Strengthening Employee EngagementHuman Capital Management
Our Basic Policy
In the midst of major transitions such as digitalization and decarbonization, and against the backdrop of structural labor shortages caused by the declining birthrate and aging population, it is becoming more important to continue to develop and secure human capital over the long term. In particular, failure to continuously develop and secure highly specialized human capital may lead to a decline in competitiveness.
In order to continue to develop and secure human capital over the long term, it is important to create a stage where a wide range of talented people can play an active role. It is also important to enhance and strengthen human resource policies and systems to increase employee engagement with the company and productivity, and to enable each employee to fully display their abilities.
Specifically, to ensure that the highly specialized human resources that will support the Company's sustainable growth can fully demonstrate their capabilities, we have drastically revised our employee career system and established the Specialist Position System in FY2019. In addition, under the Job Posting System, which launched in FY2022, job openings at the times of reinforcement or increase the number of employees in focused businesses are publicly disclosed and advertised within the company, providing opportunities for employees to raise their hands and realize transfers on their own.
Furthermore, we have introduced various systems to enable each employee to work flexibly according to their own lifestyle and life stage. In addition to providing childcare and nursing care leaves, we are focusing on creating an environment where employees can continue to work with peace of mind through a system that allows them to change their place of work.
We will continue to use the Engagement Survey to understand the gap between the ideal state of the organization and the current situation and issues, and to implement effective measures to improve engagement to create a stage where excellent human resources can play an active role with vigor.
Medium-Term Targets and Achievements
In order to realize a workplace environment in which employees, who support ROHM Group's growth, can work vigorously and foster a better corporate culture, it is essential to strengthen engagement through two-way communication between the company and employees, since group-wide corporate management is crucial. ROHM has set "strengthening employee engagement" as one of ROHM Group's sustainability priority issues (set for FY2021), and is promoting efforts to achieve this goal.
| Strengthening Employee Engagement | ||||
|---|---|---|---|---|
| [Background and Challenges for Activities] To become a company that solves the social issues outlined in its management vision, must be a company where every employee of ROHM Group working lively. To this end, it is important to create a working environment in which every employee at diverse lifestyle and life stages can work comfortably and achieve results. Through stronger engagement with employees, ROHM Group is committed to fostering a corporate culture that continues to boldly take on challenges without fear of failure in every workplace, and to creating a work environment that encourages employees to take on challenges. |
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| Theme | Targets (Target Year: FY2025) |
Targets for FY2023 | FY2023 Actual | Targets for FY2024 |
| Foster a corporate culture that creates challenges | Establish a system to train world-class next-generation leaders and professionals | Expanding the scope of the job-based personnel system to provide more strategic and competitive treatment | ・Introduced a remuneration system for certain levels of employees that benchmarks not only internal hierarchy and fairness, but also external remuneration levels ・Introduction of programs to send students to MBA (Master of Business Administration) |
Developing next-generation leaders through global trainee programs and MBA (Master of Business Administration) programs that enable employees to think from a global perspective and challenge the unknown |
| Enhancement of job satisfaction | ①Provide selective services that are adapted to employee orientation and lifestyles under the new normal conditions | Introduction of GLTD (Group Long Term Disability Insurance) | Completed introduction of GLTD (Group Long-Term Disability Income Compensation Insurance) | With the keyword "subjective view of health" (≒"Creating one's own health"), we will develop health maintenance and promotion activities that maximize performance, rather than merely promoting health. |
| ②Clarify job descriptions concerning job openings in each department to maximize performance by eliminating post-assignment mismatches | Expand the scope of the job posting system, introduce referral recruitment, and increase the number of foreign nationals. | ・Job posting system: Approximately 50 employees were transferred to the department of their choice. In addition, transfers to overseas group companies were also possible. ・Referral hiring: Some employees were hired using referrals. ・Human capital from overseas: Transferring employees from overseas group companies. |
Maximize organizational performance by establishing a structure to support the resolution of human resource issues at each headquarters. | |
| ③Establish a system within the personnel mission-critical system to make data on employees' abilities, expectations, experience, qualifications, etc., and utilize it for appropriate hiring and assignment | Collect data across the Group and deploy the HR core system to Group companies, including those overseas | [Group Consolidated] Completed implementation of human resource management systems for two domestic group companies and one overseas group company. |
[Group Consolidated] Collecting employee career plans in the core human resources system and converting relevant information into data |
|
| Improve employee engagement scores | Initiate engagement survey in entire group, improve annual scroes and achieve employee engagement score at or above industry average | Improve the engagement score at the Head Office | A second engagement survey was conducted at the Head Office. The Sustainable Engagement Score was 75, down one point from the previous survey. | [Group Consolidated] Consider and implement measures to further improve engagement in anticipation of the third Head Office and the second group company in 2025 |
We manage engagement scores through the Willis Towers Watson (WTW) Employee Engagement Survey.
The score represents the percentage of employees who respond favorably to questions related to “sustainable engagement.”
【Related Activities】
Enhancement of Job Satisfaction
We have positioned "ease of work" as a concept that indicates a workplace environment in which workers can work comfortably and safely, and "job satisfaction" as a concept that indicates a state in which workers are actively engaged in their work and the organization, and in which their sense of self-efficacy is fulfilled.In order to increase employee job satisfaction, it is not enough to satisfy either one or the other. We believe that it is necessary to resolve issues related to "ease of work" and then link them to "job satisfaction.For this reason, in this chapter, we will introduce our initiatives to improve employees' job satisfaction as "job satisfaction," which is considered in the narrower sense of the term "ease of work.
1. Systems that lead to a comfortable work environment and the status of their use
ROHM has introduced various systems to enable each employee to work flexibly according to his or her lifestyle and life stage.
ROHM believes that in order to improve productivity in the face of changing lifestyles and life stages, a workplace environment that is easy to work in is the first step.
ROHM will continue to provide an environment that allows employees to choose a way of working that is compatible with their individual values.
| Program Name | Description |
|---|---|
| Work interval program | Rest time is ensured by creating an interval of at least 10 hours between finish time and start time the following day, to prevent employees’ health problems. |
| Remote work (work from home) program | A system that allows employees to work in locations other than their regular workspace to support different work styles and improve productivity. |
| Relocation of work place programs | In cases where an employee is forced to relocate their home for reasons such as their spouse being transferred, marriage, childcare or to provide nursing care to a family member, a change of their place of work for personal reasons is recognized. |
| Rejoining program for retired employee | In cases where an employee is forced to resign from their job due to their spouse being transferred, marriage, childcare or to provide nursing care to a family member, the employee is granted the right to rejoin the company within five years of leaving. |
| Acquisition of paid vacations in hours | To enable diverse work styles, employees can take paid leave in units of one hour up to 5 days per year. |
| Staggered working hours system | A system that allows employees to change their working hours when it is necessary to respond to customers or telephone calls to overseas locations outside of regular working hours. |
Going forward, we will develop and spread the use of various systems and aim to achieve a working environment that enable employees to work with energy.
2.Support Systems and Initiatives for Childcare and Nursing Care
ROHM strives to create an environment in which each and every employee can play an active role in accordance with his or her lifestyle. In addition to the systems stipulated by law, ROHM has established its own enhanced systems to allow employees to work flexibly and diversely in accordance with life events such as childcare and nursing care.
| System | Contents | Subject | Special Remarks |
|---|---|---|---|
| Childcare leave |
①In principle, the childcare leave period is extended until the child reaches one year of age. If the child cannot be enrolled in a daycare center, the childcare leave period can be extended until the child reaches three years of age. ②Up to 2 installments per child can be taken (not applicable for extensions) |
All employees |
・Adapted to the 2022 legal revision ・Exceeds legal requirements (up to 3 years of absence) |
| Father Childcare Leave after childbirth | Twice (up to 4 weeks in total) while spouse is taking maternity leave within 8 weeks after childbirth. | All employees | Adapted to the 2022 law revision |
| Nursing time | May request 30 minutes of parenting time each morning and afternoon per day to raise a child under one year of age. | All employees | |
| Special congratulatory gifts during maternity leave | Partial payment of income during maternity leave (treated as paid leave) | All employees | Exceeds legal requirements (paid vacation portion) |
| Accumulated leave appropriation during maternity leave | Accumulated leave (unused portion of past paid leave) can be used during maternity leave | All employees | ROHM's unique system |
| Establishment of a policy to promote the use of maternity leave | Established a policy to encourage male employees to take childcare leave and to extend the period during which they can take leave, and made it known to all employees. | All employees | Adapted to the 2022 law revision |
| Establishment of a dedicated consultation service | Dedicated consultation service for inquiries about the childcare leave system, past cases of childcare leave taken, etc. | All employees | |
| Creation of Mother’s Room | Support for female employees who are breastfeeding | All employees | Installed at HQ, Kyoto Ekimae Building, and Shin-Yokohama location |
| Recommendation of acquisition and confirmation of intent to acquire acquisition for all eligible employees | Inform employees whose spouses have given birth of the childcare system, encourage and confirm their intention to using the system. | All employees | |
| Childcare/nursing care support work |
・Shortened working hours (maximum 2h reduced) ・Move working hours up or down (2h possible at most) * Shortened working hours are available until graduation from junior high school at the maximum. *Up to the graduation from elementary school in the case of accelerated and accelerated work |
All employees | Exceeds legal requirements (for children up to junior high school graduation) |
| Leave to nurse a child |
The following number of vacation days can be taken during one year (April to March of the following year) ・For one child: up to 5 days ・For two or more children: up to 10 days |
All employees | Can be taken in 1-day, half-day or hourly increments |
| Nursing leave |
The following number of vacation days can be taken during one year (April to March of the following year) ・For one eligible family member requiring nursing care: up to 5 days ・For two or more eligible family members requiring nursing care: up to 10 days *Up to 10 days with pay |
All employees | Exceeds legal requirements (paid vacation portion) |
| Nursing care leave | Up to a total of 93 days of nursing care leave per family member in need of care during a 3-year period (unlimited number of times, up to 3 years of leave) | All employees | Exceeds legal requirements (up to 3 years of absence) |
| Allocation of accumulated leave to nursing care leave/absence | Accumulated vacation (unused portion of past paid holidays) can be used for nursing care leave and absence. | All employees | ROHM's unique system |
3. Promoting the Acquisition of Paid Vacations
We are promoting the acquisition of paid vacations through the following initiatives to help employees maintain good health or refresh their body and mind.
-
Implemented Contents
-
- 1. Training is implemented to boost their awareness and understanding of rules related to paid vacations.
- 2. Establishment of scheduled annual paid vacations (4 days a year)
- 3. Establishment of a paid-vacation promotion day.
- 4. Establishment of paid vacation in hours.
In FY2023, the paid leave utilization rate was 81.7%, an improvement of approximately 8% from the previous year. In FY2024, we will continue to maintain a company-wide environment that facilitates the use of paid leave, and we have set a minimum acquisition rate of 50% not only for the company average, but also for each individual.
4. Approach to Harassment Prevention
As part of initiatives to create workplaces where employees can work energetically in good health, harassment prevention training by the general counsel is implemented toward divisional heads, including board members.
[Training Content]
Education while utilizing changes in social demands and specific cases to prevent sexual harassment, power harassment, and maternity harassment.
[Training Achievements]
| FY2019 | FY2020 | FY2021 | FY2022 | |
|---|---|---|---|---|
| Participants (number) |
35 | 27 | 34 | 422 |
| Attendance Rate | 100% | 100% | 100% | 100% |
Starting in FY2023, the training is conducted every other year.
Similar harassment prevention training, which will be continued, is also implemented as part of the training provided when employees are promoted to a new position.
In FY2023, remedial and corrective actions were taken for three (3) harassment complaints.The procedures are as follows:
・Investigate the facts, taking care not to cause any disadvantage to the reporter by reporting the incident.
・The company will take corrective action against the incident that is found to be true.
・Provide psychological support to the victim of harassment through counseling by the counseling office and the medical bureau.
5. Awarding Employee
ROHM Presidential Award
ROHM Presidential Award ceremony is held every year at ROHM to present awards to employees who have contributed positively to the company based on our corporate goals and philosophy.
The awards are presented for employees' annual contribution to developing new technologies and new products, as well as for their contribution to local and regional communities and our society in general. The awards help to improve the motivation of employees. Employees from group companies are also awarded the same prizes, and this has been a major event for the entire ROHM Group of companies.
[ Number of Awards Received ]
| Amount of Commendation (Million Yen) |
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | |
|---|---|---|---|---|---|---|
| Gold Prize | 3-10 | 6 | 10 | 10 | 8 | 8 |
| Silver Prize | 1.5 | 26 | 17 | 17 | 21 | 14 |
| Bronze Prize | 0.5 | 63 | 58 | 60 | 55 | 49 |
| Effort Award | 0.2 | 56 | 59 | - | - | - |
| Total | - | 151 | 144 | 87 | 84 | 71 |
To verify whether this is a motivational measure, we have conducted a questionnaire since 2023. More than 70% of the respondents answered that they would like to try for the President's Award next year, and among those who participated in the ceremony, more than 90% said they would like to try again next year, indicating that this is a measure that leads to motivation.
Effort awards discontinued in FY2021.
6. Specialist Position System
In order to develop products that are chosen by customers in the global market, it is necessary to enhance the expertise of everyone’s individuality and the capabilities of our engineers.
To enable the highly specialized human resources that support ROHM's sustainable growth to fully demonstrate their capabilities, we have drastically revised our career system for engineers and established the Specialist Position System in FY2019. This system recognizes employees who contribute to the company with their highly specialized skills as "specialists" regardless of whether they have subordinates or not, and clarifies their career paths as leading experts in their fields.
| Goals of the Specialist System |
|---|
|
[Number of Specialist Appointments]
In addition, the titles of Fellow and Senior Fellow are given to highly specialized human resources at the top level of specialist positions. The purpose of this program is to nurture human resources who contribute to the company with their expertise and technical capabilities, in addition to those who are responsible for management, and to encourage the relevant employees to maximize their performance for the sustainable growth of ROHM. We plan to appoint about 10 fellows over the next five years, with three having been appointed as of March 2023. Senior Fellows will be treated as general managers and executive officers, and a system has been established to enable them to grow as highly motivated, highly specialized human resources.
Specialist positions not only require a high level of contribution as highly specialized human resources, but also have the important duties of fostering future generations and passing on expertise and technology. Through this system, ROHM aims to motivate and develop highly specialized personnel to further improve their expertise, accelerate technological development that supports ROHM's competitiveness, and thereby achieve further growth and development of the company.
Employees from certain grades apply for specialist positions on their own or on the recommendation of others, and if they pass the selection process, they are promoted to the position of chief technical officer or other positions. Among them, employees who meet the selection criteria are appointed.
Specialist positions are term positions for 4-5 years.
[ Specialist Employee Testimonials ]
Production System Development Division
Koji Matsunaga
I am in charge of the development of in-house production of testers (measuring instruments) for final assurance of product characteristics, such as transistors, diodes, MOSFETs, IGBTs, and SiC modules, and work daily on new product support and improvement activities in cooperation with the business units and factories. I was involved in the development of the first in-house tester for AC characteristics (dynamic characteristics), which requires high voltage, high current, and high speed, and have experience in launching testers for various power devices. Although I am always next to danger because of the large amount of power handled, I am constantly improving my skills and devoting myself to the evolution of power devices.
Although it requires a wide range of knowledge (device characteristics, equipment, substrates, hardware, software, etc.), and there is pressure to prevent defective products from being released into the world, it is a very rewarding job. I would like to contribute to the field of measurement, including training young engineers, in order to improve the status of engineers in the field of measurement.
AFE-LSI Product Development Division
Yuji Shimada
I am in charge of circuit design of isolated AD converters for current detection when driving motors for industrial machinery. As an analog engineer, I design communication circuits and ADC circuits for isolation by coil. I have developed and commercialized circuit design and drive algorithm development for touch panel ICs by utilizing small-signal analog technology using ADCs, which is my area of expertise. I have also applied for numerous patents. In my current work, I am working hard to realize the launch of isolated ADC by utilizing it in more core ADC design, etc.
As a specialist, I would like to contribute to the development of competitive products by widely deploying ROHM's circuit technology and know-how, and by giving shape to the company's collective design capabilities as well as individual strengths.
7. Job Posting System
In order to provide employees with the opportunity to transfer by raising their hands on their own, we established the Job Posting System in FY2022.
This system is commonly referred to as the internal recruitment system. Employees apply for positions posted within the company, and if they are matched with a department that has a vacancy, they can be transferred.
This system was introduced in December 2022, and as of FY2023, 48 employees have started working in the department of their choice. By having each employee proactively and continuously address his or her own career development and having the company support them, we are revitalizing career development and increasing the internal mobility of human resources. Through this system, we will be able to respond quickly to rapid changes in the environment and secure the human resources needed for our focused businesses.
The results of a questionnaire survey of 30 employees who had been using the system for one to two months after their transfer showed that they were more satisfied with their work and their own careers, and more motivated to work after using the system.
| Purpose of introducing a job posting system |
|---|
|
[Number of transfers (cumulative)]
8. Evaluation System
| System | System details | Frequency | Situation |
|---|---|---|---|
| Management by Objectives System | Aiming at both contribution to the organization and personal growth, we introduced a target management system in FY2016. Employees set personal goals that are linked to management and departmental goals, and the degree of achievement is evaluated at the end of the fiscal year. The system is positioned as a mechanism to develop career paths through communication between supervisors and subordinates in the cycle of the evaluation system, from goal setting to evaluation and feedback, in the process of defining and sharing expectations and ideal images, and achieving them. | Twice a year | Feedback completion rate(FY2023) 100% |
| Performance Evaluation | Evaluation is based on performance and results achieved on the job. In order to maintain clear and fair standards, multiple evaluators are involved in determining evaluations. | Once a year | |
| 360° Feedback | Assessments for managers are conducted so that they are constantly exposed to feedback from others and can promote self-management and self-improvement autonomously. In addition, from FY2022, group coaching will be implemented as a post-assessment measure to support personal and organizational growth. | Once a year | Assessed participants: 330 (FY2023) Group coaching participants: 305 (FY2023) |
9. Long-Term Incentives
Introduced as a mechanism to increase appropriate incentives for executive officers, who are responsible for the management of ROHM Group, and to promote further value sharing with shareholders in order to achieve sustainable growth of ROHM Group and to enhance corporate value over the medium to long term.
10. Employee Stock Ownership Plan
The ROHM Group has established an employee stock ownership plan.The purpose of this program is to enhance the welfare of employees and increase their sense of participation in management. Employees may continue to purchase shares from a small amount of their own monthly salaries and bonuses.
Communications with Shareholders and Investors
11. Expansion of Employee Benefit Package Services
As working styles change dramatically and lifestyles and preferences continue to diversify, we are introducing a new benefit package service in FY2022 that can be used without being affected by circumstances or location and can meet a variety of needs. We are planning to expand and enhance the support services, focusing on providing employees with opportunities for growth, a comfortable work environment, and health support for their families, in order to create an environment in which employees and the company can grow further.
12. Workshop to Instill Corporate Objectives and Basic Management Policies
ROHM carries out training to instill corporate objectives and basic management policies. The objective is to enable all ROHM Group employees to become aware of their raison d'etre within the company, as well as to recognize company's direction and goals, so that they can help achieve established company targets through their work.
[Number of Workshop Participants (cumulative)]
Conducting Engagement Surveys
ROHM has set "becoming a major global player by FY2030" as its medium- to long-term management goal. In order to achieve this goal, it will be important for the ROHM Group to conduct group-wide corporate management, and one of the ROHM Group's sustainability priority issues is to "strengthen employee engagement.
We believe that in order to realize group-wide corporate management, it is essential for employees to understand and sympathize with the direction the company is heading and the matters it wishes to achieve, and this is the strength of ROHM's human capital. Therefore, ROHM conducts engagement surveys in order to grasp and analyze the state of employee understanding, empathy, readiness, and behavior, and to consider measures to respond to changing issues.
Based on the "true feelings" and "truths" obtained through the engagement survey, we hope to make ROHM a company where each and every employee can take pride in working for the ROHM Group and maximize their strengths to take on further challenges.
The Engagement Survey sets global companies as benchmarks, and consists of a total of 71 questions in 14 categories, including "Challenge" and "Communication," with a five-point answer system for each question.
[ Conduct Engagement Surveys ]
＜ Schedule ＞
| FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | |
|---|---|---|---|---|---|
| ROHM Co., Ltd. (non-consolidated) (Approx. 4,000 employees) |
Conducted | Conducted | Plan | ||
| Japanese Group Companies (Approx. 5,000 employees) |
Conducted | Plan | |||
| Overseas Group Companies (Approx. 17,000 employees) |
Conducted | Plan |
＜ FY2023 Engagement Survey Results (ROHM Co., Ltd. (non-consolidated)) ＞
The percentage of employees who responded favorably to the question regarding "sustainable engagement" was 75%, which was much higher than the industry average.In addition, the percentage of employees who responded favorably in all 14 categories was higher than the industry average.
■Symbolic strengths identified from the survey results (in particular, those to which a high percentage of employees responded favorably)
・Understanding, sympathy, and support for the company's direction and vision
・Reliability and support for the company's management stance
・Healthy and secure workplace environment
・Good relationships with superiors, within and among teams
・Pride as a member of the organization as a result
■Issues for reorganization identified from the survey results (in particular, those issues to which a high percentage of employees responded negatively)
・Management's understanding of employees
・Understanding of the connection between their work and customers
・An environment where differences and different opinions are accepted and can be voiced in a safe manner.
＜ Results of engagement responses (ROHM Co., Ltd.) ＞
| Fiscal Year | Number of Subjects | Number of Respondents | Response Rate | Score |
|---|---|---|---|---|
| FY2021 | 3,625 | 3,606 | 99.5% | 76.0% |
| FY2023 | 4,004 | 3,744 | 93.5% | 75.0% |
＜ Results of engagement responses (32 Worldwide Group companies (excluding ROHM Co., Ltd.)) ＞
| Fiscal Year | Number of Subjects | Number of Respondents | Response Rate | Score |
|---|---|---|---|---|
| FY2022 | 19,761 | 17,743 | 89.8% | 91.0％ |
The score represents the percentage of employees who responded favorably to the question on "sustainable engagement."
＜ Results of past initiatives ＞
The following initiatives were undertaken under the key theme of "fostering a culture of dialogue among employees" to improve engagement.
| Bout | Outline,Main Purpose |
|---|---|
| President's Roundtable for Managers | The president and managers share their thoughts, the company's direction, and management issues across divisions and hierarchical boundaries so that managers can maximize their work performance with a stronger awareness of their role as leaders. |
| Dialogue workshop For managers | Understand what "dialogue" is all about and change "dialogue" in the workplace to improve relationships with subordinates and foster an "organizational culture of dialogue. |
| WEB Café | Creating opportunities for young employees to interact with each other and for communication between management and young employees. |
＜ For the Future ＞
To further improve engagement, we will continue to plan and implement measures in FY2024, such as holding Dialogue Workshops and holding WEB Cafe, which serves as a place for young employees to interact with each other and for "dialogue" between management and young employees. The engagement survey is also used as a tool for dialogue, such as when organizational leaders engage in dialogue with employees based on the survey results, leading to actions to resolve issues.
Questionnaire
