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Talent Management

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Policy and Concept

HR Initiatives Centered around the Global HR Management Policy

The Group defines its ideal employee (individual) and company (organization) within the Global HR Management Policy, and aims for “Enriching lives and the world” by building relationships in which individuals and the organization grow together. Based on Sumitomo’s Business Philosophy underlying the Group’s human resources, we are working to upgrade the HR management cycle. Specifically, we are creating a work environment and workplace culture that serves as the foundation for each and every employee to demonstrate their abilities and potential, and implementing various measures and systems from the perspectives of recruitment, development, right talent to the right assignments, performance management, and fair treatment. At the same time, following the concepts of expanding the pool of Top-Tier Professionals, implementing thorough “Pay for Job, Pay for Performance,” promotion of diversity, equity and inclusion, and enhancing people management skills, we provide a place where each and every employee can realize autonomous growth and self-realization and encourage them to take on new challenges for value creation. Through this cycle, we are maximizing the performance of the organization and our diverse workforce, thereby realizing our vision and creating new value for the Group. Furthermore, important HR management policies, strategies, and measures are discussed at meetings of the Management Council and the HR Management System Committee, an advisory body to the Management Council. The Board of Directors makes decisions, supervises, and monitors these policies accordingly.

Global HR Management Policy

Sumitomo Corporation established the Sumitomo Corporation Group "Global HR Management Policy". This policy sets forth the vision and concept of human resources management on a global basis with the aim of achieving human resources management for the creation of new value. It is used as the foundation for each HR initiative.

01 Why we established this policy

The Sumitomo Corporation Group, through our "Global HR Management Policy", presents a vision for global human resources management.
With this as the foundation of all our HR initiatives, we will implement HR management to foster an environment that creates new value.

02 What we aim for

SC people

The Sumitomo Corporation Group aims to be a group of individuals “creating new value on a global scale, sharing SC Group’s vision and mission, and maintaining high aspirations and a continuous intrinsic motivation with Enterprising Spirit”.

SC organization

The Sumitomo Corporation Group aims to build a Great Place to Work on a global scale, where individuals continuously and passionately create new value.
We aim to be an organization recognized for nurturing talents that continuously take on new challenges throughout the world.

03 Diversity, Equity & Inclusion

The Sumitomo Corporation Group recognizes Diversity, Equity & Inclusion as "the core enabler for value creation, innovation and competitiveness", eliminating any barriers, and pursuing the realization of our shared vision, by leveraging our mix of diverse wisdom.

04 How we realize this aim

The Mindset that Sumitomo Corporation Group values in HR management.

  • STRATEGY DRIVEN

    To realize business growth strategy.


  • GEMBA ORIENTED

    To be responsive to different needs in various businesses, regions, and markets, and to provide flexibility.


  • FAIR & OBJECTIVE

    To treat and reward individuals in a fair manner, with "medium and long-term perspective" and "objectivity".


  • TRANSPARENT & CONSISTENT

    To continue highly transparent operations understood by individuals from different backgrounds, so we can elevate our collective understanding.


  • RESPONSIBLE & ACCOUNTABLE

    To value individual responsibility, commitment, and accountability.


  • RESPECTFUL IN COMMUNICATION

    To convey your own thoughts to another with respect while drawing out the other person’s views so as to build a bridge of understanding.


  • ETHICAL & COMPLIANT

    To comply with local laws, as well as governance systems and agreements.


  1. 1. Talent recruitment

    The Sumitomo Corporation Group continuously endeavors to be attractive to diverse talents. In recruitment, we value the sharing of core values, regardless of one’s background or any dimension of diversity.

  2. 2. Talent development and training

    The Sumitomo Corporation Group values the fundamental significance of "talent development".
    We encourage individuals to grow proactively by continuously learning with a heightened sense of awareness.

  3. 3. For talent success
    ‐ Performance management ‐

    The Sumitomo Corporation Group pursues transparent and fair evaluation for each contribution to organizational growth and value enhancement, thereby connecting the performance management process to the growth of both individuals and organizations.

  4. 4. For talent success
    ‐ Right person in right assignment ‐

    The Sumitomo Corporation Group draws out the full potential of individuals rich with diversity. Through a Talent Review and Succession Planning mechanism, we deploy the right talents to the right assignments according to our business strategy.

  5. 5. Fair treatment

    The Sumitomo Corporation Group, while bearing in mind Total Rewards, spotlights and respects different promoters of value creation and pursues fair treatment.

  6. 6. Work environment and workplace culture that support talents

    The Sumitomo Corporation Group provides a safe, healthy and sound work environment.
    We create a workplace culture that provides psychological safety and encourages growth of individuals and trustworthy relationships.

05 Who takes responsibility for HR Management

All members of the Sumitomo Corporation Group assume the ownership and responsibility to execute this "Global HR Management Policy".

What we aim for

Based on this policy, we seek to increase talent throughout the Group who can create new value on a global scale, sharing the Group’s vision and mission, and maintaining high aspirations and a continuous intrinsic motivation with Enterprising Spirit. We also aim to build a “Great Place to Work” on a global scale, where individuals continuously and passionately create new value. We aim to be an organization recognized for nurturing talent that continuously take on new challenges throughout the world.

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Recruiting

Basic Policy on Recruiting

As a company that engages in global business, Sumitomo Corporation Group requires human resources who are attuned to our businesses and principles, have high aspirations and a continuous intrinsic motivation with Enterprising Spirit, and a willingness to create new value on a global scale. Our basic policy is to conduct fair and equitable recruitment that respects fundamental human rights without discrimination, and hires employees based on the professionalism, abilities, experience, potential, and aspirations of applicants regardless of nationality, gender, age and other attributes. In addition to hiring new graduates, we actively recruit mid-career human resources talent hires and flexibly recruit other talented individuals throughout the year in line alignment with our management and business strategies.

Recruitment of New Graduates

We hold various seminars relating to recruitment and create numerous opportunities to support the career development of post and undergraduate students.

Next Leaders' Camp

We are holding Next Leaders’ Camp as a program that supports development of the career views of students. With the aim of offering true career education that goes beyond just recruitment activities, the program helps to resolve the questions and concerns that students may have when considering their careers. The Next Leaders’ Camp includes a “Global Program” and a “Sustainability Program”. The “Sustainability Program”, for example, offers lectures on the social context of demands for sustainability and actual business analysis using case studies from our company. Its aim is to deepen the participant’s understanding of the role of Sumitomo Corporation Group and the values that we should demonstrate. One participating student commented, “I was able to notice important values when thinking about my own career”.
〈Number of Past Participants〉
FY2020: 1,322 / FY2021: 2,548 / FY2022: 271

  • Conducted online in FY2020 and FY2021, in-person in FY2022

Internships for University and Graduate Students

We offer internships to university and graduate students every year to have them experience the business of an integrated trading company and to provide an opportunity to support the development of their career views. In FY2022, we conducted two internship programs. The first program was a business experience program on a renewable energy project. The second program, a business creating program on an agricultural business, allowed participants to experience the process of creating a new business with design thinking skills. Participants can experience the process of bringing a business into reality, and through this process also develop their career views as well as deepen an understanding of the process of new value creation. 
〈Number of Past Participants〉
FY2020: 164 / FY2021: 148 / FY2022: 230

Recruitment of Mid-career Human Resources

The business environment surrounding us is changing rapidly. In order to survive the competition in this age of tremendous changes, we need to take on the challenge of doing business in new fields while expanding and advancing our existing businesses. To respond to these business needs, in line with our business strategy, we recruit mid-career professionals with diverse expertise and knowledge. Our mid-career hires have a wide range of backgrounds and include lawyers, public accountants, and those with other qualifications, as well as people with experience in the manufacturing, finance, media, IT, and other industries. These professionals from various fields are making use of their respective expertise for the benefit of our company.
Sumitomo Corporation recruits mid-career workers not only for their expertise and knowledge. We expect these employees who have diverse backgrounds, to revitalize the company and organizations with their ways of thinking, work methods, out-of-the-box ideas, values, and help us enhance our competitive strength. Sumitomo Corporation will continue to promote mid-career recruitment along with the employment of new graduates for the retention of a diverse workforce.

Utilizing the Alumni Network

The SC Alumni Network was established in FY2019 to provide opportunities for alumni now working in other companies to interact with current officers and employees of Sumitomo Corporation. The purpose of the network is to foster an open corporate culture while creating new business opportunities by merging various knowledge and personal networks inside and outside the company. Alumni are expected to play a supporting role in securing talent while working to create a more interconnected network.

Development

Basic Human Resources Development Principles

For the Sumitomo Corporation Group our talent are the most important management capital. The Global HR Management Policy established in 2020 describes the “ideal individual” as “a person who is creating new value on a global scale, sharing SC Group’s vision and mission, and maintaining high aspirations and a continuous intrinsic motivation with Enterprising Spirit”. The most important thing when bringing this into reality is for each individual to enhance their abilities, or expertise which are valued globally. A combination of on-the-job and off-the-job training is essential for developing a group of such top-tier professionals.
By “generalizing and conceptualizing” experiences through “introspection and reflection” on work successes and failures and by acquiring skills and knowledge necessary for pursuing work, our talent become capable to engage in more advanced assignments.

An Introduction to our Talent Development Programs

As Sumisho Business College (SBC), we organize 300 courses of OFF-JT training a year and that offers individuals various types of programs to acquire the knowledge and skills needed to be active in each field. In addition, we believe talent development based on individual career perspectives, experiences, aptitudes is important, and therefore, we focus on career development training to ensure that as many people as possible can work with high motivation and comprehensively demonstrate their professionalism. Moreover, there are training programs which enhance people management skills and promote DE&I so that supervisors can address and motivate team members and lead diverse human resources to link organizational growth as well as individual growth. We also offer long-term programs for selected employees that allow employees to acquire the knowledge and skills necessary for business management. Many of those completing the program have been playing a leading role in managing group companies in Japan and abroad. In our efforts to enhance the development of our talent, in addition to in-house training programs, we make effective use of external high-level training programs, such as overseas executive programs.

Sumitomo Corporation Group Personnel Development Programs

Sumisho Business College (SBC)

As Sumisho Business College (SBC), we organize around 300 courses of OFF-JT training a year and that offers individuals various types of programs to acquire the knowledge and skills needed to be active in each field. In addition, we believe human resources development based on individual career perspectives, experiences, aptitudes, and issues is important, and therefore, we focus on career development training to ensure that as many people as possible can work with high motivation and comprehensively demonstrate their professionalism. Moreover, there are training programs those enhances people management skills and promote Diversity, Equity & Inclusion (DE & I) so that supervisors can address and motivate team members and unite diverse human resources to link organizational and individual growth. We also offer Long-Term Programs for Selected Employees that allows employees to acquire the knowledge and skills necessary for business management. Many of those completing the program have been playing a leading role in managing associated companies in Japan and abroad. In our efforts to enhance the development of human resources, we make effective use of external high level training programs, such as overseas executive programs, in addition to in-house training programs.

Sumisho Business College (SBC): Training Programs and OJT Programs

Sumisho Business College (SBC): Training Programs and OJT Programs

~FY 2022 SBC Training Data~

Total number of participants

Number of participants by major program (including participants from Group companies)

<Reference:FY 2022 Entire Sumitomo Corporation Training Data>

  SBC Training Training Conducted by Business Units (excluding SBC Training) Total
Number of sessions (per year) 329 sessions 1,376 sessions 1,705 sessions
Total number of participants (non - consolidated) 22,901 people 69,545 people 92,446 people
Total training hours (non - consolidated) 80,933 hours 96,387 hours 177,320 hours
Average number of training courses taken per employee (non - consolidated) 4.5 sessions 13.7 sessions 18.2 sessions
Hours of training per employee (non - consolidated) 16.0 hours 19.0 hours 35.0 hours

Long-Term Programs for Selected Employees

Long-term programs for selected employees are intended to foster a management perspective and for participants to make self-reform as well as to acquire skills for practical leadership, which can be difficult to obtain through short-term programs. Participants in each program are selected from among those who are demonstrating their abilities at the forefront of business and those who are expected to take on leadership roles in the future. These long-term programs contribute to develop and foster Top-tier professionals to be active in various fields.

SEP(SumitomoExecutiveProgram)

Targeting department and division managers who are expected to fill executive manager roles in the future and are expected to possess a companywide management perspective, this program provides opportunities to gain an insight into the big-picture perspective, thinking, and determination that executives should possess through dialogues with top management and members from different industries, as well as through receiving advice from management and inspiration from outside the company. Approximately 30 employees participate in the program.

MCP(MIRAI Creator Program)

This program targets employees who are required to experience strategic planning from the perspective of the head of Strategic Business Units (SBU) and general managers as future executive managers. Through a variety of case studies, participants repeatedly engage in simulated management experiences and learn big-picture thinking, strategic thinking, decision-making skills, and leadership. In addition, through visits to the Besshi Copper Mine and leadership philosophy sessions, participants solidify their own theories and worldviews related to management and organizational human resources, and cultivate their own management views. Approximately 25 employees participate in this program, and after attending a total of about 20 lectures over a period of about 10 months, they will make a presentation on the theme of "what they want to be in 10 years as the head of an SBU/division/main business company.

Participation in Domestic and Overseas Executive Programs at the Company’s Expense

Employees who are potential candidates for future executive management positions in their respective organizations are sent to executive programs at domestic and overseas business schools at the company’s expense.
Each year, at least 30 employees are sent to business schools in Japan, and at least 10 employees are sent to leading business schools overseas, with the objectives of fostering awareness and thinking as a future executive, acquiring comprehensive management knowledge and executive decision-making capabilities, and growing through interactions with other personnel and executives.

Selective Programs

More than 80 different selective programs are available, covering comprehensive knowledge and skills, from basic to advanced levels, that will be needed to play a leading role as an executive who can contribute to society through business. After completing the “Introductory Seminars” and the “Basic Seminars” where employees can acquire the basic skills and general knowledge required to work for an integrated trading company, employees can choose any of the programs where they can learn about knowledge and skills required for them to effectively pursue their work. Regardless of their current department or job, employees are supported with training so that they can learn, or continue learning the literacy, specialized knowledge, theories, and frameworks required for management.

Overseas and Domestic Programs

As a global business group, the Sumitomo Corporation Group offers many intern programs to develop employees who can work effectively around the world.
These include a trainee program designed to develop talent who can play an active role on the global stage, a language training program that develops language and regional specialists, an overseas study program primarily for acquisition of an MBA, a venture intern program designed to foster individual strengths in domestic startups, and a global intern program that focuses on business in emerging countries.
Each year, 80 to 100 trainees in these training programs are dispatched to different regions of the world, including Japan.

In-house Education and Awareness-raising on Respect for Human Rights

As a global organization contributing broadly to society, the Sumitomo Corporation Group holds management principles that place prime importance on integrity and sound management with utmost respect for the individual. Based on this principle, the Group developed the “Human Rights Policy” and the “CSR Action Guidelines for Supply Chain Management” that take into consideration human rights and other various issues. We will respect human rights to take our social responsibility and pursue sustainable growth with society.
With the above considered, we have established a committee to promote human rights and Dowa issues, and we have a forum to discuss internal issues on human rights such as Dowa issues Buraku discrimination, people with disabilities, foreign residents, human rights violations on the Internet and other issues related to human rights every year. We also invite external lecturers to conduct annual human rights training to raise employee awareness of human rights issues.
We also distributed e-learning content on respecting human rights in business and conducted other internal educational programs for further action.
In addition, training seminars on mental health and human resources management have been conducted. In Level-Specific Programs for managers, programs on harassment prevention have also been added to maintain a harassment-free work environment and to provide suggestions on how to address harassment in case it occurs. Through these efforts, we provide employees with education and raise their awareness to thoroughly prevent human rights violations at work.

Global Human Resources Development Program

SBC implements this program to help participants acquire the basic knowledge and skills needed for cross-cultural communication, leadership and personnel management, which are essential for expatriate staff of an integrated trading company. SBC also implements three types of OJT programs as important capacity-building tools, and at least 100 young career-track employees are dispatched overseas annually through these programs.

Global Human Resources Development Program

Level-Specific Programs

At the time of promotion, we arrange training programs that offers understanding to the internal rules and literacy necessary for conducting business. From new employee to senior management, participants in the training will understand what is expected of them and what roles they should fulfill, thereby acquiring tips on how to transform themselves. We offer Level-Specific Programs for the entire Sumitomo Corporation Group. Through the program participation, they build a rich network within the Sumitomo Corporation Group. In these programs, emphasis is placed on fostering leadership that can contribute to society through business, offering participants an opportunity to gain awareness for autonomous personal growth.

New Employee Development Structure・Instrutor System / New Employee Supporter System

The Instructor System and Newcomer Supporter System are important initial training programs to develop new employees into full-fledged working members of society and Sumitomo Corporation employee.

Instructor System

We provide on-the-job training to help new employees start their first experience as a working member of society smoothly (explanation of job duties and basic behavior as a working member of society), comprehensive education, values to have as a Sumitomo Corporation employee, and the transmission of the organization's work culture, etc. to foster a mindset that will be the foundation for growth as a Sumitomo Corporation employee.

New Employee Supporter System

In FY 2022, we introduced the New Employee Supporter System with the aim of supporting new employees in their working environment. The newcomer supporter is a senior employee who stands a little apart from the new employee and provides support and training through periodic one-on-one interviews. We aim to develop human resources throughout the organization in cooperation with supervisors and instructors.

  Instructor New Employee Supporter
Requirement P1 (AP possible)
Term 1 year

※Supervisor, as "Promoter," provide guidance from a higher perspective and create an organization-wide environment to guide and develop new employee.

Workplace-wide Human Resources Development System Workplace-wide Human Resources Development System

Programs for Sumitomo Corporation Group companies within and outside Japan

The Sumitomo Corporation Group also attributes importance to human resources development at Group companies in and outside Japan. We make use of the development know-how gained at Sumitomo Corporation to provide Group companies with training programs suitable for them. These programs also provide participants with opportunities for interpersonal exchange and to build great networks.

Development program for locally hired employees

Overseas National Staff Training

We provide national staff of our overseas bases and Group companies with level-specific training in English, with a view to helping them achieve growth.
We invite locally hired employees from across the world to the Head Office in Tokyo to speak to them about the Sumitomo Corporation Group’s philosophy and strategies and help them acquire business skills such as cross-cultural leadership. Through this training they can develop a sense of unity and improve their skills as members of the Group.
*FY 2020~2022 conducted online

Long-term programs to develop selected employees of Group companies into managerial talent

School for developing strategic professionals (9 months)

Targeting Sumitomo Corporation Group employees who are expected to become managers and future leaders of the company, we implement a leadership program in which participants acquire the skills necessary to set visions and strategies from a long-term perspective and hone the leadership abilities they will need to implement the strategies.



 

Development program for employees of domestic Group companies

Level-specific programs for Sumitomo Corporation Group companies

For Group companies in Japan, we provide a range of programs for new employees, mid-level employees, senior managers and clerical employees to help them acquire the leadership mindset and skills required for their respective positions and make progress for further improvement.

Sumitomo Corporation Global HRD Center

- A training center to develop global talent and for the use as a strategic multipurpose facility -

The Sumitomo Corporation Global HRD Center in Ginza, Tokyo serves as a training center to develop global talent as well as a strategic multipurpose facility. International colleagues from different organizations and countries all over the world meet at this facility for intensive discussions on the future visions and strategies of the Sumitomo Corporation Group.

Sumitomo Corporation Global HRD Center

Job Training Programs at Toyota Iraq

Sumitomo Corporation conducts job training programs through Toyota Iraq, a subsidiary, to create local opportunities for stable employment and enhance the skills of job seekers. Prolonged conflict in Iraq has had tremendous impacts on the people, and more than 3 million people have been forced to leave their homes and have become internally displaced persons (IDPs).
Over recent years, employment has become a more serious issue for the younger generation in particular, and creating local skills training and employment opportunities is an urgent matter. Because of such problems, Toyota Iraq has been working with the UNDP since 2016 to conduct job training programs for such IDPs. Starting in 2020, the company has also been working with the International Organization for Migration, an organization affiliated with the United Nations, to conduct new programs offered to persons other than IDPs as well. To date, 108 persons have completed a total of 9 job training programs. These graduates have been offered support in finding work at local companies, and the programs themselves are continuing.
Sumitomo Corporation hopes to achieve sustainable development of local communities through these programs and will continue to support the creation of job opportunities and skill enhancement in Iraq through these business activities.

Trainees receiving training on vehicle maintenance, parts warehouse management and customer services

Allocation, Performance Management, Compensation and Others

Enhancement of Talent Management

Talent development does not happen overnight. There is a need to envision, develop and deploy human resources required for the growth of each business in the medium to long-term. In order to assign talent continuously and strategically in line with business strategies on a global basis, the Sumitomo Corporation Group implements the measures below to help all talent to play an active role, regardless of whether they belong to Sumitomo Corporation non-consolidated, overseas offices or group companies.

To identify key positions for our group management which are essential to execute our group strategy.

Each key position candidate will be selected not only for the next generation but also its following generation, and a successor training plan will then be put in place. Additionally, candidates are periodically reviewed and replaced.

To enable key position candidates to acquire the necessary experience, skills, and abilities, we will effectively combine job rotation, job assignment, and off-the-job training.

Inheritance of Sumitomo's Business Philosophy

Sumitomo's Business Philosophy stresses the need for an enterprising spirit to stay a step ahead in dealing with change, while ascribing importance to maintaining integrity and sound management, avoiding easy gains, and working for the public interest, without being misled by short-term immediate changes. This philosophy has continuously formed the basis of Sumitomo Corporation Group's business for more than 400 years. With the aim of experiencing and assimilating Sumitomo’s Business Philosophy, which is the basis of the Group’s Management Principles, we conduct training annually at Besshi Copper Mine in Niihama City, Ehime Prefecture (Trainings in FY2020 and FY2021 were cancelled due to the spread of COVID-19). The Besshi Copper Mine continued to produce copper for approximately 280 years from its opening in 1691 to its closure in 1973 and supported the foundation of Sumitomo's business. The visit of this mine is an opportunity to reconfirm the role that the Sumitomo Corporation Group should play in society. Also, all employees learn the history of Besshi Copper Mine upon joining the company.

Development of Global Talent

Advancing Global Measures to Develop Talent

Aiming to recruit and develop talent who can lead global business operations, the Sumitomo Corporation Group is focusing on promoting and developing locally hired employees in its overseas offices and Group companies.
As part of these efforts, we conduct training programs for locally hired employees at different career levels, such as senior executives, managers, and senior staffs. These training programs establish a shared sense of the Sumitomo Corporation Group's corporate DNA and strengthen the sense of unity among employees as members of the Group by reaffirming participants' understanding of Sumitomo’s Business Philosophy and the Group's management principles.

GLP*1
(For executives)
MDP*2
(For managers)
IOT*3
(For staff engaged in practical operations)
Total number of participants
2012 41 110 131 288
2013 32 130 79 247
2014 33 106 97 242
2015 33 101 105
244
2016 30
101
103
234
2017 31
112
115
258
2018 32
130
119
281
2019 49
124
77
250
2020 32
(MDP and IOT joint-program) 54
86*4
2021 0 52 50 102*4
2022 16
(MDP and IOT joint-program) 38
54
  1. GLP=Global Leadership Program
  2. MDP=Management Development Program
  3. IOT=Inter Office Training
  4. Program held online in 2020 to 2022

Global Talent

Sumitomo Corporation Group promotes placing the right talent to the right assignments on a global basis, regardless of nationality and affiliation. Based on this policy, locally hired staff and employees of overseas offices and group companies are transferred beyond the borders of countries and companies. We positively appoint local staff to executive positions of overseas offices to promote our policy of placing the right talent to the right assignments on a global basis.

Global Talent

 Executives / upper managements In regional offices: 37

As of November 2023

Human Resource System and Evaluation Mechanism

Optimal Allocation Under Human Resource System

Under our human resource system, to achieve the “Intrinsic motivation/Great Place to Work” described in the Global HR Management Policy, we conduct talent allocation after thorough alignment with the company’s expectations and the individual’s career aspirations. As an integrated trading company, continuous development of talent who possess a variety of knowledge and expertise is essential for the sustainable creation of value tailored to the social issues of the times, and we will continue assignment rotations to expand this talent pool. To develop Top-Tier Professionals as specified in the policy, more diverse rotations will be required, and there are cases such as longer term assignments in a particular field to enhance the talent’s expertise in that field.

Introduction of the job grading system

  • Terminate seniority-based system for managers and introduce a job grading system that determines grades according to job size.
  • Maximize organizational performance by optimally allocating the best talents with an emphasis on expertise and skills.
  • Pursue human resource revitalization in all generations, from recent university graduates to veteran employees, through job-based HR management.
  • Achieve a shift to diverse models of professional training with double track formats consisting of expert job groups, which demonstrate high levels of creativity and expertise, and management job groups, which are responsible for organizational management.

Autonomous career development

  • By introducing “360-degree evaluation” and “absolute evaluation,” we will improve fairness in our evaluations and draw out our talents’ potential by paying earnest and full attention to them as individuals.
  • Through career assessment, we will enhance our reviews on each of the individuals’ career trajectories, experience, aptitude and challenges to optimize how we match training needs with business needs.
  • We will support the autonomous career development of each individual through a diversity of settings where they can take on challenges in the course of advancing their business objectives and also through an extensive human resource development program.

Shift of Talent Under SHIFT 2023

As we re-allocate company-wide managerial resources, in addition to the financial aspects, we are addressing human resource aspects by undertaking optimal allocation of talent in conjunction with the reconstruction of the business portfolio as well as strategic talent allocation to businesses covered by the strategic investment fund. For this re-allocation, we are tracking the overall and company-wide movement in our talent under SHIFT 2023, while strongly promoting the matching of organizational talent needs and individual aptitudes and aspirations, and expanding in-house recruiting systems to accelerate shift of talent.

Succession Planning / Enhancement of Talent Database

To continuously realize strategic allocation of talent as well as the development and appointment of managerial talent across our consolidated global network and according to our business strategies, we undertake succession planning for the next generation, and the generation after that, for key positions (equivalent to HQ general manager and above). To ensure that candidates for key positions are equipped with the necessary experience, skills, and other requirements, we develop their capabilities accordingly, so that we can enhance the talent pool both quantitatively and qualitatively. As tools to achieve this, in addition to adopting a job grading framework which enables to compare job size on a global basis, we are also working to create an HR database of human resources including talent in overseas offices. In 2019, we also adopted the Global Mobility Policy as a set of groupwide policies stipulating compensation and benefit packages for international assignments. This serves as a platform for promoting assignment of talent across countries and regions.

Absolute Evaluation / 360-degree Evaluation

As part of our current efforts to reform talent management, we are implementing a range of measures that enhance people management skills in dealing with individuals. We have introduced an “absolute evaluation” system that focuses on the individual. Instead of comparing specific actions, progress, and outcomes against those of others, the evaluation is based on the degree of achievements of the individual’s assignments and assignment-related objectives. We have also adopted a “360-degree evaluation” as a mechanism for improving the objectivity and validity of the “absolute evaluation,” and dealing sincerely with the individual to draw out their potential. The 360-degree evaluation is currently applied to managers and above, however, by soliciting wide-ranging comments from colleagues involved through work, the supervisors can make their final evaluation based on those comments. In this way, we aim to achieve a greater level of information on how others see the individual, which improves the people management skills of the supervisors and enables them to deal more sincerely with their subordinates, and it also provides opportunities for the subordinates to gain better insights as well.
In addition, a career assessment interview is held once a year between supervisors and subordinates to help reflect and align the career views of the subordinates with their supervisor. In these interviews, we review the individual’s career goals, experience, aptitude, and challenges from the medium to long-term perspective as we align company expectations for work and personal development needs with the individual’s own aspirations. This also aims to facilitate communication and help individuals understand that the interviews offer opportunities for superiors and subordinates to deal comprehensively with career plans and challenges to overcome. We are expanding our training programs to improve such communication skills to create references for effectively communicating with subordinates.
Through these evaluation systems and career assessments, we aim to provide support for the development of the individual and open diverse paths which closely attuned to each of them. In addition, we organically combine talent development measures, such as our in-house recruiting system and regular staff rotations, with talent development tools, such as our various Off-JT training programs. The aim is to support self-sustaining growth and diverse career development for each individual so that we can continuously develop Top-Tier professionals.

Evaluation based on the Progress of Strategy Execution

We have introduced evaluations based on the progress of strategy execution as a measure to enhance each individual’s commitment in accomplishing each organizational strategy. Under this system, progress toward achievement of the KAIs and KPIs established at the SBU level is evaluated and reflected in individual bonuses. This leads to the internal sharing of good practices toward KAI/KPI execution and the enhancement of the overall PDCA cycle for the accomplishment of each organizational strategy.

Investment Performance-linked Compensation

We have adopted “a system of compensation linked to investment performance” as part of our efforts to strictly select investments and strengthen post-investment value-creation. By reflecting the performance of new investment projects in remuneration, this system seeks to improve the probability of success of new large-scale investments, and also the sense of ownership of the individual executing the investment.

Relations with Employees

0→1 Challenge

0→1 Challenge (Zero to One Challenge) is an internal entrepreneurship program launched in FY2018, where all Sumitomo Corporation Group employees worldwide regardless of affiliation or title are eligible to participate. Its aim is to enable individuals in each workplace to realize new business ideas. The concept of the challenge is to create businesses from zero (ideas never seen before) to one (creating next-generation businesses). In addition to creating new businesses, the program serves as an opportunity for employee development and fosters a culture of taking on challenges. The visions and aspirations of previous participants, who have worked with enthusiasm and dedication to realize their own ideas, have had a ripple effect to the company and led to a change of mindset among employees. About 1,000 applications were received over the five years from FY2018 to FY2022. As of the end of FY2022, 11 ideas, including ones that passed the selection process in previous years, are in the process of achieving commercialization. Program participants are working passionately to bring to reality new ideas that are both new to Sumitomo Corporation Group and that respond to new trends in our society. Even after the challenge is over, previous challengers play active roles in their organization, and audiences of the pitch contests witness the participants' challenges and become inspired. This program energizes the organization and leads to new initiatives in existing businesses and increased interaction with others internally and externally.

EMEA-CIS

Americas

Asia

Labor Union

Based on the collective agreement with the Sumitomo Corporation Labor Union, Sumitomo Corporation provides its employees with explanations of management policy and business status, as well as opportunities to discuss wages, labor conditions, personnel affairs, safety and health, and employee benefits on a regular basis. The agreement defines that the company must maintain and improve employment conditions and ensure stable lives for employees, and the labor union must keep order and discipline at work and make an effort to increase labor efficiency, and both parties must cooperate with each other in developing the company‘s business. To achieve this objective, we make every effort to have serious and sufficient discussions on each specific project, while ensuring mutual understanding and trust. In addition to matters for collective bargaining and negotiations on an official level, we hold various meetings to share opinions on a wide range of issues. They include informal meetings with the president, round-table discussions on business performance, medium-term management plan and related issues, Human Resources Strategy and personnel systems, and work styles. We also hold seminars organized jointly with the labor union. Sumitomo Corporation adopts a union shop system in which all employees participate, excluding executives above a certain level and employees classified as non-union members based on an individual agreement considering the nature of their jobs. As of March 2023, the number of members of the Sumitomo Corporation Labor Union is 3,107, accounting for 62% of all employees of Sumitomo Corporation (non-consolidated basis).

Engagement Survey

Since FY2022, Sumitomo Corporation has been conducting the Engagement Survey*1 for all of its employees. There is a positive correlation between the level of employee engagement and organizational profitability and productivity. This survey is intended to be used as one of the management indicators to grasp the current state of the company toward the realization of our vision, and to continuously implement realistic actions. The results of the survey are affected by not only the area of HR management but also by various factors such as business strategy, organizational structure, and work procedures. By carefully interpreting them, we are promoting various measures at the company-wide and on-site levels. From FY2023, the survey is conducted for all employees worldwide, including locally hired employees in domestic and overseas offices, and “Employee Engagement”*2 has been added as one of the indicators for calculating stock compensation in the executive compensation system.
In addition, we have set year-on-year improvement in Employee Engagement as a target calculated in the Engagement Survey as a target, and are checking whether it has been achieved.

  1. Previously, Employee Awareness Surveys were conducted once every three years.
  2. A collective term for “Employee Engagement Index” and “Employee Enablement Index” both of which are calculated in the Engagement Survey.