage (including same sex partners) and gender identity (what gender a person identifies himself or herself as). We are also promoting understanding of the LGBT* community through holding training and releasing information via newsletters.

LGBT: An acronym for lesbian (L), gay (G), bisexual (B), and transgender (T).

Promoting More Foreign Nationals

Promoting Local Employees to Managerial Positions at Overseas Bases, and to Officer Positions at Daikin Industries, Ltd.

As Daikin's business globalizes, we are trying to globalize our management as well by promoting more employees at overseas bases to managerial positions at their bases. We have the Global Daikin Leadership Development Program for locally hired managers at worldwide bases in order to give them the capabilities to run Daikin subsidiaries in their own countries.

As of the end of September in fiscal 2020, local nationals accounted for 42.9% of the presidents and 48.2% of the directors at overseas Daikin bases.

In addition, outstanding personnel hired at overseas bases are being chosen and trained for positions as officers at Daikin Industries, Ltd. (Group head office).

Aggressively Hiring Non-Japanese Nationals

As Daikin's business becomes increasingly globalized, Daikin Industries, Ltd. is aggressively hiring university graduates from countries such as India and China.
As of the end of March 2021, there were 99 foreign nationals working at Daikin Industries, Ltd., an indication of Daikin efforts to include a diverse range of nationalities in its ranks.

In October 2018, we published a Japan Living Guide containing information to facilitate the start of their life and work in Japan for new hires and intern trainees of foreign nationality. In November 2018, we published a handbook for workplaces with foreign national employees to facilitate communication and provide hints about how to develop their careers. Also, we provide seminars, workshops, and Japanese lessons for foreign national employees.

In November 2020, we conducted "Cross-cultural Management Training" for supervisors and leaders whose unit consists of foreign national employees to instill knowledge on different values of people from diverse backgrounds and points to keep in mind in order to accelerate training of their subordinates. We will continuously implement various efforts, including following up individually with each foreign national employee.

Employment of People with Disabilities

Hiring More People with Disabilities across the Entire Group

Based on the belief that the cumulative growth of all individuals leads to the Daikin's development, we have faith in people's unlimited abilities, regardless if they have a disability or not, and we strive to maximize their talents in becoming a corporate group in which employees can continue to work with enthusiasm and pride.

In 1993, based on the Act on Employment Promotion etc. of Persons with Disabilities, Daikin Industries, Ltd. established Daikin Sunrise Settsu Co., Ltd. (DSS), a cooperative venture with the Osaka Prefecture and Settsu City governments. The company began with 16 employees with disabilities.
In June 2018, a new DSS business premises was completed.
DSS strives to provide these people with an environment conducive to working so that they have the opportunity to make the most of their talents.
For the Daikin Group in Japan, we have established a target to achieve an employment rate of persons with disabilities of 2.5%, which exceeds the legally stipulated ratio of 2.3%.

We also strive to hire persons with disabilities not just at DSS but at Daikin Industries, Ltd. and Daikin Group companies.

As of the end of fiscal 2020, 2.55% of workers in the Daikin Group are disabled, a percentage above the legal requirement.

Daikin Sunrise Settsu Co., Ltd. (DSS)

Daikin Sunrise Settsu Co., Ltd. (DSS)

Number of People with Disabilities Employed and Employment Rate
(Group companies in Japan)

Number of People with Disabilities Employed and Employment Rate (Group companies in Japan)
Legally, one severely disabled person employed is counted as two people with disabilities.
Disability employment rate = number of people with disabilities employed / number of full-time employees
Figures as of end of fiscal year

Daikin Overseas Bases Hire Disabled Workers

Daikin Air-conditioning (Shanghai) Co., Ltd. has been doing all it can to hire people with disabilities and it currently has 50 disabled employees. In April 2014, the company was recognized by the government as an occupational training base for people with disabilities.
In November 2016, Shanghai Open University and Shanghai Education Television Station jointly hosted an international conference at which employees of Daikin Air-conditioning (Shanghai) performed a dance to "Flame of Youth." The performance was well received.
These are just a few examples of how disabled employees at Daikin are taking the initiative to make their mark in society.

Re-employment of Retired Employees

Re-employing More than 100 Veteran Workers Each Year

Daikin Industries, Ltd. has been a pioneer in promoting employment of seniors as it sees the utilization of experienced workers as an important theme with the ongoing declining birthrate and aging population. We introduced the system for rehiring employees 60 years of age and older in 1991 which keeps those who desire to work until age 63. In 2001, the age limit of this program was further raised to 65 years old.

Since the implementation of the program, we have rehired over 100 people each year, with 652 senior employees in service in fiscal 2020. Thirty-one of these employees are working at overseas bases, where they are passing on their outstanding skills and know-how.

In order to further promote participation by veteran workers, we once again amended the rehiring system in April 2021, which enables employees to continue working until age 70 if desired. While the Law Concerning Stabilization of Employment of Older Persons that was amended in April is obliging companies to make an effort to employ workers up to age 70, we have taken a lead in the future obligation to ensure employment opportunities up to age 70.
Furthermore, we have revised the conventional compensation scheme to reflect better allocation of wages and bonuses, as well as established four levels of bonuses resulting in our new evaluation system that can reward employees in detail according to their results.

In addition, we also hire contract employees who are age 70 or above and possess highly specialized know-how, skills, expertise, network connection, and experience, and who carry on duties that are difficult to replace by others.

We recognize that as our business expands globally, we must take on challenges under many themes as a unity between young, mid-career, and veteran employees. We strive to continuously cultivate a company culture that enables employees to thrive regardless of their age and harness the skills of our veterans more than ever before in order to improve the organization's performance.

Number of Re-employed Workers and Rate of Re-employment
(Daikin Industries, Ltd. only)

Number of Re-employed Workers and Rate of Re-employment (Daikin Industries, Ltd. only)

Efforts in the hiring process

Daikin's Group Conduct Guidelines states we shall respect the human rights of each and every employee and shall not engage in conduct that discriminates on the basis of nationality, race, ethnicity, religion, color of skin, age, gender, sexual orientation, or disability. We are taking the same measures in our hiring process to respect each individual's diversity and prevent discrimination. For example, Daikin Industries, Ltd. has abolished the requirements for indicating gender and nationality as well as including a portrait on the entry sheet and resume.


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