Human Capital Management

Human Capital Management Initiatives

The Management Philosophy of the Shindengen Group is “together with society, our customers, and our employees.” We are therefore pursuing human capital management initiatives based on the belief that people’s growth is the source of our corporate value creation and that the diverse and autonomous fusion of various forms of knowledge will lead to the creation of new value and continued growth, and we are implementing our human resources strategy under theme of “connection” with the aim of realizing “personal growth and organizational invigoration.”

Human Resources Strategy: Personal Growth and Organizational Invigoration

The goal of our human resources strategy is to realize “personal growth and organizational invigoration.” Through this strategy we are aiming to create an environment in which every one of our diverse range of employees feels rewarded in their work and is able to freely exercise their capabilities and in which we will create new value through the fusion of autonomous knowledge from individuals.

Theme: Connection

Shindengen Electric Manufacturing Co., Ltd.’s human capital management comprises five fields: a foundation of “respect for human rights” and “health and safety” alongside the fields for action in our human resources strategy of “human resource development,” “empowerment of a diverse range of human resources,” and “expansion of flexible working styles.” And with the aim of rebuilding the connection between people and departments that had begun to weaken due to the COVID-19 pandemic and telecommuting, the theme of our human resources strategy is “connection.”

Human resource development

Shindengen Electric Manufacturing Co., Ltd. faces a significant challenge in securing outstanding human resources amidst a declining workforce. We are therefore pursuing greater diversity in our recruitment, including the hiring of recent graduates with work experience. We are also promoting an in-house side job system and providing career development support to give our employees more opportunities to demonstrate their skills through various career training, division-specific and theme-based training and reskilling in order to improve the retention rate of young employees and to train successors. We provide training to new employees and second and third year employees and training based on qualifications, job type, and position. We also offer open-enrollment self-development education and training such as financial and marketing training, and support the career development of each individual through a self-reporting system and internal recruitment system. Moreover, we are fostering human resources to lead our increasingly globalized business through foreign language training and overseas training for young employees. We have also established a reward system for inventions, ideas, and official qualifications, and we encourage each of our employees to pursue R&D improvements and actively participate in diverse workplaces and work tasks.

Priority Indicators FY2024 Targets FY2024 Results FY2025 Targets

Career training hours (Annually per person, non-consolidated)

40.0hours 44.4hours 40.0hours

Promotion of Diversity

a. Supporting the career development of our female employees

To promote diverse work styles that enable both men and women to thrive equally, our company is increasing the ratio of female employees and expanding opportunities for their active participation. We provide various types of leave, childcare time, and health management time to support employees during childbirth and prenatal/postnatal health care, while enhancing systems for childcare and nursing care leave and encouraging men to take childcare leave.

Priority Indicators FY2024 Targets FY2024 Results FY2025 Targets
 Ratio of Female New Graduate Hires(Non-consolidated)  30.0% 25.7%
Percentage of female employees in their 20s (Non-consolidated)  23.0%
Percentage of men utilizing childcare leave (Non-consolidated) 80.0% 81.5% 100.0%

b.Promoting the active participation of our senior employees

Within our Group, we offer continued employment up to the age of 65 through a reemployment program for employees retiring at 60. Furthermore, since September 2022, we have extended the mandatory retirement age to 65 to retain experienced talent, while promoting expanded opportunities through in-house side jobs and reskilling initiatives.

c.Promoting the active participation of employees with disabilities

Our Group promotes the employment of persons with disabilities and supports their success through ongoing follow-up after joining the company.

Priority Indicators FY2024 Targets FY2024 Results FY2025 Targets
Employment rate of persons with disabilities (Non-consolidated)  2.50% 2.58% 2.50%

d.Supporting the success of our foreign employees

As our business globalizes and the number of overseas employees exceeds that of domestic employees, the Shindengen Group seeks to respect diverse values and experiences through our Group Human Rights Policy and to provide opportunities that maximize each individual’s uniqueness. We believe that these efforts will lead to the creation of new values and businesses that respond to societal changes, as well as the pursuit of employees’ mental well-being.

e.Realizing equality for minorities

Our Group strives to raise awareness through diversity training and is committed to achieving equality for minorities.

Expanding Flexible Working Styles

a.Improving engagement

We have established a proprietary engagement index leveraging a self-reporting system that is run based on our talent management system, and we are striving to improve this index by implementing age- and workplace-responsive measures.

Priority Indicators FY2024 Targets FY2024 Results FY2025 Targets
SDK Engagement Index (Non-consolidated)            60.0 63.1 64.0

b.Improving psychological safety in the workplace

We are implementing measures to revitalize workplace communication. We are also working to revive, such as by designating in-person/office-based workdays, connections between employees that otherwise tend to diminish due to the expansion of telecommuting.

c. Promoting work-life balance

We are striving to provide our employees with a comfortable working environment through a combination of telecommuting and flextime systems, long-term career leave based on years of service, mandatory uptake of 5 days of paid leave per year, and maximum limits on overtime.

Respect for Human Rights

The Shindengen Group has established a human rights policy that emphasizes respect for human rights, provides human rights-related training in areas such as harassment and diversity, and mandates human rights risk assessments, including regular human rights due diligence in our supply chain.

Priority Indicators FY2024 Targets FY2024 Results

FY2025 Targets

Participation rate in human rights training (Non-consolidated)      100% 99.4% 100%

Health and Safety

The Shindengen Group recognizes the importance of promoting health and safety, and is working to constantly improve occupational health and safety as well as to provide safe and healthy working environments for its employees. We have established the Occupational Health and Safety Policy, and have obtained ISO 45001 certification, the international standard for occupational health and safety management systems. We also promote health management and have been recognized among the 2025 Outstanding Organizations of KENKO Investment for Health,

Priority Indicators FY2024 Targets FY2024 Results 2FY2025 Targets
Certified Health and Productivity Management Organization        Obtained Certification for FY2025 Obtained Certification for FY2025 Obtained Certification for FY2026

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