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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.)*

  2018 2019
Men Women Men Women
Number of employees 7,180 1,368 7,352 1,440
Average range of services (years) 17.9 11.9 16.9 11.0
Average age 42.6 35.2 42.4 35.2
Number of managers 1,063 59 1,100 63
Number of board members 47 1 48 1
Number of foreign nationals 54 30 62 31
*
Includes employees on loan.
Note:
Figures as of fiscal year-end.

Employee Make-up by Region*

  2018 2019
Number of companies Number of employees Number of companies Number of employees
Daikin Industries, Ltd. (Only) 1 7,254 1 7,499
Domestic Group (Excluding Daikin Industries, Ltd.) 30 5,243 29 5,380
U.S. 55 16,686 58 17,497
China 33 19,194 36 18,996
Europe 80 9,034 78 9,407
Asia,Oceania 50 15,686 51 16,456
Others (Latin America,Middle East,Africa, e.t.c) 43 3,387 61 5,134
Total 292 76,484 314 80,369
*
Figures as of fiscal year-end.

Number of Employees by Gender and Employment Rate of Women*

  2018 2019
Man 55,415 58,229
Woman 21,069 22,140
Total 76,484 80,369
Women as % of all employees 28% 28%
*
Figures as of fiscal year-end.

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. held training for approximately 500 officers, managers, and leaders on LGBT* matters and workplace considerations, giving participants knowledge they could immediately use on the job and better understand LGBT. We also clarified 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).

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

Maximizing the Talents of Women

Accelerating Efforts to Maximize the Talents of Women

Since 2011, Daikin Industries, Ltd. has accelerated efforts to maximize the talents of women as one of its key social measures.
As of the end of fiscal 2019, there were 63 female managers. We are also holding awareness training for managers and employees, and expanding measures to support a balance between work and childcare. As a result, the number of employees who return from childcare leave within one year is increasing with each passing year. This percentage has risen from around 30% in 2011 (9 people; 32%), when we launched initiatives to maximize the talents of women to about 50% as of March 2019 (31 people; 49.2%). Again, in fiscal 2019, we strove to foster new female managers through leader training for women who are candidates to be managers and leaders.

We continue to promote other efforts to maximize the talents of women through various training, seminars and networking sessions.

Seminars for Maximizing the Talent of Women

  1. Joint initiatives with other companies
    We work in concert with other companies facing similar challenges to promote initiatives to maximize the talent of women. We provide introductions to role models and networking opportunities for the small number of female engineering and technical employees through exchanges with employees of other companies.
    • Female engineer networking forum
      We hold this forum with the purpose of providing an impetus for improvement and innovation at the company by sharing the joy of work and broadening horizons through new learning and new awareness gained from visits to other companies' business sites and discussions with their engineers. We held joint events including discussions with NTN Corporation, Okamura Corporation, Sumitomo Rubber Industries, Ltd., and Takenaka Corporation. A total of 28 people participated, including five female engineers from Daikin.
    • Daikin Industries, Ltd. and Murata Manufacturing Co., Ltd. female engineer networking session
      This networking session was held to provide a hint to our female engineers about advancing their careers through networking with other female engineers working for Murata Manufacturing Co., Ltd., a similar manufacturer of machinery, and lectures by role models of both companies. A total of 21 people participated, including 11 female employees from Daikin.
    • Diversity discussions with other manufacturing companies
      As part of the Sakai Plant's women's empowerment project, female engineers visited Aishin AW Co., Ltd. where they toured the plant and took part in a discussion on diversity. Through the sharing of case studies on improvements made by female employees on the production floor, tours of manufacturing processes where pregnant employees can work, and discussions, participants were made aware of possible improvements in diversity they can make in their own workplace or jobs. Seven female employees from Daikin participated.
  2. Initiatives by each department and business site
    Each department and business site conducts initiatives with the help of the Human Resources Division based on the individual challenges they face.
    • Female sales meetings for the Group sponsored by the Air Conditioning Sales Division
      We held a discussion with female researchers and joint workshop for supervisors and employees aimed at promoting the more active role of women in the workplace, both with the objective of helping female sales reps increase their skills in terms of network building and sharing of experiences and know-how with one another within the Group and accelerating growth and involvement by ensuring supervisors and employees share the same awareness and move in the same direction. A total of 40 female sales reps participated, including female employees from Group companies.
    • Sakai Plant – Work-life balance support programs briefing and employee networking session sponsored by the women's empowerment project
      As part of the Sakai Plant's women's empowerment project, this briefing and employee networking session was held to frankly talk about balancing work and childcare, daily issues, and know-how for approaching work with senior employees and participants from various departments and to connect this information with new awareness. A total of 26 employees participated.
    • Shiga Plant – Seminar for male employees sponsored by the diversity promotion project
      As part of the Shiga Plant's diversity promotion project, we held a seminar for male employees. After listening to the actual experiences of male employees who took long-term childcare leave, participants discussed the themes of job coordination for taking childcare leave, work style reforms, issues faced with childrearing, and daily chores.

For efforts such as these to support female employees looking to forge a career, in March 2020, 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 seventh time, and the sixth consecutive year.

Nadeshiko Brand

Nadeshiko Brand

TOPICS

Women's Empowerment Project through Industry-Academia Collaboration between Osaka University and Daikin Industries, Ltd.

Daikin Industries, Ltd. launched two educational programs with Osaka University in October 2019. The Female Engineering Leadership Program teaches young female employees of Daikin about exhibiting their own unique leadership alongside science-related female graduate students. In addition, the Childcare Leave Career Support Program provides employees of Daikin access to classes taught at Osaka University during their childcare leave. These represent some of the first educational programs conducted between a company and university. They are helping to advance the careers of women and increase their skills.

Hiring Women

Increasing Percentage of Female Employees

As of the end of March 2020, women accounted for 16.4% (1,440) 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 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 fiscal 2019, local nationals accounted for 47.1% of the presidents and 48.6% 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 2020, there were 93 foreign nationals working at Daikin Industries, Ltd., an indication of Daikin efforts to include a diverse range of nationalities in its ranks.

Daikin Industries, Ltd. is hiring more and more foreign nationals as its business becomes increasingly globalized, and one way we are accelerating this diversity is by focusing on giving foreign nationals a more active role at Daikin. The number of these employees is on the rise at the head office. 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 from overseas and for intern trainees from abroad. 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 Japanese lessons for foreign national employees.

TOPICS

Seminars and Workshops

Workshops for Foreign National Employees
We held a workshop for foreign national employees for them to discuss their own personalities and strengths with the goal of providing a workplace environment where individuals embrace diverse values and can contribute their personalities and strengths, regardless of nationality, race, ethnicity, religion or language.

Cross-Cultural Communication Seminar for Foreign National Employees Held Jointly with Other Companies
In November 2019, we held a cross-cultural communication seminar for foreign national employees jointly with Kawasaki Heavy Industries, Ltd., Kobe Steel, Ltd., and Sumitomo Electric Industries, Ltd. During the seminar, the six dimensions of Hofstede model was used to understand the differences between Japanese culture and participant's own culture and learn about methods of utilizing one's own personality and strengths in their daily work.
In addition, the new learning and awareness gained from discussions and interactions with the foreign national employees of other companies helped to expand horizons and deepen participants' awareness of their own work.

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 2.2%.

We also strive to hire persons with disabilities not just at DSS but at Daikin Industries, Ltd. and Daikin Group companies.
In April 2020, Daikin Industries, Ltd. hired three new employees with disabilities.

As of the end of fiscal 2019, 2.44% 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)
*1
Legally, one severely disabled person employed is counted as two people with disabilities.
*2
Disability employment rate = number of people with disabilities employed / number of full-time employees
Note:
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 55 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. Daikin Industries (Thailand) Ltd. has 25 disabled employees, and Daikin Compressor Industries, Ltd. has 17 disabled employees.

Re-employment of Retired Employees

Re-employing More than 100 Veteran Workers Each Year

In 2001, Daikin Industries, Ltd. became one of the first companies in Japan to introduce a re-employment system. Retirees aged up to 65 wishing to continue working at Daikin following retirement can use their skill and knowledge in a flexible employment system that allows them to work reduced hours and on call.
Since introducing this system, over 100 have been re-employed each year. In fiscal 2019, there were 486 retirees working under this system at Daikin. Twenty-four of these re-employed veterans have been assigned to overseas posts, where they are imparting their superior skills and know-how to our bases in other countries.

We are working to raise motivation among these re-employed veterans by giving bonuses to those demonstrating outstanding contribution to company performance.

All group companies in Japan have also had this re-employment system since fiscal 2006, when Japan put into effect the Revised Law Concerning Stabilization of Employment of Older Persons. Those applying for this system may work until they are 65, with their attendance rate and personnel evaluation determined using standards set by labor and management.

The contribution of these experienced workers is becoming more important with Japan's declining birthrate and aging population. We plan to place these workers in positions that are best for them by considering their requests and expertise and by having them consult with their superiors.

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)

History of Daikin's Re-employment System

1979 Retirement age extended from 55 to 60.
1991 Introduction of re-employment system for employees up to 63.
2001 Age raised from 63 to 65.
2004 Senior Skill Specialist contract employee system introduced.
2005 Experience worker revitalization project started.
2006 System introduced at Daikin Group companies in Japan.

Diversity Education for Employees

In fiscal 2019, Daikin Industries, Ltd. carried out a range of educational activities to cultivate a workplace culture and change people's thinking with the aim of further tapping into the talents of a diversity of employees.

As with the previous year, management training was held for managers to get participants to think and take action toward making maximum use of the capabilities and unique characteristics of all employees and building an organization that spurs innovation and gets results for Daikin. A total of 31 managers took this training.

In December 2019, for young employees in their second year with Daikin, we held self-growth step-up training, the aim of which is encourage employees to think for themselves about their long-term career, and acquire the know-how and skills to accelerate their growth. This training was a chance for 311 participants to hear lectures and hold discussions with colleagues and take a good look at themselves and their goals. In addition, in June 2019 we held self-growth step-up training for fourth year employees, with a total of 238 participants.

We also held training for Japanese employees slated to work at overseas bases. The goal of this training is to help the appointees adapt as smoothly as possible to their new country by boosting their knowledge of things like its current affairs, people's thinking and values, and the main considerations when doing business there, as well as by deepening their understanding of Our Group Philosophy, which is the unifying force for all group employees. In fiscal 2019, 88 employees took this training.

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