Basis for Fostering Personnel

Management Approach

Basic ConceptImproving Group-wide Human Resources Capabilities

As it strives to empower Group human resources to achieve sustainable growth, Sekisui Chemical Group is advancing a variety of efforts to secure and train human resources.

Medium-term PlanSpecific Targets Set, Various Measures Being Enacted

Under the CSR Medium-term Plan (2017-2019), through even further advancements for diversity and the promotion of initiatives for work style innovation, we worked to build an organizational culture in which all employees can work dynamically.

Human Resources

✔???Medium-term targets achieved
△???Medium-term targets not achieved despite efforts to push forward initiatives
×???Medium-term targets not achieved; need to further push forward initiatives in the future

Key Measures Medium-term
(2017-2019)
Targets
FY2019
Results
Medium-term
(2017-2019)
Self-evaluation
Promote
diversity
  • 1)
    Empower women
  • Secure a ratio of women to total hires of 35%
  • Secured a ratio of women to total hires of 31.4%
  • Number of women in management positions: 200
  • Number of women in management positions: 185
  • 2)
    Develop global talent employees
Number of participants in the Global Trainee Program: 20 Number of participants in the Global Trainee Program: 15 ×

Pledge to Society

✔???Medium-term targets achieved
△???Medium-term targets not achieved despite efforts to push forward initiatives
×???Medium-term targets not achieved; need to further push forward initiatives in the future

Key Measures Medium-term
(2017-2019)
Targets
FY2019
Results
Medium-term
(2017-2019)
Self-evaluation
Workplace Environment
  • 1.
    Manage and control prolonged working hours (in excess of 2,000 hours annually)
Reduce the number of subsidiary companies where employees work more than 2,000 hours on an annual basis by 30%
(vs. FY2016)
Reduced the number of subsidiary companies where employees work more than 2,000 hours on an annual basis by 19%*
(vs. FY2016)
  • 2.
    Promote health management management
Raise the number of Group companies certified as an Excellent Enterprise of Health and Productivity Management
White 500 by Japan’s Ministry of Economy, Trade and Industry to 21
Raised the number of Group companies certified as an Excellent Enterprise of Health and Productivity Management
White 500 by Japan’s Ministry of Economy, Trade and Industry to 28

* Based on estimated as of March 2020

Major Initiatives

Training Systems to Support Our BusinessesPromoting the Growth of Each Employee

Sekisui Chemical Group is operating a training system with various programs tailor-made to match various career plans with stages differentiated by level and skill. As our business categories are extensive and we employ a divisional company system whereby each department is given substantial authority to make its own decisions, the Group operates its system of development of human resources at the level of each company and subsidiary of the Group, based on the philosophy and programs that serve as the fundament.
At the same time, some programs such as initial training of new employees, level-specific training by qualification grade, career planning training, or business leaders’ training are developed across the Group to promote improvements in power of human resources in the Group as a whole.

Consolidation of Labor ConditionsMeasures to Improve Compensation and Labor Conditions

With the aim of securing and developing personnel throughout Sekisui Chemical Group that goes beyond company and individual Group company frameworks, we will continually work to upgrade various systems and improve labor conditions based on the results of our analysis of labor conditions at domestic Group companies. We also conduct investigations of not only compensation levels but also the working hours, use of paid leave, and flexible work styles- aspects that are linked to reform of the very way we work - with the intent of optimizing conditions across the entire Group.

Labor-management RelationsLabor-management Cooperation and Communication

Sekisui Chemical strives to understand and respects the positions of labor unions. We believe that through close communications between labor and management we can resolve our common problems based on a shared objective of advancing the Company. In Japan, there were 15 independent labor unions with 5,294 employees in the All-Sekisui Chemical Labor Union Federation, while Sekisui Chemical Labor Union, which is the core organization in the Federation, had 2,435 members (as the Group employs a union shop system, the membership rate of employees eligible to become union members is 100%) in fiscal 2019.

BenefitsProviding Adequate Benefits Regardless of Gender, and Welfare Benefits to
Non-full-time Employees, Including Health Insurance and Childcare Leave

At Sekisui Chemical, base salaries are the same for each gender, and proper benefits are provided regardless of gender.
Sekisui Chemical also has systems in place that provide welfare benefits to contracted employees, such as contract employees, including healthcare (i.e., health checkups), compensation for disabilities and illnesses that arise at work, and childcare leave. Only indefinite-term employees are eligible to join the Company’s life insurance, defined-benefit retirement plans, and shareholding programs.

Periodic Evaluation of Individual Performance and Career Development

At Sekisui Chemical, we are working to build a system for human resources that enables people to thrive, regardless of age or attributes. Our source of growth is found in those tasks we perform on an everyday basis. Indicating the specific actions an employee needs to take and the abilities needed to execute tasks in order to achieve a sustained level of consistently optimal results, there is the Sekisui Self-accountability & Competency Sheet (SSAC Sheet).
Sekisui Chemical Group bases all of its business activities on its corporate philosophy called the “3S Principles” aiming to achieve satisfaction of its stakeholders. Based on these 3S Principles, the SSAC Sheet lists the roles and responsibilities of our employees in execution of their business duties as well as concrete behavior required by the Group from employees in each course, at each qualification level.
Under the Group's evaluation system, employees are assessed not only by their business results but also by the process that led them to the results and the personal growth they achieved through accomplishment of the tasks (increase of task-execution abilities). The SSAC Sheet serves as a standard for this evaluation.
Superiors and subordinates are provided with regular opportunities to discuss the individual goal setting and assessment. Permanent, full-time employees in all positions and levels are target to this initiative.

Employee Awareness Surveys (Engagement)

Sekisui Chemical Group periodically conducts an employee awareness survey (engagement survey) targeting all employees every three years. The purpose of this survey is to identify the degree to which employees feel fulfilled at work, uncover areas for improvement, and implement improvement measures by organization.
Meanwhile, the survey measures the feelings of individual employees involved in engagement that they are the key players, the pride and enthusiasm they feel regarding their work, and the determination to do one's best and not give up until the results surpass everyone's expectations. In other words, the willingness to contribute to the organization and sense of fulfillment.
The engagement score declined marginally under the survey conducted in fiscal 2019 compared with 2016. Based on activities that drew on previous survey results, Group-wide efforts increase slightly in such areas as diversity and work-life balance. Looking ahead, we will implement a variety of measures aimed at building an organization across the Group as a whole that allows each and every employee to take a leading role and to work in a dynamic and vibrant manner.

Performance Data

Average Hours per FTE of Training and Development (Sekisui Chemical)

FY2017 FY2018 FY2019
Average hours per FTE of training and development (hours) 9.9 9.4 9.4

Note: Educational programs held at Sekisui Chemical’s Human Resources Department at Headquarters

Training Programs Common to Entire Company to Improve Group-wide Human Resources Capabilities

FY2017 FY2018 FY2019
New employee induction training 223 251 243
Training for newly appointed managers 245 210 252

Number of New-graduate Hires / Ratio of Women among New-Graduate Hires (Sekisui Chemical Group in Japan)

  • 5-018

Note: Includes certain affiliates accounted for by the equity method and non-consolidated subsidiaries.

Employee Turnover Rate in First Three Years of Employment (Sekisui Chemical)

Entered in FY2013 Entered in FY2014 Entered in FY2015 Entered in FY2016 Entered in FY2017
Employee turnover rate in first three years of employment (%) 10.7 7.4 8.0 1.8 9.4
Indicator Calculation method
Employee turnover rate in first three years of employment (%) Employee turnover rate in first three years of employment for each fiscal year