#Japan #Tokyo #AI Era #Human Resource #Moderato Inc

Moderato Inc.'s New HR System: A Shift Towards Employee Empowerment

In a groundbreaking move, Moderato Inc., known for its SOÉJU brand, has fully implemented a new HR system that abolishes the singular goal of management positions. Based in Shibuya, Tokyo, the company's CEO, Asuka Ichihara, is spearheading a transition where every employee is seen as a 'creative planner,' regardless of their job title. This innovative approach aims to foster an environment where all employees can demonstrate their expertise and contribute to the organization’s growth.

Starting from September 2025, Moderato has gradually shifted to this new system, which is already showing promising results. After six months of practical application, the company reports enhanced customer experiences and improved efficiency, indicating a successful overhaul of their organizational structure.

Emphasizing Human Value in the Age of AI

With the rapid advancements in technologies such as generative AI, many routine tasks are becoming automated. During this transformative time, Moderato believes that the value companies provide must evolve from performing tasks that AI can replicate, to offering insights and improvements from a customer-centered perspective.

To this end, Moderato has redefined all roles within the organization—including customer service, administration, and logistics—as 'jobs focused on value planning.' This change aims to empower employees to express their creativity and contribute to the business in meaningful ways. To create a supportive environment for this transformation, the traditional evaluation system based on achieving pre-defined goals has been replaced with a new HR framework.

Three Pillars of the New HR System

1. ### Abolishing the Singular Goal of Management Positions
Moderato has stepped away from the traditional pyramid structure where aiming for a managerial position was a prerequisite for salary increases. The company has segmented roles into six tiers with a broad range of compensation, allowing professionals to continue honing their expertise in their current roles and receive immediate recognition for their evolution in skills.

\ New system overview: the six tiers and compensation range aim to reflect the diverse contributions of all employees, not just those in management roles.

2. ### Implementation of Flexible Evaluation Criteria
Moderato will transition from traditional numerical goals to an Objectives and Key Results (OKR) approach. This framework shifts the focus from simple task completion to encouraging employees to think about improving current processes and addressing customer needs. By facilitating more strategic and flexible goal-setting, all employees are supported to leverage their creativity in contributing to the company's success.

3. ### Introduction of a Non-Rating System for Bonuses
In a bid to enhance productivity and standardize operations through AI integration, Moderato has eliminated the conventional rating system (e.g., S/A/B). Instead, the company has adopted a 'non-rating' approach for bonus allocation. This method allows for a more direct determination of rewards based on individual contributions, minimizing administrative overhead and emphasizing meaningful recognition.

\ The non-rating evaluation method focuses on individual growth discussions rather than arbitrary ranking, ensuring that employees feel their contributions are valued.

Insights and Transparency

Moderato is not just changing its HR structure; it is also committed to transparency about the motivations behind these changes. The company has published detailed insights on its official note page, including the rationale for moving away from traditional numerical management, the challenges faced during implementation, and the outcomes achieved thus far.

For more insights and in-depth exploration of these changes, visit their note: Efficiency Beyond Numbers.

Company Overview

• - Company Name: Moderato Inc.
• - CEO: Asuka Ichihara
• - Headquarters: 2-1-12 Shibuya, VORT AOYAMA II 3F, Tokyo, Japan
• - Established: December 2014
• - Capital: 189 million yen
• - Business Activities: Retail fashion, personal styling services, cosmetics sales
• - Official Website: https://moderato-inc.jp