Personnel Evaluation and Compensation System for Achieving Growth and Job Satisfaction

Our basic policies of personnel evaluation and compensation systems are based on performance and on highly fair, objective, transparent, and rational evaluation. With these basic policies as the foundation, our evaluation places a great deal of emphasis on performance at work, regardless of nationality, gender, age, educational background, or disability. Also, we believe that the productivity of individual employees improves if they focus on performing well over a short period of time, which in turn leads to an increase in companywide productivity, and so we have adopted a system where employees who have performed well, regardless of the hours they work, can enjoy more opportunities for promotion and rewards, and we disclose our personnel evaluation and compensation systems to all employees to the extent possible. 

　Because CDC gives our individual employees a great deal of discretion and influence, going forward, we need human resources who can work autonomously to develop competency and embody good jobs. As employees are increasing in line with the Medium-Term Management Plan, we will bring out the full potential of each employee with fair evaluation systems, and we will review various systems appropriately, flexibly, and swiftly, according to social conditions and business sentiments so that all employees of all backgrounds can play active roles. While we emphasize performance as an important evaluation axis, we believe that it is important to examine and change other evaluation axes to adapt to the changing times, including how employees approach their daily work and whether their attitude has a positive effect on their surroundings. 

　We will continue the performance-based compensation system as a distinctive measure of our own as it will lead to improving employee productivity and the employee retention rate. The setting of incentives is left to the discretion of each Business Unit, so we regularly review the system across Business Units to prevent significant feelings of unfairness, such as differences among Business Units in the amount of incentives given to employees who have achieved similar performance.

  We provide mutual check-in opportunities for managers and members for half-year targets and half-year assessment results. At the semiannual target-setting meeting, they set challenging targets linked to the business plan, and they confirm the roles and actions that are expected to constitute good performance. In the assessment meeting, they review work from the perspectives of both quantity (performance evaluation) and quality (job evaluation).

  Salaries are composed of three elements: the office organization, the title, and the grade (in a 20-grade system). Personnel evaluations are conducted four times a year, based on which the promotion of titles and grades are determined according to performance. Bonuses and incentives are paid according to the degree of contribution to the company. Employees with high performance receive better results in the half-year assessment, resulting in faster promotions.

  In order to create an environment in which sales personnel can make continuous efforts to achieve targets over the short, medium and long term, we have set incentives to achieve targets for various periods, including monthly, quarterly, semiannual, and annual targets. Also, each Business Unit has the discretion to determine what kind of incentive systems to establish. By operating flexible incentive systems in accordance with the characteristics of the business, we have established a compensation system that rewards employees who perform well.

  In total, all Business Units have prepared more than 100 types of personnel evaluation, award, and incentive systems to maximize rewards for employees' efforts. By providing many opportunities for evaluation and awards, we raise the awareness of each employee and reflect their accomplishments in personnel affairs and compensation. By qualifying staff divisions and assistants who support employees, in addition to sales personnel, we ensure that all employees are treated equally in terms of awards. As with the incentives, and along with the incentives mentioned above, we also recognize and reward employees who have performed well at each Business Unit for the short, medium, and long term, respectively, for example monthly, quarterly, and annually.

 Some job types have the option of a commission system in which a specific percentage is added to the salary in accordance with performance (accomplishments).

  We hold an annual conference for all employees called the Career Design Center Nice Value Contest, where they get to brag about their good work accomplishments. Participants present the new business ideas or original innovations they have implemented at work in the past year, and excellent presenters receive rewards. To make sure that our concept of emphasizing performance can penetrate company-wide, we have all employees participate, and the contest covers all job types, including jobs other than sales personnel, whose performance is represented quantitatively under sales.