“Treatment and Remuneration Systems” to Appropriately Evaluate Abilities and Skills and Reward Performance

Treatment and Remuneration Systems

Personnel system that serves as a foundation for maximization of human resource value

We have developed a system to appropriately evaluate and reward the value of human resources in order to secure and retain excellent human resources in the highly competitive IT human resources market, as well as to foster a corporate culture in which each and every employee can set high goals and take on challenges with enthusiasm, and enable employees to continue to grow by making the most of their abilities.

As for the personnel system, we have adopted a dual ladder human resources system that realizes the optimal development and treatment of human resources according to the expectations and roles of each career path, including “GM positions” for management personnel who are responsible for business growth through organizational operations, and “Specialists” for professional personnel who are responsible for executing business strategies. We aim to become a company that allows diverse human resources to develop their abilities,and where autonomous human resources, who maintain ambitions to take on challenges and grow, gather.

In addition, in order to promote the active participation of senior human resources, we have introduced the program for full-time employment of seniors, which provides employment as a full-time employee for the age of 60 to the age of 65, and rewards those who have made significant contributions to the organization. Furthermore, we have introduced the Senior Expert Program, which enables the continued employment of employees aged 65 or older based on certain criteria, and have created an environment in which personnel with a high level of expertise who continue to demonstrate their abilities can continue to play an active role at SCSK.

With respect to the evaluation and treatment of IT skills, an IT skill certification allowance and a lump sum payment are provided to those who have been certified and evaluated at a higher level of IT skill levels under the IT Skill Level Assessment. We are working to maximize the market value of each and every employee through appropriate treatment of advanced professional human resources, as well as efforts to promote employees’challenge to higher levels of work and learning toward higher levels of certification.

As competition to acquire IT human resources has intensified and their market value has increased recently, we are reviewing remuneration levels in order to secure excellent human resources and further improve employee engagement. In July 2023, we raised the expected annual salary by an average of 5% for the Company as a whole and by an average of 3% to 7% for each grade. In July 2024, we raised the remuneration level by an average of 6.1% for the Company as a whole and by an average of up to about 10% for each grade. We will continue to promote initiatives to maximize the value of human resources while improving employee engagement.

Human Resource Policy and Evaluation Systems

Securing advanced professional human resources

To date, we have focused on recruiting new graduates in line with the expansion of our business scale. In recent years,however, we have strengthened the recruitment of mid-career professionals who can respond quickly to changes in the business environment, and are working to secure professional human resources who will be responsible for business strategies.We are also actively engaged in the recruitment of women, with a ratio of female hires to both new graduates and mid-career employees around 30%.

In addition, the Company is also proactively working to secure human resources through the Re-join System, which aims to promote the re-employment of retirees who have developed various experiences and skills after retiring from SCSK, and the referral hiring, which aims to discover and secure excellent human resources who are active outside the Company.

In order to secure talented human resources with high market value who can contribute to business growth, we have established the “ADV positions,” which enable us to treat employees with an annual income of more than ¥30 million, and are working to expand the pool of highly skilled professionals. The Smart Work Plus, which was introduced as a second job program,encourages the acquisition of skills and business experience outside the scope of SCSK, and also hires advanced professional human resources from outside the Company in a form of second job to harness their knowledge and expertise in developing innovation and new business, thereby aiming to contribute to the provision of new value.

Recruitment