Pressure on Profit Margins from Soaring Personnel-Related Expenses
First written in FY2022. 5 of 8 entries say "Materialised", first in FY2025-H1. Latest entry: 2026-11-13.
Career moved to the "Worse" side of this theme in 2025, 2 years after the typical company in this theme (2023).
The whole theme swung hardest in 2025: 21 of 36 companies on the "Worse" side.
8 other companies' latest entry also says "Materialised".
- FY2026-H1RestatedAnnual report
「Against a backdrop of persistent labour shortages, the trend toward higher wages for temporary staff in the temporary staffing market is continuing. As a result, the cost of acquiring personnel for employers has risen, becoming a factor weighing on profits.」
The situation in which the cost of acquiring personnel is rising due to the trend toward higher wages for temporary staff and putting pressure on profits continues to be described. - FY2025MaterialisedAnnual report
「We are strongly feeling persistent upward pressure on companies' personnel-related costs, including the sharp rise in personnel acquisition costs caused by tight labour markets amid broad-based inflation, the expanded application of social insurance premiums, higher minimum wages, and demands for wage increases associated with revisions to medical and long-term care fees.」
Personnel acquisition costs, social insurance premiums, minimum wages, and demands for wage increases associated with revisions to medical and long-term care fees emerged as persistent cost pressures, weighing on the profitability of the Senior Care business. - FY2025-H1MaterialisedAnnual report
「Against a backdrop of persistent labour shortages, demand for services in the temporary staffing market continues to rise, leading to a trend toward higher wages for temporary staff. As a result, the cost of acquiring personnel for employers has risen, becoming a factor weighing on profits.」
The company describes the situation in which the cost of acquiring personnel has actually risen due to the trend toward higher wages for temporary staff, putting pressure on profits. - FY2023RestatedAnnual report
「However, we are feeling the pressure of rising personnel-related costs at companies, including higher social insurance premiums and minimum wages, and recognise the challenge that, if we continue doing things as we have in the past, pressure on profit margins will persist.」
The challenge of rising personnel-related costs and pressure on profit margins due to higher social insurance premiums and minimum wages is reproduced. - FY2022First statedAnnual report
「We are feeling the pressure of rising personnel-related costs at companies, including higher social insurance premiums and minimum wages, and recognise the challenge that, if we continue doing things as we have in the past, pressure on profit margins will persist.」
The upward pressure on personnel-related costs from higher social insurance premiums and minimum wages is described as a new challenge and risk that will continue to squeeze profit margins.