Human ResourcesSustainability
CHRO Message
Driving Growth through “Offensive” and “Defensive” Human Resources
Taisuke Yokota
Senior Managing Executive Officer
Chief Human Resources Officer (CHRO)
By “offensive,” we mean serving as a business partner to the operational divisions, ensuring that the quality and quantity of talent, which is the platform of our competitiveness, aligns with our business strategies across the group. Our new growth strategy for realizing our vision involves delivering optimal solutions by combining three Strategic Positionings (SPs) with three Operational Capabilities (OCs) and calls for agile adjustments to our business portfolio to adapt to changes in the business environment. The HR division will identify the skills needed to achieve our business goals and implement agile HR strategies to enhance our likelihood of success.
On the other hand, going on the “defensive” is not just about enhancing the routine administrative operations of our globally expanding group but also about establishing a solid foundation where our diverse talent can work and feel secure in taking on new challenges. We are committed to promoting health management to ensure a safe and healthy workplace and creating an environment where every employee can thrive in their own way. By creating a safe and healthy work environment and fostering a culture that encourages people to take on challenges, we believe that each employee will take pride and initiative in their work, enabling the team to maximize its potential. Talent is at the heart of our group’s growth. The HR division will shape an environment where employees can enhance their abilities, feel their growth, and work proactively with a sense of purpose.
Offensive Approach to Talent Acquisition and Retention Strategy
Aligning Business Strategy with Talent
Our talent acquisition and retention strategy begins with defining and understanding the capabilities required, both qualitatively and quantitatively, to achieve our business strategies. Leveraging job-based talent management, we deliver a variety of solutions to flexibly meet the required capabilities. By implementing a cycle that optimizes our talent portfolio through these efforts, we aim to enhance the likelihood of achieving our business strategies, even as the group’s business environment continues to evolve.
Moving to Job-Based Talent Management
Acquiring top talent capable of fulfilling the capabilities required to enhance the likelihood of achieving our business strategies is one of our key challenges. The competition for talent is intensifying not only on a global scale but also within Japan, where societal issues such as rapid population aging and labor market rigidity are significantly impacting the talent acquisition landscape. In addition, on an individual level, the diversification of lifestyles and working styles, as well as changing personal values and career awareness, have made talent management increasingly complex and multifaceted.
In response to these circumstances, we are shifting toward a job-based talent management system to both maintain and improve our high level of market competitiveness and boost employee engagement.
Shift to Job-Based Talent Management
Our job-based talent management considers the unique characteristics of the Japanese labor market, such as limited talent mobility and the potential-focused hiring of new graduates, and structures the entire employee life cycle—including compensation levels, employment types, recruitment processes, performance evaluations, and career development—based on the job itself rather than seniority or individual attributes. As of April 2024, we have applied a job-based compensation system to all management positions.
Job-Based Management System
Talent Acquisition
We are focused on acquiring top talent across the entire group to qualitatively and quantitatively meet the capabilities required to achieve our business strategies. In mid-career hiring, we actively implement position-specific recruitment that aligns with business needs, as well as referral hiring. For new graduate recruitment, which we fully launched in 2022, we are working to secure talent with specialized skills and international perspectives by introducing course-specific hiring and offering October start dates for overseas university graduates. In addition, at our overseas sites (overseas subsidiaries), we are strengthening systems by expanding local hiring and business acquisitions.
Through these efforts, our consolidated workforce increased by approximately 1,000 employees compared with FY2019*. Of these, 600 were hired at our overseas sites. In addition, at JERA itself, the proportion of mid-career and new graduate hires has grown to about 20%. Our focus will continue to be on securing outstanding talent to reach our business strategy objectives, generate new value, and sustainably enhance corporate value.
Employee Composition of Headquarters and Branch Offices
- FY2019: Established management and organizational structure by integrating existing thermal power generation businesses from TEPCO Fuel & Power Inc. and Chubu Electric Power Co., Inc.
Improving Talent Mobility
We are working to improve talent mobility across the group to achieve agile alignment between business strategies and talent and to optimize our talent portfolio. We aim to create a portfolio that maximizes the value of our talent by building a platform that enables the seamless discovery and matching of talent both within and outside the group (intra-group human resources market) and by developing a system (global mobility rules) for smooth placement, without being constrained by recruitment locations.
Building a Market for Talent within the Group
We are developing a platform that visualizes information on all the talent within the group, enabling the discovery and offering of individuals who possess the capabilities needed to execute the strategies of each business.
We are also working on establishing a system that encourages both internal and external talent to actively pursue job opportunities by sharing enticing job information in the external talent market. We aim to build a talent market that enables mutual growth based on an equal relationship between the company and our employees.
Developing Global Mobility Rules
As part of our effort to facilitate talent and job matching within the group’s talent market, we are developing global mobility rules that systematically organize the placement process, ensuring a smooth transition and early success in new roles. By establishing guidelines that encompass not just mobility between regions and sites but also rules based on the job’s purpose, duration, and content, we seek to promote greater talent mobility.
Providing Growth Opportunities
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
We actively support the growth of all JERA Group employees, including those working overseas.
Independent Career Development
Supporting the Career Development of Every Employee
We support the independent career development of our employees based on our concept of talent management, which emphasizes employee-driven career development and the ability to choose one’s own job. To help employees bridge the gap between their career goals and their current abilities, we provide a comprehensive environment that includes career development planning, career development discussions, and a diverse range of training programs aimed at skill enhancement skills. We also offer internal job postings, opportunities for side jobs, and regular reviews of career development plans, all designed to empower employees to achieve their personal and professional aspirations.
We are steadily fostering a culture where employees take ownership of their careers, as demonstrated by the growing number of transfers each year through the internal job posting system, which offers employees the chance to choose their career path.
Our training system supports skill development from multiple angles to support independent career 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.
Participation rate in independent development training programs: 21% (participants in independent career development programs/number of employee in JERA only)
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.Feedback on goal setting and evaluation is provided twice a year through interviews with superiors.
Fostering Global Talent
To meet the demands of increasing globalization and the growing global mindset among our employees, we have established various programs, including opportunities for language acquisition, study abroad programs, and short-term training at overseas sites. For new graduates joining the company in 2024, we have introduced a global start-up training program aimed at fostering the commitment and drive needed to become global talent. In response to the rising number of non-Japanese employees, we have also implemented Japanese-language training for non-native speakers, as well as online training conducted in English.
We are also focused on enhancing talent exchange within the group. Starting in July 2023, we launched a talent exchange program with Aboitiz Power in the Philippines, where engineers are dispatched between the two companies to enhance their technical skills.
Participation rate in fostering global talent programs: 28% (number of participants in fostering global talent programs/ number of employees in JERA only)
Cultivating Executive Talent
We are also engaged in the systematic development of management talent. Our approach to cultivating management talent consists of two key components: the succession plan and the Future Talent Development System (FTDS).
The FTDS is a management talent development program designed to foster the necessary capabilities for management roles from an early stage. It emphasizes tough assignments and external training tailored to individual traits from early in one’s career, encouraging the early acquisition of essential management skills. The program was officially launched in August 2023.
Defensive Approach to Talent Acquisition and Retention Strategy
A Strong Platform That Allows Our Talent to Feel Secure Taking on New Challenges
Through efforts such as health management, improving workplace environments, and encouraging flexible work styles, we are building an organization and culture where all of our diverse talent, regardless of nationality or gender, can work safely, stay healthy, take pride in their work, and grow sustainably. We aim to create an environment where each individual can take on challenges with greater autonomy and fully realize their potential.
Promoting Health Management
Creating a Platform That Allows Our Talent to Stay Healthy and Feel Secure Taking on New Challenges
We believe that maintaining and improving employee health contributes to corporate value and are promoting health management activities aimed at creating a strong platform that allows our talent to stay healthy and feel secure taking on new challenges. Recognized for our efforts, such as reducing overtime, encouraging employees to take leave, and hosting health-related events, we have been recognized for the 2024 Certified KENKO Investment for Health Outstanding Organizations Recognition Program in the large companies category. We plan to further develop our health management efforts by considering systems that leverage health data to support well-being.
Establishment of the JERA Health Insurance Association
In April 2024, the JERA Health Insurance Association was established. In our commitment to providing high-quality health support for employees, we took the opportunity of this establishment to replace the annual health checkups with comprehensive Ningen Dock health exams, which employees can now receive free of charge. These exams are available at approximately 400 medical institutions across the country contracted by the JERA Health Insurance Association.
Promoting Health Management Across the Group
We are also working to promote health management throughout the Group. At each of our overseas sites, we partner with local clinics to provide prompt and appropriate medical services and introduce security services to create a safe working environment for our employees. We will continue to build an organization and culture where all Group employees can take on challenges in good health and with peace of mind.
Safe and Secure Work Environment
Uniform Renewal
We introduced new uniforms in May 2024. In addition to safety, the new design features a more inclusive silhouette, ensuring comfort for all employees, along with improved pocket shapes and sizes, enhancing usability on the job.
In addition, as part of the rollout, we have implemented a recycling and reuse system for used uniforms to reduce environmental impact.
Flexible Approaches to Work
Creating an Accepting and Understanding Work Environment
Amid the diversification of perspectives on work and lifestyle, we are establishing an environment that supports the diverse lifestyles and life stages of our employees and their families, allowing them to maximize their abilities.
Our efforts encompass a variety of flexible work options. We offer hybrid remote work and full-time remote work for specific situations, such as childcare, caregiving, or to prevent being transferred away from one’s family. In addition, we provide telework or leave options for employees who are accompanying a spouse on overseas assignments. Starting in FY2024, we will introduce a remote work system specifically designed for non-Japanese employees, enabling them to work from their home countries.
Balancing Life Events
To support employees facing life events such as childcare or nursing care, we have established the following leave programs.
Childcare Leave Program
The leave may be taken until the end of the fiscal year (156 weeks)in which the child reaches three years of age, or for such longer period as the individual applies for.
Nursing Care Leave Program
A leave of absence may be taken to care for a family member for a period of up to three years(156 weeks), as applied for by the individual.
Life Support Leave
In addition to annual paid leave, a total of 20 days of paid leave is granted by the second year of employment. It can be used for personal injury or illness, childcare, nursing care, infertility treatment, participation in school events, etc. It is also possible to accumulate annual paid leave.
Various Paid Leave
Paid leave includes marriage leave, maternity or paternity leave, Saiban-in or lay judge leave, summer leave, Sick/injured child care leave, and comprehensive medical checkup(ningen dokku). Refreshment leave granted in units of 10 years of service can be taken for up to 2 weeks.
In addition, under the cafeteria plan, an optional benefit program, employees can receive subsidies for the use of childcare facilities and services (nursery schools, kindergartens, childcare for children, babysitters, etc.) and nursing care facilities and services (welfare/health facilities for the elderly, home care, short stay, etc.).
Fostering a Culture of Mutual Recognition and Praise
Commendation System
Our commendation system fosters a culture of mutual recognition and praise in order to motivate employees to take on new challenges and create an organization that can maximize performance.
The number of awards in FY2023 increased to 885, almost double that in FY2022, due to factors that included the review of award amounts in response to employee feedback.
Purpose of the Commendation System