Performance Evaluation and Compensation / Work Environment

Goal

Long-term Goal to be achieved by FY2030

The Fujitsu Group aims to enrich and continuously improve our positive health culture where our employees can work to their full potential, both in mind and body. We value the importance of our people, and will strive to enable them to succeed in their own personal development and growth.

Performance Evaluation and Compensation

Our Approach

The Fujitsu Way corporate philosophy emphasizes that employees are one of the key factors we value and states "We respect diversity and support individual growth”. As a company, we will create workplaces that support the personal growth of employees, allowing them to fully develop their skills and capabilities and receive compensation according to their performance. Fujitsu manages its human resources based on this approach.

Our Approach to Performance Evaluation and Compensation

Our Policy

Fujitsu emphasizes “qualitative” fairness in its human resources system, with decisions on employee compensation based on the “level of contribution to the Company” and the “level of results achieved”.
For this reason, we disclose information related to human resources.

  1. Show employees how they can be rewarded with higher compensation ⇒ Openly disclose rules of the human resources system
  2. Show how the company evaluates staff ⇒ Provide individual evaluation feedback and compensate according to contribution
  3. Show opportunities for challenge ⇒ Human resource development, internal postings, Free Agent program

In Japan, Fujitsu and the group companies have introduced a "human resources system based on functional division and competency grade”. Under this system, which forms the basis for human resources compensation, we define "functional division" as the function the employee should be fulfilling and "competency grade" as the ability to achieve a specific performance that can be linked to a business outcome.
Under this human resources system, we clarify the competency grade requirements of employees in a job description for each functional division. Through periodical reviews of the competencies that each person demonstrates, we aim to support the growth of all employees over the medium and long terms.

Responsibility

The Global Human Resources Unit operates this system, under the direction of the executive responsible for human resources.

Detailed Activities

Overview of Evaluation System and Objectives

We conduct evaluations of "initiatives aimed at medium-to-long-term growth" and "maximizing results in the current financial period”. To reflect these in compensation, we use a two-pronged evaluation mechanism based on competency evaluations and performance evaluations. The results of the competency evaluations are reflected in salary increases and grade changes, and the results of performance evaluations are reflected in bonuses.

We conduct activity-based evaluations of the degree to which employees demonstrate "appropriate mindset", "business execution ability" and "specialist expertise", and then take into account the relative gap to upper-level grades before determining the overall evaluation.
By separating medium-to-long-term factors from the process, we are able to conduct more clear-cut evaluations based on the scale of half-year results.

In addition, we continue to support efforts aimed at the medium-to-long-term growth of each employee. With a focus on career goals, we also encourage interactive communication between employees and their managers that covers the areas of behavioural change and medium-to-long-term growth. Review meetings are conducted annually at the beginning of each year.

Furthermore, we have started formulating a globally unified role framework, as well as evaluation standards and evaluation cycles.

Work Environment

Fujitsu Telework System

In April 2017, Fujitsu formally introduced a telework system that allows for flexible ways of working that are not tied to a specific location. This system is available to all 32,000 Fujitsu parent company employees in Japan and includes working from home or a satellite office as well as working during business trips.
The introduction of the system was preceded by a series of explanatory briefings.

Telework System

Goals of the System

  • To boost individual productivity and maximize the benefits of team work
  • To build an environment that supports continued participation by a diverse range of staff
  • To ensure business continuity and rapid responses to disasters

Initiatives Aimed at Reducing Long Working Hours

The Fujitsu Group aims to improve the work-life balance and the productivity of every employee through a variety of initiatives aimed at reducing long working hours. As an example, at Fujitsu Headquarters, every Wednesday is designated as a day for leaving work on time. On these days, the company turns off the lights in the office at 6:00 p.m to encourage employees to return home. We are also enhancing our systems that support diverse ways of working, allowing employees to make use of flexible working arrangements, such as flex time and exempt labor systems(*1). In addition to promoting varied ways of working, Fujitsu wants its staff to radically reconsider their approach to taking leave. To ensure that employees enjoy ample leisure time, we are encouraging them to take five continuous days of paid leave at any time during the year – not only in the key public holiday periods in Japan.

  • (*1)
    Exempt labor system: A system in which the employee mostly determines the number of hours for the work to be performed.

Examples of specific initiatives aimed at reducing long working hours:

  • Adopting flex time, a exempt labor system for professional work, and a exempt labor system for management-related work
  • Sending alert e-mails regarding overtime work
  • Ensuring meetings are not scheduled outside of regular working hours
  • Specifying the recommended days for taking annual leave
  • Enforcing that staff leave work on time one day a week
  • Encouraging staff to leave work one hour earlier every day
  • Enforcing the concept of working hours management during management training
  • Promoting a telework system aimed at diverse work practices
  • Adjusting work patterns and leisure patterns according to fluctuations in workload

Employee Benefits Program

The Fujitsu Group has programs in place that are suited to the lifestyles of employees and that enable them and their families to lead healthy, prosperous lives.
To respond to the advancing trends of globalization and diversity, and to the changing needs of employees, in October 2014 Fujitsu introduced the “F Life+” cafeteria plan(*2) as a new employee benefits program.
Furthermore, in line with the belief that active work and personal growth for every employee leads to growth and development for the company, we have established various initiatives to support employees' own efforts to prepare for the future. These include savings/property accumulation programs, an employee shareholding association, group insurance benefits, housing support, medical support, health support, and childcare support.

  • (*2)Cafeteria plan
    A system under which employees select the employee benefits they want or need from a diverse menu prepared by the company, taking advantage of the chosen options by using "employee benefits points" awarded by the company.

Measures to Enhance Communication

Labor Relations

Based on labor-management agreements with the Fujitsu Labor Union, Fujitsu holds discussions about various employment conditions and explains management policies and business conditions, along with business reorganization and other matters, to its employees through regular and ad hoc meetings such as the Labor Council or Productivity Council. Furthermore, these agreements stipulate the collective bargaining rights of the union. Fujitsu adopts a union shop system, so all non-managerial employees are members of the Fujitsu Labor Union.

In Europe, the Fujitsu European Labor Relations Council Annual General Meeting has taken place every year since 2000, with the overall financial conditions of the Fujitsu Group and other issues shared with the employee representatives from Fujitsu Group companies.

Fujitsu has established a consultation service as a contact point for email and phone queries to the Human Resources and Administration Units. This is part of a structure that is designed to make it easy for employees to seek guidance on human resource and administrative programs.

Employee Engagement Survey

In order to continue as "an organization wherein all employees are strongly motivated, have ample opportunities for advancement and work with pride and confidence" in accordance with the Fujitsu Way, the Fujitsu Group conducts employee satisfaction surveys that provide opportunities for serious consideration about ways in which the management in each organization can improve employees' motivation.
We have been gradually introducing this survey in Japan since FY2002, and outside Japan we began conducting an Employee Engagement Survey across all overseas Group companies in FY2011. We use this survey to compare regions within the Fujitsu Group and also to benchmark ourselves against our competitors in each country and region. Based on analysis of the results, we have identified issues specific to countries and regions, and to divisions and occupations, and we are now working toward management improvements and reform of our organizational culture.

FY2018 Performance

Initiatives Aimed at Reducing Long Working Hours

The discretionary working system applies to 17% of employees, and the flex time system applies to 64% of employees (in Fujitsu and group companies in Japan).

Work-style Reforms

  • Held Telework Days and Telework Month (at Fujitsu)

Unionization Rate

The Fujitsu Labor Union membership rate is 77.9% (Fujitsu).

Employee Engagement Survey

Positive Response Rate "I feel proud to work for the organization I currently belong to"
  • Number of employees targeted in the survey (as of Oct. 2018):
    Total 126,000 employees.
    84,000 : Employees in Fujitsu Limited and 79 Group companies in Japan.
    42,000 : Overseas Employees.
  • Survey response rate:
    81% globally (82% in Japan; 77% overseas)
  • Positive response rate: 52% (Fujitsu Limited)

Trend in Turnover Rate

Turnover Rate (Fujitsu)
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