Human Capital Initiatives
Toyo Seikan Group is committed to promoting the development and empowerment of its employees acting across the Group. Since establishing the Toyo Seikan Group Personnel Policy in 2018, we have been engaged in fostering an internal environment that furthers our Management Philosophy built upon four supports: “Achieving self-sustaining growth (Human resource development)”, “Co-creation of diverse talent”, “Work style reform”, and “Health and productivity management.” In addition, for the twin purposes of reinforcing the full power of the group and directing human capital toward improvement in corporate value, in FY2023 we drew up policies on developing human resources and fostering the internal environment. These actions to augment human capital will lead to greater corporate value.
Human resource development policy
Groupʼs corporate and organizational strategies
The Groupʼs corporate strategy aims to increase earnings in new business areas by leveraging the Groupʼs resources while maintaining the profitability of its existing operations. To realize the strategy, we transitioned in 2013 to a holding company structure, establishing and expanding departments responsible for implementing the corporate strategy, streamlining and consolidating operations, and building a governance structure for the entire group. In 2021, we formulated the Groupʼs long-term management vision and have been working to raise awareness of the vision among group members.
The talent we seek
Capabilities we need to achieve our corporate and organizational strategies are largely classified into the following three categories:
- Managing and maintaining the operations of our existing businesses at higher levels (in terms of quality, costs, delivery time and ESG perspectives)
- Building new schemes from the perspective of total optimization for the Group based on the expertise in our existing businesses
- Creating new products, technologies and businesses by leveraging the Groupʼs resources
Our challenge is to first obtain or develop staff who fulfill category A and then increase those who are qualified for category B and C.
Human resource strategy
We have been implementing our human resource strategy to develop the talent we need by taking measures aiming to:
- Increase both the sense of fulfillment of employees (employee engagement) and productivity by promoting human resource management based on the Groupʼs Personnel Policy.
- Create a work environment that allows us to secure human resources for our manufacturing division.
- Maintain a group-wide system for periodic recruitment of new college graduates for major group companies to strengthen competitiveness in recruiting and increase the sense of unity across the Group.
- Promote the sense of unity and the creation of new perspectives through collaborative activities
- Promote mid-career recruitment to obtain talent with diverse knowledge.
KPIs
We have set Key Performance Indicators (KPIs) as shown below to realize our human resource strategy.
The scores of “employee engagement,” “general health risk,” and “workplace with growth opportunities” are measured with the HoPE Survey, which is provided by HOKENDOHJIN-FRONTIER Inc. The indicator of “employee engagement” consists of three elements: “affective commitment,” “fulfillment of roles (intention/motivation),” and ambition for work.”
Since we have found correlations between EBITDA per employee of group companies and many of the KPIs, including “employee engagement,” we will improve each KPI with our ongoing efforts based on the Groupʼs personnel policy to increase EBITDA per employee, the key goal indicator. We understand that the following four issues are particularly important in achieving the target.
Creating better internal conditions for human resource development
- The Group has put in place the Next- Generation Management Training Program for general managers, the Toyo Seikan Group Business College (TSGBC) for managers, a standardized personnel management system, and IT infrastructure (including a talent management system and a mental health evaluation system). Starting with our 2021 recruitment, we have implemented a group-wide system for periodic recruitment of new college graduates for major group companies, aiming to secure talent and foster our future leaders.
- In line with our human resource development policy, we will conduct a review of shift working, invest in labor- saving equipment, and change the conditions under which family and housing allowances are paid. We will also conduct career development programs designed for each age cohort, provide more opportunities for open internal recruitment and career self-assessment, and promote workforce planning to enhance human resources in each occupational category.
Indicators, targets and results of human resource development and internal conditions policies
- The table can be scrolled left or right.
| Indicators | Scope of companies (6) | Targets (FY2025) | Results (FY2022) |
|---|---|---|---|
| EBITDA per employee (1) | The Company and consolidated subsidiaries | 5,500 thousand yen or more | 3,020 thousand yen |
| Employee engagement(2) | The Company | 56.7 or more | 54.7 |
| Seven group companies | 52.7 or more | 50.7 | |
| Awareness of the Groupʼs philosophy and vision (3) | The Company | 80% or more | - |
| Seven group companies 80% or more ̶ | 80% or more | - | |
| General health risk(2) | The Company | 83 or less | 86 |
| Seven group companies | 100 or less | 103 | |
| Workplace with growth opportunities (2)(4) | The Company | 56.9 or more | 55.9 |
| Seven group companies | 52.9 or more | 51.9 | |
| Percentage of key personnel with work experience at other group companies | 60% or more | 54.6% | |
| Number of workers whose monthly overtime exceeded 45 hours(5) | The Company | 0 persons | 3.3 persons |
| Seven group companies | 2.7 persons | 5.4 persons |
- The amount is calculated by dividing consolidated EBITDA by the consolidated number of employees.
- The scores are measured with the HoPE Survey, which is provided by HOKENDOHJIN-FRONTIER Inc. “Workplace with growth opportunities” is an indicator to determine whether or not a workplace allows employees to envision their career paths and future growth and to engage in work independently and proactively.
- This indicator shows the percentage of employees who answered, in the HoPE Survey, that they “understand” or “understand to an extent” the Groupʼs philosophy and vision. We will disclose the indicators from the FY2023 results.
- “Workplace with growth opportunities” is an indicator to determine whether a workplace empowers employees to envision their own career paths and future growth and to engage in work independently and proactively.
- This indicator is the average of monthly numbers of relevant employees per 100 employees for the period from April 2022 to March 2023. The calculation excludes the number of managers.
- The seven group companies are: Toyo Seikan Group Holdings, Ltd.; Toyo Seikan Co., Ltd.; Toyo Kohan Co., Ltd.; Tokan Kogyo Co., Ltd.; Nippon Closures Co., Ltd.; Mebius Packaging Co., Ltd.; and Toyo Glass Co., Ltd.