Performance Evaluation and Compensation
Reform Towards Position-based HR 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 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.
- (*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
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.
Employee Benefits Program
The Fujitsu Group has programs in place that are suited to the lifestyles of employees and their families and are designed to enable them to achieve a sense of well-being.
As part of the trend toward more diverse and flexible ways of working, and to allow employees to make their own choices, Fujitsu introduced the ”F Life+” cafeteria plan(*3). In line with the belief that active work, challenges and personal growth for every employee will lead to growth and development for the company, we have established various incentives to provide medium- to long-term motivation. These include a defined contribution pension plan, an employee shareholding association, a property accumulation savings plan, and group insurance benefits. Additional programs implemented by Fujitsu provide support in the areas of housing, medical care, healthcare, and childcare and nursing.
- (*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.
Key Initiatives in Regions Outside Japan
Financial Well-being Support in the UK
There are four ways Fujitsu supports financial well-being for employees in the UK.
- Financial education awareness sessions: Topics include pensions, debt and savings; extensive support is also provided to help with the acquisition of knowledge about financial matters
- An employee assistance program that offers independent one-to-one financial support
- Various financial benefits that support different life priorities and enable employees to select the options that are most suitable for them (such as insurance and healthcare)
- A range of discounts offered to employees
A 24/365 Accident Insurance Scheme in Germany
From Fujitsu’s perspective, it is important that all employees have insurance cover 24 hours a day – not only during working hours.
We therefore implemented a universal accident insurance scheme for all Fujitsu employees working in Germany. Since August 2022, even for private accidents, all staff have enjoyed 24-hour, omnidirectional accident coverage.
Cherbourg Digital Service Centre in Australia
Working with the Cherbourg Aboriginal Shire Council and local community, the Queensland Government’s Department of Tourism, Innovation and Sport and TAFE Queensland, Fujitsu Australia established the First Nations Service Centre to support digital innovation in the Cherbourg community. The service center (located in an aboriginal community in Wakka Wakka Country, 260 kilometers northwest of Brisbane) is part of a three-year pilot program designed to promote economic development in Queensland’s indigenous communities through training in digital skills and by providing employment opportunities.