Financial Well-being
Performance Evaluation and Compensation
Personnel Handling based on Position-based HR Management
To achieve our purpose, the Fujitsu Group aims to be an organization that fosters innovation throughout society. We strive to quickly and agilely assemble our talented individuals from across the Group, united by a shared goal: to solve the challenges faced by our customers and society at large.
To foster "career ownership," where employees take on challenges and grow with their own motivation, and to achieve an organizational design and personnel placement system that aligns the right talent with the right positions based on our vision and strategy, the Fujitsu Group promotes Position-based HR Management as a global human resource platform. This initiative supports the growth and actions of each employee.
Within the HR System based on Position-based HR Management, we have established the “FUJITSU Levels”. This framework clearly defines the duties and staffing requirements of each job, classifying them based on their occupation and responsibility levels.
The FUJITSU Level framework determines the corresponding levels of remuneration. Bonuses are awarded based on performance and evaluations for FUJITSU Level 15 positions and below.
For executive positions of FUJITSU Level VP and above, we are implementing an STI (*1)/LTI (*2) scheme that is more closely aligned with performance outcomes. This scheme is also apply to executives both in Japan and overseas.
Remuneration levels are set with the goal of attracting and retaining a diverse and talented workforce. These levels were reviewed in April 2023 against competitive levels in both Japanese and overseas markets, and future remuneration levels will be set as appropriate based on fluctuations in the market levels.
We are also focused on implementing a flexible yet attractive compensation system, where for some occupations and key areas of the business, we have introduced sales incentives and a compensation system for high-level specialist positions.
- (*1) Short Term Incentive : Remuneration set based on the level of achievement of one-year performance targets, etc.
- (*2) Long Term Incentive : Remuneration set based on the level of achievement of medium-to-long-term performance targets, etc.
“Connect” as the Basic HR Management Concept Driving Employees’ Proactive Challenges and Growth
“Connect” is the basic concept that underlies HR management at Fujitsu. It begins with Fujitsu’s purpose and the purpose and vision of the organization and individuals, linking each of these together to form a structure that promotes autonomous growth and presents challenges for each and every employee. Its aim is to generate ongoing impacts for society as well as Fujitsu's customers through the growth of both individuals and the organization. Our evaluation system comprehensively assesses the magnitude of the impacts generated through employees’ learning & growth and behaviors.
“Connect” features the three key elements below.
The second element, in particular, involves frequent one-on-one meetings and quarterly Connect Conversations between managers and team members. These meetings focus on providing feedback on individual performance as well as engaging in dialogue for future growth.
(1) Creating focus area
“Focus area” represents the strategic policies and goals for each business period, aligning with Fujitsu’s Medium-term Management Plan and organizational vision.
Team’s focus areas are established based on the team’s goals, and shared with all team members to maximize team performance.
Each individual’s focus areas are created as challenging goals, mutually agreed upon in the Connect Conversation between a team member and a manager.
(2) Frequent one-on-one meetings and quarterly Connect Conversations
At least once per month, one-on-one meetings are held between managers and team members. Individuals may select the topics of discussion, including reviews of their recent performance and other matters that may not be readily discussed as a part of routine work. Additionally, there are also quarterly one-on-one meetings referred to as “Connect Conversations,” in which the individual’s performance, future growth, and career development are discussed from a mid- to long-term perspective.
Fujitsu highly values the realization of “Aspiration”, “Trust” and “Empathy” as the key values of the Fujitsu Way, which underpins Fujitsu’s medium- and long-term value structure. Accordingly, within the “Connect” system, employees are assessed on their “Impact”, “Behaviors”, and “Learning & Growth” relative to achieving each organization’s vision and Fujitsu’s purpose. (See figure at right.) Further, feedback on an individual’s performance may be gathered from project leaders and related departments to understand a range of factors and assist final evaluation decisions. This allows a manager to gain a multifaceted understanding of workplace relationship factors such as leadership and ability to collaborate, aspects that may be difficult to reflect in a manager-only evaluation. These form comprehensive feedback to the individual employee on their performance and strengths, plus areas for improvement. Managers are subject to an engagement survey in which their team members indicate their trust in the manager. Additionally, “people discussions” are conducted within each organizational unit to discuss measures aimed at the future growth of each employee and to validate the evaluations.
(3) Using evaluations for remuneration and career development supports
Using the evaluation results in considerations of remuneration and career development supportsrt enables us to create mechanisms that ensure consistent personnel management and maximize the growth both of individuals and the organization. This, in turn, can have a significant impact on the organization, customers and society at large.
Employee Benefits Program
The Fujitsu Group has programs in place that are suited to the lifestyles of employees and their families and are designed to enable them to achieve a sense of well-being.
As part of the trend toward more diverse and flexible ways of working, and to allow employees to make their own choices, Fujitsu introduced the ”F Life+” cafeteria plan(*3). In line with the belief that active work, challenges and personal growth for every employee will lead to growth and development for the company, we have established various incentives to provide medium- to long-term motivation. These include a defined contribution pension plan, the "FKABU" employee shareholding association, a property accumulation savings plan, and group insurance benefits. Additional programs implemented by Fujitsu provide support in the areas of housing, medical care, healthcare, and childcare and nursing.
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(*3) Cafeteria plan:
A system under which employees select the employee benefits they want or need from a diverse menu prepared by the company, taking advantage of the chosen options by using "employee benefits points" awarded by the company.
“FKABU”
Fujitsu’s “FKABU” scheme enables employees to purchase Fujitsu shares through contributions of 1,000yen or more deducted from their salary or bonuses. FKABU is more than just an employee benefit; it serves as a mechanism that enables each employee, as a Fujitsu shareholder, to develop a stronger stake in the company by aligning their individual challenges and growth with the organization’s growth. In this way, the scheme contributes to Fujitsu’s growth and creates value for society and customers, fostering a virtuous cycle where the benefits are shared. As a long-term incentive to employees, Fujitsu provides up to 15% of the monthly contribution value, depending on the amount contributed by the employee. Through this system, employees can look to build assets over the long term. Furthermore, with the aim of making this a scheme jointly fostered by employees and management, the name of the FKABU was chosen by a vote among employees, and the character “FKABU-kun” was created to promote greater financial well-being.
Key Initiatives in Regions
Webinars to Boost Financial Literacy in the Americas Region
Fujitsu Americas conducted a series of webinars with the title “Financial Webinars”, aimed at improving the participants’ financial literacy. One of the webinars focused on the topic of post-retirement life planning, helping participants determine how much money they would need to support their lifestyle after retiring, and identify any potential funding gaps that could affect the achievement of their financial goals.
Promoting Financial Well-being in the Global Delivery Business Group by Integrating the Global with the Local
With the aim of improving employees’ financial literacy and helping to ensure their long-term financial security, the Global Delivery Business Group held a worldwide series of educational seminars under the title “Financial Well-being – Global and Local Learning Series”, which incorporated locally tailored initiatives to address specific circumstances in each region. These activities included guidance on pensions, taxes, and managing the household budget, as well as webinars covering the responsible use of credit, investment and financial planning. The program was delivered in conjunction with local awareness-raising campaigns supported by financial experts and partner banks. Employees also had access to additional on-demand support through Employee Assistance Program (EAP) services and other well-being resources.
