In FY2022, we launched the Furukawa E-Survey as a survey for gauging employee engagement scores. We set targets based on the score of “sustainable engagement” in the Furukawa E-Survey as a sustainability indicator in the 2025 Medium-term Plan, and will steadily implement a variety of measures.
The overall employee engagement score for FY2023 was 76 for the entire Group and 63 on a non-consolidated basis. In addition to the impact of expanding the scope to include direct workers and overseas affiliates from FY2023, some divisions’ scores rose and other divisions’ scores fell depending on the business environment and the progress of improvement activities, so there was no significant change overall. In FY2024, we will prioritize improvement activities at the Company and group companies in Japan, and based on the analysis of the survey results, we will accelerate efforts at the Company, with the priority issue of ensuring that general managers and supervisors clearly communicate strategies and targets and that each and every employee is able to make his or her work a personal matter.
The scope of the employee engagement score has been expanded to grasp the status of the entire Group, so the target for FY2024 and beyond, which had been set only for the Company, has been expanded to include the Group. The FY2025 target for the Group is set at 80, with the aim of achieving a high level of engagement throughout the entire Group.
| Sustainability indicator | Scope | Result | Target | |||
|---|---|---|---|---|---|---|
| FY2023 | FY2023 | FY2024 | FY2025 | FY2030 | ||
| Employee engagement score | Furukawa Electric | 63 | 65 | － | － | － |
| Group | 76 | － | 77 | 80 | 85 | |
*The scope was expanded to cover all group companies in Japan and abroad in FY2023; we have expanded the targets in and after FY2024 which used to be set only for Furukawa Electric to the entire Group.
In December 2021, we revised our personnel treatment system based on the concepts of “promotion of the taking on of challenges,” “simplicity and openness,” and “human resource development,” and we are working to overhaul the compensation system and strengthen its operation to increase job satisfaction for individuals.
(a)In order to provide a spark for the motivation of each employee when it comes to taking on challenges and healthy competition within the company, the salary system was revised from a seniority-based system of gradual accumulation to a zone-based salary structure with salary increases and decreases based on evaluation of the abilities and attitudes currently being demonstrated.
(b)We will redefine the communication processes related to our personnel evaluations, and have superiors increase the extent to which individuals are satisfied with their evaluations by conducting evaluations alongside the provision of responsible feedback on areas of improvement, thereby leading to individual growth.
In reviewing the operation of the target management system in conjunction with the revision of the human resources system in 2021, we were conscious of strengthening feedback to each employee. We have changed our system to have a positive impact on both human resource development and business performance by encouraging employees to set challenging targets at the beginning of the fiscal year and increasing the frequency of support and feedback from superiors during the fiscal year.
At fiscal-year-end, we hold interviews between superiors and subordinates based on the performance of daily duties, and provide feedback on positive points alongside points where things can be improved, thereby providing motivation for work in the next fiscal year. In addition, since FY2022, we have been notifying all employees of their performance evaluation scores.
We will continue to implement regular monitoring, operate and improve our target management system with a focus on strengthening feedback, so that each individual can proactively take on high targets and feel their own growth and contribution to the organization.