Fair Evaluation and Talent Development

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.

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.

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

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 (up to approximately 30% reflected for general personnel and up to approximately 50% for exempt 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.

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. The Succession Plan includes a diversity quota for all positions, and at least one of the candidates should be from the following categories to be registered: female employees, employees under age 35, or non-Japanese employees. Our aim for this quota is to create an organization rich in diversity.
As part of the Succession Plan, candidates for key positions in the whole Group, such as business managers and corporate staff division managers, are selected as the Next 150. Together with the Future 300, which selects high potential employees under age 35, and WEoT30 (Woman Empowerment of Toshiba), which selects female employees who can be candidates for managerial positions with the aim of increasing the size of our human resource pool and empowering our female employees, they are intensively trained and nurtured in the Next & Future Executive Talent Development Program for early development. In each program, Corporate executive offices themselves actively participate in a variety of training measures, including dialogue with the CEO and mentoring with senior management. We also offer candidate-specific programs, such as implementing strategic rotations in different departments, and sending employees to internal and external business schools.
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 enhance Jokyu Experts’ (Distinguished Experts) expertise through the assignment and training that are optimal for them. At the same time, we will systematically develop and appoint Jokyu Experts, as a means to strengthen our competitive edge in business.

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.

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.

1. Except the Americas and EMEA regions

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 FY2024, we confirmed that 87% of all employees received regular reviews.

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 FY2023 with 86 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.

• Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation
• Percentage of eligible participants for the training who actually participated

• Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions Corporation

Toshiba Group has conducted the employee engagement 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 FY2024, we conducted an anonymous survey targeting around 70,000 employees in 97 Toshiba Group companies in Japan and overseas, and received responses from approximately 93% of the employees. The survey assesses employee engagement, including employees' degree of satisfaction in working for the Group and willingness to recommend it to others. 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. Looking at the results for FY2024, “ethics” (compliance awareness) and “initiative” (being encouraged to change or improve how work is done) were among the items that were highly rated. The “Engagement score,” a key indicator, was ranked as 59 points (at all 97 companies that participated in the survey).

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

In addition, in FY2024 we prepared and implemented an action plan for each workplace to create an environment that prioritizes change. We also held seminars for managers to provide information to and support busy managers in taking action. Moreover, as part of initiatives for enabling managers to efficiently identify issues in their workplaces and improve the environment, we held seminars to learn about methods for analyzing survey results using generative AI. In addition, we held seminars for organizational development personnel at each Group company and business division, which were applied to create action plans at the company and business division levels. Furthermore, we created action plans at the corporate level and held seminars by business area to share issues specific to various business characteristics as well as to discuss actions to address such characteristics. Furthermore, as a Group-wide action, we considered action plans involving top management, and we directly disclosed the results to all employees. In this way, each workplace, the company, and the Group as a whole aim to improve organizational capabilities by acting as a driving force.

• Respect for Human Rights (Whistleblowing, Consultation, and Remedies)
• Risk Management and Compliance
  (Toshiba Hotline and Toshiba Group Overseas Hotline)