Companies with Salary Increases Have "2.7 Years Longer Tenure" and Tend to Have Lower Turnover Rates and Overtime Hours. Analysis of Human Capital KPIs for 3,656 Listed Companies

FPERI Inc.'s corporate analysis platform "Career Reveal" analyzed the relationship between the year-on-year change rate of average annual salary and human capital KPIs for 3,656 listed companies whose average annual salary data for the 2024-2025 period could be confirmed among its registered companies.

As a result of the analysis, the average annual salary increased in 75.5% of the target companies, with the median year-on-year change rate of average annual salary for the 2024-2025 period being +2.80%.

Furthermore, companies where the average annual salary increased showed a tendency to have a median average tenure that was 2.7 years longer compared to companies where it did not increase. Regarding turnover rates and monthly overtime hours, limited to companies where data could be confirmed on Career Reveal, companies with salary increases showed a slightly lower tendency.

It should be noted that the year-on-year change rate of average annual salary is not the base pay increase rate or wage increase rate itself. It may be influenced by factors such as employee composition, average age, hiring and departures, treatment of dispatched employees, and the establishment of a holding company structure.

Survey Overview

Target of Survey: 3,802 companies registered on Career Reveal

Analysis Target: Average annual salary, year-on-year change rate of average annual salary, human capital KPIs

Comparison Period: Fiscal years 2023 to 2025

Source: Corporate disclosure information such as securities reports, integrated reports, and sustainability reports

Aggregation Method: Year-on-year change rate calculated for companies where average annual salary can be confirmed. Human capital KPIs are deduplicated at the company level for the same company, same fiscal year, and same KPI.

Exclusion Criteria: Non-disclosed, missing, zero or less, and clear outliers excluded

*The year-on-year change rate of average annual salary is not the base pay increase rate or wage increase rate itself. It may be influenced by factors such as employee composition, average age, hiring and departures, treatment of dispatched employees, and the establishment of a holding company structure.

Main Survey Results

Year-on-year change rate of average annual salary for the 2024-2025 period: Median +2.80%, Average +3.10% for 3,656 target companies

Companies with increased average annual salary in the 2024-2025 period: 75.5%

For the two-year cumulative period from 2023 to 2025, the median was +4.96%, and the proportion of companies with increases was 79.6%

Median average tenure for salary increase companies was 13.4 years, and for non-increase companies was 10.7 years, showing a difference of 2.7 years.

On Career Reveal's collected data, companies with salary increases showed slightly lower turnover rates and monthly overtime hours, and slightly higher paid leave utilization rates and male parental leave acquisition rates.

Comparison of Salary Increase Companies and Non-Increase Companies

Companies with a year-on-year increase rate of average annual salary of over 0% for the 2024-2025 period were classified as "salary increase companies," and those with 0% or less were classified as "non-increase companies," and the median human capital KPIs were compared.

The representative results are as follows:

・Average tenure: Salary increase companies 13.4 years / Non-increase companies 10.7 years

・Turnover rate: Salary increase companies 3.10% / Non-increase companies 3.75%

・Monthly overtime hours: Salary increase companies 16.5 hours / Non-increase companies 18.2 hours

・Paid leave utilization rate: Salary increase companies 76.4% / Non-increase companies 74.1%

・Male parental leave acquisition rate: Salary increase companies 73.2% / Non-increase companies 68.2%

This comparison is a median comparison limited to companies for which each KPI could be confirmed among the corporate disclosure information collected by Career Reveal, and does not indicate a causal relationship between the salary change rate and each human capital KPI. Even if a company discloses the KPI, data not collected on Career Reveal may not be included in this analysis.

Background of the Survey

Due to the revision of disclosure regulations by the Financial Services Agency, attention is expected to increase on the "year-on-year change rate of average employee salary" in future securities reports.

On the other hand, the year-on-year change rate of average annual salary is not an indicator that can solely determine a company's ease of working or human resource strategy. By combining the change in average annual salary with human capital KPIs such as turnover rate, overtime hours, paid leave utilization rate, parental leave acquisition rate, and average tenure, it is possible to grasp a more three-dimensional picture of a company's human resource strategy and changes in working styles.

Detailed analysis results are published in a Career Reveal article.

https://www.career-reveal.com/articles/average-salary-growth-human-capital-kpi-2025

Future Analysis Plans

In the future, we plan to analyze the "year-on-year change rate of average employee salary," which will be a focus in securities reports from fiscal year 2026 onwards, based on the trends from fiscal years 2023 to 2025.

About Career Reveal

Career Reveal is an open infrastructure for human capital data that structures and allows for cross-comparison of human capital data of Japanese companies based on primary information such as securities reports and sustainability reports. It organizes indicators such as overtime, turnover rate, paid leave utilization rate, training, and diversity by company and industry, supporting corporate research and understanding of human capital disclosure.

Operating Company: FPERI Inc. URL: https://www.career-reveal.com