Human Resources Strategy
1. Aozora’s Human Resources Strategy
Aozora’s management philosophy is to contribute to the development of society through the creation of new value-added financial services. While we are a manageably sized entity with approximately 2,500 employees, we provide high-quality financial services by harnessing our high level of expertise and capacity to offer proposals. We believe the human capital that delivers these services is our primary source of value creation and is one of our most valuable assets.
Realizing the Goals of Mid-term Plan “Aozora 2027” Based on Our Management Philosophy
Aozora has long positioned the enhancement of human capital, the source of corporate value creation, as the foundation of its management strategy. Under the Mid-term Plan “Aozora 2027,” our human resources strategy sets forth the goal of “fostering” Aozora’s employees in a manner that facilitates their “growth” into professionals who “create added value” in the financial area, thereby ensuring that all stakeholders are “fulfilled.” We also aim to become a company where employees can take pride and feel job satisfaction. The talent we seek to cultivate is defined as those who can adopt a customer-centric perspective, take on difficult challenges, and deliver solutions. An organization that is able to motivate this talent is one that swiftly makes decisions and moves cohesively toward the realization of its management philosophy. Through the implementation of a human resources strategy closely aligned with our management philosophy and business strategy, we aim to enhance our corporate value over the medium to long term.
Based on the belief that human capital is the source of corporate value creation, Aozora continues to enhance its investment in human capital, focusing on both extrinsic and intrinsic rewards.
Policies and Measures for Investment in Human Capital
-
- Extrinsic rewards:
- Maintain a competitive compensation system (pay-scale increases implemented for four consecutive years), introduce a stock compensation program for employees
-
- Intrinsic rewards:
- Improve employee engagement and well-being by fostering a rewarding and safe working environment
As a result, despite the challenging environment including our announcement of a loss in FY2023, our employee retention rate remained high, which contributed to an earnings recovery in FY2024.
For information on employee turnover, please refer to “Number of retirees” in the “Non-financial Information Index” on page 52 of the Annual Report 2025 (Financial and Corporate Data Section).
However, we recognize the following as key challenges to realizing our goal: the need to expand our pool of value-creating talent essential for executing our management strategy, the need to accelerate personnel reassignments to priority areas, such as the Strategic Investments Business, insufficient differentiation in compensation for top performing employees, and a lack of organizational cohesion. To address these issues, we have formulated four basic policies that set the direction for our human resources strategy. By continuing to invest in human capital in line with these four basic policies, regardless of changes in the economic environment, we will work to enhance the value of our human capital.
Human Capital Investment That Leads to Creating Added Value
- Based on employee surveys
- Consolidated basis; excludes the Corporate Business Group
Human Resource Development
Aozora has redefined its targeted employee profile as an individual who adopts a customer-centric perspective and is capable of taking on and solving difficult challenges. While maintaining our core concepts behind human resources development, namely respecting employee initiative and encouraging challenges, we have revised our training programs to align with our priority businesses and targeted employee profile (Please refer to the red box in the diagram for the areas that were reviewed).
Aozora Human Resources Development Programs
- Conventional year-based training has been restructured as promotion preparation training
- Content revised to place greater emphasis on organizational development and talent development to strengthen management capabilities
- Previously independent training programs by division have been integrated into a structured curriculum
- Newly introduced programs
Development of Strategic Investments Business Professionals
The Strategic Investments Business is one of our key focus areas and a future driver of earnings. Accordingly, developing professionals with expertise in the Strategic Investments Business is our highest priority. While we have made efforts through planned staffing and internal and external training programs, we will further strengthen both the quality and quantity of human resources by launching a new Strategic Investments Seminar, led directly by senior management, in FY2025. We will continue to cultivate professionals capable of creating added value based on our clearly defined development policies for the ideal employee profile.
Aspiration to Establish Strategic Investments Seminar
Promoting Career Autonomy: Experience Expansion Program
To enhance human resources development and employee motivation, Aozora continues to promote initiatives that support career autonomy, enabling employees to proactively shape their careers. As a result, more employees are taking the initiative to assess their skills and aptitudes through hands-on experiences in their desired areas of work and are stepping up by developing their own capabilities. We will continue building an environment in which all employees can grow into professionals capable of creating added value.
Recruitment of Human Resources Capable of Creating Added Value
Aozora hires high-potential individuals who embody our management philosophy. Our five career paths comprise Global Professional*, Regional Professional*, IT Professional, Contract Professional (highly specialized talent), and Contract Specialist. All hires in these career paths are positioned as future core talent or highly skilled professionals. As a highly specialized financial institution, Aozora has long focused on mid-career hiring. As a result, a large number of highly specialized career hires with a broad range of experience and values joined Aozora ready to contribute. Beginning in FY2024, we introduced alumni hiring (rehiring of former employees) and referral hiring (hires through employee referrals), raising the mid-career hiring ratio to 49%.
- In conjunction with the human resources system reforms undertaken in FY2020, we abolished the “ippan-shoku” (non-professional career category) and re-integrated these employees into career paths.
For more information about the number of people hired, please refer to “New grads / mid-career ratio” in the “Non-financial Information Index” on page 52 of the Annual Report 2025 (Financial and Corporate Data Section).
Interview with an Alumni Hire
Aozora is accelerating the reassignment of talent to its focus area, the Strategic Investments Business. However, in light of prospects for growth in this business, current staffing levels remain insufficient. To address this, we are promoting the following initiatives.
Initiatives to Reassign Personnel to the Strategic Investments Business
- Leverage the expertise of veteran employees with experience in structured finance
- Provide high-potential young employees with opportunities to gain on-the-job experience
- Optimize overall personnel allocation using the talent management system and other tools
- Enhance internal talent mobility
Human resources allocation
Aozora regards human capital as the source of value creation and considers it the most important management resource. For this reason, we have maintained appropriate compensation levels while taking a medium- to long-term view of investment in human capital, regardless of short-term business conditions or earnings fluctuations.
For information about average annual compensation, please refer to “Average annual salary” in the “Non-financial Information Index” on page 52 of the Annual Report 2025 (Financial and Corporate Data Section).
Looking ahead, in order to navigate a rapidly changing and increasingly
uncertain business environment, it will be essential to evaluate and reward each employee’s
longer-term contributions to enhancing corporate value.
Under the Mid-term Plan “Aozora 2027,” we have outlined five key initiatives regarding our
compensation system. By ensuring fair compensation for employees creating added value and
establishing an evaluation system based on fairness, we aim to create an environment where employees
can fully demonstrate their capabilities.
Fair Compensation Allocation
Improvement in Employee Engagement
To enhance corporate value, we believe that it is vital to create a work environment where employees can thrive while improving individual motivation and engagement. To this end, Aozora conducts an annual employee survey to identify areas for improvement related to engagement. The latest survey results revealed that while a comfortable work environment is becoming well-established and recognition for taking on challenges is improving, there remains room to enhance employees’ sense of fulfillment in their work.
FY2024 Employee Survey Results (Key Themes)
|
Workplace comfort |
79% |
|---|---|
|
Job satisfaction |
56% |
|
Recognition for challenges |
47% |
Traits of Employees Reporting High Job Satisfaction at the Aozora Group
- Feel they work in an environment that is both comfortable and recognizes challenges
- Highly satisfied with workloads and manager support of their careers (communication)
To clearly define a path for resolving this issue and effect change
toward greater unity across the organization, we have introduced new KPIs in Midterm Plan “Aozora
2027.”
Aozora is focused on developing employees who adopt a customer-centric view and can overcome
difficult challenges, that is, customer-oriented and challenge-oriented human resources. This
reflects Aozora’s purpose of taking on challenges and continuously creating new value-added
financial services. Accordingly, “recognition for taking on challenges” is the most important
indicator in our employee survey, and we aim to raise it further.
By improving engagement and fostering a stronger sense of unity among employees, we seek to become
an organization that swiftly makes decisions and moves cohesively toward the realization of our
management philosophy.
Mid-term Plan KPIs
|
FY2024 |
FY2027 |
|
|---|---|---|
|
Percentage of employees who feel their |
47% |
55% |
|
Ranking of "sense of unity and cohesion" among |
1st |
2nd or lower |
- Based on employee survey results
Initiatives to Improve Employee Engagement
-
Annual employee survey:
Survey results are discussed among executives and incorporated into human resources systems, the Mid-term Plan, and business measures -
Monthly use of Wevox engagement measurement tool:
Enables visualization and analysis to support workplace-driven organizational development and enhance management capabilities
Initiatives to Strengthen Organizational Unity
-
Communication forums to promote understanding of our management philosophy (30 sessions/year):
All employees engage in discussions about the management philosophy and workplace fulfillment -
Town hall meetings (once per year):
Direct dialogue between management and employees to deepen understanding of the management philosophy
Enhancing Employee Well-being
Our human resources strategy envisions a future in which all stakeholders
are “fulfilled” together. The well-being* of our employees forms the foundation for this vision and
is essential for the Aozora’s value creation activities. To enhance employee well-being, we promote
both health management and financial wellness initiatives that support employees’ physical, mental,
and financial stability.
* Well-being refers to a state in which each employee is not only physically and mentally healthy,
but also socially secure and fulfilled.
Health and Productivity Management*1 Initiatives
To ensure that employees can work with peace of mind over the long term, Aozora is committed to supporting the physical and mental health of its employees in close collaboration with its health insurance society (a single health insurance society). As a result of these activities, Aozora’s employee presenteeism*2 score is better than the national average, indicating that Aozora is a relatively healthy organization.
Initiatives to Promote Health and Productivity Management
- Formulation of a data health promotion plan
- Regular health checkups and stress assessments
- Follow-up care by occupational physicians and medical professionals
- Financial assistance for health screenings and cancer checkups for employees and their families
- Health literacy initiatives for employees, including wellness seminars
Certified as a Health & Productivity Management Organization for five consecutive years
Presenteeism score*2 86.4 (1.5 points above the average, indicating a relatively healthy organization)
- “Health and Productivity Management®” is a registered trademark of the Nonprofit Organization Kenkokeiei.
- Presenteeism refers to a state in which employees are physically present at work but unable to perform at full capacity due to health issues. It is considered a source of costs and losses for a company. Based on employee survey results using the University of Tokyo’s Single-Item Presenteeism Question (SPQ).
Enhancing Employees’ Financial Wellness
To ensure that employees can fully demonstrate their abilities and thrive in their roles, it is essential that they are able to work without financial anxiety about the future. Based on this belief, Aozora has established programs to support the financial wellness of its employees. By expanding various systems and initiatives, we aim to provide economic stability for employees and their families, and foster a work environment where they can focus without financial worry.
List of Programs and Measures to Enhance Financial Wellness
Diversity, Equity & Inclusion (DEI)
Aozora recognizes that incorporating diverse perspectives into decision-making enhances
organizational growth and adaptability, and is a key driver of creating value for society. To
respond to a rapidly changing business environment and achieve sustainable growth and greater
corporate value, we position the promotion of diversity, equity, and inclusion (DEI) as a core
component of our management strategy.
Aozora focuses on ensuring diversity by establishing the Human Resource and Working Environment
Development Policies while setting targets for the ratio of mid-career hires, women, and
non-Japanese in management positions. The ratio of mid-career hires in management currently stands
at 58%.
Human Resource and Working Environment Development Policies
|
Policies |
Actions |
|---|---|
|
Hiring and appointing people not just on ability, but emphasizing diversity |
|
|
Support female employees’ career development |
|
|
Create a working environment where all employees can play an active role |
|
Goals and Progress
|
Categories |
Current ratios |
|---|---|
|
Female |
14.9% |
|
Female deputy |
40.7% |
|
Non-Japanese |
3.2% |
|
Mid-career |
58.3% |
|
Male employees taking |
105% |
|
Target ratios |
|---|
|
20% |
|
40% |
|
3% |
|
40% |
|
100% |
Interview with a Participant in the Female Leadership Development Program
Creating Opportunities for Female Employees
A distinguishing feature of Aozora is that female employees tend to
have
longer tenures than their
male counterparts and play an active role in a wide range of departments. This reflects our
long-standing efforts to create an environment in which employees can build sustainable careers
regardless of gender.
A key challenge going forward is to increase the ratio of female managers. Incorporating diverse
perspectives, including those of women, into decision-making processes helps put into motion
self-correcting mechanisms, and reduces the risks associated with homogenous thinking.
Additionally,
unlocking the potential of female employees helps prevent the loss of valuable human capital. As
a
result of our ongoing efforts to support women’s advancement, the current ratio of female
managers
has reached 15%. We will continue to appoint women to leadership positions, including executive
roles, to further increase this ratio.
Ratio of Female Managers
Although our gender pay gap of 65.8% is narrower than the industry
average for financial institutions, there is still room for improvement. Following the career course
integration in FY2020, there is no difference in performance evaluation or pay between men and women
within the same career course or rank. However, the primary reason for the remaining pay gap is the
limited number of women in managerial positions. Contributing factors include the relatively small
number of women working in focus areas such as the Strategic Investments Business, and the fact that
many long-tenured female employees remain in support roles, such as back-office operations, often at
lower rank levels.
Aozora is accelerating fairness initiatives to fully leverage the capabilities of female employees,
while promoting a broader shift in organizational awareness. Through these efforts, we aim to
increase the number of female managers and promotions, and expect the gender pay gap to gradually
narrow over time.
Examples of Initiatives to Promote Women’s Empowerment
- FY2020: Integrated career courses (abolished “ippan shoku” and integrated employees into professional career categories)
- FY2021: Set target ratio for female deputy managers
- From FY2023: Resumed events to support employees returning from childcare leave
- From FY2023: Launched women’s leadership development training, internal networking events, and cross-industry exchange programs
Creating an Environment Where Diverse Talents Can Thrive
Aozora aims to become an organization chosen not only by customers but also by all stakeholders, including shareholders and employees. We are committed to building a workplace where all employees can thrive by respecting diversity and providing fair opportunities to everyone. We continue to support a balance between childcare and work regardless of gender. As a result, the childcare leave utilization rate has reached 100% for male employees as well.
Examples of Initiatives Supporting Work-Childcare Balance
- Introduced Fathers’ Post-Natal Childcare Leave Program in FY2022 → Program revised in FY2024 to require five days of childcare leave annually
- Held events for employees on childcare leave prior to returning to work
Aozora launched Aozora Ally in 2022 to promote DEI and continue to push forward initiatives that support employees with diverse backgrounds, including persons with disabilities and LGBTQ+ individuals. In FY2024, we are working to foster a workplace culture of mutual acceptance of diversity by offering e-learning programs to all employees to deepen understanding of LGBTQ+ issues and human rights.
Aozora considers the individual needs of employees with disabilities based on their specific disabilities and provides an environment where these employees can work like other employees. In recognition of this, we received the Tokyo Metropolitan Government’s “Excellent Company Award for the Employment of People with Disabilities.” The rate of retention for new employees after one year has stayed at 100%. Moving forward, our goal is to promote efforts aimed at creating an even more comfortable workplace for employees.
Workstyle and Support System
Aozora does not adhere to the idea of “carving out work” for employees with disabilities. At the same time, there are tasks that may be difficult to perform due to a disability, and sometimes support is requested directly by the individual, while at other times, those nearby offer assistance naturally when they notice a need. The Human Resources Division also includes specialists such as mental health & welfare counselors, creating an environment in which it is easy to seek support. Employees with disabilities are engaged in the same duties as other employees, supported daily by the understanding and cooperation of those around them.
Voices of Colleagues and Supervisors: Insights Gained from Working Together
When I hear someone has a disability, I tend to focus on that fact. But when working together, I found that by simply discussing what can and cannot be done, we can proceed with our work without issue. This also served as an opportunity to reaffirm the importance of communication.
Working together has naturally deepened my understanding of people with disabilities. I have learned a lot from their attitude and work ethic, and before I knew it, I found myself offering assistance to similar individuals outside the Bank. It has had a positive impact on my own behavior. Also, because they are open and willing to talk about anything, I can work without feeling self-conscious.
Utilization of the HR System
Employees make use of multiple programs that are open to all, allowing them to take on challenges outside of their assigned departments and expand their range of experience. The use of these systems often helps employees with disabilities strengthen their horizontal connections, and in many cases leads directly to transfers to other teams or departments. In addition, they use self-development support programs to independently improve their skills and broaden their knowledge.
Doing Both Work Duties and Activities Unique to Those With Disabilities
While working in the same environment as their colleagues, some concerns do exist, such as “the disability is not easily noticed” or “issues that need to be considered are not well conveyed.” To promote a deeper and more practical understanding of what it means to “work with a disability,” employees with disabilities took the lead in planning and conducting simulation experiences for physical, visual, and hearing impairments, for employees of the Aozora Group.
[Scenes from the Simulation Experience]
(motorized wheelchair)
Outcomes of the Initiative and the Path Forward
As a result of participants in the simulations bringing their experiences back to their own departments and presenting ideas, electronic memo pads and sign guides were introduced and are now in use at branches. These initiatives, led by employees with disabilities, have contributed to better customer service, demonstrating that they are not merely receiving support but actively giving back to Aozora and its customers through perspectives unique to those with disabilities.
Reference: External outreach
- Workplace tours held (for high school students from special needs schools)
- Presentation at the Vocational Rehabilitation Workshop held by the Japan Organization for Employment of the Elderly, Persons with Disabilities and Job Seekers
- Instructor sent to training session run by the “Skill Improvement Project for Cooperation with Employment Support Project Organizations” under the Tokyo Metropolitan Government’s Bureau of Social Welfare and Public Health
- Implementation of programs at psychiatric day care centers and labor transition support offices as a means to support preparing for the stable employment of people with disabilities who are seeking jobs
Discussion
–Working
Actively in a Diverse Range of Areas–
Syndication & Trust Div.
Institutional Banking Management Div.
Institutional Banking Management Div.
- About Your Job Responsibilities
-
Inoue
My main responsibilities are payment settlement operations related to syndicated loans and corporate bonds.
-
Sudo
My main duties are to support institutional banking personnel. I primarily prepare credit-related applications for loans and so forth.
-
Akaiwa
I’m responsible for credit-related operations, such as compiling data for financial statements.
- Career History and Job Satisfaction
-
Inoue
Previously, I engaged in back-office loan operations, especially remittance of funds and collection. While I have a hearing disability, I can now work autonomously to some extent, so I thought I’d like to take on a new challenge. That’s when I first became interested in syndicated loan operations. I took part in the Job Support Program to gain experience in syndication operations. I believe that the participation made me acquire new knowledge on a deeper level.
-
Akaiwa
I participated in the short-term trainee program on international operations. I also took many opportunities offered as Aozora’s self-development support initiatives, including the English proficiency enhancement program and Sophia University’s adult education partnership program. As a result, I’ve gained a wide range of experience.
-
Sudo
I’ve also joined the short-term trainee program. As I’m visually impaired, I always use enhanced vision equipment, which sits on my desk. When I attend a training session, my supervisor and coworkers assist me in carrying the equipment to the venue, escorting me there, as well as taking care of materials distributed in advance. Thanks to their support, I can participate in this short-term trainee program with peace of mind. I’d like to continue to actively participate in the program.
-
Akaiwa
Ms. Inoue, did you make any special requests when you were transferred to your current division?
-
Inoue
The supervisors of my former and current divisions met in advance and confirmed with me about my situation, such as how I usually communicate with others and how to use the UD Talk® app. As a result, I’ve had no trouble since the transfer.
-
Sudo
I feel that Aozora firmly supports us to achieve what we want to accomplish. In fact, employees with disabilities at Aozora work in various business groups and divisions. This environment may inspire us to think more deeply about our own career paths.
- Toward Creating a Safe Environment to Work Actively
-
Akaiwa
When I joined Aozora, I was surprised at first to see employees with disabilities leading some activities, such as sign language classes where employees with hearing disabilities serve as instructors. I have a mental disability. When I saw my senior colleagues with disabilities playing active roles just like those without disabilities, I thought that this was an environment where I could be myself.
-
Inoue
During the COVID-19 pandemic, everyone wore face masks, which made communication difficult. Around that time, I was given the opportunity to make a presentation to officers and employees about a hearing disability as well as how the pandemic has impacted my work. This session led many people to further understand my condition and also expanded the range of my activity. Previously, I was afraid that I couldn’t exchange as much information as people around me. However, as they’re becoming more supportive in communication with me, I now confirm the meaning of messages mainly by repeating what others say and asking them to read the notes I take.
-
Sudo
These activities allow you to see things in a new light and also articulate them in language, don’t they?
I believe there are certain things that we can share with people around us as a result of building trusting relationships and interacting with them over time. -
Inoue
By working diligently and expanding the range of activity, both those around me and I can discover new things. Going forward, I’d like to continue these efforts.
-
Akaiwa
I feel that Ms. Inoue and Ms. Sudo have built trusting relationships with others and paved the way for employees with disabilities to follow and succeed. Let’s continue working to open up more paths for future generations in each division.
- (Note) This dialogue was conducted in 2024.