Achieving The Right Talent in the Right Position

Strategy
(Stance and Approach)

Basic Concept

SEKISUI CHEMICAL Group aims to achieve the right talent in the right position by shifting to a human resource management approach that is based on roles.
The goal is not to place the right talent in the right position according to each individual’s skills and capabilities, as we have in the past, but rather to place the right talent in the right position according to each important role within the Group. To achieve this, we revamped our human resources system and management framework under the previous Medium-term Management Plan.・ Review of the qualification system: Introduced a key position grading system for management, abolished appointment probation periods, and commenced a successor training system.

  • Review of the qualification system: Introduced a key position grading system for management, abolished appointment probation periods, and commenced a successor training system.
  • Retirement extension: Extended from 60 to 65 (Implemented by SEKISUI CHEMICAL and certain Group companies in 2021; implementation completed at all Group companies by fiscal 2025).
  • System: Began visualizing and utilizing employee qualitative information through a human resource system.

Based on this approach, we will focus on fostering business leaders who promote both the exploration and creation of new businesses and the steady growth and refinement of existing businesses in a mutually beneficial manner. In addition, we are working to secure professional human resources with a high level of expertise and execution skills, who will serve as a source of corporate value.

Major HR Policies

1. Develop ambidextrous business leaders
  • Strengthen selection and training of management candidates
  • Visualization and multifaceted evaluation of management roles
2. Secure prominent professional human resources
  • Strengthen efforts to secure highly specialized human resources
  • Strengthen reskilling in line with business needs
Indicators and Targets

Under the new human capital strategy outlined in the Medium-term Management Plan, SEKISUI CHEMICAL Group established 14 guiding principles, consisting of two policies and 12 KPIs (including 3 priority KPIs). Within these KPIs, we are promoting two initiatives. In specific terms, we are working to develop ambidextrous business leaders and secure prominent professional human resources in order to achieve the right talent in the right position. 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: Rate of successor candidate preparation

SEKISUI CHEMICAL Group has positioned the development of successors in each position as a priority issue for the sustainable development of its diverse businesses. We monitor the number of positions and successors in collaboration with the heads of the human resources departments at each divisional company.

  • Note: Rate of successor candidates to the most senior business leader post
    Method of disclosure :Number of successor candidates to the most senior business leader post ÷ Number of the same post

Major KPI: Training hours

Business leaders are required to have a multifaceted perspective and strong management skills. Moreover, professional human resources must possess the necessary expertise coupled with the ability to execute. In order to develop these capabilities, SEKISUI CHEICAL Group has put in place a foundation for human resource development by providing role-based training as well as programs in which employees can voluntarily take part.
Method of disclosure :Training hours per employee per fiscal year

Targets

Targets for FY2025, the final year of the Medium-term Management Plan

  • Rate of successor candidate preparation(SEKISUI CHEMICAL Group)
    100%
  • Training hours (SEKISUI CHEMICAL) 10 hours or more
    • Note: Educational programs held at SEKISUI CHEMICAL’s Human Resources Department at Corporate Headquarters.
Major Initiatives

Developing Ambidextrous Business Leaders

1.Strengthen selection and training of management candidates

SEKISUI CHEMICAL Group established the Human Resources Committee to promote efforts aimed at strengthening the selection and training of management candidates. Our goal is to properly manage the roles required to realize our management strategies, and to ensure that the personnel and successors responsible for these roles receive continuous training.

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Overall view of the role-based system

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Training System Chart

  • A Training and Development for Business Leaders:
    Selective Capability Development to Acquire Competencies Appropriate for Grade 1-2 Incumbents and Candidates
  • B Role-based Capability Development:
    Selective Capability Development to Achieve Aspired Roles
  • C Reskilling:
    Reskilling Program Aligned with Business Needs
  • D Strengthening Organizational Infrastructure:
    ESG Management Literacy Enhancement Program (Knowledge, Awareness, and Attitude) Essential for SEKISUI CHEMICAL Group Employees
Performance Data

Rate of successor candidate preparation (SEKISUI CHEMICAL)

  FY2021 FY2022 FY2023
Rate of successor candidate preparation 50.5 67.7 92.4

Training Results Common throughout the Group

  FY2019 FY2020 FY2021 FY2022 FY2023
Newly appointed manager receiving training (persons) 252 220 199 213 210

Hours of training per full-time employee (SEKISUI CHEMICAL)

  FY2019 FY2020 FY2021 FY2022 FY2023
Hours of training 9.4 6.3 7.1 6.1 6.2

Evaluator Training Results (SEKISUI CHEMICAL)

  FY2021 FY2022 FY2023
Evaluator training (understanding the evaluation system) (persons) 941 75 164
Evaluator training (understanding the evaluation system + basics of evaluation) (persons) 493
Training to strengthen evaluation skills (1) (basic of evaluation + goal setting) (persons) 146 62
Training to strengthen evaluation skills (2) (daily management + interview training) (persons) 148 64

In line with the introduction of a new evaluation system, we conducted a two-tiered training program. The first to promote understanding of the evaluation system and a second to promote understanding of the evaluation system together with the basics of evaluation for those with little evaluation experience in fiscal 2021.
Building on the content of each of the aforementioned programs aimed at promoting an understanding of the evaluation system as well as the basics of evaluation, we conducted training to strengthen evaluation skills from fiscal 2022.

2.Visualization and multifaceted evaluation of management roles

In order to promote the visualization of roles, SEKISUI CHEMICAL Group defines the roles and mission requirements for each post by utilizing its human resource system, and takes steps to progressively disclose details. In this way, we are working to visualize careers within the Company, identify areas to aim for, and promote autonomous career development.

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Role Visualization Diagram

Secure Prominent Professional Human Resources

1. Strengthen efforts to secure highly specialized human resources

In addition to the difficulties involved in developing highly specialized human resources through work, there is an excess in demand across all industries. SEKISUI CHEMICAL Group has introduced professional qualification allowances for lawyers and other specialized professions as a mechanism to continuously secure human resources within the Company. We have also secured highly specialized human resources by redefining specialized personnel in such staff divisions as DX and legal affairs.

Trends in the Number of Specialty-position Employees(SEKISUI CHEMICAL)

  FY2021 FY2022 FY2023
Number of Specialty-position employees 32 38 39
  • Note:
    Professional human resources who demonstrate a high level of expertise, which is the source of our competitiveness

2.Strengthen reskilling in line with business needs

1)Developing Global Talent

SEKISUI CHEMICAL Group offers training programs to acquire e-mail writing, presentation, negotiation, and other practical skills. The Group also hosts global career events where employees hear directly from expatriates, giving them a more concrete and familiar sense of global work.
We also offer the six-month SEKISUI Global Academy training program. After taking this program and acquiring the necessary skills, participants travel overseas for a week to give presentations to local partners. The number of participants in fiscal 2023 was 14. In addition to language skills, this program affords participants the opportunity to acquire the necessary skills to build collaborative ties with local people. The program also provides advice on how to work with Japan, outlines differences in values, and allows participants to experience firsthand what it is like to work globally. As an added bonus, the program leads to networking among participants across different departments and generations.
Meanwhile, over and above training in Japan, we are committed to developing human resources who are capable of playing an active role globally. Based on this commitment, we provide opportunities to work overseas. This includes dispatching trainees on a short-term basis as well as staff to overseas research institutions.

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Fieldwork at the Global Academy in Ho Chi Minh City

Number of Japanese Employees Stationed Overseas SEKISUI CHEMICAL Group (FY2023)

Breakdown by Region (Persons)
North America/Latin America 54
Europe 36
Asia / Oceania 94
2)DX human resource development

SEKISUI CHEMICAL Group promotes the development of DX human resources with the aim of transforming business processes. In order to help employees acquire the necessary digital skills, we conduct literacy and digital skills training that is open to all employees. These initiatives help motivated employees gain the necessary skills to solve business problems.

3)Manufacturing specialist development

Training is conducted for management and young employees to develop manufacturing specialists.
Training for production managers is conducted for each position (production manager, production assistant manager, and site leader). This training is designed to help participants learn about SEKISUI CHEMICAL Group's approach to manufacturing so that they can better understand and carry out the roles required of each position. Through group discussions, participants learn about the challenges they will face in performing the duties of each position and how to improve their own level of leadership after returning to their respective workplaces. In fiscal 2023, 49 employees took part in this training.
In addition, basic production training provides opportunities for young employees working on the front lines to gain a basic understanding of all aspects of manufacturing, including safety, quality, and productivity. Using SEKISUI CHEMICAL's proprietary e-learning content, we also administer comprehension tests after watching videos to ensure that an acceptable level of understanding is firmly established. In fiscal 2023, more than 10,000 employees participated in this training.