Global Human Resources Strategy

Message from the Responsible Officer

Our Global Human Resources Strategies

The Mitsui Chemicals Group’s consolidated employees have increased to around 20,000 persons (including contract employees) in part as a result of M&As in recent years, and the ratio of overseas employees has reached around 40%. Our business domain is also no longer restricted to the development, production, and sale of materials, but has expanded to include the proposal of solutions to our customers. Amid significant growth in the diversity of nationalities and specialties of the talents that work in our Group, we need more than ever to carry out human resources strategies with a Group-wide and global scope. We launched the Global Human Resources Division in April 2019, and are aiming to strengthen center-of-excellence (CoE) functions that enable the Group-wide and global formulation and rollout of human resources strategies. In the just over one year since the establishment of the Global Human Resources Division, we have made steady progress on developing a Group-Global Human Resources Platform that incorporates the perspectives of talent management, position management, and talent development. To continue to create value in global markets, we will work to recruit, train, and effectively deploy the required human resources on a Group global basis.

常務執行役員 グローバル人材部長 >安藤 嘉規
ANDOU Yoshinori
Managing Executive Officer
General Manager,
Global Human Resources Division

Global Human Resources Management and Strategies

Since the founding of Mitsui Chemicals in 1997, the Group’s consolidated companies have grown in number to a total of 156, and our consolidated employees (as of March 31, 2020, excluding contract employees) have increased to 17,979 persons. The overseas sales ratio has expanded to 45%. With the progress of business globalization, we have worked to build a framework on a global basis in the area of human resources management, including the operation of overseas bases, as well as post-merger integration (PMI) for cross-border M&As. In order to further accelerate these efforts, we established the Global Human Resources Division in April 2019 to expand from our conventional virtual HR organization to a permanent global HR organization. We will enhance our global business competitiveness by executing effective human resources management on a Group and global level, and enhancing our human resources governance. Following the launch of the Division, we established functions for system development at the global headquarters, including talent management, human resources development and training, and compensation and evaluation. At the same time, we are using schemes from the HR Development Advisory Committee (HRDAC), a virtual project framework involving human resources at the regional headquarters, held continuously since 2014, in order to accelerate the planning of various globally-shared programs and expansion into local regions. We have redefined matters that should be unified globally, as well as matters that should be operated with a degree of freedom in each region or company. We operate the human resources organization that supports both effective human resources management on a Group and global level and the growth of each region and our businesses.

History of Group Globalization and Global Human Resources

History of Group Globalization and Global HR

Overview of Global Human Resources Management

Overview of Global Human Resources Management

Key Talent Management: Developing Future Leaders

It is a pressing task for the Group to develop and train future leaders, as well as human resources who are capable of managing our overseas subsidiaries and affiliates, the number of which are increasing due to overseas development and M&As. To this end, the Group has introduced the Key Talent Management system, which began operations in fiscal 2016. We will further develop this system, in order to promote the development and training of employees who will ensure the continued growth for the Group.

Overview of Key Talent Management

(1) Key Talents and Management Candidates

Among the Group’s worldwide human resources, those who consistently demonstrate a high level of performance and competence, potential, and enthusiasm are identified as key talents. Among such key talents, those who have the potential to become future leaders are selected as management candidates.

(2) Key Talent Management Committees

The Key Talent Management Committees have been established as a body to select key talents/management candidates, approve development plans, and review their results. The Committees review the work experience of selected human resources, and determine where they should be assigned based on five perspectives: managerial view point, business restructuring, new business development, Company-wide projects, and the operations of overseas subsidiaries and affiliates.

Key Talent Management System

Key Talent Management System Key Talent Management System
Progress in Fiscal 2019
  • Held meetings of the Divisional Key Talent Management Committees in all divisions (both business and functional). Selected key talents from across the entire Group, including from domestic and overseas affiliates, and formulated individual development plans (placement and training) for those talents.
  • Held meetings of the Company-wide Key Talent Management Committee, in which all officers participate. Identified management candidates, talents who might join the senior management ranks in the future, from among the key talents selected by the Divisional Key Talent Management Committees, and confirmed and approved the individual development plans (placement and training) for these candidates. Also confirmed the direction of development and placement of other key talents (those in positions equivalent to Supervisor at Mitsui Chemicals or below, including those at domestic and overseas affiliates).
  • Confirmed and approved the revised succession plans for the 100 critical positions based on the business strategies for fiscal 2019.
  • As part of efforts to strengthen organizational diversity, created individual development plans for potential female line managers who had been selected as key talents.
  • Formulated a Key Talent Management Assessment System to increase objectivity and transparency in the management candidate development process.
Specific Plans Going Forward
  • Review and implement the individual development plans (placement and training) based on the qualities, motivation, experience, and competency of management candidates selected from among key talents.
  • Formulate individual development plans for newly selected key talents.
  • Implement a talent rotation program between sectors based on individual development plans for Supervisor-level key talents in Japan and overseas.
  • Formulate succession plans for the 100 critical positions.
  • Specify qualifications and attributes required of management candidates, and introduce a skills development program to determine the direction of longer-term development of management candidates (key talent management assessment).

Global Position Management: Appropriate Placement of Human Resources throughout the Entire Group

The Mitsui Chemicals Group currently has approximately 18,000 position, of which close to 40% are based overseas. As the Group continues to grow globally, in order to ensure that the overall design of our organizational and job structures is aligned with the Group’s management strategies, we have standardized and clearly specified and the basic principles, systems, and procedures related to the creation and phasing out of positions within the Group. In addition, we are introducing a global grade structure to delineate positions within the Group. These measures will enable us to place the right human resources in the right places and to build a cross-national and cross-regional transfer system, which will facilitate career development within the Group.

Example of Activity: Global position management in action

One advantage a large, globally operating corporation has to offer, is the opportunity for its employees to move within the organization — to new responsibilities and also to new countries. During my career at Mitsui Chemicals I have been fortunate to work in different roles in three different countries, Singapore, Japan and Germany. When I joined the company in 2009, the first overseas R&D site had recently been established in Singapore. After eight rewarding years in R&D, I was given the chance to move to MCI headquarters in Tokyo and expand my responsibilities. I changed my field of work to New Business Development, a logical next step after customer directed R&D. Two exciting years in Japan followed where I prepared the expansion of the project to Europe. I relocated back to my native Germany in 2019 to join Mitsui Chemicals Europe to implement this plan. In preparing for and undertaking these moves, I could always rely on the advice and encouragement from my managers as well as the support from local and global HR teams. Moreover, the memories of people, country and food of Singapore and Japan will last a lifetime. I am confident that as the Mitsui Chemicals Group expands its global presence, global mobility of its employees will follow suit.

常務執行役員 グローバル人材部長 安藤 嘉規
Dominik Jürgen-Lohmann
New Generation Business Development Manager,
Health Care Division
Mitsui Chemicals Europe GmbH

Global Employee Engagement Survey

In preparation for implementing our 2025 Long-term Business Plan, we consider Group employee engagement to be extremely important. We, therefore, conducted an online survey in June 2018 to measure individual engagement levels and investigate the underlying factors for all employees of the Mitsui Chemicals Group.
This was the first survey to cover all Group employees, and 87% of the employees responded. Their opinions provided us with many suggestions that improved our understanding of the Group-wide HR challenges. Characteristics of the Group revealed through this survey include an incredibly strong culture of safety and an emphasis on autonomy and delegation of authority. The results of this survey can be analyzed by the unit of Head Office division, affiliate, or subsidiary. Therefore, leaders in each organization and the Head Office HR Division have worked together to formulate improvement action plans that are suitable for individual departments, and are working on the specific measures to improve the level of engagement. The Head Office HR Division identified the priority areas to further employees’ engagement scores: senior management; career opportunities; and performance management. The division is now working to create Group-wide measures to be implemented in each of these areas. To improve senior management, we must communicate their clear vision and strategy to employees and increase opportunities for dialog between management and employees. Measures for the area of career opportunity are to offer flexibility to enable employees to apply for new positions or initiate business projects beyond division or company borders, and to increase study opportunities. For better performance management, we are regarding the performance appraisal as a growth opportunity and aim to create an environment where employees can enhance their skills through freely exchanging opinions with their supervisors.
In order to further raise the engagement level in the entire Group, this survey will continue to be conducted every two to three years.

Engagement Factor Score

Mitsui Chemicals Group top factors
three areas in which we are strong

Safety

47

Brand as an employer

39

Delegation of authority/Autonomy

38

Mitsui Chemicals Group bottom factors
three areas in which we face challenges

Learning and self-development

22

Career opportunities

18

HR utilization and assignment

15

Global Training Program

Global Leadership Training Program

This program aims to develop candidates for executives who will play important roles in the Mitsui Chemicals Group. These candidates are selected from the Mitsui Chemicals Group and its overseas group companies. This twelve-day program is held jointly with a business school over nine months for the key talent from the Mitsui Chemicals Group around the world. The program covers strategic thinking, global leadership skills, and action learning. Nineteen people participated in the program in fiscal 2019 (about half of these participants were Japanese).

Global Managers Seminar

This program provides knowledge of Mitsui Chemicals business strategy, cultural understanding, and leadership skills, in order to develop local leaders from different Group companies. Manager candidates from major sites around the world work together through discussions during this five-day program. Twenty candidates participated in the program in fiscal 2019 (about 20% were Japanese).

Mitsui Chemicals Competency Development Program

This is a program for future generation leaders to help them understand their roles as leaders and acquire the necessary knowledge and skills. Selected candidates from young employees from the Asia-Pacific and other regions work through this 5-day program, including business simulations. Twenty-two people participated in the program in fiscal 2019. We plan to create and provide new programs for employees of different ranks in the near future.

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