Compensation & Benefit

We believe that compensation in line with proper appraisal is an important system that improves employee motivation, acquires and develops talented human resources, and is closely related to the Group's development.

Setting Goals and Appraising Performance

At all employee levels, Mitsui Chemicals has systemized annual interviews and meetings to set goals with superiors. Setting job goals is organized as a scheme in which individuals attaining their job goals leads to achievement of group-wide targets. The policy at each worksite and the priority issues used to set the job goals for each individual are decided according to our business plan, which is in turn based on our Group’s vision. In addition to setting job goals, we have started to assess the actions taken (global core competency assessment) to help spread and instill our Group Action Guidelines by examining whether the actions of each employee comply with the Guidelines and assessing individual’s actions based on concrete evidence.
In goal-setting interviews, we set not only performance targets for a single fiscal year but at the same time conduct a "capability/career development interview" to confirm the business tasks the employee would like to experience as well the skills they would like to acquire in the short term (within three years) and long term. Employees are thus able to use their own initiative in setting their own career paths. In addition, the superior reviews the career perspectives, strengths and weaknesses as well as the future goals of their workers and obtain their support.
Mitsui Chemicals has been using its Talent Management System (Success Factors) to manage activities from setting goals to evaluating performance, and this has improved the accuracy and efficiency of HR management. Employee’s performance achievements are updated on the system either by the employees themselves or by the superiors to enable effective management of the employee’s goals. In addition, the employee and their superior are able to use the system to review the employee’s performance history, which enables consistent development of the employee’s talents.

Evaluation Feedback

Mitsui Chemicals has introduced an annual interview with their superior for employees at all levels to give feedback on their performance assessment. The interview is designed not only to discuss the assessment results but also to share areas in which the employee can make improvements and the superior’s expectations from the perspective of the employee development.
Moreover, the Mitsui Chemicals Labor Union conducts a survey on the rate of these feedback meetings among its members and the degree of satisfaction with the feedback. The results of the survey are shared by labor and management, and we are striving to manage the evaluation system appropriately.

The conducting rate of feedback meetings and Degree of Satisfaction
(Mitsui Chemicals Labor Union Registered Members)

This table is scrollable.

  FY2017 FY2018 FY2019 FY2020
The conducting rate
of feedback meetings
in the Previous Fiscal Year
98% 98% 94% 94%
Degree of Satisfaction over
Evaluation Feedback
90% 86% 91% 89%

Complying with the Legal Wage and Establishing Compensation Levels that are Both Attractive and Competitive

In step with the globalization of its business operations, the Mitsui Chemicals Group has organized its standards and schemes for employee compensation not only in accordance with the laws and regulations of each country and region but also at levels that are both attractive and competitive in each labor market. The fundamental approach to defining compensation standards is to set the levels in accordance with Mitsui Chemicals’ business position vis-à-vis its competitors in human resources recruitment. We regularly review wage levels based on statistical data on wages from administrative organizations and compensation databases offered by external research firms.

Global Evaluation Guidelines

Global evaluation guidelines were formulated in May 2016 to organize the Mitsui Chemicals Group’s evaluation mechanisms, approaches, and design, and have been distributed to all Group companies. These guidelines consist of two concepts: (1) management by objectives (MBO), (2) global core competencies. These guidelines are enabling the HR sections of four regional headquarters (the Americas, Europe, Asia-Pacific and China) to support the development, revision, and operation of evaluation systems for companies in their respective regions.
Specifically, global core competences are used as a shared index within the Mitsui Chemicals Group’s Key Talent Management system, and they are used as the basis for the 360-Degree feedback and assessments provided in tandem with the leadership development program.
Improving assessment and training has become an urgent issue in finding and utilizing talented group-wide human resources in the years ahead. We are strengthening our cooperation with Group companies in applying shared Group evaluation indices broadly and fairly.

Position Management

A global policy on "position management" was implemented in fiscal 2020 to build the foundations for appropriate job placements across the entire Mitsui Chemicals Group.
In 2004 we introduced a job evaluation system to establish a job description format for our management staff and to provide compensation in accordance with the importance of each position. At present, there are approximately 18,000 job positions in the Group, of which roughly 40% are overseas-based positions. As the Group grows in global scale, to ensure organizational and job designs across the entire Group that are appropriate and in agreement with our Long-Term Business Plan and its basic principles and systems, decision-making authority and processes have been established explicitly for the creation of new positions and the elimination of obsolete positions within the Group. This policy has allowed us to introduce global job grades. We are currently working to ensure visibility and transparency for job positions within the Group based on standardized job evaluation criteria. By accelerating the appropriate placement of human resources throughout the Group and creating a transnational job relocation mechanism, we are encouraging growth in employee opportunities for self-reliant career development and improvements in employee engagement.

Example of Activity: Global position management in action

With the accelerating global expansion of Mitsui Chemicals, employees will get more and more opportunities to move within the organization and to take on new responsibilities in different countries. In 2013, I was recruited by Mitsui Chemicals at its first overseas R&D site in Singapore, and I was in charge of some of the customer oriented R&D activities, as well as some of the technical assistance to our local affiliates. During these five rewarding years, I worked in a stimulating environment consisting of co-workers from many different cultural backgrounds and it has proven to be the most invaluable experience in my life. In 2018, I joined a team of world-leading researchers on the vision care materials to create new products and services for our customers. I am now glad in having great careers in Japan. That said, I could always count on the advices from my managers, and the support from HR Division to tackle any difficulties of this move. I am confident global mobility will follow suit together with the global presence of the Mitsui Chemicals Group.

Dominik Jürgen-Lohmann
Optical Function Design Department, Synthetic Chemicals Laboratory, R&D Center
Nigel Ribeiro

*Each affiliation is from the time when the article was created.

Policy on Executive Appointments, Dismissal and Compensation at Subsidiaries and Affiliates

The Mitsui Chemicals Group is planning to implement a new global policy on executive human resources governance for Group companies in fiscal 2021. It sets out explicitly the decision-making processes on (a) executive appointments and dismissals, (b) policy on compensation criteria and structure and (c) executive compensation for more than 120 consolidated subsidiaries and affiliates of the Mitsui Chemicals Group in Japan and other countries. In the face of changes in the Group's business portfolio and our rapidly growing overseas business activities, acquisition, development and retention of human resources in business management and in specialized fields showing great potential for leadership in our various business operations and regions have become one of its top priority issues. With the application of a group-wide policy, we aim to introduce greater transparency in the appointment and dismissal procedures for executives and to determine compensation levels that are appropriate and synchronized with the business performance of the entire Group. From now on, we will implement consolidated executive compensation management across the entire Group based on this policy.

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