Risk of labor costs not being absorbed due to delays in assigning newly hired engineers
First written in FY2021-Q3. 5 of 10 entries say "Mitigated", first in FY2022-Q3. Latest entry: FY2023.
No other company in this theme has enough history to compare yet.
- FY2023MitigatedAnnual report
「As assignments for unassigned personnel progressed, labor costs included in selling, general and administrative expenses decreased, while cost of sales increased.」
Regarding the assignment delays and failure to absorb the labor costs of unassigned personnel described through the previous fiscal year, the disclosure states that progress in assignments changed how the related costs were recorded. - FY2023-Q3MitigatedAnnual report
「As assignments for unassigned personnel progressed, labor costs included in selling, general and administrative expenses decreased, while cost of sales increased.」
The disclosure states that assignments for unassigned personnel progressed and that the way labor costs associated with assignment delays, which had continued from the previous fiscal year, were recorded changed. - FY2023-Q2WorsenedAnnual report
「Although assignments for unassigned newly graduated and career-track engineers who joined the Company in 2020 were planned to be completed during the first half, some were postponed to the second half.」
In contrast to the plan stated in the previous quarter to complete assignments during the first half, some unassigned personnel who joined the Company in 2020 were postponed to the second half, and assignment delays have continued. - FY2023-Q1MitigatedAnnual report
「As assignments for unassigned personnel progressed, selling, general and administrative expenses decreased, while cost of sales increased.」
Regarding the assignment delays and failure to absorb the labor costs of unassigned personnel described through the previous fiscal year, the disclosure states that assignments progressed and the classification in which the related costs were recorded changed. - FY2022MitigatedAnnual report
「As assignments for unassigned personnel progressed, selling, general and administrative expenses decreased, while cost of sales increased.」
Regarding the assignment delays and failure to absorb the labor costs of unassigned personnel described through the previous fiscal year, the disclosure states that assignments progressed and the classification in which the related costs were recorded changed. - FY2022-Q3MitigatedAnnual report
「As assignments for unassigned personnel progressed, selling, general and administrative expenses decreased, while cost of sales increased.」
Previous disclosures had described assignment delays and the failure to absorb the labor costs of unassigned personnel, while this disclosure describes progress in assigning unassigned personnel and a change in how the related costs are recorded. - FY2022-Q2WorsenedAnnual report
「Although assignments for unassigned newly graduated and career-track engineers who joined the Company in 2020 were planned to be completed during the first half, some were postponed to the second half.」
In contrast to the expectation stated in the previous quarter that assignments for newly graduated and career-track engineers who joined the Company in 2020 would be completed during the first half, the disclosure states that some were postponed to the second half, indicating that assignment delays have continued and worsened. The assignment delays themselves have in fact occurred. - FY2022-Q1Expected completion of assignments for unassigned personnel during the first halfAnnual report
「Among the newly graduated and career-track engineers who joined the Company in 2020, assignments for unassigned personnel were expected to be completed during the first half, resulting in a level below that of the same period of the previous year.」
For unassigned newly graduated and career-track engineers who joined the Company in 2020, completion of assignments during the first half was disclosed for the first time as the expected outcome. At the same time, the disclosure states that utilization rates would remain below those of the same period of the previous year until assignments were completed. - FY2021MaterialisedAnnual report
「For newly graduated and career-track engineers who joined the Company in 2020, assignments were delayed compared with usual years and progress was approximately 50%, resulting in the labor costs of unassigned personnel being recorded as selling, general and administrative expenses.」
The delay in assigning newly graduated and career-track engineers was specified in more detail: assignment progress during the current fiscal year was approximately 50%, and the labor costs of unassigned personnel were recorded as selling, general and administrative expenses. - FY2021-Q3First statedAnnual report
「In addition to slower revenue growth resulting from delays in assigning newly graduated engineers who joined the Company in April 2020, the Company was unable to absorb their labor costs, resulting in lower profit.」
The Company disclosed for the first time, as a standalone risk and actual event, that delayed assignments of newly graduated engineers led to lower profit through slower revenue growth and the failure to absorb labor costs.