Enhancing Human Capital
Approach to Enhancing Human Capital
Approach to Enhancing Human Capital The Sangetsu Group has identified “Enhance Human Capital” as a priority measure for increasing corporate value in a sustainable manner, and is making proactive and systematic investments and implementing strengthening measures. The objective of “Enhance Human Capital” that we are working on is to make our company underpinned with sustainable growth potential through the mutual interaction of “Employee Happiness” and “Company Growth.” The foundation for achieving this interaction is “Desire for Growth of Each Employee. ” In enhancing human capital, we will be aiming to maximize the capabilities of individuals and the organization by increasing the number of mid-career hires and supporting employees’ motivation for growth through our policies of “Growth and Active Utilization Support Program” and “Create an Environment Where Employees Are Able to Maximize Their Capabilities.
Human resource development policy
We respect employees who take on the challenge of self-improvement and provide opportunities for growth, active participation, and self-actualization.
- Provide educational opportunities that promote employees’ life planning and growth
- By expanding promotions and granting them earlier, employees will gain experience in the field and future managers and executives will be developed
- We assign personnel in a planned manner so they gain experience in a variety of roles and generate vitality
Expansion of education and training
Regarding the expansion of education and training, we provide level-based training aimed at strengthening business skills, business building capabilities, and organizational management capabilities, as well as training tailored to specific topics such as digital human resource development, career design, and strengthening expertise by job type, in order to support employees to increase their motivation to grow. From FY2023, we have significantly increased selective training and opportunities for cross-industry exchange in order to develop management talent and next-generation leaders.
Additionally, we have introduced the online learning tool “Udemy Business” for full-time employees and special contract employees with the aim of supporting employees’ independent learning, and we are promoting the reskilling of employees to support the active participation of human resources and strengthen expertise and business building capabilities as outlined in the Medium-term Business Plan.
VOICE
Naoki Kage
Kanto Business Unit
Contract Sales Dept.
Taking Part in Internal Internship Program
My goal of taking part in the internal internship program was to broaden the options available to me as I built up a vision for my career at Sangetsu. I joined the DX Promotion Section for the program, and I was surprised at the scope of the business domain, both internally and externally, I was not only able to gain an understanding of the nature of the work, but also learn about the work environment and links with related departments. I feel that the program not only gave me a reference for my future career planning, but also led to opportunities to reflect on my current work, find areas to improve on and new ideas, and other opportunities to become more aware of things.
Personnel system reform
The Company is currently reforming its personnel system, with “establishing a business foundation in which employees are responsible for management” as one of the key initiatives, and we began the operation of a new personnel system in April 2022. Under the new personnel system, the appointment of managers has been changed from the previous system of “ability level x position” to a “grade system corresponding to duties,” thereby clarifying the compensation system according to the purpose and results of the duties. Furthermore, by dividing the grades of duties into two tracks, namely “management track” which specializes in organizational management and managerial skills, and “professional track” which utilizes highly specialized skills, we will broaden the scope of careers and prepare to develop, strengthen, and recruit specialized human resources.
The new system is a “duties-based” personnel system, but it is different from the so-called stereotypical job-based system. The “duties and grade” under the new system needs to be adapted to the times and flexible to create more competitive jobs and duties, and while the basic elements will remain, it will constantly evolve. We will utilize this new personnel system to proactively create even more opportunities for the promotion of human resources.
In addition, with regard to the remuneration system, we have implemented an overall base salary increase, including a 35,000 yen increase in starting salary for university graduates in FY2023. In FY2024, we increased the starting salary for university graduates by an additional 15,000 yen, and provided increases to the base salary of existing employees with a focus on each grade. Through this, we are constantly reviewing and improving the remuneration system to ensure that it is in line with changes in the market and each employee’s role.
Overall picture of the duties grade and ability level system
Increasing the Number of Mid-career Hires
The Group believes that human resources with a high level of professional capabilities are indispensable for achieving “BX: Business Transformation” as set forth in our Medium-term Business Plan [BX 2025], and in light of that, we are aiming to recruit a total of 60 to 80 mid-career hires over a three-year period beginning in FY2023.
There are two types of professional capabilities: external knowledge that should be incorporated in a proactive manner; and industry, business and product knowledge that has been cultivated with extensive experience at our group. Both of these capabilities are essential for transforming into a Space Creation Company, and by advancing both external human resources and existing human resources as well as supporting their activities, we hope to cultivate new capabilities and a corporate culture within the company.
Ratio of mid-career recruits by division
Increased employee engagement
Meticulous human resource management
In promoting “Improving Human Capital Value,” it is important not only to implement measures such as sharing values, reforming personnel systems, and hiring mid-career employees, but also to create an environment in which these measures can function and each employee is highly motivated and able to maximize their capabilities. We are assigning human resources staff to each organization to perform detailed human resources management for all aspects of career design, including education and training, assignment, and transfers, and by providing career design support and the appropriate assignment of personnel based on an understanding of each employee. In FY2023, we interviewed some 600 employees—half of our workforce—to gain an insight into their candid opinions on career design, work-related concerns and other topics.
We will continue to promote “Improving Human Capital Value,” by confronting and understanding each and every employee, to lead to appropriate personnel transfers and reform the culture of the organization.
Role of human resources staff by organization
- Understanding of each employee
- Career design support
- Appropriate human resources assignments and transfer considerations
- Enhance organizational development and management capabilities
- Reform culture and mindset of the organization
Meeting held for sharing status of each division/unit, sense of issues and initiatives
Engagement Surveys
We believe that for a company to grow, it is essential that employees empathize with the company’s philosophy and management policy, and are highly engaged in their work. We have positioned “Employee Engagement” as a priority management item and conducted an employee awareness survey targeted at all employees to reflect the results in reforms to our organization, systems, and culture.
In FY2023, we introduced a new engagement survey with the aim of speeding up tallying and analyzing, gaining an understanding of the status of our company by comparing it with others, and implementing improvement plans at the organizational level. Survey results are shared with Audit and Supervisory Committee members and management, and are also shared with all employees via a portal site.
For division-specific issues that became evident during the analysis, the director in charge and general manager, along with the Human Resources Department and human resources staff by organization, support each organization while formulating and implementing action plans for improving engagement.
Follow-up utilization of engagement surveys
■ Quantitative Target*
[Target] FY2025: Deviation score: 58.0 (A)
[Result] FY2023: Deviation score: 53.7 (BB)
* Scores calculated by “Motivation Cloud,” a service offered by Link and Motivation Inc.
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