Financial Well-being

Fujitsu and the group companies in Japan are engaged in reforming their human resource systems as they work towards Position-based HR Management. In April 2020, we introduced job descriptions for manager positions that clearly outlined their jobs. This is now being extended to non-managers, 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. In April 2023, we lifted our average monthly wage in Japan by approximately 10%. To attract and retain diverse and talented employees, we are also reviewing our compensation levels to ensure they are competitive in terms of global corporate benchmarks. The goal of these measures is to encourage every one of our employees to be highly motivated as they 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.

As part of our global common evaluation system, we introduced “Executive Performance Management” for executives in FUJITSU Level VP positions and above as well as the “Connect” system for all employees in FUJITSU Level 15 positions and below. 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 “Organization’s 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 “Our 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 initiatives related to materiality and non-financial indicators, such as employee engagement, customer NPS, and the percentage of women in leadership roles.
In the “Connect” system, employees are assessed on their “Impact”, “Behaviours” and “Learning & Growth” relative to achieving each organization’s vision and Fujitsu’s purpose. (See figure at right.)
Feedback is provided through regular communication on a monthly or quarterly basis between managers and members, which maximizes behavioral change, growth and impact and also builds trusted relationships that help 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.