Challenges We Face - Why UNLOCK Now? -

The environment in which each employee can take on challenges and demonstrate their abilities is the key to the sustainable growth of the Panasonic Group. What are the challenges we are currently facing? We have delved into these challenges from both a group-wide perspective and the unique viewpoint of the Japan region, exploring the direction for their resolution.

Group-wide
Challenges
Key Challenges in
the Japan Region
Solving These
Challenges

Group-wide Challenges

At the Panasonic Group, we conduct an annual Employee Opinion Survey targeting approximately 150,000 employees globally. We have been working to improve “employee engagement” and “employee enablement.” The favorable response rates for these areas have been on the rise due to initiatives such as work style reform, reaching a higher level compared with other Japanese companies. However, in order to stand shoulder to shoulder with globally top-class companies, we aim for even greater heights.

Trends in Favorable Response Rates for “Employee Engagement” and “Employee Enablement”

Line graph. The favorable response rates for "employee engagement" are 63%, 64%, 63%, 66%, 66%, 67%, 68%, and 68% in order from fiscal year 2018 through 2025. The favorable response rates for "employee enablement" are 57%, 58%, 59%, 63%, 64%, 65%, 66%, and 66% in order from fiscal year 2018 through 2025. These rates indicate a higher level when compared with other Japanese companies.

Employee Opinion Survey results of Panasonic Group employees globally

The key factors are “motivation with encouragement from the company or supervisors” and “no significant barriers to take on challenges.” These are part of the nine questions that make up the two main categories of “employee engagement” and “employee enablement.” However, recent survey results indicate that the favorable response rates for these factors tend to be lower compared to other questions.

Favorable Response Rates for Each Question

(as of FY2025)

Bar graph. In "employee engagement," the favorable response rates for the fiscal year 2025 exceed 50% for the questions, "Willing to remain with the company," "Pride to workd for the company," "Motivation to exceed expectations," and "Will recommend the company as a good place to work." On the other hand, the favorable response rates for "Motivation with encouragement from the company or supervisors" remain low, less than 50%.

Target: Panasonic Group (Global)

Bar graph. In "employee enablement," the favorable response rates of fiscal year 2025 exceed 50% for the questions, "Being provided with challenging & interesting work," "Good use of one’s skills and abilities," and "A productive workplace." On the other hand, the favorable response rates for "No significant barriers to take on challenges" remain low, less than 50%.

Target: Panasonic Group (Global)

When comparing the favorable response rates for “motivation with encouragement from the company or supervisors” and “no significant barriers to take on challenges” across the Japan region, other regions, and the overall group, the Japan region continues to show lower levels than other regions. This indicates that the environment for each employee to fully realize their potential and take on challenges is not sufficiently established. To further accelerate the group’s transformation and growth, we will address this issue and create an environment where more employees can actively take on challenges and grow.

Trends in Favorable Response Rates for “Motivation with encouragement from the company” and “No Significant Barriers to take on Challenges”

Line graph. From fiscal year 2022 through 2025, the favorable response rates to both questions of "Motivation with encouragement from the company or supervisors" and "No significant barriers to take on challenges" show the following figures. The Group-wide figures are 40.4%, 41.9%, 42.9%, and 42.8%. In regions outside Japan, 54.6%, 57.3%, 58.2%, and 59.0% while in the Japan region (PHD, PEX, and operating companies), 32.1%, 32.8%, 32.6%, and 31.5%.

Key Challenges in the Japan Region

When focusing on the Japan region, it has become clear that there is significant room for improvement in the opportunities for the success of “women,” “career-hires,” and “young employees.” Creating an environment where these diverse talents can maximize their abilities is an important theme for the sustainable growth of the entire group.

Women and Career-hires
- Leveraging Diversity in Decision-Making -

The greater success of women and career-hires is essential for decision-making that leverages diversity. While the percentage of women among all management positions (hereafter referred to as “female managers”) has been increasing year by year, the percentage of women among all employees in Japan is about 22%, whereas the percentage of female managers is only 7.9％, indicating a significant gap. Additionally, the Employee Opinion Survey revealed that the favorable response rate to the question “I can achieve my career goals at this company” is lower for women compared to men.

The graph shows the number of female managers. The numbers, in order from fiscal year 2017 through 2026, are 423, 464, 493, 534, 573, 607, 664, 799, 954, and 980. The ratio of female managers in the same fiscal years are 3.2%, 3.4％, 3.6％, 4.1％, 4.5％, 4.8％, 5.4％, 6.1％, 7.0％, and 7.9%. There is a significant 14%-gap between the ratio of female employees among all employees, which is 22%, and that of female managers.

Target: Panasonic Group (Japan Region (PHD,PEX, and Operating Companies))

The graph shows the trends of favorable response rates by gender to the question, "I can achieve my career goals at this company." In order from fiscal year from 2022 through 2025, the ratio of men was 55%, 54％, 55％, and 55％ while that of women was 48％, 47％, 49％, and 49％.

Target: Panasonic Group (Japan Region (PHD,PEX, and Operating Companies))

On the other hand, career-hires account for approximately 26% of all employees, indicating a steady increase in diversity. However, their proportion among decision-making positions, such as department heads, remains around 13%.

The pie chart shows the ratio of career-hires among all employees in April 2025. Of the approximately 61,000 employees in total, 74% were hired as new graduates, and 26% as mid-career hires.

Target: Panasonic Group (Japan Region (PHD,PEX, and Operating Companies))

The pie chart shows the ratio of career-hires among department heads in April 2025. Of the approximately 1,600 department heads, 87% were hired as new graduates, and 13% as career-hires.

Target: Panasonic Group (Japan Region (PHD,PEX, and Operating Companies))

Young Employees
- Expanding Opportunities for Future Leaders to Thrive -

We must take action to provide young employees with more opportunities that can foster their high morale further. The turnover rate for those with less than 10 years of service is rising and remains high, while the favorable response rate for employee engagement tends to decline as employees enter their second and third years with the company.

The line graph shows the turnover rates of new graduates by years of service. For less than three years of service, the trends from fiscal years 2011 through 2023 are 1%, 4%, 5%, 5%, 4%, 5%, 3%, 5%, 6%, 7%, 8%, 8%, and 4%. For less than five years of service, the trends from 2011 through 2021 are 5%, 8%, 9%, 10%, 10%, 10%, 7%, 14%, 17%, 16%, and 16%. Further, for less than ten years of service, the trends from 2011 through 2016 are 14%, 17%, 17%, 21%, 21%, 22%.

Target: Panasonic Group (Japan Region (PHD,PEX, Operating Companies, and some affiliate companies))

The line graph shows the trends in the fiscal 2025 employee engagement scores in the Employee Opinion Survey. Individuals with less than one year, two, three, five, ten, fifteen, and fifteen or more years of service had scores of 75%, 66%, 63%, 60%, 57%, 59%, and 64%, respectively.

Target: Panasonic Group (Japan Region (PHD,PEX, Operating Companies, and some affiliate companies))

Solving These Challenges

We believe that these challenges we face are common to many Japanese companies. That is why we believe that by transforming and evolving the Panasonic Group, we can have a significant impact on Japanese society as well.

Realizing decision-making that leverages diversity and creating an environment where future leaders can thrive with enthusiasm is not only important for companies but also for society as a whole. In order to remain a company that meets the expectations of society and our customers in the future, we will advance the following initiatives to address these challenges.