Basic Policy and Approach
We developed new ideas in a guideline called “Renesas Culture”?in 2020, to be followed by all Renesas Group employees, helping them create value for society on a global scale in a rapidly changing business climate. In order to foster human resources that actively embody the five elements of “Transparent, Agile, Global, Innovative, and Entrepreneurial”, we will strengthen our HR policies and mechanisms to enable each and every employee to develop their own strengths and maximize their skills and abilities. In addition, we intend to introduce various systems and measures enabling employees to play active roles, beyond the boundaries of their regions or organizations.
As part of our efforts to disseminate Renesas Culture throughout the company and to strengthen our initiatives, we will conduct regular surveys for all employees at least once a year.?Conducting periodic surveys will quantitatively assess progress, identify areas for improvement, and lead to the creation of concrete action plans under the direct leadership of the CEO.
Summary of Survey Results for 2020 (PDF file)?
Fostering Leaders Who Can Play Active Global Roles
Continuous development of future leaders who will have a significant influence in determining the outcomes of the organization is an important initiative for the growth, sustainability, and stability of our company. Our aim is to produce stable successors for each position using the twin pillars of succession plans for key positions (preparation of succession plans for each position) and leadership human resource development (further expansion of employees’ career building).
Succession Planning for Key Positions
We aim to ensure a more solid management foundation for the company by working to increase the quality and quantity of outstanding employees and seamlessly assigning new employees without delay should key positions unexpectedly fall open.
With this in mind, since 2017, key positions have been identified throughout the Renesas Group, successor candidates selected, and training plans created for each individual candidate in order to promote talent management and strategic employee assignments.
Business Unit leadership team and HR business partners collaborate closely on these efforts to develop future managers and global leaders.
Efforts to Cultivate Leaders
We plan to accelerate efforts that will enable the sustainable development of our employees through their work, as outlined below.
- Cultivating Employees Capable of Exercising Global Leadership
In all regions we operate in, we are identifying and developing future leaders who will drive the business?growth of the Group as a whole. We provide them with opportunities to rotate jobs across departments and geography to help them build professional network, enhance agility and performance despite changing environment, and acquire global mindset to manage the business and people effectively. Key learnings and awareness gained through those experiences contribute to the development of future global leaders at Renesas.
We actively educate local employees as we continue to hire more talent for important roles in each country and region. The localization ratio of important global positions (Note 1) held by employees outside of Japan was 23.8% at the end of 2015, but increased to 69.2% at the end of 2021. We are continuing our efforts to meet our goal of increasing this ratio to 80% by the end of 2024.
Note 1: Important global positions signify heads of subsidiaries outside of Japan. Positions included in the headcount are those that are not held by seconded employees from Japan.
- A System Allowing Employees to Autonomously Choose the Work They Want to Undertake and Roles They Wish to Take
In order to expand opportunities for talented employees, the Free Agent Program has been introduced in 2021, in addition to the existing internal job application system, allowing employees who meet certain requirements to express their aspirations for other roles. Out of 237 eligible employees (as of April 2021), 7 employees expressed their FA rights, and all of them were assigned to new positions.
- The Development of Multi-Track Career Paths to Allow Employees to Choose their Careers More Independently
We are promoting the introduction of multi-track career paths to enable each and every employee to visualize their future career visions, not only by forming a career as a generalist, but also by clarifying career paths such as managerial positions for supervising organizations and projects, and professional positions for contributing to the company with expertise knowledge and abilities.
We aim to enable sustained growth for both employees and the company by establishing systems that enable individual employees to autonomously select diverse careers according to their intentions and suitability.
A System Allowing Employees to Learn Independently
We believe that gaining an awareness of the need for growth, knowing what to learn, and putting what was learned into practice, are important steps in enabling employees to learn independently. As an initiative to encourage these steps, we offer the “Self-Development Support Program” which allows employees to choose what skills they want to improve from over 100 courses, as well as field-specific specialized technical seminars and language classes. These educational opportunities enable individual employees to improve their own skillsets and open up new advancement possibilities by themselves with a sense of “career ownership”. In addition, working styles and environments are changing under the “new normal”, and Renesas is changing a variety of educational and training programs to online to make them easier to participate in for employees who are working from home.
Building a Job Rotation System
In order to support individuals’ growth, managers keep track of their subordinates’ abilities and career goals in management by objective (MBO) interviews and, in response to requests, assign them to various positions under a rotation system.
Employees can also be transferred under an internal public application system aimed at discovering and assigning promising employees and invigorating teams. Active rotation provides employees with career opportunities while pursuing their own personal growth. Renesas’ Internal Job Application System was introduced in 2014, and in the three most recent years, we received 292 applications from employees globally, and of those, 110 employees successfully transferred to the new posts of their choosing.
Training for New Employees, Supporting Human Resources Development for Junior?Employees, and Management Training
Onboarding for new hires,? follow-up training for new employees, and a presentation by employees on achievement made in the first 2 years are designed to enable new employees to become independent quickly, as well as to increase skills and motivation in junior employees. Through these series of experiences, employees learn the basic technical knowledge and skills needed to perform their jobs as well as a common ability to accomplish tasks, thereby laying the foundations for becoming employees capable of playing globally within the Group. In addition, newly-appointed senior staff specialists and senior managers undergo learning opportunities enabling them to acquire the skills and knowledge required in management.
In Japan, we provide a training system where junior employees train newly hired employees.?
For the first year after joining the company, a junior employee in the same department is appointed as the trainer and systematically trains the newly hired employee in matters related to work. Not only does this accelerate new employees' growth, but provides an opportunity for existing employees to experience management. In addition, on the job training (OJT) at each department builds on the know-how and creates an environment for learning.?
Similarly, with the aim to accelerate growth in new employees and to increase the leadership abilities of mentors, we offer a mentorship program in our Group companies that hire new university graduates.?
An experienced employee becomes a mentor to the new university graduate and offers support in the work environment, including establishing networks, discussing career paths as well as giving work related advice. Mentors are able to develop through offering advice to new employees, which leads to improved soft skills such as communication, fact-finding and building consensus, as well as management skills such as training subordinates and evaluating performance.
Additionally, in Japan, Europe, Vietnam and Singapore, we have introduced mentorships not only for new employees but also for interns and working students. This offers an enriched work experience throughout the internship period as well as support for university education and overall contribution to the development of engineering talent.?
||Japan, China, Vietnam, Singapore, Malaysia|
||Japan, Europe, Vietnam, Singapore|
Enrichment of Technical Training
Providing advanced semiconductor solutions to customers requires hardware and software technology for designing and manufacturing semiconductor devices as well as broad knowledge of customers’ applications and related matters. Therefore, Renesas provides technical training on a wide range of topics, from “Basic Technical Course” for new employees to field-specific “Intermediate Technical Course” offering a higher level of specialization, to boost employee motivation and encourage growth. Approximately 80 such courses are conducted each year; most of which are taught by Renesas engineers and some of others by lectures from outside specialist institution. These provide employees with the opportunity to study advanced technical topics in depth. Some of the teaching materials are also supplied to Renesas Group companies, supporting the training of engineers globally.
Hours of Training Per Employee
Renesas provides necessary training to employees of Renesas Group companies, depending on the function of the company.
The total hours of training per employees across the global Renesas Group ?are as follows:
Average training hours per employee (Global) (Hours)
|Below Managerial Level||10.0||13.4|
Note: Number of employees as of the end of December
Note: Training includes training provided by external parties as well as internal training
Human Resources Development Program (Japan)
|Training for next-generation leaders||Cultivating leaders capable of playing an active role globally||Education to cultivate selected leaders|
|Level-specific/role specific training||
|Technical training||Acquiring basic knowledge covering the entire field of semiconductor technology, including design through manufacturing of semiconductor devices, quality assurance, etc.||Basic Technical Course (mandatory)
Software technology, design technology, manufacturing technology, etc.
|Acquiring specialized knowledge in various fields of semiconductor technology||Intermediate Technical Course (elective)
Design and manufacturing technology, solution technology, project management course, etc.
Self-Development Support Program (Japan)
|Distance learning, e-learning, commuting to school||Self-study of languages, skills for boosting work efficiency, common technical skills, mindset, etc.||Various self-development program|
|TOEIC||Provision of opportunities to take the TOEIC examinations at home or at the office||TOEIC IP test (online or paper)|
360-Degree Reviews for the Executive Team
We conduct “360-Degree Reviews” for executives annually, aiming to encourage further growth and enhance management innovation. Participants are subjected to an anonymous assessment process by superiors, peers, and subordinates, to determine if they have what it takes to be leaders and possess the qualities needed to execute Renesas’ management goals. The raters are approved by the CEO, who also engages in the review and providing feedback to each executives being evaluated through one on one sessions. Improvement plans are drawn up on an ongoing basis and follow-up is traced. In 2020, 12 executives, including the CEO, participated as the subject of the review, and over 150 employees participated as raters globally. We plan to increase the number of evaluation subjects moving forward, paying attention that the process continues to be applied just as vigorously.
Pay for Performance: Implementing a Compensation System Linked to Performance Evaluation
We are building an organizational system dubbed “One Global Renesas” as a global organization not limited to any particular region. Under this organizational system, the concept of “pay for performance” has been adopted throughout the entire Renesas Group, and a balanced compensation system was introduced based on a globally consistent system of evaluation in order to reward the contributions of employees who achieve excellent results as well as to boost employees’ motivation. To thoroughly instill the “pay for performance” mindset in employees, it is essential that each and every employee is fairly evaluated and compensated according to their role. At Renesas, an emphasis is placed on deepening communication between superiors and subordinates through MBO interviews throughout the year, with interim reviews halfway through the year, and feedback interviews as part of performance evaluations. Based on concrete targets and facts, superiors and subordinates talk things over in discussions covering the year’s performance, aiming to achieve a shared understanding of the final assessment and getting encouragement on further development and growth activities, rather than simply focusing on numeric evaluation scores or the payment of incentives. In addition to the above, Renesas operates a performance-related short term incentive system in which the performance of each business unit or division is gauged based on certain rules and the result is directly linked to the funds available for the incentive. Lastly, in Japan, we offer a retirement pension system designed to provide long-term and stable post-retirement income to match the environment and lifestyle of each individual.
Granting of Voluntary One-Yen Stock Options
We have One-Yen Stock Options, a stock-based compensation plan, as a medium-to long-term incentive to our employees globally. This program in 2020 was a response to our employees’ requests to contribute to the business’ stability amidst the uncertain time of theCOVID-19 pandemic. The program provided employees who joined, regardless of their location, One-Yen Stock Options (taken from their monthly salary) with a certain premium. As a result, approximately 2,500 employees, more than 10% of our employees around the world, took part in this program.
To assist each and every employee in their efforts to create a workplace where they can work actively, grow, and experience satisfaction, we are strengthening our initiatives aimed at boosting employee engagement. With this goal in mind, Renesas promotes communication between management and subordinates as well as between coworkers and makes efforts to foster a sense of unity and make communication within the company deeper and more dynamic.
As a means to deepen mutual understanding and disseminate information related to Renesas’ strategy and policies through interactive communication between the top management, beginning with the CEO, and employees, Renesas regularly holds all-hands events and small group roundtable sessions (direct conversations). There are also online information sharing and question-and-answer sessions open to all employees conducted in both Japanese and English. These events are followed up by surveys to provide feedback, suggestions and comments from employees to the management team.
In 2020, a platform was established to enable the CEO to directly listen to employees’ voices and to take quick action aimed at identifying and solving management issues. Over an eight-month period, the CEO received nearly 100 submissions and has implemented many improvement measures.
We are conducting regular company-wide surveys to measure the degree to which the “Renesas Culture” has been internalized by group companies and employees, and to gauge awareness of problems and ideas for improvement.
With the aim to support employees' asset formation and encourage participation in company management, we offer all employees in Japan an employee stock ownership plan. As of February 2022, 645 employees, which is approximately 6% of employees in Japan, are part of the stock ownership plan.?
Contributing to SDGs
Renesas’ efforts in Employee Growth and Engagement contributes to these Sustainable Development Goals targets:
4.4 By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship