Engineer Shortages and Rising Personnel Costs
First written in FY2019. 11 of 14 entries say "Materialised", first in FY2021-Q2. Latest entry: FY2027-H1.
Serverworks moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 36 of 59 companies on the "Worse" side.
16 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「Salaries and allowances 656,906 730,156」
Salaries and allowances included in selling, general and administrative expenses increased from ¥657 million in the interim period of the previous year to ¥730 million, with the risks associated with securing personnel and rising labor costs continuing to appear in the results. - FY2026MaterialisedAnnual report
「Salaries and allowances increased from ¥1,215.590 million to ¥1,333.250 million.」
The increase in personnel expenses was reflected in FY2026 results, with salaries and allowances increasing by ¥117.660 million from the previous fiscal year. - FY2026-H1MaterialisedAnnual report
「Salaries and allowances 580,192 656,906」
Salaries and allowances in selling, general and administrative expenses increased from ¥580.192 million in the same period of the previous year to ¥656.906 million, and the increase in personnel expenses continues to be reflected in results. - FY2025MaterialisedAnnual report
「Selling, general and administrative expenses for the fiscal year increased by ¥394.217 million from the previous fiscal year to ¥3,032.088 million, up 14.9% year on year. This was mainly due to higher personnel expenses. Salaries and allowances increased from ¥990.713 million to ¥1,215.590 million.」
The increase in personnel expenses was reflected in FY2025 results as a factor behind the increase in selling, general and administrative expenses, and the risks of securing personnel and rising personnel costs continue to materialise. - FY2025-H1MaterialisedAnnual report
「Salaries and allowances 475,021 580,192」
Salaries and allowances in selling, general and administrative expenses increased from ¥475.021 million in the previous interim period to ¥580.192 million, and the increase in personnel expenses continues to be reflected in results. - FY2024MaterialisedAnnual report
「Salaries and allowances ¥649.644 million ¥990.713 million」
Salaries and allowances in selling, general and administrative expenses increased from ¥649.644 million in the previous fiscal year to ¥990.713 million, and the increase in personnel expenses continues to be reflected in results. - FY2024-Q2MaterialisedAnnual report
「Salaries and allowances ¥243.397 million ¥475.021 million」
Salaries and allowances in selling, general and administrative expenses increased from ¥243.397 million in the same quarter of the previous year to ¥475.021 million, with the increase and rise in personnel expenses continuing to appear in reported results. - FY2023MaterialisedAnnual report
「Selling, general and administrative expenses for the consolidated fiscal year increased by ¥639.652 million from the previous consolidated fiscal year to ¥1,747.273 million, up 57.8% year on year. This was mainly due to an increase in personnel expenses.」
The increase in personnel expenses contributed to the increase in selling, general and administrative expenses, and the risk of rising personnel expenses appeared in reported results as operating profit declined 13.6% year on year. - FY2022RestatedAnnual report
「Our Group is working to secure diverse talent through various recruitment channels and to develop suitable personnel through enhanced training programs and other measures. We are also implementing initiatives to maintain and improve employee engagement, including establishing attractive compensation and fair performance evaluation systems and developing a comfortable working environment through measures such as promoting remote work.」
The risks related to securing and developing personnel, managing personnel expenses and rising personnel expenses, and the responses through recruitment channels, training programs, compensation and evaluation systems, and remote work, have been reaffirmed. - FY2021MaterialisedAnnual report
「Selling, general and administrative expenses for the fiscal year increased by ¥136.405 million from the previous fiscal year to ¥804.881 million, up 20.4% year on year. This was mainly due to a ¥77.853 million increase in salaries and allowances.」
The increase in salaries and allowances appeared in reported results as a factor behind the increase in selling, general and administrative expenses, and the risk of rising personnel expenses has continued to materialize. - FY2021-Q3MaterialisedAnnual report
「In addition to higher labor and personnel expenses and other factors, including the recognition of costs related to the issuance and exercise of the fifth series of stock acquisition rights with an exercise price adjustment clause, operating profit was ¥262.723 million, down 15.9% year on year.」
The increase in labor and personnel expenses has continued to appear in actual results as a factor behind the decline in operating profit. - FY2021-Q2MaterialisedAnnual report
「As a result, for the cumulative second-quarter period, revenue was ¥3,777.725 million, up 22.9% year on year, while operating profit was ¥159.119 million, down 20.6% year on year, due to higher labor and personnel expenses and the recognition of costs related to the issuance and exercise of the fifth series of stock acquisition rights with an exercise price adjustment clause, among other factors.」
The increase in labor and personnel expenses was actually cited as a factor behind the decline in operating profit, indicating that the risk of rising personnel expenses has appeared in the company’s results. - FY2020RestatedAnnual report
「As our business expands, if we are unable to develop outstanding management and employees internally, or secure or retain suitable personnel at the appropriate time in technology, sales, planning and administration; if we are unable to control labor costs appropriately because we hire more personnel than necessary; or if personnel expenses rise more than expected in the labor market, our business operations, financial results and financial condition could be affected.」
The risks of securing and retaining personnel, including engineers, labor costs resulting from hiring, and rising personnel expenses have been reaffirmed. - FY2019First statedAnnual report
「The cloud industry to which we belong is facing an increasingly serious shortage of technical personnel, particularly engineers.」
The company identifies as risks the ability to secure and retain the necessary personnel, labor costs resulting from over-hiring, and rising personnel expenses in the labor market.