Activities with Employees

The people who work at USS are the source of our group's ability to grow and remain competitive. We are dedicated to providing our people with an environment where they can realize their full potential and perform their jobs to the best of their ability.
Another priority is providing workplaces where people can work with no worries and upgrade their skills while respecting one another. We also recognize the importance of maintaining a framework for fair and proper employee performance evaluations and compensation.

Respect for human rights

The USS Code of Conduct and Ethics prohibits discrimination in the USS Group's workforce based on race, ethnicity, nationality, gender, religion, beliefs, disability, sexual orientation, gender identity and other personal characteristics. As auto auctions in Japan are the primary activity of the USS Group, problems involving child labor and forced labor are unlikely to occur. There has never been an instance of these problems at the group.
As part of our normal business activities, we perform checks for the prevention of infringements on human rights, discrimination, child labor and forced labor. Violations by employees of any of these guidelines can be reported by using Group Internal Reporting System. There were no serious cases of discrimination or violations of human rights in the Group during the fiscal year ended March 31, 2023.

Issues Reported to the USS Group Internal Reporting System

Prevention of harassment

The USS Group has established Rules for Preventing Sexual Harassment and Rules for Preventing Power Harassment and has activities to be certain that everyone at the group is aware of these rules.
The USS Corporate Ethics Help Line is available to employees who want to report harassment or receive more information.

Our commitment to equal opportunity

The USS Group is dedicated to equal employment opportunities and compensation for everyone regardless of gender. USS recruits people with many backgrounds in order to maintain a diverse workforce with outstanding skills. We actively hire these excellent human resoruces as both new graduates and as experienced professionals. At USS, 28.5% of directors are women and there are two female outside directors.
We also started training to encourage women to more actively participate in May 2022. Our programs not only provide the training on organization buidling and work-style reforms for management but also female employees.The ratio of female managers in the fiscal year ended March 31, 2023 was 0%. USS will aim to increase the number of women in management to at least 5% by the fiscal year ending March 31, 2026 and 10% or more by the fiscal year ending March 31, 2031.

Management training to promote the active participation of women

An action plan in compliance with the Act on Promotion of Women's Participation and Advancement

In April 2021, we developed and announced an action plan (April 1, 2021 to March 31, 2026) in compliance with the Act on Promotion of Women's Participation and Advancement in the Workplace. We are committed to taking actions to achieve the goals of the plan.

・Goals and Actions

Goal 1
Aim to increase the percentage of female managers (Deputy Chief or higher positions) to 8% or more of all employees

Actions

• Raise the motivation of female employees to take on the challenge of becoming managers
• By offering an improved childcare leave system, reduce the number of female employees resigning from the company after childbirth, thus increasing the length of service of female employees

Goal 2
Raise the percentage of female managers to at least 5% in fiscal 2025 and at least 10% in fiscal 2030

Action

• Increase the number of women assigned to jobs where they can be candidates to become the next generation of USS managers and executives

Goal 3
Increase the percentage of employees taking paid leave to 60%

Actions

• Increase the percentage of employees taking paid leave by efficiently running the planned paid leave system
• Lower employees' work load by improving work efficiency

Local emphasis for recruiting

We believe that recruiting people who live in areas near the automobile auction sites where they will work contributes to the vitality of these areas. Our policy is to conduct initial interviews of job applicants at auction and other business sites. The next step is an interview at the head office. Following the interview new employees will be assigned to USS Group locations under a basic premise that each new employee will be able to work near his/her home.

Attrition rate

During the fiscal year that ended in March 2023, 6.0% of the USS Group's workforce left their jobs voluntarily.

Salary structure

The USS Group pays salaries at a rate that is higher than the minimum wage in the area where each employee is located. In addition, employees who are highly motivated and interested in improving themselves and our business activities receive favorable evaluations. We do our best to incorporate their ideas and suggestions in our business operations. In 2014, we established personnel and salary frameworks that placed emphasis on the performance and capabilities of individuals in order to retain people and enable employees to advance their careers. The average annual salary at the USS Group was ¥6,873,000 in the fiscal year that ended in March 2023.

Performance evaluations

We assess the performance of employees twice every year and perform evaluations based on how people fulfill the roles and responsibilities of their respective jobs. Individuals undergoing an evaluation submit reports on progress regarding goals, actions to improve their job skills and specific measures taken for business process and other improvements. Assessments also include motivation concerning teamwork and improving how jobs are done, the ability to do one's job, and other aspects of personal performance. Furthermore, people performing and undergoing evaluations hold meetings for direct communication concerning the next goals and other subjects.
All employees are encouraged to submit suggestions for ways to improve business processes in order to create better workplaces. Every suggestion is carefully considered and as many ideas as possible are used in order to improve auction operations and increase the motivation of our workforce.

Employee benefit programs

・Employee stock ownership plan (ESOP)

The USS Group has an ESOP that fulfills two purposes. First is giving employees an additional incentive for contributing to the long-term growth of corporate value. Second is creating an opportunity to invest in USS stock in order to help employees accumulate savings.

・Long-term disability insurance

USS Group employees are covered by group long-term disability insurance that provides supplementary income to individuals unable to work for a long time due to a disease or injury. With this income, people are better able to concentrate on doing what is needed to restore their health quickly and return to their jobs.

・Pension programs

Employees of USS and three consolidated subsidiaries receive a lump-sum payment, which is a defined benefit retirement program requiring no contributions by beneficiaries, when they leave their jobs due to retirement or another reason. In addition, USS and six consolidated subsidiaries have a defined contribution pension plan.

The USS Group has many programs to give all employees the knowledge and skills needed to be valuable members of the USS team and achieve their personal career goals. On-the-job training is the most important element of these programs because this approach allows both people giving and receiving instructions to upgrade their skills together.

Training for automobile inspectors

Accurately performing inspections of vehicles to be auctioned is vital to the operation of our auctions. Inspections must be performed consistently at every auction site by using the same set of standards to ensure that decisions are made with accuracy.
USS established its Inspector Certification Program in 2006 in order to improve the methods used for inspecting and evaluating vehicles and ensure the consistency of inspections. Every inspector undergoes annual written and practical examinations to acquire a certification from level one to four. USS has assigned one instructor to each territory and one trainer at each auction site throughout Japan to guide and develop the skills of automobile inspectors and manage inspection certification programs. These training programs strive to build a consistent inspection framework. We have updated our traditional training program to more quickly develop vehicle inspectors in anticipation of an increasing number of vehicles at our auctions in the fiscal year ending March 31, 2024.
We conduct mechanical training to teach the basic mechanisms and structures of automobiles. This program aims to close any knowledge gap between employees. Employees from our business and vehicle inspection departments targeted by this training program can capitalize on what they learn in their sales and inspection activities.

Training for managers

Our management training programs cover individuals at the assistant general manager level and above. At these classes, managers study the basic thinking for the operation of auto auctions, how to establish targets and other subjects. This training includes classes led by instructors from outside the USS Group.
In July 2022, USS introduced a management and compliance training system as e-learning programs for managers.

Training for new employees

We have a training program structured specifically for newly hired people centered upon teaching proper business manners. Newly hired people first work with a mentor to learn about business operations and receive advice about any issues and uncertainties involving their responsibilities.

Customer interaction and personal appearance

The USS Basic Policy for Customer Services has five components: (1) Proper personal appearance; (2) Always serve customers with a smile; (3) Always greet customers; (4) Use proper words and expressions; and (5) Proper conduct for telephone calls with customers.
Once every week, we check the personal appearance of everyone up to and including division managers. Results of these checks as well as of assessments of how employees interact with customers directly and by telephone are incorporated in performance evaluations.

Survey on Group-wide human resource management

The USS Group is aware promoting internal communication is most important when striving to improve employee communication. That is why everyone in the company respects one another's opinions and ideas in an effort to build a work-friendly environment.
　 In the fiscal year ending March 31, 2024, we conducted an employee survey to gather feedback on internal recruitment practices, transfers and other job rotation opportunities as well as stratified training by occupation and position. As a result, we discovered a certain number of employees hope to advance their careers through job rotation opportunities via transfers. USS will continually conduct this kind of survey to further enhance employee engagement in the future.

Maintaining the health and safety for everyone at the USS Group is essential to our ability to continue to achieve steady growth. All employees receive periodic medical check-ups. Once individuals reach the age of 45, they must undergo more thorough annual examinations. There is no cost to employees. We plan to increase activities for preserving and improving the health of our workforce as well as for providing our people with pleasant and safe workplaces.

Health and Hygiene Committees

Every USS Group business site with at least 50 people has a Health and Hygiene Committee that is responsible for improving workplace health and hygiene. As a rule, these committees meet once each month. Committee members discuss measures for keeping employees healthy and subjects involving workplace hygiene.

Employee health promotion and management

Maintaining the health and safety for everyone at the USS Group is essential to our ability to continue to achieve steady growth. All employees receive periodic medical check-ups. Once individuals reach the age of 45, they must undergo more thorough annual examinations.
We plan to increase activities for preserving and improving the health of our workforce as well as for providing our people with pleasant and safe workplaces.

Prevention of long working hours

The USS Group closely manages the amount of overtime to maintain a pleasant workplace environment and prevent excessive working hours during peak periods of auction volume. Measures to perform tasks more efficiently and the use of shifts are two ways we are holding down working time. Furthermore, every auction site and subsidiary submits working time reports to the Board of Directors and other supervisory bodies. Directors and others hold discussions in order to determine actions to take as needed.
The average overtime during the fiscal year ended March 31, 2023 was 29.3 hours. This year-on-year rise in overtime is due to an increase in the number of vehicles in its auto auctions during the fiscal year ended March 31, 2023, which in turn increased the workload year on year.
We have set a monthly overtime target of 20.0 hours or less. USS will enhance its efficiency and introduce leading-edge technologies to build a more work-friendly environment.
USS has set a relatively short work day for the automotive distribution domain, but the difference in standard annual working hours is minimal because of the few number of annual holidays. The shorter work day is also another reason for the larger amount of overtime. In light of this insight, we have increased the number of annual holidays as of April 2023 and adjusted the length of the work day to mitigate this overtime.

Days off and paid leave

The average utilization rate for paid leave at USS is 63.3%. We have programs that encourage people to use more of their time off every year.

Mental health

We have a contract with an external mental health services provider for preventing and assisting with mental health issues of employees. Support is available to everyone at the USS Group.

Maintaining strong lines of communication among people in different locations and departments is critical to the ability to conduct business operations in an efficient and trouble-free manner. Regular employee trips to destinations in Japan or other countries are one way we bring our people closer together.