Improving employee engagement is essential for the company's sustainable growth. We have conducted a global engagement survey of our employees worldwide, and are working to develop human resource policies that reflect the strengths and challenges of each region and organization. We will continue to monitor and analyze employee engagement and respond to ever-changing challenges to create an environment in which each and every one of our employees can work with more vitality and enthusiasm.
We are also working to provide a variety of skill development opportunities, including training for employees to become professionals in their fields and support for the acquisition of the knowledge and skills required at each level. Furthermore, to support employees' proactive challenges and autonomous career development, we will roll out the Career Development Program (CDP) from FY2023 and strengthen the connection between personnel policies and support for employees' career development.
In 2021, Komatsu initiated a global engagement survey of its domestic and overseas Group companies. Each division has formulated an action plan to address the issues raised in the survey and is steadily implementing these plans. In FY2023, we conducted the second survey, and we will continue to conduct these surveys regularly. Additionally, we will focus on employees' intentions and motivation, reflecting these in initiatives to expand voluntary and autonomous challenges.
| Number of respondent | 82% of the Employees (about 68,000 employees) of Komatsu and its Group companies in Japan and other countries responded |
|---|---|
| Objectives | To regularly identify and analyze employee engagement, clarify our strengths and challenges at that time and take them into consideration when discussing and deciding plans for the future |
| Survey overview | 60 questions related to employee engagement and the factors that influence it, including vision (values, management policies), strategy and competitive advantages (goals, policy initiatives), leadership, and well-being (organizational culture, work environment, aspects related to satisfaction, happiness, and mental and physical health). |
| Methodology | Anonymous online survey |
| Results | Engagement Score Overseas: 80, Japan: 69 (Score is the percentage of positive responses) |
The most important aspect in the creation of a workplace that promotes wellbeing and effective working is the fair treatment of employees. Komatsu's personnel management system accurately evaluates our employees, granting recompense based solely on merit. This system of assessment is enforced through multiple channels, such as evaluation training for both management and lower-level employees. An evaluation committee has also been established that works closely with labor unions in order to confirm that evaluations are fair and appropriately conducted. Finally, Komatsu provides individual feedback on evaluations to employees at both management and non-management positions, and has set up a consultation office through which employees can express complaints and concerns.
| Overview | Interviews are conducted between supervisors and employees to establish work goals at the start of the period and conduct a retrospective review at the end of the period. Based on the primary evaluation by the direct supervisor, an Evaluation and Development Committee is convened at the departmental level. The final evaluation is determined through a multi-person, multi-faceted assessment and relative evaluation. |
|---|---|
| Frequency | General employees are evaluated twice a year, while managers are evaluated once per fiscal year. Regardless of this schedule, continuous dialogue and feedback between supervisors and subordinates is encouraged to promote talent development and to manage and improve work processes. Additionally, interviews for target management are conducted on a case-by-case basis in the event of changes in targets due to transfers or alterations in job responsibilities. |
| Target | Full-time employees (general employees and managers) |
Having signed the United Nations Global Compact, Komatsu recognizes that freedom of association and the right to collective bargaining are intrinsic human rights that must be respected. Our engagements with labor unions thus reflect this commitment, showcasing our dedication to ensuring the best for our people. We have a labor contract with the Komatsu Labor Union, which is organized by approximately 11,300 of our employees across 8 of our Japanese branches. The Union employs a union-shop system, and the percentage of employees who are union members (number of unionized employees / total number of employees including management and other non-unionized employees) is 75.1%.
The Komatsu Labor Union is a member of its superior body, the All Komatsu Workers Union and a superior industry labor union, the Japanese Association of Metal, Machinery, and Manufacturing Workers. 11 of our consolidated subsidiaries and affiliates in Japan have labor contracts with a labor union that has joined the "All Komatsu Workers Union", making up a total of approximately 6,600 employees.
In addition to this, Komatsu continues to comply with legislation related to labor rights, while responding in an honest and transparent manner to all dialogues and discussions with individual employees and their representatives.
To achieve sustainable growth in a rapidly-changing business context and an increasingly uncertain social environment, we must acquire, develop and increase the engagement of “human resources who break conventional methods and the status quo and create new things and services” and “human resources who can take on challenges autonomously and proactively." To this end, we will promote a variety of measures to realize a positive cycle of sustainable growth for both employees and the company.
| Main System and Measures | Content | |
|---|---|---|
| Support for career development | Subsidizing certifications | Employees who pass technical skills tests (national certifications) receive partial or full subsidies for the examination cost. |
| Job posting system | Posts of the "Challenge Support Type" for taking on challenges in new business areas and "Hometown Personnel Type" for pursuing a new career due to family circumstances. If the employee meets the application and personnel specifications set by the relevant department, they can apply to transfer to other departments. | |
| Study programs | Designed to help employees acquire skills and knowledge beneficial to their work in an intensive, formal setting. If the employee meets the application requirements, they can apply to study at universities and research institutes in Japan and abroad. | |
| Employee award programs for distinguished achievement | Various award programs, including performance improvement award, project award, individual merit award, health and safety award, technical merit award, and volunteer award. | |
| Career development training courses | In-house language classes and subsidized correspondence courses and examinations as determined by the company. | |
| Career Development Program（CDP） | Once a year, supervisors and subordinates meet to share career goals and other aspects of their work. We do this to promote the right person for the right job, provide suitable growth opportunities for employees, and support proactive challenges and autonomous career development. | |
| Sabbatical Leave Program | This program supports employees' "learning outside the company" at educational institutions, etc., with the aim of acquiring new knowledge. Employees can take up to three years off, with a maximum of one leave per employee. | |
Employee training is based on the principle of training according to job function and department, and our primary aim is to develop professionals in their field.
The knowledge required at all levels (The KOMATSU Way, TQM, etc.) is transmitted through compulsory training by job rank and is implemented across functions and departments.
| Items | FY2021 | FY2022 | FY2023 | |
|---|---|---|---|---|
| Average hours per FTE | Non-consolidated | 49 | 54 | 54 |
| Consolidated | 40 | 46 | 49 | |
| Average spent per FTE | Non-consolidated | JPY215,000 | JPY230,000 | JPY236,000 |
| Consolidated | JPY72,000 | JPY97,000 | JPY108,000 | |
Komatsu has divided the techniques and skills that we have judged to be worth passing on into 11 fields, each comprising 24 specific competencies, and has established a Technical Skills Improvement Committee for each field. Komatsu plans and operates activities to improve the skills of employees at all levels, from new recruits to highly skilled technicians.
In FY2006, Komatsu established the Meister system to pass down technical know-how at manufacturing sites. Since then, highly skilled technicians in each field have been certified as Meisters, and are tasked with guiding and training engineers at domestic plants, overseas subsidiaries as well as business partners.
We have designated the third Saturday of every October as "Technical Day", holding technical competitions for employees from all areas of Komatsu. These include personnel from overseas subsidiaries and business associates, who come together to maintain and improve the overall technical capabilities of the Komatsu Group through mutual dedication to studying.
| Category | FY2021 | FY2022 | FY2023 |
|---|---|---|---|
| Number of participants | 360 | 181 | 192 |
| From overseas | 199 (4 countries) |
21 (7 countries) |
32 (9 countries) |
Our service personnel, who support the operation of our products delivered to customers, take essential responsibility for the Komatsu values of “Quality and Reliability.” Komatsu thus has established specialized Department for Promotion of Distributor HR Development, which focuses on the human resource development of employees in the company and of our distributor service personnel.
As means for internal training and the service personnel development, we established the “Techno Service School” for training our Japanese staff, and the “ the Komatsu Philippines” for training our Filipino staff, to conduct planned training by applying a job rotation system within the company including our overseas offices.
We have established training centers in 21 locations in 15 countries worldwide to support the development of our distributor's sales and service personnel, not only in marketing, service, and operator skills but also in management development and training for improvement activities.
The human resource development programs conducted at each training center are planned or supported by Komatsu, depending on the content. Komatsu provides curricula and training materials for basic training courses on products and services, and the local companies (Komatsu subsidiaries or distributors) conduct actual training. We also provide advanced training courses by inviting managers and senior service personnel to Japan, as well as special technical training courses provided by the training centers (mother training centers) which have specialized skills.
Having set up these training environments and assessing the quality of our distributors through small exams, we have been providing practical training opportunities that bring synergy to sales promotion activities. In FY2023, we further advanced the hybridization of online and in-person training programs, conducting more than 400 training sessions worldwide, with over 5,000 distributor staff in attendance.
TOPICS
Development of a simulator
Ensuring safety, training operators, and maximizing productivity are top priority issues at customer worksites, which are always associated with a certain risk of accidents. Komatsu is working to help solve these issues at worksites by utilizing simulators. The Department for the Promotion of Distributor HR Development has developed a simulator that enables training in a virtual reality (VR) space using pedals and controllers installed in the same manner as in actual machines. By providing training for operators using this simulator, we are helping to develop human resources for customers and distributors, improve safety at work sites, and enhance construction efficiency.
Training Filipino engineers at KPC
Komatsu Philippines Corporation (KPC), formerly known as Komatsu Human Resources Development Center, is now in its 16th year since its establishment in the Philippines. KPC recruits Filipino students who have graduated from science and engineering universities in the Philippines and trains them over six years to become engineers who can work globally. Most recently, we established a new training facility (see photo below) in 2021 to strengthen our human resource development function. We will continue to utilize the new training facility to further enhance our training, and we are committed to expanding our business by developing our human resources.
