Performance Evaluation and Compensation
Reform Towards Job-specific Personnel Management and Job (Responsibility)-Based Compensation
Fujitsu and the group companies in Japan are engaged in reforming their human resource systems as they work towards job-specific personnel management. In April 2020, we introduced job descriptions for executive positions that clearly outlined their jobs. This is now being extended to ordinary employees, starting in April 2022. This new system uses a globally unified standard to rate the magnitude and importance of the job, not the person, and the compensation reflects this rating. The goal is to encourage every one of our highly motivated, diverse and talented employees to rise to the challenge of value creation and to spur their growth as we address the constantly changing issues faced by our customers and by the wider community. In line with this, we are significantly extending our posting structure so that employees can gain entry into their desired jobs and positions based on their own career goals, rather than being promoted or transferred at the recommendation of their superiors. At the same time, we are also recruiting suitable candidates from outside the company, not just from within our own ranks, and adopting career promotions based on an approach of matching the right talent with the right job.
As well as having a quantitative perspective, such as sales numbers or the magnitude and importance of the job (responsibility), these jobs are also rated based on perspectives such as the reporting line, difficulty, impact, level of specialization and diversity. This is referred to as the “FUJITSU Level”, and in this structure, the monthly salary is determined by the FUJITSU Level.
For FUJITSU Level 15 positions and below, bonuses are paid based on evaluations. For executive positions of VP and higher, an STI(*1)/LTI(*2) scheme is being introduced that is more closely tied to results. This scheme will also apply to executives both in Japan and overseas.
- (*1)Short Term Incentive: Remuneration set based on level of achievement of one-year performance targets, etc.
- (*2)Long Term Incentive: Remuneration set based on level of achievement of medium-to-long-term performance targets, etc.
Introduction of a Global Common Evaluation System
Fujitsu introduced “Executive Performance Management” as a global common evaluation system for FUJITSU Level VP positions and above in 2020. This was followed by the “Connect” system for all employees in FUJITSU Level 15 positions and below, which is being introduced sequentially in FY2021 and the current fiscal year. These evaluation systems were introduced with the aim of spurring greater ambition among all our employees and promoting both organizational and personal growth. To achieve this, we began by drafting a “Corporate Vision” that depicts the future to be achieved by each organization as we strive to realize Fujitsu’s purpose, bringing employees closer to that purpose and encouraging each of them to rise to the challenge. We also made this one of the criteria for assessing the extent to which we embody the “Values” in the Fujitsu Way, thereby helping change behaviors in line with achieving our purpose.
Our Executive Performance Management employs the “Balanced Scorecard” method, which involves evaluation from the perspective of “financial indicators”, “key indicators” and “behavioral indicators”. Rather than being based solely on financial indicators, evaluations are well balanced, using a framework of key indicators and behavioral indicators as well as the employee engagement, customer NPS, DX progress, environment-related and DE&I-related non-financial indicators.
In the “Connect” system, employees are assessed on their “Impact”, “Behaviors” and “Learning & Growth” relative to achieving each organization’s vision and Fujitsu’s purpose. (See figure at right.)
Feedback is provided through regular communication between staff and their superiors, which maximizes behavioral change, growth and impact and builds trust, which helps to improve acceptance of the evaluations. Evaluation results not only feed into bonuses, but are also used by the organization’s personnel management to assign higher levels of responsibility and opportunities for growth to highly evaluated employees.
The Global Human Resources Unit operates this system, under the direction of the executive responsible for human resources.
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.
As part of the trend toward more diverse and flexible ways of working, and to address employee requirements in a benefits system, Fujitsu introduced the ”F Life+” cafeteria plan(*3) as a new program in October 2014.
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 and nursing support.
- (*3)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.