Human resources management initiatives

　　　　　

　Since its founding, the Group has contributed to the realization of a sustainable and prosperous society by responding to the needs of society and quickly focusing on new materials with the aim of commercializing them. And in order to achieve such a society, it is essential that people with the desire to improve society and the spirit to take on challenges to achieve their goals play an active role. The Group considers its human resources to be its most important management capital, and has defined its Human Resources Vision as follows.

　　

　Our human resources development policy is to develop human resources who have a proper understanding of our Corporate Principles and Management Philosophy, who understand things from a global perspective, and who can demonstrate a high level of leadership, resolve, and drive. Stemming from the idea that new ideas that have never been seen before are created through a diversity in human resources, we are implementing policies to create a workplace environment where human resources with diverse experience and knowledge can play an active role as they express their individuality, and where everyone can work in a safe and healthy environment. 　　　　　

　　　

　The Group has been implementing a human resources strategy linked to its management strategy since the start of its three-year Medium-term Management Plan BTvision22 in fiscal 2020.The business strategies of the new Medium-term Management Plan On32025, which began in fiscal 2023, are 1. Evolvement of Core Businesses, 2. Strengthening of Global Competitive Edge, 3. Creation of A New Business Foundation, 4. Development of Sustainable Management, and 5. Financial Strategies that Support Growth. Under the new Medium-term Management Plan, we will work to further enhance the coordination between our management and human resources strategies over the next three years, with the aim of achieving further growth. In other words, to accomplish our management targets, it is extremely important that we solve challenges in the area of human resources, such as securing diverse human resources, developing professional human resources, and fostering a culture of transformation, and to improve the organizational and human resources capabilities of the entire Group. We aim to become the number one company in human resources development, as stated in the basic philosophy of the new Medium-term Management Plan, and we will further accelerate our investment in human capital, so that human resources—our most important management capital—can autonomously take on new challenges and feel fulfilled and comfortable in their work.

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　The human resources management framework based on our Company’s human resources strategy is as follows.

　　

　Through the recruitment of a diverse range of human resources, we are integrating a wide array of knowledge into our organization to achieve our business strategy. The current business environment in particular, where sales growth is remarkable, we are devising measures to recruit more people who align with our ideal talent profile.

• 1.Expansion of internships
• ・1-week internships
• 　We have been offering internships for science and technology students at our Technical Training Center for quite some time now. By using actual pumps to assemble and install our products and measure leakage, students can learn about the mechanisms of fluid control through hands-on experience.
• ・Data Science Internship
• 　We accept students from data science-related departments and offer a data science internship where they can create predictive models using our fluid control data.
• ・Fukuchiyama Regional Collaborative Internship
• 　We run a two-week internship program in collaboration with the Fukuchiyama Campus of the Kyoto Institute of Technology, accepting students from the local area.

• 2.Approaching Research Laboratories
• 　We are conducting direct recruiting by directly approaching research laboratories and seminars related to our business, such as fluid mechanics, pumps, polymers, millimeter waves, and seismic isolation.
• 3.Expanding Recruitment of Women
• 　We are committed to recruiting more women, including through participation in the KOSEN Women’s Forum and the creation of a dedicated page on our recruitment website.
• 4.Recruitment of Overseas Human Resources
• 　We also strive to recruit overseas human resources, such as by exhibiting at events for international students and carrying out recruiting activities aimed at hiring science and technology-related human resources in Vietnam.
• 5.Expanding Mid-Career Recruitment
• 　In order to recruit people with diverse knowledge and experience, we are expanding our recruitment of mid-career candidates who have experience in other industries and in a variety of jobs. The same is true for management personnel, and we are actively recruiting people for management positions.

                                           Company information session at a Vietnamese science university

Trends in the Number of People Hired

	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2025KPI
New graduates	17	18	22	18	13	19	－
Male	12	17	18	13	11	13
Female	5	1	4	5	2	6
Ratio of women	29%	6%	18%	28%	15%	32%
Mid-career	14	8	13	10	40	50
Male	11	6	11	5	29	41
Female	3	2	2	5	11	9
Ratio of women	21%	25%	15%	50%	28%	18%
Total	31	26	35	28	53	69
Men	23	23	29	18	40	54
Female	8	3	6	10	13	15
Ratio of women	26%	12%	17%	36%	25%	22%	30%

　　　　　
• 1.Human Resources Development System
• 　In order to improve the level of human resources to keep up with the accelerating organizational growth, we reviewed the company-wide training system in fiscal 2022, and are working to enhance training by job rank and specialized skills training. We are working to develop human resources who can demonstrate leadership by providing training for young employees in areas such as logical thinking, leadership, coaching and IT skills, and by expanding training for managers and above to improve organizational capabilities. We have also been making efforts to help employees acquire expertise in their fields of specialization, for example by sending employees to universities and research institutions.

Company-Wide Traning & Education System（PDF：200KB）

• 2.Developing Management
• 　In order to develop candidates for management positions early on, we began offering selective training for mid-level and management staff in 2012. We aim to develop future management by having them come up with their own questions and action plans based on management case studies and actual management challenges facing our Company.

• 3.Autonomous Career Support
• 　We have been providing company-wide distance learning support for over 10 years to enable employees to think about their own careers and consider what they ought to learn. When employees want to study more deeply and in a more specialized way, we also provide a certain level of support for university advancement on a request basis. We support employees not only in terms of their output once they join the Company, but also in terms of the input they need to make greater output and grow themselves.

• 4.Technology Training Center
  • 　In 1995, we established a Technical Training Center at our Sanda Factory to provide training on our products. We conduct a wide range of training, from elementary instruction such as “what is a seal,” “friction, wear, and lubrication,” and “the structure of our products,” to hands-on training in product handling. We aim to improve technical skills through hands-on learning by installing training pumps, assembling, disassembling, and measuring the amount of leakage. In addition to training for new graduates and mid-career employees, we also provide internships and training for our business partners, and many stakeholders make use of this training.

　　　

　　　
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• 5.Developing Global Human Resources
• 　In order to develop global human resources, we invite employees working at our overseas subsidiaries to Japan for regular training. In addition to understanding each business strategy and gaining a deeper knowledge of our products, the training also includes an educational curriculum on the Pillar Group’s Management Philosophy, Code of Conduct, and leadership, to prepare them to become future executives at overseas locations. In addition to the education provided to Japanese expatriates when they are posted overseas, we are also working to strengthen their global management capabilities through efforts like creating and distributing a management book to the local management class.

• 6.Career Education in the Region
• 　We participate in the Career Education Lecture for first-year students at Kyoto Prefectural Fukuchiyama High School. This program is designed to help first-year students as they consider their own career development in the choice they make between studying arts or sciences in their second year and beyond, and sends employees who are actually working to give a career education lecture. In the first part of the lecture to the entire first-year group, we introduced examples of career choices made by our employees. In the second part of the lecture, the students were divided into their classes and engaged in group work to consider their own careers. We will continue to deepen our interaction with the regional community as we make our contribution.

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Trends of amount invested in human resources development

FY2020	FY2021	FY2022	FY2023	FY2025 Goals
37,000 yen per person annually	64,000 yen per person annually	79,000 yen per person annually	71,000 yen per person annually	Amount invested in human resources development per person Improved by 20% compared to the results for FY2022 (79,000 yen  120% = 95,000 yen or more)

Trends of global human resources numbers

FY2020	FY2021	FY2022	FY2023	FY2025 Goals
78 people	77 people	77 people	73 people	Number of global human resources Improved by 20% compared to the results for FY2022(77 people × 120% = 93 people or more)

＊Number of global human resources = Number of human resources with management experience at overseas bases (number of human resources with experience at overseas bases primarily through personnel rotation + number of human resources promoted to management from national staff)

　　　　　
• 1.Voluntary Disclosure System
• 　For more than 20 years, we have been conducting voluntary disclosure questionnaires for all employees, asking for their opinions on topics such as workplace relationships, job satisfaction, and career aspirations. We use the opinions expressed in these questionnaires for career interviews, transfers and assignments and to improve the workplace climate. We have also been conducting a work engagement survey since 2022, and we are also studying workplace and individual engagement from the perspective of dynamism, enthusiasm, and immersion.

　　　　　
• 2.Culture of Improvement
• 　Based on our code of conduct, “Reform is limitless”, we encourage improvements to be made to daily work in all workplaces. When improvements are actually carried out, we provide a reward depending on the level of improvement and the scope of its impact. From 2020, we carried out work reforms aimed at reducing routine work and shifting to challenging work, promoting large-scale improvements that require cross-departmental collaboration and investment. As a result of these activities, we have been able to automate processes, digitize various documents, and advance RPA.

　　　　　
• 3.Human Relations in the Workplace
• 　We operate an autonomous organization called Seijukai, which is employee-led and aims to improve employee welfare. There is financial support for an annual company retreat and company party, which helps to build human relations and a sense of unity in the workplace. In addition, there is support for events such as bowling tournaments at each office, subsidies for recreation facilities, and the giving out of Christmas cakes. * Employees also contribute a certain amount each month.

　　　　　
• 4.Support for diverse work styles
• 　⇒Policy on Diversity Management

　　　　　
• 5.Care for health
• 　⇒Health and Productivity Management

　　　　　
• 6.Care for human rights
• 　⇒Group Human Rights Policy

Chabges to engagement score

FY2022	FY2023	FY2025 Goals
64%	61%	65%

Changes to female manager ratio

FY2020	FY2021	FY2022	FY2023	FY2025 Goals	FY2030 Goals
2.4%	2.3%	3.0%	3.3%	5%	10%

Changes to percentage of male employees taking childcare leave

FY2020	FY2021	FY2022	FY2023	FY2025 Goals
13.6%	0%	22.7%	42.9%	75%

Changes to secondary health checkup rate

FY2020	FY2021	FY2022	FY2023	FY2025 Goals
20%	40%	50%	63.6%	80%

• 　We have adopted an evaluation system with the aim of promoting individual growth and development and stimulating the organization. We evaluate performance and achievements with performance evaluations, and we evaluate behavior with behavioral evaluations, based on the Company’s expectations for each qualification. We always conduct an evaluation interview during evaluation, and provide feedback to encourage individual growth. In addition, evaluations are made public to individuals, and to manage promotions by determining what kind of evaluation is needed in order to be promoted to the next level. Our Company believes that by giving high praise to employees who align the ideal image of the human resources we are seeking, we can develop human talent brimming with a desire to take up challenges.

　The various human resources management initiatives, such as recruitment, development, work environment, and evaluation, are efforts aimed at achieving the desired vision for people and organizations, as outlined in our human resources vision, which is coordinated with the Company’s management strategy. We aim to hire, develop, and evaluate employees who match our desired employee profile and create an environment that makes working easier, which will help bring about the organizational culture we aspire to have. By moving closer to this organizational culture, the Company will further develop in the fields of CLEAN, SAFETY, and FRONTIER, and we are confident that, under the purpose of creating a future that supports society, we will be able to give back even more to society.