Human Resources Management
Human Resource Strategy
The Mitsui Chemicals Group has been devising and implementing human resource strategies based on long-term management plans, and various HR/organizational strategies to address identified priority issues, steadily spearheading the reformation of the business portfolio on global Group-wide levels and expanding businesses across the globe in terms of HR management. As a result, since Mitsui Chemicals was established in 1997, the Group has grown to 161 consolidated subsidiaries and 18,781 employees (as of the last day of March 2022, excluding contract employees). Furthermore, the overseas sales revenue ratio has expanded to 47.8%.
To achieve VISION 2030 announced in 2021, we have identified priority issues and devised and updated measures associated with our HR strategy, which is essential for achieving the vision. Our HR strategy covers the following priority issues: (1) Acquiring, developing, and retaining talents; (2) Increase employee engagement; and (3) Reinforce global HR governance in the Group and actively disclose our human capital value. There are measures in place to address these issues. Acknowledging the environmental changes surrounding our business (such as digitalization, declining birth rate and aging population, changes in career ambitions, new ways of working, obligatory disclosure of information on intangible human capital, and investment in human capital), we are accelerating the implementation of HR-related measures global Group-wide.
Priority Issues and Measures in HR Strategy
● Strategic recruiting, development, and retention of highly diverse future executives
- Key talent management
- Advancing job-based HR management
● Design of human resources portfolio aligned with the ideal business portfolio
- DX personnel development
● Embodying "self-initiative, autonomy, and collaboration"
- New work-style that achieves the “best mix”
- Continuous action for greater engagement
- Compensation & Benefit system to develop a culture that embraces making challenges
● Advancing HR governance, including handling M&As
- Competitive compensation design
● Development of a Group-integrated HR platform
- Promoting analytics
In order to promptly create and implement HR measures corresponding to the above measures on a global Group-wide level, we will reinforce regional HR functions by setting the Global Human Resources Division—established in April 2019—as the heart of CoC functions, which include talent management, talent development, total rewards, and the Human Resources Information System (HRIS) & People Analytics.
Key Talent Management and Strategically Critical Position Successor Plan
We define people who will take on strategically critical positions, such as next-generation management candidates who will reform our business portfolio from the viewpoint of resolving social issues, and path finders who can reform businesses with novel ideas for solution-based business models in view of global expansion and M&As, as “human resources who can create businesses linked to social issues by collaborating with customers and partners.” Acquiring, developing, and retaining such talents is an urgent issue in terms of our HR strategy to achieve the Mitsui Chemicals Group VISION 2030. To strategically acquire and develop such talents, our Group has adopted and implemented key talent management as a shared framework on global Group-wide level.
Our corporate governance guidelines position key talent management at the center of the system for planning the successors for future management, including senior managers (such as sector presidents and CxOs.) The scheme is designed to select future management candidates at an early stage and strategically train them according to the clearly defined credentials required of a management executive. We hold Divisional and Company-wide Key Talent Management Committee meetings every year. Through these meetings, we select next-generation management candidates and create development plans tailored to individuals, including assessments, creating skill development opportunities, and strategic appointments. In particular, HR requirements for management candidates have been redefined in 2022 to achieve VISION 2030 and important initiatives have been implemented to select candidates more appropriately and to devise more effective training plans.
Strategically critical positions for implementing each strategy (mainly general managers and higher, and presidents of major affiliates) and positions for which strategic training and assignment should be promoted (to train management candidates for the future generation) are being identified and approved by the company-wide human resource development committee, and successors are being planned for such positions. The committee also creates career development plans concerning these positions. We have identified some 120 strategically critical positions and training positions across the world and are actively acquiring suitable human resources from inside and outside the Group to fit into these positions.
The progress of key talent management and successor plans for strategically critical positions is periodically reported to the Board of Directors, so that the Board can periodically and objectively monitor the progress of developing a talent pipeline for the future, and actively make suggestions to fulfill the human resources pool that will lead to the Director Nomination Committee, thus creating a framework with strong capabilities for the whole Group.
Key Talent Management Process
Key Talent Management System
*1The proportion of group employees who are future sector president candidates for Mitsui Chemicals, Inc. headquarters
*2The proportion of group employees who are future general manager candidates for Mitsui Chemicals, Inc. headquarters
Qualification and experience required for management candidates
Two HR requirements for management candidates:
- Must possess knowledge and experience to manage the business accurately and fairly towards achievement of the business vision.
- Must possess keen insight, a wide view, ethics, fairness, and honesty.
Experience required of a management executive
|(1) Management perspective||- PL in multiple business divisions (business responsibility in different areas)
- Management of subsidiaries, etc.
|(2) Business restructuring||- Restructuring of at-risk businesses|
|(3) New business development||- Planning and execution of new business models
- Novel business creation (market, products, or customers) etc.
|(4) Company-wide projects||- Staff management in relation to company-wide issues
- Creating long-term plans
- Major M&A and alliance management, etc.
|(5) International experience||- Managing overseas companies|
Progress and Future Prospects
|Plans for FY2022|
Successor coverage rate/number of diverse executive officers
The successor coverage rate* shows the percentage of secured successor candidates against the number of positions strategically critical to achieving company-wide strategies. The rate is regularly monitored. Today, many companies are working on succession planning, namely devising plans for successors. To understand the situation quantitatively and guarantee its effectiveness, we have set the successor coverage rate as a non-financial indicator in VISION 2030, which we disclose to the public. We have also set a target value for the number of diverse executive officers, including women, non-Japanese, and people of mid-career recruitment, to continuously and steadily develop successors while paying attention to their composition. Executive officers recruited in April 2022 include women, non-Japanese people, and people of mid-career recruitment as part of our diversity initiatives at the management level.
Going forward, we will continue to work on talent management measures, accelerating them with business measures according to the needs of society and the times.
*Successor Coverage Rate:
The number of successor candidates for strategically critical positions / The number of strategically critical positions.