If You Want to Change Jobs to a Good Large Company, Read the Securities Report
A Surprising Way to Find a Good Company
When considering a job change, it is important to determine whether the company is a "good company." However, the internet and social media are overflowing with information that may or may not be true, making it difficult to know the true nature of a company.
That is why I recommend looking at the securities report.
In recent years, there has been an increasing "legal requirement" for the disclosure of data related to human capital. Actually, if you are in the HR department of a large company, you would know that there is an atmosphere of "mandatory disclosure."
Therefore, it has become a treasure trove of useful information for those considering a job change.
Below, I will explain why securities reports are recommended and the points that job seekers should check within them, so if you are considering a job change or want to check the "goodness" of your own company, please read on.
The Trend of Human Capital Disclosure
In March 2023, the Financial Services Agency revised the "Principles for Disclosure of Descriptive Information" and requested the enhancement of disclosures regarding human capital in securities reports.
With this revision, companies are now required to disclose more detailed information regarding the securing, development, and promotion of talent, ensuring diversity, employee engagement, investment in human capital, and the improvement of the workplace environment.
This movement has become a valuable source of information for not only investors but also those considering employment or job changes to understand the actual state of a company.
Why Securities Reports?
Because they are objective sources of information
Securities reports are documents that are legally required to be accurate and objective. Writing lies would mean deceiving investors, so only facts can be written. Since companies can write whatever they want in PR materials or employee introductions on recruitment sites, reading securities reports is beneficial.
Because information is updated regularly
Since they are updated every year, you can grasp the latest situation of a company.
Because it is easy to compare companies
Since they are created in the same format, comparison between companies is easy.
Enhancement of Human Capital Information
Due to the legal amendments mentioned earlier, detailed information regarding human resources is now included.
Points to Check in Securities Reports
Attitude toward career hiring (mid-career recruitment)
Open the securities report and try searching for "career hiring" using "Ctrl+F". (If it doesn't hit, try searching just for "hiring")
Companies that show hits are serious about mid-career recruitment.
Also, large companies often disclose details such as the number of career hires and comparisons with the number of new graduates, so checking those figures will tell you how serious the company is about career hiring.
Ratio of female managers
As an indicator of diversity promotion, the ratio of female managers is important. Companies where this figure is high or increasing year by year respect diversity, conduct fair evaluations and promotions, and are therefore highly likely to be easy to work for.
Turnover rate
Some companies voluntarily disclose their turnover rate. The fact that they disclose it means they are confident in their turnover rate, or that the management team is serious about becoming a proper company and is proactive in disclosing human capital, so it can be said that the level of "whiteness" (good working environment) is high.
Conversely, companies that cannot disclose this figure are, frankly speaking, often doing so because it is inconvenient for them. Therefore, I recommend that you check other indicators while being cautious.
Investment in education
The amount of investment in education per employee may be stated. If this amount is higher than the industry average, it is proof that the company is focusing on training and human resource development.
Efforts toward work-style reform
The paid leave utilization rate and overtime hours are also important indicators for knowing the "good company level." Some companies set specific numerical targets, so if you follow those figures, you can also know whether the goals are actually being achieved or if they are just pie in the sky.
Case Study: Analysis of Mitsui & Co.'s Good Company Level
Now, let's analyze a company's good company level based on the information in the publicly available securities report.
This time, I have taken up Mitsui & Co., which is always at the top of job hunting rankings and is also known for its high annual income.
About information sources
The information sources are this securities report and in addition, since they also disclosed detailed personnel data on their corporate website, I used that as a reference.
Renowned large companies often disclose such figures, so checking them together will increase the resolution of your understanding.
On the use of generative AI in analysis
In this analysis, I fed the securities report into generative AI and had it help me with the analysis. It's a convenient era, isn't it? I have added my own on-site observations and other publicly available data to the AI's analysis to create this case study.
※If you are interested in a prompt for generative AI to diagnose how 'great' a company is, please like and comment. If there is high demand, I would like to release it.
Mitsui & Co. 'Great Company' Rating: General Review
Mitsui & Co. operates globally as a general trading company, and its financial position is extremely stable. It is also proactive in disclosing human capital, and it can be seen that the company is focusing on fostering and promoting the success of diverse talent, work-style reform, and compliance. Overall, it can be said that it has a high rating as a 'great company.' In particular, its efforts in human capital investment, diversity promotion, and work-style reform are highly commendable.
Stance on Career Hiring
The report contains a description of career hiring, and a comparison between new graduate hiring and career hiring is also made. While the number of new graduates hired for the fiscal year ending March 2023 was 124, the number of career hires was 85, indicating a proactive stance toward mid-career recruitment. In addition, the ratio of career hires is 12.0%, which is on an upward trend from the previous year. These figures suggest that Mitsui & Co. is also focusing on securing immediate-asset talent, which can be considered a positive factor from the perspective of hiring diverse talent.
Descriptions Regarding Human Capital
The report contains detailed descriptions regarding human capital, and the following items are listed.
A group of diverse 'individuals': Striving to create an environment where diverse talent can play an active role globally and to improve engagement.
Fostering strong 'individuals': Implementing sustainable development of talent to lead large-scale and complex businesses, supporting employee growth and reskilling, and conducting skill management and global career development.
Strategic talent allocation: Thoroughly streamlining routine tasks through DX, shifting workloads to high-value-added tasks, and expanding the scale of business assets per person.
The word 'individual' appears frequently in the materials. There is a phrase 'Mitsui of the people' that expresses the characteristics of the Mitsui Group, and you can see a culture where the growth of people leads to the growth of the business.
Reading through the materials shows that Mitsui & Co. views talent as 'capital' and is focusing on development and creating a rewarding work environment, which is a point that can be evaluated as a 'great company'.
Ratio of Female Managers
As of March 31, 2023, the ratio of female managers on a non-consolidated basis was 8.5%. Although it has not reached the target of 10%, it has improved from the previous year. In addition, the company has set a target of 10% by the end of March 2025 and 20% by the end of March 2031, showing a stance of aiming for continuous improvement. Future trends are also worth noting.
Turnover Rate
The non-consolidated turnover rate is 4.22%, with 3.97% for men and 4.82% for women. This is a decrease compared to the previous year, suggesting that an environment that is easy to work in is being established. Furthermore, the fact that they voluntarily disclose this figure is a sign that they are proactive in human capital disclosure, which is a factor that increases their 'great company' rating.
Investment in Education
For the fiscal year ending March 2023, the average annual training time per non-consolidated employee was 21.0 hours, and the average annual training days were 2.9 days. In addition, the total cost for human resource development and training was 11.4 billion yen, confirming a stance of actively investing in human resource development.
Efforts Toward Work-Style Reform
Average annual paid leave days taken: At 13.6 days on a non-consolidated basis, this is an increase from the previous year. Although it remains at just under 70% of the target value, it maintains a high level.
Average monthly overtime hours: At 28.0 hours on a non-consolidated basis, although this is an increase from the previous year, it feels within an acceptable range.
Childcare and nursing care related systems: The company has established comprehensive childcare and nursing care systems, and the number of users for childcare leave, nursing leave, and shortened working hours is on an upward trend. The comprehensiveness of these systems is considered to contribute significantly to the improvement of work-life balance.
Conclusion
Mitsui & Co. is actively engaged in human capital investment and work-style reform, and with a solid financial foundation, it possesses many elements of a good company. It is expected to become an even more attractive company by addressing issues such as further reducing overtime hours and strengthening risk management in the future.
For advanced users: A complementary approach for those who want to conduct further corporate research
While you can see a company's 'goodness' quite well just from the securities report, I will introduce a further complementary approach for advanced users.
Consider the background of the figures
Do not just look at high numerical values, but also pay attention to the company's policies and initiatives behind them. In fact, companies that clearly state corresponding measures for areas with poor figures are trustworthy.
Look at year-over-year changes
By checking not only the single-year figures but also the changes over the past few years, you can understand whether the working environment is improving or being neglected, and gauge the company's level of commitment.
Comparison with industry averages
By comparing with competitors in the same industry, you can understand the company's relative position. In the case of Mitsui & Co., this means comparing it with other general trading companies.
Cross-referencing with other information sources
By checking against other information sources such as the company's website, news releases, and social media, you can gain a more three-dimensional understanding. In this case study, we are referring to Mitsui & Co.'s human resources data.
Listen to the voices of actual employees
It is also important to hear from people who actually work there through review sites or acquaintances. By the way, when applying for a career position, there are cases where they will accommodate you if you request an interview with on-site employees during the selection process. If the HR department wants the candidate, they should treat you quite carefully. (In fact, I have coordinated that myself.)
Summary
In this article, I have explained that the securities report is one of the powerful tools for finding a good company.
In particular, its value has increased further due to the enhancement of information disclosure regarding human capital. By deciphering this official document, you can learn about a company's essential stance and initiatives.
However, it is important to make your final decision by actually interacting with the company and verifying things with your own eyes and ears. If you have thoroughly read their securities report when doing so, the company's HR department will also have a positive impression, thinking, 'They are seriously considering us.'
Also, if you would like to know the background behind why career hiring at white-collar companies has increased rapidly over the past few years, please read this article as well.
To everyone aiming to change jobs to a top-tier white-collar company, please make use of securities reports to find the best workplace for you. And if this article proves helpful and you succeed in changing jobs to a white-collar company, please let me know. I would love to hear your story, and even if it's remote, let's have a toast (laughs).
Thank you very much for reading this far. Your likes and comments are a great encouragement to me. Thank you for your support!
Here is a quick promotion. I have released a white-collar company database that summarizes information such as the average income, overtime hours, paid leave utilization rate, ratio of female managers, links to securities reports, and recruitment information for 185 such companies.
This data is useful for those considering a job change, HR personnel, and management interested in human capital management, so please be sure to check it out.
