Last Updated: 2025.01.08
Fast Retailing to Further Bolster Remuneration System in Japan - Accelerating Group's selection and promotion of top global talent
FAST RETAILING CO., LTD.
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Fast Retailing today announces that it will further revise its remuneration system in Japan from March 2025. The goal of the revision is to reinforce the company's global competitiveness and growth potential, and to significantly strengthen its investment in talent.
In the fiscal year ended August 31, 2023, Fast Retailing overhauled its remuneration table for all employees in Japan, including store sales staff and headquarters employees. At that time, the company increased remuneration levels by 4% to 40% for grades assigned to employees, based on capabilities and performance. Since then, the company has pursued work styles that meet global standards, cultivating small elite teams, and steadily enhancing productivity in the process.
To continue that transformation and enhance the company's competitiveness and growth potential, Fast Retailing will again revise its remuneration system at its Japanese operations, aiming to attract individuals whose performance meets global standards, and to appropriately reward motivated and capable employees. At the same time, it will prioritize selecting and promoting those willing to embrace new challenges, regardless of their experience or years of service, remunerating them appropriately, fairly evaluating them, and supporting them as needed to become tomorrow's leaders.
The revision will lift remuneration table figures for full-time headquarters and sales employees by 11%. Remunerations could rise up to 54%, depending on selections and promotions to key positions. As with the 2023 review, the new system will comprehensively assess the skills and ambitions of individuals, rather than raise remunerations across the board.
For new employees, monthly salaries will rise ¥30,000, to ¥330,000, representing an annual salary increase of around 10%, to more than ¥5 million after including bonuses. Following evaluation, the monthly salary of someone taking on a new role as store manager in the first or second year will climb by up to ¥20,000, to ¥410,000, representing an annual salary increase of just over 5%, to about ¥7.3 million, also after including bonuses.
From November through December last year, remuneration reviews included increasing the starting hourly salaries of sales staff at UNIQLO and GU stores in Japan by up to ¥1,700, in line with regional remuneration trends. Fast Retailing will keep raising pay according to individual performance and ability, reviewing starting hourly wages as needed. In addition, in September 2024, the company deployed a new program that enables sales staff to pursue career paths offering the same remuneration levels as store managers. Fast Retailing will continue to develop individuals who can assume world-class store management responsibilities.
Outside Japan, Fast Retailing is constantly reviewing its remuneration structure to remain globally competitive across all industries, not limited to the retail industry alone.
Tadashi Yanai, Chairman, President and CEO of Fast Retailing, said that, "By revamping our remuneration framework and intensifying efforts to identify and promote globally driven talent, Fast Retailing has positioned itself for further growth by accelerating up its evolution into a globally-competitive organization with a small, elite workforce. We will continue reassessing remuneration and other aspects of our organizational structure so all employees, from part-time workers to managers, can take on new challenges and pursue ambitious goals, contributing to a virtuous cycle of growth and salary increases."
