SMK's payroll system has been revised to move from a system emphasizing the equal distribution of wage resources to one emphasizing fair distribution, with the goal of achieving effective use of human resources through a focus on performance and appropriate assignment, reflecting each employee's individual roles and performance.
The system of retirement benefits has been revised to a cash-balance points system based on performance and abilities.
■ Payroll system
The seniority system has been abolished, and a role-based grading system, job group system, and zone-based system limiting the regions to which employees can be assigned have been adopted. These systems focus on employee performance and capacity. Bonuses are also based on performance.
■ Management by objectives
Under this system, each team member determines his or her own job objectives at the start of each year. After the end of the year, he or she meets with his or her manager to evaluate the extent to which these objectives have been met and to discuss objectives for the following year. This system is linked to performance evaluations. Individual effort is reflected in raises and promotions.
■ Self-reporting system
This program is deployed annually for all employees. Under this system, employees can submit reports on their proposals and wishes for the company and their sections or other sections, requests for transfer, and other matters. All proposals, wishes, and requests for transfer are considered and implemented, if deemed appropriate.
■ Internal recruiting system
As one means of making the most effective use of human resources within the company, candidates are recruited internally for positions such as new project staff and positions vacated by transferred or departed personnel. Applicants apply directly to the General Manager of the Human Resources Department, rather than going through their superiors. Their current sections are not permitted to bar such appointments.
■ Flextime system
This system, available to all employees, is designed to enable employees to demonstrate their independence by evaluating them on job performance without requiring certain work hours, outside the core time of 10:20 am-3:35 pm.
■ Teleworking system
This system, available to all employees for any reason, allows working up to 4 days a week in any location, as long as security can be ensured.
■ Retirement benefits system (SMK Corporate Pension Fund)
SMK's retirement benefits system is a cash-balance plan based on a points system. An employee's retirement benefits are determined by multiplying the cumulative total of continuous-service points for each year and evaluation points by an amount paid per point, supplemented by accumulated interest earned. This abolishes the seniority system for retirement benefits as well, replacing it with a system that focuses on performance and ability.
■ Defined-contribution pension scheme
Under this system, the company contributes a fixed percentage of base pay each month, the investment of which each employee then directs. The employee can receive the amount accumulated through such investment as a pension beginning when he or she reaches the age of sixty. Employees not investing their defined contribution under this scheme are paid the amount equivalent to the contribution on top of their monthly salary.