Basic Policy

In an environment where the working population continues to decline, the Nippon Denko Group considers that securing human resources to support its medium/long-term business strategy and increasing the value of each employee are the urgent issues to be addressed as our management challenges. We will prepare a system designed to enable diverse work styles and promote DE&I to increase engagement and energize recruitment activities.
In order to realize “Our Ideal State in 2030,” we will promote initiatives to strengthen the foundation of human capital management, which is a core element of enhancing corporate value through sustainable growth.

Targets and measures for human resource strategy

Talent Acquisition

In the context of a rapidly declining workforce, one of the most material issues is to secure excellent human resources in order to realize our growth strategy. We are working to enhance recruitment capabilities through measures to increase recognition, expand hiring methods, and review the personnel system. At the same time, we actively engage in recruitment activities to secure and retain talented human resources.

Career-track system for a specific area

In March 2024, we established a career-track system for a specific area to encourage career-track employees to work according to their individual preferences and to enable them to work more comfortably. We expect that employees who want to work in a way that does not involve transfers and who want to perform extensive and advanced duties like those of conventional career-track employees will be able to work in a limited area and become highly specialized managers in the future.

Mid-career recruitment

The speed of social change is increasing, and the expertise of individual operations is becoming more and more specialized. In response, we are actively recruiting mid-career workers to secure necessary human resources. In particular, we recruit mid-career workers to secure human resources who can work immediately to expand our businesses in order to realize “Our Ideal State.” In 2023, 13 employees with specialized skills were hired, and they are making use of their respective backgrounds to play an active role in their respective department.

Creation of Added Value for Employees

Recognizing human resources as the source of our competitiveness, we will create added value by providing education, training, and growth opportunities, mainly through on-the-job training.
Between February and March 2024, President and CEO held a dialogue with all managers to develop common awareness within the company toward the realization of “Our Ideal State in 2030.” Managers prepared a report in advance on the theme “How should the company change in order to realize ‘Our Ideal State?’ How should we change ourselves?” and engaged in dialogue with President and CEO. The members of the group exchanged their opinions on what should be done. In April, President and CEO also held a dialogue with all executives to confirm issues and discuss future measures. In parallel with these efforts, we are promoting information sharing and active communication through dialogue at each workplace and level.

Various types of learning, including level-based training

We conduct a variety of level-based training to develop human resources who will be responsible for the management of the company.
Young employees are encouraged to develop the basic knowledge required of working adults, while mid-level employees are encouraged to develop their abilities necessary for cultivating subordinates and achieving organizational and team goals through leadership and management training. We encourage employees to develop themselves through a variety of training programs.
Managers regularly undergo training sessions to learn the roles and attitudes appropriate for their respective positions, including training for newly appointed managers and for candidates for general managers. We also aim to develop candidates for the senior management to build a stable business portfolio and promote sustainability-oriented management. Through such training that involves young employees to managers and senior management, we aim to foster human resources who can put the management philosophy into practice and develop them as integral human resources of the corporate culture.

DC&M activities

In order to maintain and improve practical capacities that are essential for the sustainable growth of the company, an education and training plan is prepared to promote the acquisition of technologies and skills related to manufacturing and equipment, and the capabilities are checked after the training. DC&M (Denko Circle & Management) activities are implemented throughout the company to foster self-motivated, strong human resources who can trigger “continuous improvement” in response to the increasingly severe changes in the market environment. The aim is to create an activity system that produces results while increasing the engagement of management and matching it with work-style reform.

Venture collaboration study team

Aiming to find business opportunities through collaboration with venture companies in the fields of raw materials and the environment, we have established a venture collaboration study team. In this team, employees in their 20s and 30s participate in a crossdepartmental discussion. During their two-year term, they work with venture companies and venture capitalists to explore business opportunities, learn skills for business expansion through practice, and use these experiences as an opportunity for their own development.

Strengthening the Foundation of Human Capital Management
(well-being management and diversity promotion)

In order to strengthen the foundation of human capital management, we are working on well-being management and diversity promotion through DE&I, work-style reform, and engagement. We are also developing systems and environments in which each employee can play an active role to create a workplace where diverse human resources can work with peace of mind.

Active participation by women

In 2016, we established a Committee for the Promotion of the Active Participation by Women. Since then, we have continued to improve our in-house systems, provide training, and raise awareness through in-house public relations. Currently, we have set a target of increasing the ratio of female managers to 2% by 2027 and are actively working to provide training for developing female leaders in order to reflect diverse opinions in management.

Realization of flexible work styles

By utilizing digital technology, we have created an environment in which employees can demonstrate their abilities regardless of where they work. We have also adopted a telecommuting system that is easy for employees to use. In addition, we have established a flex-time work system that allows employees to work flexibly without restrictions on time or place. We have also established a career return system that allows employees who have left our company due to childbirth, childcare, nursing care, or relocation of their spouses to re-join our company.

Active participation by people with disabilities

We are working to promote employment and create a productive workplace environment for people with disabilities, as we consider that this is an important social issue. In May 2024, we held an in-house seminar on this theme to deepen awareness of the employment of people with disabilities. We will continue to recruit and maintain those employees and create an environment in which they can play an active role.

Raising the mandatory retirement age to 65

In 2022, the mandatory retirement age was raised from 60 to 65 in order to respond to the external environment, such as a decrease in the workforce and the postponement of eligibility for public pension payments, to maintain and strengthen practical capacities, and to ensure stable employment and life after the age of 60. Even when we postpone the mandatory retirement age, the salary and bonus system does not change until the age of 65 under a consistent employment system on the premise that employees will continue to perform the same work after the age of 60.

Health-oriented management

We provide allowances for medical checkups and follow up on the results so that employees can work in good physical and mental health and maximize their performance. In addition to regular medical checkups, we bear a part of the cost of complete physical examinations to prevent and detect diseases at an early stage. We also bear the full cost of certain medical examinations that lead to the early treatment of diseases, such as cancers specific to women, in an effort to encourage employees to undergo medical examinations and promote health. Allowances for the cost of vaccinations are also provided.
As mental health care measures, we conduct stress checks and strive to prevent health problems caused by overwork. We analyze the results of mental health checkups and take measures based on feedback. We have established a system for enabling employees to promptly conduct an interview with an industrial physician when it is determined that they are overworked. In addition, we have set up a consultation desk consisting of external specialists as a stress reduction measure, which employees can use when necessary.

To enhance engagement

In 2023, we conducted an engagement survey among all our employees to visualize their willingness to contribute to the company, their attachment to the company, and other organizational strengths. In 2024, based on the results of an engagement survey, we interviewed with employees in their 30s at the Tokushima Plant and Chuo Denki Kogyo, which are large-scale plants. The interviews were conducted by the Personnel Department to learn about their efforts in daily work, a sense of fulfillment through work, and what we need to do to create a productive workplace. We aim to improve engagement by examining the issues that were identified through interviews and linking them to future HR measures and improvements at the plants.

Improvement of working conditions

Amid changes such as intensifying recruitment competition due to workforce shortages and the accelerating mobility of the labor force in recent years, we believe that it is important to improve working conditions of employees in order to realize a virtuous cycle of securing human resources, investing in human capital, and achieving business growth. In the spring labor offensive in 2024, we raised the base pay of all employees by 21,000 yen, fully satisfying the labor union’s request. We will continue our efforts to realize a virtuous cycle of the growth of employees and business.

Respecting Human Rights

We recognize that compliance with laws and regulations and respect for human rights are not only social responsibilities companies must fulfill, but also essential ethical standards in realizing our management philosophy. In October 2022, we established the Basic Policy on Human Rights based on norms about human rights such as the International Bill of Human Rights and the United Nations Guiding Principles on Business and Human Rights and are promoting initiatives to respect human rights.