Maximize employee engagement
Basic approach
Idemitsu Kosan is working to stimulate internal communication with the aim of creating a better company where all employees can work with engagement and motivation. We believe that in order for each employee to grow and be more motivated, it is necessary to create a safe and secure place where employees can freely and openly talk to each other, promote good internal communication, and ensure that the company-wide and organizational goals are fully understood and understood.
Initiatives
Idemitsu Engagement Index
The Idemitsu Engagement Index (Idemitsu EI) is an index that captures the progress of the human resources strategy from the employee's perspective and is composed of six elements: (1) a high sense of ownership, (2) pride in belonging to the company, (3) realization of personal growth, (4) willingness to contribute to the organization, (5) embodiment of the Management Philosophy, and (6) challenging change beyond organizational boundaries. The index has fluctuated from 67% in FY2022 to 69% in FY2023 to 70% in FY2024 (target for FY2025 is 75%).
1. Factors affecting Idemitsu EI
In order to identify the factors that influence Idemitsu EI, we conducted a multiple regression analysis with the questions in the employee engagement survey as independent variables and Idemitsu EI as the dependent variable. We found that the following six questions accounted for 74% of the contribution rate.
| Category Name | Questions |
|---|---|
| Growth Opportunities | We have the opportunity to develop and grow |
| I can envision my future career with us | |
| Management Philosophy, strategy and policy | Action Mindset serves as the standard for judgment and behavior in the course of work. |
| Have a clear understanding of the strategies and policies that your department aims to achieve | |
| Creativity and initiative | I am satisfied with my efforts and accomplishments in my current job |
| We encourage people to think outside the box and come up with better ways to do things. |
Blue text: Our strengths (75% or more favorable responses)
2. Challenges and Solutions in the "Growth Opportunities" Category
The two questions that make up this category yield contrasting results.
2-1. Providing opportunities for growth
Many employees feel that there are opportunities to develop and grow in our company, which is one of our strengths. Starting in fiscal 2023, we will hold a job festival where all departments will gather together to introduce their own departments, and approximately 1,100 people participated in 2024. This event is an opportunity to learn about other departments and think about one's own career, and more than 90% of participants responded favorably. In addition, a total of 82 people have used the in-house side job system, which allows employees to continue their current jobs while spending 20% of their time working on work in other departments. This contributes to diversifying individual careers and preventing departmental silos. In addition, we started a hand-raising open-call training program in April 2024 to help each employee acquire the skills they need, and as of the end of July, more than 400 employees have applied. In particular, we are focusing on providing opportunities for cross-border learning and competition with other styles in order to create human resources who can lead both inside and outside the company with flexible ideas that are not bound by internal common sense.
2-2. Career development at our company
On the other hand, only 51% of employees answered that they could envision their careers at our company in the future, and we recognize that this is a major issue. In April 2024, we launched the Career Design Department as an organization separate from the Human Resources Department, with five missions: "Encouraging self-directed career development," "Providing diverse career paths," "Providing skills development options (raising hands)," "Providing opportunities for cross-border learning," and "Career consulting." From 2024, we will encourage employees to create a "Career Design Sheet" that envisions how they would like to grow, and we are strengthening support from superiors and in-house career consultants.
3. Issues and Solutions in the "Management Philosophy, Strategy, and Policy" Category
3-1. Action Mindset
In 2019, when the new integrated company was born, we established Action Mindset prior to Management Philosophy. With growth as the core concept, it is composed of five elements: "Independet & autonomy," "change," "co-creation," "Integrity," and "health and safety," and the ability evaluation items for personnel evaluation are also set based on this. We then codified Management Philosophy in 2021, but when comparing the two, Action Mindset is somewhat generic in its expression and does not reflect our unique character. We are looking for people who have a clear idea of "what I want to do," think things through with their own heads, bring together the strengths of diverse team members, and see things through with a sense of ownership, as well as people who continue to take on challenges without fear of failure. Although 66% of employees support the current Action Mindset, we will redefine Action Mindset and personnel evaluation criteria based on Management Philosophy of "Truly inspired" within this fiscal year and reflect this in the revision of our personnel system in fiscal 2025. By doing so, we hope to produce as many human resources as possible who can embody Management Philosophy of "Truly inspired." When we analyzed the six issues that have a major impact on Idemitsu EI by age group, one issue that emerged was that "employees in their 20s and 30s find it difficult to envision their future careers." To solve this issue, it is important for employees to realize their growth and feel a sense of accomplishment through their work. Therefore, we want to create an environment where employees can value their individual values and express their true selves, without being bound by the fixed culture of the organization. By doing so, we hope to create a movement in which young employees can work with confidence and enthusiasm, and feel that "I want to achieve results at Idemitsu and do my best." By accepting the diverse values and opinions of each employee and drawing out the passion of young employees, we will generate new energy and advance the creation of a foundation for new businesses toward carbon neutrality.
3-2. Understanding the strategies and policies of the department
One of our strengths is that many employees understand the short- to mid-term perspective and the strategic policies of their own departments. However, their understanding of company-wide and other departmental policies is not sufficient. In the future, as cross-departmental activities will be required, this silo phenomenon will become a major obstacle. With this awareness of the problem, we established the Idemitsu Employee Association in April 2024 as an organization independent of the company.
Employee information session held by the Employee Association
The Employee Association, with a full-time director as its secretariat, promotes plans for "interaction between employees across departments and age groups," "employee-led proposals for management," "planning and analysis of employee engagement survey," and "direct dialogue with management, such as townhall meeting." The company covers all activity funds, and these activities are notable in that they involve senior executives as well. At the same time, measures have been taken to increase the participation rate in the employee stock ownership plan to 90%. We hope that more employees will see company management as their own business and act beyond the boundaries of their departments.
4. Challenges and Solutions in the "Creativity and Initiative" Category
4-1. Sense of accomplishment and aptitude for work
We believe that work engagement and satisfaction with results depend on aptitude for the work (degree to which skills and abilities are demonstrated) and the sense of accomplishment that results from it, and we are also examining the correlation between these. Since 2020, we have implemented a "Career Challenge" system in which employees raise their hands to try other job types, and so far, about 90 cases have been completed. In the future, we will steadily deploy the Career Design Department's measures to support self-directed career development while expanding the Career Challenge system and the in-house side job system.
4-2. Precedent-following and productivity
The score for encouraging employees to think outside the box and come up with better ways of working was 69%, a moderate figure. The issue is that there is a certain number of employees who feel stressed by the culture of following precedents, behind-the-scenes lobbying, and the de facto multi-stage approval structure, which are not reflected in quantitative indicators such as total working hours, overtime hours, and paid leave acquisition rates. The "30% Productivity Improvement Activity" launched in 2023 has only reached about 15% of the challenges, and we will continue to work toward achieving a 30% productivity increase by fiscal 2025, the final year of the Medium-term Management Plan.
5. Towards diversity and inclusion and organizational growth
Employee Engagement Survey
As a company that values maximizing employee growth and engagement, we conduct an employee engagement survey once a year to quantitatively and continuously analyze employees' engagement, mutual trust, and unity, and to understand the culture and state of the organization. The survey results are fed back to management and all employees who participated in the survey, and the results are analyzed in detail and specific action plans are formulated and implemented. The results of these efforts are then checked in the survey the following year, in a PDCA cycle.
Overview of FY2024 employee engagement survey
| Implementation period |
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|---|---|
| Subject |
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| Response rate |
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| Features of 2024 |
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sex
By age group
gender
age group
Dialogue between management and employees
Idemitsu Employee Association Initiatives
Townhall meeting
Mini townhall meeting (held by business division)
We hold "townhall meeting" as an opportunity for dialogue between employees who know the company's policies and the thoughts of management and management.
At the meeting, management answers questions submitted by employees in advance, and also answers questions via online chat.
In addition to townhall meeting held twice a year, we also hold mini-townhall meeting financial results are explained and executives in charge and employees of business divisions interact directly.
Exchange of opinions with employees regarding personnel measures
Our group strives to comply with labor-related laws and regulations in each region in Japan and overseas, and is also working to create a work environment where all employees can focus on their work with peace of mind. Based on the Labor Standards Act, employee representatives prepare opinions regarding the establishment and revision of labor-management agreements and work regulations. Changes to personnel policies are communicated through information sessions for employees and other venues.
We collect opinions on existing systems through voluntary employee surveys and share the results through internal portals and emails, and create opportunities for dialogue between the company and employees, such as by making the same topic a topic of discussion at town hall meetings and other meetings. Masu.
We hold regular labor-management consultations with our labor union, FTOE (Forward Together with Our Energy). Through these initiatives, we aim to develop policies that are highly understandable and empathetic regarding the content of human resources policies, wage levels, working conditions, and welfare benefits.
We are also soliciting public comments from employees and considering them when designing our future personnel system.
Promoting the cultivation of a corporate culture
Promotion of Activity Based Working (ABW)
Otemachi office improvement project
We will respond quickly and flexibly to any changes in the environment and fulfill our business objectives. We are promoting Activity Based Working (ABW) in order to increase the productivity, job satisfaction, and creativity of each employee who is the driving force behind this, and to take on the challenge of creating new value. ABW is the ability of employees to autonomously choose the best working style for their work, "anytime, anywhere, with anyone," regardless of time or place, and we are creating an environment for this.
Since moving to our Otemachi head office in December 2020, we have been promoting ABW with the aim of improving employee productivity. We collect employee opinions through a survey every year and reflect them in our office. In fiscal 2023, we will launch the Otemachi Office Improvement Project to strengthen our office improvement system. In July 2023, we set up guidelines that describe how to use each space in the office, so that everyone can make effective use of each space. In addition, we are taking daily steps to create a more comfortable working environment for employees, such as providing office guidance for new employees and changing spaces that are infrequently used. We are promoting ABW not only at our head office but also at each Complex.