Human Capital Initiatives
Message from the CHRO
Promoting human resource strategy
tied with management strategy
Takuya Hanada
Chief Human Resource Officer (CHRO)
JGC Holdings
The JGC Group formulated the long-term management vision "2040 Vision" in fiscal 2021, defining our purpose as "Enhancing planetary health" by expanding the five business areas and diversifying business models in order to achieve sustainable growth. As an engineering company, human capital, that is, human resources, is our most vital asset—engineering companies can even be viewed as companies that cultivate the personnel who actually construct plants. We created "Human Resources Grand Design 2030" as the new overall human resource strategy with the view to achieving the 2040 Vision.
In addition to the ongoing training of human resources for project execution underpinning EPC operations in the oil and gas sector, the new human resource strategy aims to develop a new portfolio comprising four types of human resources deemed essential for achieving the 2040 Vision: human resources for specialist roles (experts), business and management, and innovative roles. The objective is to become an organization where human resources are able to continue bringing about their own transformation, as well as the organization able to continue bringing about its own transformation.
The plan for the new human resource strategy is to first visualize the quantitative deficiencies between the current human resources portfolio and that required for the future, and develop a talent management system with the aim of harnessing human resources in an efficient manner by utilizing digital technology, hiring of the four human resources portfolios in a strategic manner, and training for advancing and diversifying their skills.
Maintaining a high level of motivation is vital for ensuring our Group's human resources are able to apply themselves to the best of their abilities, and we are making an active effort to implement measures so employees gain a sense that a "fulfilling work leads directly to a fulfilling life, and makes their own lifestyles more affluent."
In fiscal 2022, we embarked on a new personnel system built on the policy of "Pay for VALUE", which shifts away from the seniority-based aspects of the past and instead focuses on the roles and accomplishments as well as the value of work and responsibilities. From fiscal 2023, we made significant improvements to compensation that applies to the holding company and two operating companies in Japan.
We are also concentrating efforts toward measures aimed at increasing engagement with employees so they can apply company management policies to their own work duties, and enhancing inclusion and diversity such that diverse human resources can actively apply themselves. A broad range of measures are also being put in place to create a more comfortable and rewarding workplace environment.
Going forward, we will continue to play an active role implementing human resource strategy that is tied with management strategy.
Personnel strategy basic stance
Human resources are the JGC Group's greatest asset throughout all businesses, such as the Total Engineering
Business and Functional Materials Manufacturing Business, and are the most important foundation for management.
We are pressing ahead with completing a new human resource strategy by 2030, with the aim of developing the diverse human resources portfolio deemed essential for executing the business strategies of expanding business areas and diversifying business models set forth in 2040 Vision.
Human resource strategy execution system
In 2022, we appointed a Chief Human Resource Officer (CHRO) to head the HRO Council as the implementing body under the HRM Committee (deliberative body for human resources matters), with the aim of properly establishing human resource strategy tied with management strategy. This system ensures the CHRO coordinates efforts with the JGC Holdings Corporation CEO and COO for proposing human resource strategy tied with management strategy, and in line with these, HROs of each company move ahead with their own human resource strategy tied with their company's business strategies, which are then discussed by the HRO Council.
Overall human resource strategy
Our human resource strategy aims to develop the human resources portfolio required for achieving the 2040 Vision based on three core elements—monitoring and reviewing human resources portfolio; strategically recruiting and training those human resources; and engagement.
