Human ResourcesSustainability
CHRO Message
Driving Growth Through “Offensive” and“Defensive” in Talent Acquisition & Retention
Taisuke Yokota
Senior Managing Executive Officer
Chief Human Resources Officer (CHRO)
Our “offensive” strategy entails increasing the certainty of achieving business strategies from a human resources perspective as a partner to our leadership and operational divisions.
As the capabilities demanded by changes in the business environment grow more complex and diverse, we must grasp the needs of our business divisions and adapt the quantity and quality of our talent—the source of our competitiveness—to align with business strategies across our entire group by transforming our human resources through a job-based management approach that brings compensation in line with market standards and empowers our workforce.
On the other hand, “defensive” is not just about improving services for routine administrative operations of our globally expanding group but laying a solid foundation on which our diverse talent can work and thrive with peace of mind. We are committed to promoting healthy business practices, ensuring a safe and healthy workplace, and implementing flexible working arrangements to best suit our employees at the various stages of their lives. We believe that by creating such a working environment, organization, and corporate culture, every employee will be able to take pride and initiative in challenging themselves, thereby maximizing their potential not only as individuals but also as one team.
Talent is the very source of our group's growth. HR will shape an environment where employees can improve their abilities, feel their growth, and work proactively with a sense of purpose. We aim to harness a symbiotic relationship with employees as the company provides the foundations and environment needed for them to unleash their potential and grow. Through this growth and collaboration of our employees, we aspire to drive our company forward and meet the expectations of society.
Transformation to Job-Based Talent Management
Background and Purpose of the Job-Based Management Approach
Aligning compensation with the market ensures a dynamic match between business strategy and talent (e.g., recruiting, training, and positioning top talent, both internally and externally)
As we move forward, JERA must expand its global presence and devise novel solutions like constructing hydrogen and ammonia supply chains in order to address global energy challenges. And top-tier talent is essential for reliable execution. In addition to the retention of exceptional talent internally, compensation levels must be linked to the market in order to attract talent and expertise in areas missing within the company. At the same time, it is imperative that we achieve dynamic alignment between business strategy and talent (hiring, training, and positioning exceptional talent, both internally and externally).
Considering the social challenges facing Japan, such as the declining birthrate, aging population, and rigidity of the labor market, we expect competition for exceptional talent to intensify in the future. Additionally, we cannot overlook the fact that we are under pressure to respond to changes in employee career awareness, such as an increase in the number of foreign nationals, female employees, and other diversity-related themes, as well as a growing tendency for employees to change jobs.
With that in mind, we believe that to achieve our business strategy, we must transition from a conventional membership-based talent management approach to a job-based approach. So, the job-based management system is rolled out for all managers(approximately 1,000 individuals)from FY2024. As this system presupposes an equal footing between the company and employees, whereby individuals can autonomously choose and pursue their respective jobs and career paths, we will concurrently promote the fluidity of our internal talent market and lay the foundation so that an ethos of independent career development can spread throughout our organization.
To achieve our business strategy,
we must move away from a conventional membership-based talent management mode
and move toward a job-based approach.
JERA's Target for Job-Based Talent Management
The job-based employment system serves as a base for a "JERA-style" approach that considers Japan's unique labor environment
Based on this labor landscape—marked by low talent mobility and strong ties between university education and employment, among other factors—we have established a job-based management system tailored to JERA.
Key features include meeting employment obligations up to the age of 65, hiring new graduates based on potential, and applying membership-based performance reviews for general roles. These features are based on job-based employment systems commonly found overseas but are designed with Japan's unique labor landscape in mind.
Progress of Job-Based Employment (Expansion of Mid-Career Hires)
The number of mid-career hires has increased with the development of each of our businesses.
Mid-career hires now account for approximately 10% of all employees
As mentioned in Background and Purpose of the Job-Based Management Approach, we are expanding job-based hires due in part to the need for dynamic alignment of our talent and business strategies. This is supported by the fact that the number of midcareer hires has been increasing year over year, especially within corporate divisions that underpin our various business segments, aligning with the growth of our business units (with around 400 hires in total).
Number of Mid-career Hires by Segment
Talent Development
Fundamental Approach
Respecting each employee's career plan as we anticipate and embrace the challenges of a new era Offering challenging opportunities and providing maximum support for those aiming to become professionals in their area of expertise
Talent Development Policy
The JERA Group considers every employee an essential asset and conducts talent development as described below
[ Talent Development Objectives ]
- To allow employees to grow and live their lives to the fullest
- To enhance the JERA Group’s corporate value and to help us achieve our mission and vision through employee growth
[ Fundamental Approach ]
The JERA Group respects the diversity of its workforce and supports employees in all areas of the organization to realize their professional aims
- Helping JERA employees improve their skills and develop a mindset for sustained success and dominance inside and outside Japan, as well as contributing to social progress
The JERA Group provides opportunities to take on challenges that help the company stay ahead of the times.
- Helping employees learn how to adapt quickly in times of uncertainty
- Striving to provide a work environment that allows employees to grow further and demonstrate their abilities.
The JERA Group honors employees' career goals and provides maximum support to help them achieve them.
- Providing skills training and job rotation opportunities so employees can achieve their career goals
We actively support the growth of all JERA Group employees, including those working overseas.
Assembling the Ideal JERA Team
Four Dening Characteristics
Diversity
Employees strive for individual and organizational growth by respecting diversity at all levels of the organization, regardless of dierences in gender, nationality, ethnicity, experience, or expertise.
Excellence
Employees aim for individual growth and seek to become professionals who consistently and enthusiastically incorporate new skills and know-how.
Entrepreneurialism
Employees are keen to recognize change, pursue new opportunities, and innovate.
Fairness
Employees hold themselves accountable and engage in all initiatives from a position of high ethical standards and fairness.
Independent Career Development Overview
Establishing proactive measures to help employees set independent career goals and bridge any gaps
Based on the Talent Development Policy formulated in March 2020, we have introduced a framework that considers each employee a valuable asset and supports their autonomous career development. This aligns with our pursuit of job-based talent management, anchored in the philosophy that career development is individually driven and that everyone should be able to choose their own job.
Specifically, we allow employees to set their career goals, design plans to bridge the gap between their goals and current skill sets, engage in career development discussions, undergo training to improve their skills, take on side jobs or apply internally for new challenges, and revisit their career plans. These initiatives together facilitate an environment conducive to self-fulfillment.
We see talent as the very source of our growth potential. That is why we actively invest in human resources (Approx. 130,000 yen per person, per year) through the development of self-improvement support systems, global human resources, and manager talent in addition to elective training and other programs.
We are committed to investing in our people and continually evolving these structures to provide opportunities that allow all our employees to demonstrate their abilities fully and grow together with the company.
Independent Career Development Overview
Training System
Establishing a training system to support skill development as a mechanism to support independent career development
As part of our framework to encourage independent career development, we have established pillars of growth and a training system to facilitate multifaceted skill development. Currently, there are roughly 70 training programs with 130 different lectures to choose from, allowing employees to choose their courses according to their envisioned career paths. Additionally, in light of the trends toward decarbonization, we also deploy staff to the Green Innovator Project.
Evaluation System
An evaluation system centered around a goal-oriented management approach that fosters individual growth
The evaluation system, primarily based on a goal-oriented management approach, uniquely incorporates competency assessment. Furthermore, by applying the PDCA cycle and ensuring that supervisors provide feedback, it's designed to facilitate the individual growth of our employees.
Fostering Global Talent
We are promoting a variety of initiatives to improve our talent's global adaptability, including offering opportunities for language acquisition
In order to achieve our vision for 2035, we believe that it is also essential to improve the global adaptability of our workforce.
To this end, we are rolling out language learning opportunities and study abroad programs for our employees. Approximately 1,300(FY2023 End Point) participants have joined language learning opportunities offered since FY2022.
Cultivating Executive Talent
Systematic cultivation of executive talent for sustained growth
To ensure our company continues to grow, it's pivotal to systematically equip the upcoming generation of our executive talent with a global perspective.
Our methods are two-fold: the Succession Plan and the Future Talent Development System (hereinafter referred to as “FTDS”). Notably, the FTDS grants ambitious early-career employees challenging assignments and facilitates accelerated growth through external training tailored to individual traits.
Building Our Corporate Culture
Health Management
Creating a safe and secure working environment for both mind and body
JERA champions health management, aiming to create an infrastructure for employees to take on challenges in good health and with peace of mind. Recognized for our efforts, such as reducing overtime, encouraging employees to take leave, and hosting health-related events, we've been recognized for the 2024 Certified Health & Productivity Management Outstanding Organizations Recognition Program in the large corporations category.
FY2023 Company-Wide Health and Hygiene Policy
Creating a foundation where all JERA Group employees can take on challenges in good health and with peace of mind.Promote health management activities toward.
- Creating an environment where work and life can be harmonized by promoting work-life balance
- Creating a workplace where JERA Group employees can work safely and comfortably, both physically and mentally
- Improve individual and organizational performance by promoting daily healthy habits
Flexible Approaches to Work
Creating an environment workplace where all employees can thrive in their own way
JERA has implemented a hybrid telework system that combines office and remote work. We aim to be a company that allows employees to work flexibly, unrestrained by time or place, somewhere they can work with purpose and increase their sense of fulfillment and accomplishment. In our FY2022 employee satisfaction survey, the satisfaction index regarding our approach to work was 73% (+1% from FY2021), indicating a positive evaluation within the company.
Commendation System
Promoting a Culture of Mutual Recognition and Praise
The commendation system was introduced in FY2022 to foster a culture of mutual recognition and praise in order to motivate employees and create an organization that can maximize performance. It has seen approximately 900(Cumulative total for FY2023) commendations to date, indicating steady progress.
To foster a culture of acknowledgment and appreciation that enhances employee motivation and creates an organization where employees can achieve maximum performance