Human Capital Development

Focusing on Employees’ Growth and Development

Human Capital Development

Basic Policy on Human Capital Development

Annual total number of participants (for training provided by Human Resources Development Dept.)Total hours of training: 23,780 hours / The number of hours of training per person: 11 hours

We clearly state, “Employees are essential assets” in The Nabtesco Way.

In order to share the company’s ideal image of the human capital where it is the people who make the company, and to define the direction that all employees should follow, the Nabtesco Group established the Basic Policy on Human Capital Development and has been providing a range of educational opportunities in line with this policy ever since.

Basic Policy on Human Capital Development

Develop personnel who can think and learn on their own at all times as members of a global corporate group, and create a culture that values and supports learning.

Education Scheme (excerpt) (as of June 2019)

FY2015 Education Scheme (as of May 2017)

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Number of Trainees (Training Provided by the Human Resources Department from January to December in FY2019)

Training for New Employees	72	Training for Mechanism Improvement	61
Entry-Level Problem-Solving Training	48	Technical Training	582
Upper-Level Problem-Solving Training	27	Elective Technical Training	519
Training for Newly Appointed Managers	19	Studying at Domestic and Overseas Business Schools	15
Training for Newly Appointed General Managers	13	Overseas Language Study (overseas trainees)	6
Training for Newly Employed Mid-Career	49	English Writing Training	27
Business Training	36	Intensive Study Camp for English Conversation	8
Training for First-Year Clerks	6	English Presentation Training	12
Basic Training for First-Year Engineers	30	Training on Meeting Skills in an International Setting	8
Selective Training for First- and Second-Year Engineers	81	Training for Employees being Transferred Overseas	8
Second-Year Report Presentation (head office workers)	36	Overseas Position Training	27
Third-Year Retrospective Training	30

* The number of trainees above includes also trainees from subsidiaries.

Corporate Communications Department, Personnel Department, 1, 2

Improving Basic Skills of Young Employees to Immediately Become an Effective Workforce

Second-Year Research Report & Presentation

We provide new graduates who have joined the company with intensive training in a planned and systematic manner during their first two years of work, deeming this time to be optimal for enhancing their basic skills. Specifically, we provide them with annual training programs in consideration of their individual growth stage, thereby helping them to improve year by year.

We also give new employees on-the-job (OJT) training, believing it to be important to offer them hands-on work experience so that they can become an effective members of the workforce as soon as possible. Under the OJT system, OJT staff members provide careful instructions to individual trainees, while the trainers themselves also receive training to maintain their high ability to provide such instruction. In addition, a common training plan worksheet designed to visualize the contents and progress of the training is used for all trainees to create a uniform, high-quality training environment.

In their third year of work, after the basic skill improvement period ends, we dispatch all employees who have graduated from university to an overseas training (e.g. intern) program in order to develop human resources with a self-sufficient spirit through cross-cultural experiences.

Corporate Communications Department, Personnel Department, 1, 2

Development of Globally Competitive Human Capital

Training to develop skills for meetings in an international setting

As overseas business is expected to continue to expand, it is becoming increasingly important to develop globally competitive human capital. We introduced a system to register in advance employees slated to work overseas so that we can provide them with essential training in a planned manner. It also builds a database of the experiences of those actually working overseas to share useful information on overseas work among employees, thereby enhancing the entire Nabtesco Group’s global abilities.

We organize regular trainings for English writing, presentation and developing skills for meetings in an international setting, as well as an intensive study camp for English conversation to provide our employees with opportunities to gain and improve basic English language skills required for global business communications. In FY2012, we introduced the “Overseas Trainee Program” for mid-career employees, in which our employees can study and work aboard. In 2017, we also introduced short-term overseas job training involving younger employees to create a space where they are able to gain practical experience in global business from an early stage.

Corporate Communications Department, Personnel Department, 2

Development of Human Capital at Overseas Group Companies

The Nabtesco Group is proactively endeavoring toward the development of human resources at Group companies outside Japan. For example, we are actively employing local human resources and implementing various training programs aimed at improving the skills of locally hired personnel. In China, we provide business management trainings for executive candidates at business locations to promote the appointment of locally employed staff for managerial positions and from this talent pool, appoint the presidents of Group companies outside Japan. In addition, we offer an OJT-based training programs designed for skill enhancement, in which employees of overseas Group companies are assigned, for a certain period of time, to factories in Japan belonging to various business segments, including the railroad vehicle equipment, hydraulic equipment, commercial vehicle equipment, and automatic door businesses.

By offering opportunities to deepen their understanding of the Nabtesco Group’s corporate culture and The Nabtesco Way that supports it, and to learn specialist skills, we are developing workers who can contribute to economic development in their home countries. We will continue these efforts to reinforce our overseas operational bases and to contribute to the economic and social development of the countries in which we operate.

Corporate Communications Department, Personnel Department, 1, 2

Increasing Our Employees’ Awareness of the Nabtesco Way

Workshop on The Nabtesco Way

We established the Nabtesco Way in October 2012. It is a collective term that signifies our Corporate Philosophy, Our Promises and the Action Guidelines, which has been shared by all employees to support each employee’s work and judgment. Its aim is to increase the sense of unity in the Nabtesco Group and facilitate even better cohesion.

In FY2018, following the previous year, we held a focus workshop tailored to the participants’ attributes to deepen their understanding of and attunement with the Nabtesco Way.

“The Nabtesco Way Month” (Workplace Meeting) Participants in FY2016:Group companies in Japan / 11companies / 442workplaces / 4,124persons

Our 2017 organizational diagnosis showed that attunement with the Nabtesco Way remains largely unchanged. It also made clear that satisfaction with communication within the organization has been rising by the year, which is why we made communication the core of our activities to reliably create more awareness about, understanding of, and attunement with the Nabtesco Way. In concrete terms, we organized workshops for stratified and goal-specific training in addition to the abovementioned focus workshop. By having participants share with each other what they thought was positive about their workplaces and what they felt was “typical of Nabtesco” in their work, and relating that with the Nabtesco Way, we helped them understand the goals and background of the concept as well as sympathize more with its various aspects.

We have also been holding the “Nabtesco Way Month” annually in April since FY2013, as a time for raising employee awareness about the Nabtesco Way. to provide an opportunity for active communication at each workplace. 4,116 employees at 442 workplaces and 10 group companies in Japan participated in the seventh Nabtesco Way Month in FY2019. Way meetings were held at everyone’s own workplaces, allowing participants to discuss and share about the Nabtesco Way as well as how they related it with their own experiences and daily musings.

Satisfaction with communication within the organization (based on employee questionnaire)

We conduct employee awareness surveys regularly to make our organization better. Based on the results of the employee questionnaire, we quantifiably visualize the state of each organization and analyze it to identify issues and improve.

(Unit: %)
	2013	2015	2017	2017 (Target)
Ratio of Satisfaction	67.1	68.6	69.3	78.6
(Male)	67.1	69.0	69.5	-
(Female)	67.1	68.1	69.2	-
Coverage of employee respondents	100	100	100	100

* The calculation scope covers only Nabtesco Corporation.
* Basically, the survey is conducted once every two years.
* We evaluate the indicators “Relationships between senior and junior workers” and the “State of the organization” according to seven grades (1: Completely disagree; 2: Disagree; 3: Somewhat disagree; 4: Neither agree nor disagree; 5: Somewhat agree; 6: Agree; 7: Completely agree) and rate the results (4 or more is defined as satisfied).

Corporate Communications Department, Personnel Department, 1, 2

Proper Evaluation of Personnel

Nabtesco Corporation ensures that all of its employees are evaluated properly and these evaluations are reflected in decisions regarding bonuses, promotions and pay raises. Evaluations are conducted based on the human resources development assessment sheets, the details of which include the evaluation of achievements, capabilities and motivation. Nabtesco also ensures that supervisor - team member meetings are held twice a year to ensure the transparency of the evaluation process and employee’s satisfaction with it.

Corporate Communications Department, Personnel Department, 2

Employee Incentives

Nabtesco Corporation offers a variety of award programs that involve all employees, such as the Nabtesco Award, Social Contribution Award, and Intellectual Property Reward, to employees who have made remarkable contributions from a social or corporate perspective. These awards aim to foster a corporate culture that embraces innovation and creativity in its operations and raises employees’ willingness to take on new challenges. Awards are granted in cash, with the amounts being decided according to the level of contribution made by each awardee. In FY2019, awards totaling approximately 27,000,000 yen were presented to 750 employees (including members of awarded teams).

Corporate Communications Department, Personnel Department, 2