Human Resources Management
Human Resource Strategy
VISION 2025, the long-term business plan created in 2016, set us the tasks of reforming our business portfolio and implementing a range of measures to expand the business globally. As a result, from the founding of Mitsui Chemicals in 1997, the Group’s consolidated subsidiaries now total 154, and the number of their employees (as of March 31, 2021, excluding contract employees) has increased to 18,051 persons. Further, the overseas sales revenue ratio has expanded to 47%.
Along with VISION 2025, we have strategically and steadily managed our human resources and structured organizations from the viewpoint of global Group-wide.
VISION 2030, announced in 2021, stipulates further corporate reform as its basic strategy, and the HR strategy in particular has prime importance as people are indispensable to achieving this new long-term business plan.
HR strategy covers the following priority issues: (1) Acquire, develop, and retain human resources; (2) Improve employee engagement; and (3) Reinforce Group management. There are nine measures in place to address these aims. Acknowledging the environmental changes surrounding our business—digitalization, an aging society, 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 across the global Group-wide.
Priority Issues and Measures in HR Strategy
In order to promptly create and implement HR measures corresponding to the above actions across the Group, we will reinforce regional HR functions, setting the Global Human Resource Division—established in April 2019—as the heart of CoE functions, including talent management, talent development, total rewards, and the Human Resources Information System (HRIS) & People Analytics, etc.
Key Talent Management and Strategically Critical Position Successor Plan
“Acquire, develop, and retain human resources” is an urgent issue in terms of our HR strategy to achieve the Mitsui Chemicals Group VISION 2030. This issue includes securing 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 that bring solutions-based business models in view of global expansion and M&As. To acquire and develop such human resources strategically, we implement and operate the Key Talent Management scheme across the global Group-wide.
The Corporate Governance Guidelines position Key Talent Management in the center of the scheme to secure senior management successors (Sector Presidents and Managing Executive Officers). 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 between August and October 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.
The group-wide Key Talent Management Committee identifies the strategically critical positions (Mitsui Chemicals Business Sector Presidents and General Managers or higher positions, and presidents of major subsidiaries) to achieve VISION 2030 and the strategically critical positions to train such future management candidates. 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 made in Key Talent Management and the Strategically Critical Position Successor Plan is reported to the Board of Directors every year. We ensure the practicality of the schemes by regularly and objectively monitoring the progress of building this “human resource pipeline” towards the future.
Key Talent Management Process
Key Talent Management System
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
Successor Coverage Rate
The Successor Candidate Pool Occupancy Rate* shows the percentage of secured successor candidates against the number of positions strategically critical to achieving the Company-wide strategies. The Rate is regularly monitored.
*Successor Coverage Rate:
The number of successor candidates for strategically critical positions / The number of strategically critical positions.