Demand for Advanced Attendance Management Driven by Regulatory Requirements and Diverse Working Styles

「The amended Child and Family Care Leave Act, being implemented in stages since April 2025, requires companies to establish flexible and precise labor-management systems, including responses to expanded eligibility for nursing leave and expanded disclosure requirements for parental-leave uptake, as well as the obligation to make efforts to introduce telework.」

「During the consolidated fiscal year, new projects continued to center on migration from analog management using paper and Excel, while demand for and interest in more sophisticated and efficient labor-management processes continued to grow.」

「In the markets served by our group, the importance of responding to legal and regulatory requirements is also increasing, including the application of overtime cap regulations to businesses that had received a grace period under the Work Style Reform-related legislation in April 2024 and the expansion of employee-insurance coverage under the Employees’ Pension Insurance Act and Health Insurance Act in October of the same year. In addition, amendments to the Child and Family Care Leave Act are scheduled for 2025, including expanded eligibility for nursing leave and restrictions on non-scheduled overtime, efforts to promote telework and expanded requirements to disclose parental-leave uptake. These changes are creating a need for more sophisticated labor-management systems.」

「In addition to the application of overtime cap regulations to businesses that had received a grace period under the Work Style Reform-related legislation in April 2024 and the expansion of employee-insurance coverage under the Employees’ Pension Insurance Act and Health Insurance Act in October of the same year, the growing disclosure of health and safety information as part of human capital disclosures has made the use of time and attendance data more important than ever. Such data supports proper workforce management, visibility into working styles, compliance and initiatives to improve engagement by leveraging the diverse characteristics of employees.」

「During the interim consolidated accounting period, new projects continued to be adopted mainly by customers moving from analog management, such as paper and Excel, and the market still has considerable room for development. By industry, adoption increased particularly among construction, healthcare and transportation businesses, which are considered to have been heavily affected by the “2024 problem.” Even industries that had received a grace period under the Work Style Reform-related legislation are now required to enhance labor management, driving the adoption of time and attendance management systems.」

「We believe demand for time and attendance management systems remains strong, with needs emerging to switch to more sophisticated systems, particularly among construction, transportation and healthcare businesses to which overtime cap regulations began applying in April 2024.」

「Following the April 2019 implementation of the Work Style Reform-related legislation, companies came to be required to manage attendance strictly. In addition, as the spread of COVID-19 prompted demand for responses to diverse working styles, including fully remote and hybrid work, demand for sophisticated time and attendance management has increased. Furthermore, with the overtime cap regulations beginning to apply in April 2024 to businesses that had received a grace period under the Work Style Reform-related legislation, we expect the number of companies seeking sophisticated time and attendance management to increase further.」