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, this 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.
Based on the strategy, we are now trying to 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 and the most important foundation for management. Our Group is promoting a human resource strategy to develop a diverse portfolio essential for realizing the three transformations-business domains, business models, and organization-set forth in our long-term management vision, the “2040 Vision.” We aim to establish the portfolio by 2030.
Human Resources Grand Design
In order to materialize the “2040 Vision,” our Group formulated the “Human Resource Grand Design 2030” in 2023 as the highest-level concept of HR strategy and is continuously promoting initiatives. Transformation requires not only the improvement of individual abilities, but also being a professional group that takes on reformation of projects and operation, and new fields, and sees them through to the end while respecting each other.
To realize this vision, we have systematized the necessary measures to strengthen both individuals and organizations and build a foundation for sustainable growth. By taking the initials of the major items of each measure, we have given the “Human Resource Grand Design” the name “MODEL.”
At present, the main target of this initiative is the four EPC-related companies responsible for the Total Engineering Business. For the Functional Materials Manufacturing Business, since the business content differs, each company continues to operate under its own HR system and framework.
Four EPC-Related Companies：
Refers to the four companies that are responsible for or related to the core Total Engineering Business of our Group (JGC Holdings Corporation, JGC Corporation, JGC Japan Corporation, and JGC Corporate Solutions Co., Ltd.). These companies were previously a single entity (the former JGC Corporation) before transitioning to a holding company structure, and since some initiatives are limited to these four companies, this term is used for convenience.
System for implementing human resource strategy linked to management strategy
To ensure the effective linkage between management strategy and HR strategy, our Group appointed a CHRO in 2022 and established the regularly held HRO Council, composed of executives from each JGC Group company, under the HRM Committee, which serves as a deliberative body for HR matters. By having the CHRO and HROs*1 work closely together as members of the management team, we have established a system that enables swift decision-making on HR measures at the HRO Council. The measures decided in this way are vigorously implemented mainly by department management, such as department heads and CDMs*2, in addition to each company’s HR department, thereby promoting HR strategy throughout the organization.
- *1Executive Officers or higher, up to President class, are appointed as HROs for each company.
- *2Career Development Manager. At JGC Corporation, in addition to General Managers, each department also has in place positions responsible for human resource development.
