Fair Evaluation and Talent Development

[SDGs] 5 GENDER EQUALITY[SDGs] 8 DECENT WORK AND ECONOMIC GROWTH[SDGs] 10 REDUCED INEQUALITIES

Toshiba Group states We turn on the promise of a new day in The Essence of Toshiba. To achieve this, we are creating and promoting an open corporate culture, and have established fair evaluation systems while seeking to fully develop and deploy talents in order for our sincere, richly diverse and autonomous human resources with a passion for change to work together and to generate new value based on a vision of the future of the company.

Medium- to Long-term Vision

To create and promote an open corporate culture and a highly creative and productive organization in which each employee plays an active and autonomous role, to achieve The Essence of Toshiba, and to nurture a workforce that leads us toward growth and change.

FY2020 Achievements

In response to the COVID-19 pandemic, we shifted our training program from classroom training to online training. We also feature the promotion of diversity and inclusion in level-specific training to promote understanding and acceptance among employees. We also expanded our efforts to support the activities of non-Japanese employees and encourage diverse and autonomous career development. In order to turn on the promise of a new day by way of digital transformation, we took steps to inspire and develop employees.

Future Challenges and Approaches

In order for Toshiba Group to turn on the promise of a new day, we will foster employees who help drive continuous change aimed at creating a new future and establish a framework that assesses and treats employees fairly based on their achievements and competency in relation to roles required within the organization. In addition, Toshiba Group will continue to support each and every employee in developing his/her skills and support independent career advancement through our diverse systems for talent development. We will also accelerate efforts to promote health and safety management, work style reform, and diversity and inclusion with a view to a post-COVID world.

Policy on Fair Evaluation and Talent Development

To turn on the promise of a new day, the Toshiba Group Human Resources Policy provides total support for people with a sincere passion for transformation who envision the company’s future and cooperate with one another to create new value.

Toshiba Group Human Resources Policy

Appraisal
People who take on new challenges will be highly evaluated and rewarded for their actions and performance.
Talent (management, assignment, and training)
People who lead growth and innovation and take on new challenges will be assigned and trained.
Organization
A highly creative and productive organization will be created where each person can play an active role.

In accordance with the Toshiba Group Human Resources Policy, we implement the following initiatives.

Appraisal

People who take on new challenges will be highly evaluated and rewarded for their actions and performance.

Since FY2020, Toshiba Group introduced a new human resource system that clarifies the roles that employees should play in the organization, and appropriately evaluates and compensates for competency and achievements of employees who have a venturing spirit and who, as the first penguins, continue to innovate toward a new future, regardless of age and length of service.
We have changed our qualification system from one based on employees’ ability to perform their duties to a role-based grading system that clarifies employees’ roles in the organization and determines the grade based on those roles.
Evaluations are determined by performance evaluation (reflected in wages and bonuses), which evaluates individual performance and contribution through goal management on an organizational basis, and competency evaluation, which evaluates the behavior expected of each role-based grade in the spirit of The Essence of Toshiba. The competency evaluation of the head of the organization is determined by referring to the evaluation by junior colleagues (Multifaceted Evaluation). Then, the overall evaluation is determined by performance evaluation and competency evaluation and used for reviewing promotion or demotion in the role-based grade.
Bonuses are performance-linked, and the amount paid is determined by (i) the portion calculated for each role-based grade, (ii) the portion reflecting company performance, and (iii) the additional portion for individuals based on the results of the performance evaluation. The portion reflecting company performance described in (ii) is reflected in the amount of bonuses paid, with the aim of fostering a sense of responsibility for company performance among employees. As for the performance evaluation described in (iii), the supervisor provides appropriate feedback to the employee, not only on performance evaluation but also on competency evaluation, having discussions for future growth.

Talent

People who lead growth and innovation and take on new challenges will be assigned and trained.

Toshiba Group considers the development of successors and executive candidates to be important management tasks. Accordingly, we implement the Succession Plan to systematically select and develop successors for all management positions, from business managers to chief foremen.

As part of the Succession Plan, candidates for key positions in the whole Group, such as business managers and corporate staff division managers, are designated as the Next 150. They are intensively trained and nurtured in the Next & Future Executive Talent Development Program, along with the Future 300, which consists of high potential employees under age 35 selected for early development.

Among the national staff who are active overseas, we also select those expected to take the initiative in the whole Group, named the Universals, and assigns and trains them systematically. They are expected to play an active role overseas in the future launch of new businesses, overseas development and re-expansion of existing businesses, and post-merger integration (PMI) after mergers and acquisitions (M&As).

In addition, we have introduced a human resource system under which personnel with outstanding expert skills in the areas of focus for the Group are designated as Jokyu Experts (Distinguished Expert), who are then appointed as Chief Fellows, Senior-Fellows, or Fellows according to their level of expertise. We aim to further improve our expertise through the optimal assignment and training of Jokyu Experts. At the same time, we will continue to produce Jokyu Experts, as a means to strengthen our competitive edge in business.

Organization

A highly creative and productive organization will be created where each person can play an active role.

Toshiba Group has prepared guidelines for establishing organizations to optimize decision-making processes and to encourage open-minded communication between supervisors and junior colleagues. Organizations are established and managed based on these guidelines which specify the maximum number of organizational levels and the number of subordinate organizations, as well as the appropriate number of their constituent members.

Training System for Talent Development

Cultivating Global-Minded Talents

Global Talents Development Program
Global Talents Development Program

Toshiba Group focuses on training to develop well-rounded global-minded talents who have deep cross-cultural understanding and the ability to perform their jobs through direct communication with stakeholders around the world as part of its efforts to ensure that diverse human resources can play an active role and grow. We provide Liberal Arts Training*1 to develop well-rounded individuals who can embrace diversity and have the ability to think things through in each level of responsibility.
In addition, we aim to develop global-minded personnel through international joint program such as the Overseas Management Course, which helps to promote understanding of Toshiba Group’s philosophy and nurture bridge-builders*2 both inside and outside Japan.
Toshiba has a long history of region-specific education, with programs held in Europe and Asia launched more than 20 years ago. To enhance our education programs, the Toshiba China Academy and Toshiba University in the United States provide training courses in China and the Americas, respectively.

  • *1. Liberal Arts: Develop intellectual capabilities and techniques to deepen understanding in various subjects
  • *2. A bridge-builder: Our term for talented personnel who can foster smooth communication between our Japanese companies and overseas subsidiaries

Cultivating AI Experts

A panel discussion at the final project presentation of the Toshiba AI engineer training program (students participated online)
A panel discussion at the final project presentation of the Toshiba AI engineer training program (students participated online)

In order for Toshiba Group to leap forward as an infrastructure services company, it is essential to increase the number of AI experts. We are working to develop AI experts to increase the number of AI experts to 2,000 by FY2022. For example, we launched an AI engineer training program in collaboration with the Graduate School of Information Science and Technology at the University of Tokyo in the first half of FY2019. We are training more than 300 highly-skilled AI experts by holding training sessions for approximately 50 people each, twice a year. We have also set up programs based on employees’ knowledge and requirement levels, such as basic courses to provide AI knowledge, practical courses to perform hands-on training using AI tools, and courses specializing in deep learning, as part of our efforts to enhance in-house education. The Toshiba Group’s AI experts are active in various business fields, contributing to improving the environmental performance of products and services as well.

Training Programs

Toshiba Group has various training systems to help form a common ground of understanding among employees and programs based on requirements at each career level.

Main training programs (for Toshiba Group’s regular employees)
Training category Outline
Basic training and development A program that is designed to help employees learn about the actions and values that form the shared basis for all members of the Toshiba Group, such as compliance* education and Liberal Arts Training.
* For non-regular employees as well
Global training and development A program that seeks to develop global-minded people who can perform their duties not only in their countries or regions, but also at a global level, by accepting cross-cultural differences and directly communicating with Toshiba Group companies or stakeholders around the world.
Training and development based on levels of responsibility A program that seeks to improve basic knowledge, skills, and management capabilities required for employees assigned to a new position (leader, manager, etc.). This program also includes training to continuously improve the management capabilities required of managers, as well as education aimed at acquiring knowledge and skills required for global business early.
Job-type based training and development Aims to equip employees, based on their career stages, with knowledge and skills required for different job functions.
Training and development for management talents Training program for a select group of individuals who are candidates to take up managerial/leadership positions in Toshiba Group. The training is held for senior management as well.

Talent Development Program Roadmap (Toshiba Group in Japan)

Talent Development Program Roadmap (Toshiba Group in Japan)

Talent Development Program Roadmap (Toshiba Group overseas)

Talent Development Program Roadmap (Toshiba Group Overseas)
Participation in education/training (Toshiba Group in Japan)
FY2019 FY2020
Number of employees who participated in company-wide standardized educational programs/training for the year 118,989 (cumulative) 31,455 (cumulative)
Total cost of company-wide standardized educational programs/training 3,090 million yen 2,100 million yen
Training time per employee (average) 12.2 hours 7.4 hours

In the wake of the COVID-19 pandemic, we canceled or postponed training sessions to prevent infection in FY2020, resulting in significant decreases in the number of employees who participated in educational programs/training for the year, total cost of educational programs/training, and training time per employee (average). Meanwhile, we have shifted from the formerly predominant face-to-face training to online training. As a result, most of the training sessions were held online in the second half of FY2020.
From this report, we have decided to calculate the number of participants based on the figures for Toshiba Group in Japan, including those who have participated in e-learning and other education and training programs, and to calculate the training time per employee based on the number of employees in Toshiba Group in Japan. Accordingly, we have revised the figures for FY2019.

Using Full-fledged Career Development Systems

Toshiba supports the career development of each employee in an effort to maximize his/her current and future job performance.
The Performance Management System was previously implemented on an individual basis, giving each employee an opportunity to review and discuss job objectives and job performance with their supervisors. To enhance the creativity and productivity of the entire organization, however, this is now implemented on an organizational basis. In addition, the Career Design System provides each employee with an annual opportunity to discuss and share their views with supervisors on long-term career development plans as well as on mid-term goals for skill acquisition, improvement, and the way to utilize such skills. In FY2020, we confirmed that 87% of all employees received regular reviews.

Implementation of reviews aimed at career development in FY2020 (Toshiba)
Reviews implemented for 87% of all employees
By attribute Male 88%, Female 82%
Exempt employees 92%, General employees: 86%

We introduced the 360-Degree Survey in FY2015 to look at managers and senior management from various perspectives with regard to their day-to-day work performance and activities, with perspectives including those of themselves, as well as of their junior colleagues, peers, and supervisors. The survey is implemented every other year, and the most recent one was implemented in FY2019 with 264 employees, including senior management. In addition, in line with the introduction of the new human resource system in FY2020, we have changed the former 360-Degree Survey for managers to a Multifaceted Evaluation and established a system to conduct it annually starting in FY2021. The major aims of these initiatives are to encourage the growth of the participants by objectively identifying their strengths and weaknesses on a regular basis, and to enhance their leadership, which will lead to creating a more sound organization and organizational operation. Managers are expected to embrace the survey results and use the results to improve themselves and workplace communication, as steps to create a better corporate culture.

From FY2020, as part of the overall review of the human resource system, we introduced various programs to support employees’ autonomous and proactive career development. By creating an environment where each employee aims to enhance their potential and achieve continuous growth without having to passively endure constraints and changes in their environment, we will revitalize the organization and increase corporate value.

Programs to support employees’ autonomous and proactive career development
(Toshiba and key Group companies*)
System name Outline Achievement in FY2020
Career development training for each age group Training for each age group to support employees’ autonomous career development Number of participants Training for age 35 361
Training for age 45 502
Training for age 50 919
Training for age 55 913
Interview with career advisors A program that supports the career development of individual employees through interviews with internal career advisors, leading to organizational revitalization Number of interviewees 1,828
Career Challenge System System that enables employees with strong motivation and interest to apply for jobs posted internally by each division and screened for transfer Number of employees transferred 91
Second job Program that allows employees to take a second job that meets certain conditions on a request-basis
  • * A trial was implemented in some divisions in FY2020.
    The number of divisions for trial will be expanded in FY2021.
Number of employees who started a second job 58
External transfer Program that revitalizes the organization through personnel exchanges with companies and organizations outside the Group, leading to new value creation Number of newly dispatched employees 2
Next Career Support Program Program that supports employees aged 50 or older who wish to pursue new careers outside the company, such as changing jobs, starting a business, or taking on challenges in new fields by using their skills Number of applicants 25
  • * Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation

Employee Engagement Survey

Toshiba Group has conducted the employee morale survey (TEAM Survey) every year since FY2003, as a way to gain feedback from employees. Through this survey, we periodically monitor the level of understanding among our employees towards the Company’s various measures, and how firmly rooted they are. We strive to improve the issues that emerge and leverage them to enhance the corporate culture.
In FY2020, we conducted an anonymous survey targeting around 60,000 employees in 79 Toshiba Group companies in Japan and overseas, and received responses from approximately 92% of the employees. The survey assesses employees’ understanding of company measures and whether their working conditions allow them to demonstrate their abilities. Since FY2015, the survey also features questions regarding how the President and CEO and top management are perceived, the status of compliance and other measures. Although the score fell for Feedback from manager and Systems for growth and career development compared to the previous fiscal year, it improved for other items. In particular, the scores related to Integrity, Values, and Pride to company improved significantly, with the Engagement score, a key indicator, improving by 2 percentage points year on year to 22%*.

Based on these survey results, in order for management and employees to come together and make improvements, our top management is taking the lead in declaring a commitment to build a workplace environment where everyone can voice their opinions frankly. By transmitting messages from top management and disclosing information more actively, we are making an endeavor to build an open corporate culture.

In addition, we prepared and implemented an action plan for each workplace to create an environment that prioritizes change and improvement to the corporate culture. We also provide education on improving engagement and developing organizations for those in charge of the TEAM Survey, encouraging them to take action to foster a sense of ownership and improve the corporate culture. In this way, the leadership, mechanism and workplace each serve as drivers to enhance organizational capabilities.

We aim to have all employees take ownership of change and work to improve organizational culture.

We aim to have all employees take ownership of change and work to improve organizational culture.

TEAM Survey execution cycle (Annual)

TEAM survey execution cycle (annual)

* The percentage of employees from Toshiba and its key Group companies (Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation) who responded Strongly agree or Agree to the six questions pertaining to engagement.

Establishment of Consulting Service

Toshiba has established the Toshiba Hotline for providing information and consulting on action that may be problematic relative to laws, regulations, social norms, corporate ethics, the Standards of Conduct for Toshiba Group, or internal regulations. The aim of the hotline is to prevent risks related to breaches of compliance such as legal violations and fraudulent transactions, and to promote the resolution of problems. Under this system, employees working in Toshiba Group in Japan, including non-regular employees, can anonymously consult full-time counselors on concerns they may have on such matters as workplace culture and interpersonal relations, personnel conditions, or harassment, by phone or e-mail.
In FY2020, 129 cases concerning harassment and other issues in the workplace were reported to the Toshiba Hotline, and in each case we undertook measures that included conducting hearings with the person who made the report and related parties after obtaining the consent of the reporter.

Whistleblower System for Employees : Toshiba Hotline