Fostering a Culture That Embraces Challenge

Strategy
(Stance and Approach)

Basic Concept

For SEKISUI CHEMICAL Group to bring Vision 2030 to fruition, as outlined in its Medium-term Management Plan, it is vital that each and every employee embrace challenge. In order for employees to embrace challenge and to take the appropriate action, it is equally important that we put in place the prerequisite environment. To this end, it is essential that managers set the right goals, motivate employees, and foster an organizational culture in which efforts to take on challenges are valued and failures are tolerated. Accordingly, the human capital strategy in the Medium-term Management Plan focuses on creating opportunities and encouraging employees to pursue challenges. As we foster a culture that embraces challenge, we are promoting various measures to achieve these goals.

Important HR Policies

1. Creating opportunities to pursue challenges
  • Accelerating the pace at which employees realize their careers by raising hands
  • Providing opportunities to take on challenges
2. Encouraging employees to pursue challenges
  • Further strengthening activities to foster a culture that embraces challenge
  • Fostering a culture of career autonomy
Indicators and Targets

Under the new human capital strategy outlined in the Medium-term Management Plan, SEKISUI CHEMICAL Group has established 14 guiding principles that consist of two policies and 12 KPIs (including 3 priority KPIs). To foster a culture that embraces challenge, we are promoting two initiatives: Creating opportunities to pursue challenges and encouraging employees to take on challenges. Based on the aforementioned, we have identified and are evaluating the following items.

Note: For details of the 14 human capital-related guiding principles see here.

Indicators

Priority KPI: Degree of challenging behavior expression

In FY2021, SEKISUI CHEMICAL Group set the degree of challenging behavior expression as a key human capital KPI. Every year, we conduct a survey to measure employees' challenge behavior and employ the results of each survey to make improvements at the workplace level.

Question in the Degree on Challenging Behavior Expression Survey

I am already engaging in specific challenging behavior in an effort to realize Vision 2030.
From FY2023: Respondents who replied “Yes” or “Somewhat applicable.”
Prior to FY2022: Respondents who replied “Yes.”

Major KPI: Engagement Score

Engagement surveys that also include overseas Group companies are conducted each year. Within each survey, the percentage of employees who score an average of 4.5 or higher on six engagement-related behavioral questions (each on a 6-point scale), which measure passion for work and attachment to the Company is defined and measured as a key KPI.

Questions
  • 1.
    If a friend is looking for work, I would not hesitate to recommend this company.
  • 2.
    If given the opportunity, I would tell others how great it is to work for this company.
  • 3.
    It would take a lot for me to leave this company.
  • 4.
    I rarely think about leaving this company to work somewhere else.
  • 5.
    This company inspires me to do my best every day.
  • 6.
    This company motivates me to not only complete assigned tasks, but also to contribute more than is normally required.

Targets

Degree of challenging behavior expression

SEKISUI CHEMICAL Group has set the target of exceeding 60% in FY2025, the final year of the Medium-term Management Plan.

Engagement Score

SEKISUI CHEMICAL Group has set maintain/improve from the previous fiscal year as a target for the six engagement-related behavior questions.

Major Initiatives

SEKISUI CHEMICAL Group measures the development of an organizational climate in which new challenges are spontaneously generated and spill over.

Degree of challenging behavior expression (SEKISUI CHEMICAL Group)

  FY2021 FY2022 FY2023
Degree of challenging behavior expression(%) 51 47 48
Response rate(%) 62 81 88
  • Note:
    The indicator was redefined in FY2023; FY2021 to FY2022 results are also listed based on the redefined standard.

Creating opportunities to pursue challenges

1.Accelerating the pace at which employees realize their careers by raising hands

In 2000, SEKISUI CHEMICAL Group launched an HR recruitment system in a bid to promote individual employee self-fulfillment and corporate growth. This system is implemented four times a year to match employees with departments.
Employees take the initiative to develop their capabilities and hone their individual skillsets in order to achieve their own careers. Those who raise their hands and take on the challenge of pursuing opportunities where they can play an active role will have the chance to move up the ladder. The Company can select from the pool of motivated employees who raise their hands.

Intra-Group Job Postings Results

  FY2019 FY2020 FY2021 FY2022 FY2023
Number of postings 45 31 55 56 78
Number of people to be recruited 62 54 80 101 122
Number of applicants 135 155 236 159 138
Number of employee transfers 28 28 70 45 41

Career Path Support Results (SEKISUI CHEMICAL)

  FY2019 FY2020 FY2021 FY2022 FY2023
No. of employees who have changed career courses Male 10 14 2 6 6
Female 1 2 4 3 1
No. of employees who have converted to permanent, full-time employment Male 2 1 4 3 0
Female 11 14 10 11 4

2.Provide opportunities to pursue challenges

SEKISUI CHEMICAL Group has established the Innovation School as a place to study where executive officers personally take on the role of educators to increase the motivation of each and every employee to, for example, change the Company and change each individual’s behavior. In addition, in line with the extension of the retirement age, we have established a new system for employees 60 year's old and older to work part-time. In order to expand opportunities for employees over the age of 60, we are increasing the number of work style options to expand their opportunities to play an active role and help them move on to their second life.

Results of Group’s Major recruitment-type training programs

Name of Training Program FY2019 FY2020 FY2021 FY2022 FY2023
Innovation School (persons) 69 Not implemented 102 102 54

Opportunities to Pursue Challenges

1. Further strengthening activities to foster a culture that embraces challenge

Every year, we conduct a survey to measure the level of employee engagement, focusing on their passion for work and attachment to the Company, as the foundation for taking on challenges. In fiscal 2023, the response rate hit a record high with the score improving to 133 compared with the previous year. Analyzing the results of the survey at the divisional company, Group company, and each organizational unit level, we are formulating and implementing improvement measures according to the issues faced.
As a cross-organizational initiative, the HR departments of domestic Group companies come together to undertake Engagement Drive Project activities. The project includes meetings to share advanced case studies of other companies and good practices internally, as well as seminars on organizational development methods.

  • Out_S04

Engagement Survey

  • Note:
    Some past figures have been revised due to improvements in precision.
  • Scores are calculated using fiscal 2019 as 100.
  • Survey scope: All employees (including regular full-time, non-full-time employees, and dispatch employees) of 157 of the 160 Group companies surveyed.
  • Coverage rate: Percentage of companies surveyed relative to the number of Group companies in Japan and overseas.
  • Response rate: Percentage of employees who responded to the survey relative to the total number of employees of the companies where the survey was conducted.
  • Interim surveys were conducted by the organization of choice in fiscal 2020 and fiscal 2021 (reference data).

2.Fostering a culture of career autonomy

SEKISUI CHEMICAL Group believes that promoting autonomous career development is important in further motivating employees to take on challenges. Working to promote this autonomous career development, SEKISUI CHEMICAL operates the Career Interview System for all employees. Under this system, employees discuss their past experience, commitment toward and fulfillment of roles as well as career and work orientation with their respective managers. The fruits of these discussions are then centrally managed under the Group’s human resource system and utilized in an organized manner.
Since its introduction in fiscal 2022, the promotion of measures to firmly establish this system has resulted in an improvement in the career interview implementation rate from 75.4% in FY2022 to 81.2% in FY2023. In addition to their immediate superiors, department heads and the Human Resources Department now have a better understanding of each employee’s career aspirations. As a result, we are now able to assign work, including transfers, and provide training opportunities, laying the groundwork for a more effective consideration of employees’ career development.
Moreover, we provide career autonomy supervisor and basic training on how to formulate career plans in order to conduct career interviews more effectively. Steps have also been taken to change the existing framework for career training opportunities from one that focus on age to a framework based on roles. We believe that such training is an opportunity for each employee to think autonomously about his or her career, and that through autonomous career development, we will be able to instill in our employees a proactive approach toward taking on challenges.

Career Training Attendance Results (SEKISUI CHEMICAL)

Training Program Name FY2021 FY2022 FY2023
Career autonomy supervisor training (persons) 393 252 134
Career plan basic training (persons) 17 62
Newly appointed management career planning training (persons) 203 204
Career planning training for those being promoted to Advanced Level (non-managerial) (persons) 89
New employee career planning training (persons) 78 95