Human Capital
SMK is committed to developing individuals with a strong drive to take on new challenges, along with a spirit of independence, self-regulation, self-help, and self-responsibility. We continuously enhance various systems that empower employees to maximize their potential and grow.
Governance Structure
The Board of Directors Meeting deliberates and decides on human capital investments related to the management strategy and communicates this to the Executive Officers Meeting, while human capital investments for group employees in general are deliberated and decided on at the Executive Officers Meeting. Under the Executive Officers Meeting, we have established a Personnel Evaluation Committee that deliberates on various HR systems including support for diverse talent, and an HR Ability Development/Utilization Meeting that discusses talent development. The HR Ability Development/Utilization Meeting determines group-wide training and development policies, shares information about training implementation status at each location, and exchanges opinions on new initiatives.
HR system and Human Capital Development
Transnational HR System
SMK provides equal opportunities to all employees by applying a unified grading system across the entire group. In addition, all major HR systems, including talent development, evaluation, and promotion systems, are operated on a transnational basis.
Employee Training and Development Policy
SMK has developed an education and training system designed to support employees at all levels, from new hires to managers, across regions, levels, and functions. We offer a combination of class-based training, job-specific training (e.g., sales, engineering, and production management), on-the-job training provided by assigned departments, and correspondence courses, with employees who complete their courses within the designated period receiving a 50% tuition reimbursement.
As a transnational enterprise, SMK adopted English as its official language in April 2001. In Japan, various language training programs are available, including in-house English and Chinese classes as well as tuition for external language schools.
In FY2024, we also introduced a reskilling initiative.
Developing Executive Personnel
Based on the executive talent selection system and the successor nomination system, we are fostering the development of executive talent by systematically implementing job rotations and operational handovers. Additionally, we regularly hold “SMK Management School,” a training program for executive talent.
For data on human capital development, please refer to the ESG DATA page.
Evaluation System
Management by Objectives
Employees set their own work goals for each fiscal year. At the end of the year, they review their achievements with their supervisor, evaluate their progress, and discuss goals for the next year. This system ensures fair assessment of employees' contributions and growth while fostering their development. Goal achievement levels are linked to performance evaluations, allowing individual efforts to be reflected in compensation and career progression.
Personal Statement
SMK conducts an annual Personal Statement Program for all employees. This program provides an opportunity for employees to submit suggestions, requests, or transfer preferences to the company, other departments, or their current department.
Career Autonomy
To support employee career autonomy, we conduct career training for employees when they reach ages 35, 50, and 55 to update their career plans.
Furthermore, we operate an in-house recruitment system and FA system to provide opportunities for employees seeking career autonomy to choose their workplace based on their own will.
In-House Recruitment System
The in-house recruitment system allows employees to voluntarily apply for positions in new projects or to fill vacant posts. The department from which the successful candidate is transferring has no right to refuse the move.
In-House FA System
The FA system grants FA rights to employees with certain work experience, allowing them to transfer to their desired workplace if successful. This system is designed to provide employees with opportunities to demonstrate their abilities and enhance their motivation.
Diversity, Equity & Inclusion
SMK promotes the creation of an organization that respects diversity and supports the success of diverse talents, regardless of nationality or gender.
Female Employees
SMK has been ahead of its time in supporting employees in balancing childcare and work by setting a maximum childcare leave period of three years. In addition to proactively introducing systems that enable flexible work styles, such as telework and a four-day workweek, we are implementing a selection system to train candidates for leadership positions. We are also actively recruiting female talent through both new graduate and mid-career hiring.
SMK's action plan under the Act on Promotion of Women's Participation and Advancement in the Workplace sets forth a five-year focus on strengthening female recruitment efforts, exploring flexible work arrangements that enable both men and women to thrive, and developing future female managers. We are actively advancing these initiatives.
Non-Japanese Employees
To foster a culture in which non-Japanese human resources can actively participate, we operate an integrated grading and evaluation system under a transnational HR system based on uniform standards for all Group companies in Japan and overseas.
In addition, by making English and Chinese our official languages, we are creating an environment that facilitates the involvement of non-Japanese employees, supporting their active participation within Japan and the localization of overseas site management.
Mid-Career Employees
Whether new graduate hires or mid-career hires, we are conducting proactive recruitment worldwide, and many employees hired through mid-career recruitment are actively contributing at SMK. Our aim is for the company to develop by way of mid-career hires utilizing their diverse experience.
Employees with Disabilities
At SMK, we strive to create a comfortable work environment for all employees, regardless of whether or not they have disabilities, and proactively support long-term employment.
For data on diversity, please refer to the ESG DATA page.
Employment and Labor Relations
SMK strives to make it possible for employees to lead pleasant and enriched lives, by guaranteeing a comfortable and safe work environment and respecting our employees' dignity and individuality.
Observance of International Rules
SMK observes international rules while respecting local customs and culture. We operate our business in a manner that contributes to the development of each location as a "good corporate citizen."
Labor Relations with Good Communication
SMK has built a good relationship between management and employees based on mutual understanding. Every month, we hold the Central Joint Labor-Management Council, where discussions take place on sharing business conditions and improving HR systems.
Work-Life Balance and Benefits
Enhanced Work-Life Balance
SMK has worked to enhance our unique systems beyond the requirements of relevant laws, ensuring that each employee can fully utilize their abilities in line with diversifying lifestyles. Our support system for employees to lead fulfilling lives includes flexible working hours, childcare and nursing leave, and reduced working hours. Additionally, our business locations across the globe, operating in different regions, offer a variety of systems tailored to local customs and needs.
Flexible Working Hours
All employees can utilize the flexible working hours system, with core hours from 10:20 am to 3:35 pm. This system allows employees to be evaluated based on job performance rather than fixed working hours, emphasizing individual autonomy and the ability to demonstrate independence.
Teleworking
This system, available to all employees for any reason, allows working up to four days a week in any location, as long as security can be ensured.
Flexible Days Off
In addition to company-wide days off, employees can take four consecutive days off at a time of their choosing. By combining these with weekends and national holidays, employees can enjoy longer breaks from work.
Childcare Leave
Employees (both men and women) who are devoting themselves to childcare can take up to three years of leave.
The number of male employees wishing to take childcare leave is increasing yearly, and to help them balance maintaining their livelihood with participating in childcare, we have relaxed absence deductions for childcare leave at birth. We also provide detailed explanations of the system to male employees whose spouses are expecting a baby.
Nursing Leave
Employees who are devoting themselves to caring for their parents, spouse, children, or other family members can take up to one year of leave.
Other Leave of Absence
Employees are also permitted to take a leave of absence for reasons such as volunteering or self-development.
Reduced Working Hours
This system supports employees who are balancing work with childcare or nursing care. Daily working hours range from 5 hours and 45 minutes to 7 hours and 45 minutes, depending on the employee's needs. The applicable periods are as follows:
- Childcare:
- Until the child starts attending primary school
- Nursing:
- Up to one year
Rehabilitation Work
This system supports a smooth return to work for employees who have been absent from work for a long period due to illness or injury. Daily working hours range from 1 hour and 30 minutes to 7 hours and 45 minutes, depending on the employee’s needs. The maximum applicable period is seven months.
Retirement Benefits (SMK Corporate Pension Fund)
SMK's retirement benefits system is a cash-balance plan based on a points system. The amount of retirement benefits is determined by multiplying the cumulative total of the length of service points and evaluation points earned each year by a specific monetary value per point, with accumulated interest added. This system eliminates the seniority-based approach and focuses on performance and ability.
Defined Contribution Pension Scheme
The company contributes a fixed percentage of the employee's base pay each month, which the employee can instruct on how to invest. The accumulated amount from the investment can be received as a pension starting at the age of sixty. Employees who choose not to invest under this scheme receive an amount equivalent to the contribution added to their monthly salary.
Scholarship Program for Employees' Children
SMK provides non-repayable scholarships to the children of employees who are attending universities, junior colleges, professional training colleges, or high schools. We support their development with the hope that they will grow into individuals who can contribute to the development of Japan and the world after graduation.