Risk of Higher Personnel Costs Due to Changes in Working Conditions
First written in FY2016. 2 of 5 entries say "Worsened", first in FY2018. Latest entry: FY2025.
The Royal Hotel,Limited moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 8 of 16 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Regarding the possibility of this risk materializing, various insurance premium rates have been trending upward in recent years and have had some impact.」
For labor-related risks, the disclosure states that, in addition to the previously identified labor shortages and wage increases, rising insurance premium rates have had an impact. - FY2021MitigatedAnnual report
「To address this risk, the Group has identified the reform of human resources operations as one of the key strategies in its medium-term management plan and is working to improve the working environment and review its wage structure.」
While describing the impact of higher personnel costs due to labor shortages and rising insurance premium rates, the disclosure identifies reform of human resources operations, improvements to the working environment and a review of the wage structure as measures. - FY2020MaterialisedAnnual report
「Regarding the possibility of this risk materializing, recent wage increases resulting from labor shortages have had some impact.」
The disclosure states that wage increases caused by labor shortages are affecting personnel costs, specifying the materialization of labor-related risks. - FY2018WorsenedAnnual report
「The Group employs many part-time workers. If the labor environment, including social insurance and working conditions, changes in the future, personnel costs may increase and affect the Group's performance. In addition, changes in the treatment of other employees, relevant laws and regulations, or the labor environment may also affect the Group's performance.」
The scope of the risk was expanded beyond part-time employees to include changes in the treatment of other employees, relevant laws and regulations, and the labor environment. - FY2016First statedAnnual report
「If the labor environment changes in the future, including changes in social insurance or working conditions, personnel costs may increase and affect the Group’s operating results.」
This risk arises against the backdrop of the Group’s large number of part-time employees.