Human Resources Management
HRIS and People Analytics
Mitsui Chemicals uses its Human Resources Information System (HRIS) to manage its employees and to place human resources in appropriate jobs globally and maximize labor productivity.
Using People Analytics
The Mitsui Chemicals Group plans to use statistical data analysis methods, including regression analysis, analysis of data from employee engagement surveys, overtime hours worked, competency evaluations, recruitment data and other data on its human resources to strengthen its organizational power and make organizational issues more visible so that they can be used to find solutions. We have used the correlations between labor productivity and overtime hours worked and between competency and performance to deduce cause-and-effect relationships and form and verify hypotheses that will maximize employee productivity. In the area of recruitment, exploratory AI-based data analysis is being used to establish quantitative and objective recruitment decision-making indicators, and eliminate possible human biases that have emerged to refine our recruitment processes.
From the standpoint of human capital, we are extracting and analyzing data related to the 11 items and 58 indicators set out in ISO 30414. Productivity is included in the indicators, and internally we are monitoring our EBIT, sales and profit per employee and human capital ROI over time to improve the Group's employee productivity.
Use of the Talent Management System (Success Factors)
The Mitsui Chemicals Group uses Success Factors (talent profiling) from SAP to manage the headcount for the entire global Group-wide. We are collecting data from our consolidated subsidiaries have already collected talent data from more than 90% of our subsidiaries for use in the system. We are using Robotics Process Automation (RPA) to collect basic monthly personnel data from each company to analyze changes in job turnover by business organization, job function and region.
This system gives stakeholders access to this analytic data as and when needed. Even in the event of drastic changes in the external environment, represented by the COVID-19 pandemic in fiscal 2020, we used the tool to assess and analyze the human resources measures being implemented by each company and each region and to monitor their conformity with our group-wide business strategies. The information is then reported to senior management at the Company-wide Key Talent Management Committee.
To incorporate these measures in our human resources strategy effectively, the Mitsui Chemicals Group plans to introduce Workday Human Capital Management provided by U.S.-based Workday, Inc., simultaneously at all the business sites of Mitsui Chemicals and its consolidated subsidiaries and affiliates. The platform is scheduled to be implemented by 2023, and system startup has been underway since April 2021. In addition to the talent management system (Success Factors) already in place for the entire global Group-wide, the platform is expected to increase the visibility of the organization (job functions, capabilities, talent, compensation, etc.) and human capital data (expertise/orientation, experience, diversity, etc.) so that the benefits can be used to upgrade our corporate value as shown below.
Advantages of introducing the platform
- As everything will be managed on a single platform, existing disparate talent management processes at Group companies and organizational and HR information within the Group will be organized on the basis of standardized criteria.
- Leveraging Workday HCM’s digital technology, Mitsui Chemicals will be able to provide each and every Group employee with the optimal content for that individual in a timely manner and in an appropriate communication style.
- Integrated Group-wide management of organizational and HR information will facilitate the formulation of strategic staffing plans with a view to the transformation of the Group’s business portfolios and will also bolster efforts to promote the use of people analytics.
- Mitsui Chemicals will be able to be more proactive in disclosing the information about human capital required by stakeholders from the view point of ESG.
Human Resources Information
The global business that Mitsui Chemicals Group conducts is based on its business strategies, including its Long-term Business Plan. Alongside, we are also monitoring the status of our Group employees.
Number of Employees in the Mitsui Chemicals Group
The number of employees in the Mitsui Chemicals Group as of the end of fiscal 2020 was roughly the same as in fiscal 2019. Likewise, there has been little change in the number of employees at Mitsui Chemicals compared with the previous fiscal year.
Number of Employees in the Mitsui Chemicals Group by Business Segment
A breakdown of the number of employees by business segment at the end of fiscal 2020 shows that the highest number is in Mobility, with 6,653 employees accounting for 37% of the all the Group's employees. With the acquisition of the ARRK Group, the number of employees increased 2.5-fold compared to the end of fiscal 2016. The number of employees in each business segment, in descending order, is 2,853 in Food & Packaging, 2,473 in Health Care and 1,820 in Basic Materials. The number of employees belonging to other business segments was 4252 or 23% of the workforce.
*Each Business Segment is from the time when the article was created.
Employees of the Mitsui Chemicals Group by Region
A breakdown of the Group's employees by region shows that globalization is growing rapidly, with progress in changes to our business portfolio under VISION 2030, Mitsui Chemicals Long-term Business Plan and development of a solution-based business model. In particular, the number of employees has grown dramatically over the past 10 years in North America and Europe, aimed at developing new markets, reinforcing manufacturing, marketing and research functions and creating new trade flows.
A breakdown of the Group's employees by region at the end of fiscal 2020 showed that Japan accounts for the largest number at 59.2%. The percentage dropped by roughly 8% compared with the end of fiscal 2016. Of the 40.8% of employees located overseas the largest number is in Europe, accounting for 16.8%, mainly in the ARRK Group's engineering company, ARRK Engineering, which is part of Mitsui Chemicals’ Mobility business segment, and Kulzer GmbH, part of the Health Care segment.