Human Resource Management
1. Philosophy
(1) Policy
We, JSR Group, specify our responsibilities to employees within our management policies.
- Evaluation and rewards based on fair standards
- Continuous opportunities to grow by challenging themselves
- Acceptance of the diversity of fellow colleagues and to be provided a place where all employees can work together as a team
We established 4C Course of Action for our employees consisting of Challenge, Communication, Collaboration and Cultivation.
Based on this corporate philosophy system, our human resources strategy states, "maximize value (provision) to customers and markets, linking efforts for the enhancement of corporate activity efficiency and business competitiveness and the creation of innovation, by maintaining a global perspective and strengthening dynamic and diverse human resources and organizational capabilities according to the characteristics of countries, regions, and businesses.” We have formulated the following as our ideal corporate and organizational culture, and we are advancing various measures.
JSR’s Ideal Corporate and Organizational Culture
- By respecting diversity, equity and inclusion and having employees autonomously build their own careers, all employees are maximizing their abilities.
- By ensuring employees and the company trust one another and growing together, employee engagement continues to increase resulting in continuous innovation.
4C Course of Action
- CHALLENGE: All employees of JSR Group should share a common, global focus and desire to succeed. Employees should feel confident to autonomously take on new challenges, learning from successes while viewing setbacks as opportunities to learn, grow and improve.
- COMMUNICATION: All employees of JSR Group should share common fundamental values. They should maintain transparency in sharing company policies and departmental challenges and emphasize bi-directional communication to achieve common goals and solve issues together.
- COLLABORATION: Employees will work together in the spirit of cooperation, valuing common, corporate goals over internal or departmental barriers. Employees will also be encouraged to actively collaborate with external resources and not be bound to conventional ideas.
- CULTIVATION: All employees will cultivate an environment that supports bi-directional communication between managers and subordinates and provides opportunities to develop together as individuals and as members of productive, supportive teams.
(2) Codes of Conduct
- We shall ensure the fair treatment of employees, based on each person’s tasks, roles, and level of commitment.
- We shall respect the diversity of our workforce and make efforts to create a workplace environment that enables every employee to make the best use of their abilities and to find a rewarding sense of satisfaction in their work.
- We shall respect the human rights and diverse characteristics of all individuals, and shall not discriminate against gender, age, nationality, race, ethnic group, origin, religion, beliefs, social status, physical disability, sexual orientation, or other relevant conditions when determining employment status and/or working conditions.
- We shall not force religion and/or belief on others.
- We shall provide a workplace free from any harassment arising from positions of power. In addition, we will not engage in any form of sexual harassment, such as behavior and verbal comments with sexual connotations that will make others feel uncomfortable.
- In the event that a staff member reports the violation or possible violation of the law and/or the Principles of Corporate Ethics to his / her superiors and / or internal / external hotline, we shall fully protect the said staff member’s identity and protect him or her from unfavorable treatment.
2. Advancement Structure
The Human Resources Development Department and Career Development Team take the lead on employee training. They formulate and advance company-wide training plans while working closely with others through the various personnel systems, personnel conferences held by each level of management, and other means. The person in charge of training in each division and the head of each location plan and manage implementation of specialized training specific to each department and office.
3. Increasing Employee Engagement
JSR Group believes that increasing employee engagement is the key to sustaining corporate activities and enhancing corporate value. Toward this end, based on the establishment of a culture of diversity, equity and inclusion, we are working to increase engagement by creating a comfortable and rewarding workplace, providing opportunities for employees to take on proactive challenges, build their careers, grow and play an active role.
At the same time, we have been conducting a global employee engagement survey since FY2021 to listen to the frank voices of employees, identify issues in each organization, and effectively work to create a better work environment.
Initiatives in FY2023
The Global Employee Engagement Survey marked its third year in FY2023. During FY2023, we streamlined the survey by integrating the Employee Engagement Survey with the Corporate Ethics Awareness Survey, reflecting suggestions from employees received in last year's survey.
The global response rate for FY2023 was 83% (targets: 6,233 employees; respondents: 5,184 employees), marking the third consecutive year it was over 80%. The survey covered consolidated subsidiaries, and participants by country were, in descending order, Japan, China, and the U.S. The response rate in Japan, in particular, was 90%. In order to obtain the real voices of employees, we have increased the number of languages offered to nine. We continue to improve the survey year after year.
We also believe that the high response rate was attributed to management’s careful explanations of the significance and meaning of the survey, efforts to inform employees about it, and encouraging them to respond, so that management and employees can work together to promote this initiative.
The survey results showed that the first factors that have a significant impact on employee engagement were the same as last year: (1) opportunities for growth, (2) penetration of strategy, and (3) adaptation to change, which require continuous improvement as we transform and take on challenges as a Group. Considering the importance of these factors, we decided to expand top-down action discussion and setting in FY2023, and after a series of discussions within the management team, the global actions to be taken toward 2024 by the CEO were determined.
On the other hand, the items that improved from the FY2022 survey results were (1) psychological safety (ability to freely express opinions), (2) respect for the individual, and (3) development of resources to facilitate smooth operations. Through improvement activities in daily operations, the number of positive responses increased compared to the previous year.
In addition, many employees in the free response section of the FY2023 survey expressed a desire for support for the changes and transformations taking place throughout JSR Group. Responding to these employee voices and providing an environment that enables JSR Group to take on the challenge of further change and growth, as well as transparent explanation and information sharing are important roles for the company to play in order to improve employee engagement. The message from the director in charge, who expressed his desire to continue the dialogue in the future, was shared with all surveyed companies and employees in Japan and overseas.
4. Human Resource Development
(1) Purpose of Human Resource Development and Ideal Personnel Traits
We have set the goal of human resource development as "to establish a mechanism and corporate culture in which the company and individuals grow together, and to develop human resources who can realize our corporate philosophy of Materials Innovation,” and have set “ideal personnel traits” to target.
- Human resources able to take on the challenge of new value creation utilizing various experiences using unconventional approaches
- Human resources who can think from a global perspective in everything they do
- Human resources who can grow together and actively collaborate/cooperate internally and externally while emphasizing two-way communication
- Human resources who embrace each other and different ways of thinking transcending differences in terms of gender, culture, generation and age, etc.
- Human resources with their own career vision who can contribute to the company/society and their own self-actualization by taking action proactively.
(2) Human Resource Development Philosophy
The foundation of the company is the growth of our employees. JSR has established the following elements as its human resource development policy. The purpose is to develop human resources who are consistent with the company’s corporate philosophy and medium and long-term business objectives, increase the value of each employee through encouraging self-led career development, and enable employees to fully utilize their abilities.
1) Provide sufficient support for employees, including supervisors, subordinates and team members, to focus on their own desire to grow and take the initiative in improving their own skills and building their careers.
2) Developing and cultivating the abilities of employees is the foundation of the company. The greatest priority is growth through work. Structured, systematic, ongoing training tailored to the career vision of each and every employee is provided to supplement this from a company-wide, long-term perspective.
Definition of Self-Led Career Development
Self-led Career Development Equals Proactive Career Vision and Sustainable Actions Toward Career Realization
To draw a personal work-life career vision, and to grow and increase one's value through sustained action to realize this vision and all the experiences gained from the process, for the betterment of one's life.
(3) Mechanisms and Specific Measures Relating to HR Development
Human resource development and education (training) at JSR is based on the Employee Training Guide, which specifies the training policy, training structure, and matters related to implementation.
The Employee Training Guide positions 1) on-the-job training (OJT), 2) support for self-education, and 3) off-the-job training (OFF-JT) as the three pillars of human resources development.
(1) OJT
The greatest priority is growth through work via on-the-job training. We have produced the Seven Articles of OJT (Trainer’s Edition) and the Three Articles of OJT (Trainee’s Editions) and are using these to develop human resources through work at each workplace.
(2) Support for Self-education
We have established the following systems to support self-education:
- Correspondence course system: Once an employee has completed a voluntary correspondence course selected from menu of 250 courses the company has selected, the company will pay roughly 50% of the course fee as a subsidy.
- Public certification course system: The company will pay testing fees, course fees, and the cost of course texts to employees who have acquired certifications necessary for their work.
- External training support system: The company will pay part or all of the course fees for external courses employees have taken that are necessary for their work.
(3) OFF-JT (Training)
We provide the following off-the-job training to augment on-the-job training.
Grade level-based training
Training in the common knowledge and skills considered necessary for skill qualifications or for each job grade level, from a company-wide perspective.
Job-based training
Training in the specialized knowledge and skills needed for each job for career building and to improve work efficiency.
- Specialized skill training: For engineers and technical staff, this includes plant training in common skills, safety training, quality control training, technology management training, and R&D environmental safety training. For administrative staff, it includes external courses on management strategies, accounting, finance, and other areas.
- Courses on handing down technological expertise: Expertise on the past business activities of JSR is shared among employees, including understanding of the past history, background on initiatives, techniques for problem identification and control, problem points, discussion of failures and tips for succeeding. We pass on the good DNA of JSR and have employees utilize it in the future business activities of each department.
Objective-based Training
For issues that should be addressed on a company-wide level, we narrow down the objectives and focus on the needs.
- Language training: To develop language skills and the mindset for global response, we support short-term language study abroad (in English and Chinese), and hold conversation classes in English and Chinese.
- Overseas research dispatch: Employees voluntarily perform research at universities and research institutions overseas for up to two years to improve research skills and learn challenging and innovative new technologies useful for future business creation and technological innovation.
- Dispatch for MBA/MOT: Employees acquire MBAs and MOTs at graduate schools in Japan while working their normal jobs.
- Life planning/management seminars: Employees around the ages of 51 to 52 have the opportunity to think about their lives after retirement by learning about the three pillars of life planning: 1) career development plan, 2) lifelong economic plan, and 3) health management.
Other training
- Training content is the same for all domestic Group companies and the employees of domestic Group companies also participate in training conducted by JSR. JSR is working to develop human resources for the entire Group.
- Some training is provided online, depending on the training objectives.
- To promote the advancement of women, the Diversity Development Office provides training to managerial level employees who have female subordinates, sends them to external training (the NPO, J-Win), and provides other training opportunities. Click here for more information.
- As part of our efforts to promote digital transformation (DX), we provide training in data science to employees who will be the next generation of leaders, training in programming to young engineers and technical staff, and an introductory course in data literacy to young administrative staff.
(4) Developing the Next Generation of Leaders
As globalization and digitalization progress, the demands made of leaders are changing. At JSR, we have been providing the “Training the next generation of leaders” course with external cooperation since 2007. This course is focused on development of the next generation of leaders. The training teaches participants established management practices, the essentials of digital management, and other necessary business skills through discussions based on actual cases. Participants also expand their perspective by imagining that they are in the position of a superior, thinking about what is important from a management perspective, and outlining a vision for their own departments. The program also incorporates action learning, in which teams work together to envision the creation of new businesses. Those who have taken this training include people who are already officers and the training is steadily generating diverse human resources who are equipped to look beyond the present and spur innovation themselves.
(5) Career Development Program (CDP)
As part of its nurturing and career development for young employees, JSR established and runs the Career Development Program (CDP). CDP is a job rotation program for university graduates on the management track. Since introducing the program in 1988, we have continued to improve and refine this method of training.
The program is for employees up to their 10th year with the company who are able to work for a number of different departments. This program not only produces employees with diverse and broad horizons, but also leads to increased inter-departmental communication. In terms of career development, CDP gives participants the opportunity to think about their own careers and facilitates autonomous career building for the future.
To consider transfers under CDP, CDP Committee members individually interview employees who will enter CDP before discussing individual rotation plans at a general CDP meeting, which are also based on a comprehensive view toward the employee’s desires and aptitude. The Human Resources Department runs the CDP Committee, and each General Manager is a committee member.
(6) Self-evaluation System
We established a self-evaluation system in which individuals report frankly on how they view the status of the work they are currently responsible for and their future vision and career ambitions for themselves. This system plays a role in the career development of participating employees and increasing engagement. Skill development objectives are set for the coming year through discussion between the individual and his or her superior based on feedback from wage assessment results, skill development results during the past year, and the individual’s self-evaluation. As a result, using this system, we conduct systematic and efficient skill development to achieve self-realization, skill improvement, and autonomous career development, as well as human resource development that is important for both the individual and the company.
(7) Training Programs
SR conducts a variety of training programs to raise the skills of its employees.
The total annual training time and education cost per JSR employee was as follows.
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Total training time (hr) | 64,334 | 43,624 | 34,591 | 17,828 | 40,923 |
Training time per person (hr) | 18.7 | 12.4 | 10.1 | 8.3 | 19.1 |
Total cost of education/training (thousand yen) | 148,711 | 115,513 | 120,628 | 102,612 | 104,765 |
Education/training cost per person (yen) | 43,130 | 32,900 | 35,148 | 47,616 | 48,979 |
Note: This total was calculated by including technology and skill training, stratified training programs, and other training organized by human resources departments. It therefore does not include hours spent in education provided independently by departments or external education. Additionally, it does not include educational hours based on e-Learning.
The status on providing core training is shown below.
Training | Total number of participants (people) | Total hours of training (hr) | Cost of education/training (thousand yen) | Training objectives and content |
---|---|---|---|---|
Grade level-based Education | 436 | 13,793 | 31,392 | We are working to provide the basic knowledge and mindset needed for each grade level in JSR (managerial level, supervisor, new employee, etc.). Along with this, we are providing basic training aimed at those types of human resources that we need but are difficult to develop through the on-the-job training (OJT) in each workplace alone. More specifically, this means developing human resources who can logically state their own opinions even when among people having diverse views, lead everyone to identify the issues and arrive at a consensus from mutual debate of conflicting opinions, and guide the organization to resolution of the issues while involving those concerned. |
Technical Training Common to all Plants | 269 | 3,178 | 341 | We provide systematic education on safety, environment, facilities, manufacturing processes, and other knowledge necessary to handle manufacturing operations at JSR, mainly for employees involved in manufacturing and technology departments and other areas of manufacturing. This does not end with learning about the topics mentioned above. One of the objectives is “T-shaped” human resource development that delves deeply into specialized knowledge and expands to related knowledge. |
Miniature Plant Training and Safety Education | 125 | 1,304 | 364 | We provide experience-based, hands-on training using a miniature plant in the Yokkaichi area, and work to improve knowledge, technical skills, and sensitivity to security management. We are also working on revising the educational system diagram, creating a skill map for safety education, and establishing a safety education curriculum. |
Quality Control Education | 145 | 1,642 | 1,250 | Employees are learning practical quality control methods through lectures on the basic philosophy on quality control, exercises using internal data, and other means. We also provide education on basic statistical methods using statistics software, gauge analysis, control chart techniques, process capability analysis, etc. to improve data analysis skills and for implementing statistical quality control. |
Note 1: Nearly all technical training common to all plants, miniature plant training and safety education, and quality control education is conducted by internal instructors or alumni. We provide instructor training to improve the instruction techniques of these internal instructors and alumni.
Note 2: The total number of participants is limited to full-time employees of JSR.
We have established training centers near our Head Office and in the Yokkaichi area to create an environment that can provide continual educational support to employees. We are using these training centers to focus on further refining our strengths in technology and developing human resources by passing on technical skills at manufacturing sites and expanding employee education programs.
The following types of original educational programs and symposiums are also held at domestic Group companies.
Techno-UMG Co., Ltd.: Short-term study abroad in the U.S.
This program is designed to develop human resources equipped to support global business operations overseas. The three-month program involves learning the mechanisms of company operation and management at the U.S. subsidiary while studying at a language school in the U.S.
Techno-UMG Co., Ltd.: Business Training
Techno-UMG Co., Ltd. has been conducting selective business training since FY2022. The training consists of two phases. Phase 1 involves systematically learning the management skills required for business leaders. Phase 2 utilizes what participants learned in Phase 1 to think about what will be important to the company in the future from a management perspective, identify an ideal state, and formulate the necessary business strategies to achieve it.
MEDICAL & BIOLOGICAL LABORATORIES CO., LTD.: Takato Molecular Cell Biology Symposium
This symposium has been held since 1989 and facilitates interaction with researchers who are leading global biological research. The 34th Symposium was held in FY2023.
5. Personnel System
(1) Rank System
Under the career-track system, we have established a skills-based qualification system that specifies qualification grades corresponding to employees’ abilities. Skill standards established for each qualification also clarify the standards for the type of human resource, ability, and treatment. For employees of higher ranks, we also apply a job rank system that establishes ranks corresponding to given duties (i.e., responsibilities in the organization and performance responsibilities).
In April 2022, we revised the personnel system for managerial level positions by establishing role-based grading system to create an environment and culture where fair treatment of diverse employees and organizations enables them to demonstrate their best performance and to ensure that JSR continues to be a company that is chosen by employees and external human resources. We also review grades in accordance with changes in the organization, and change and apply grades due to transfers as appropriate.
(2) Assessment System
We have introduced an evaluation system for all employees with indefinite employment, which leads to fair treatment, career development, and increased engagement.
We conduct assessments of abilities and results fairly and regularly by employing two systems. One is an “ability assessment system” that designates the specific behavioral characteristics of abilities required for each qualification grade in individual job categories and then assesses demonstrated abilities based on those standards. The other is an “objective management system” that assesses the degree to which a person has achieved objectives that were determined at the beginning of the fiscal year.
The ability assessment system evaluates the abilities demonstrated in the six functional categories of task definition, task execution, organizational leadership and management, creativity, interpersonal skills, and growth mindset. Because the behavioral characteristics required differ according to the job category, these six functional categories are weighted according to the job category.
In these assessments, work performance objectives (work standards) are clearly established, the performance of the objectives is monitored, and employees meet regularly with superiors to properly assess the results. This system achieves improvement in the quality of work assigned, ensures reasonable treatment, and is designed to systematically develop work skills through the day-to-day performance of work.
In addition, for managerial level employees who revised the system, we conduct evaluations according to their roles, divided into behavioral evaluations that assess process aspects and performance evaluations that assess performance aspects.
(3) Philosophy concerning Wages and Working Hours
JSR Group strictly complies with the legally established minimum wage of each country and region, and provides wages that are based on fair assessments of employees. JSR Group naturally strives to be legally compliant in terms of working hours. We also endeavor to provide appropriate labor management with the aim of avoiding long working hours and to help employees enjoy a proper work-life balance.
See below for data on the wage gap between men and women at JSR Corporation.
Permanent employees | Non-permanent employees | All employees |
---|---|---|
72.1% | 63.8% | 71.9% |
- *1 Calculated based on the provisions of the Act on the Promotion of Women's Active Engagement in Professional Life (Act No. 64 of 2015). In addition, seconded employees are counted as employees of the dispatching organization.
- *2 Hiring, evaluation, promotion, etc. is conducted fairly regardless of gender, nationality, age, etc. There is no difference in wages between men and women for equal work. There are differences, though, depending on the composition of the number of people by qualification.
(4) Employee Awards Program
We use various awards programs to enhance employees’ motivation.
- Among the awards presented are the President’s Award, Production and Technology Award, Research and Development Award, Environment Distinguished Service Award, special commendations, length-of-service commendations, and “zero accidents” commendations.