Human Resource System and Employee Development for Value Creation
The Cosmo Energy Group understands that human resources are the source of its value creation. In order to create new value and enhance our competitiveness in the petroleum business while transitioning our business portfolio toward promising next-generation growth, we need to bring together a wide variety of human abilities and experience. The Group is proactively pursuing change by transforming conventional thinking across its organizations. It is enhancing the diversity and independence of individual employees, while building workplaces and implementing measures designed to ensure all employees reach their full performance potential. Our human resource development measures aim to foster individual employee growth and help build a sustainable Group and society.
The Cosmo Energy Group’s Human Resources Policy outlines our basic approach to human resource utilization initiatives within the Group.
Human Resource Development
Human Resource Development Tied to Management Strategy
By developing the human resources necessary to achieve management strategies and placing the right people in the right positions, the Cosmo Energy Group aims to make the most of each employee’s contributions.
Cosmo Human Resources Requirements
In order to realize our Vision 2030, we have articulated what we expect of all Cosmo personnel in three key phrases, “Challenge,” “Nurture,” and “Excel.”
We are developing strategic human resource policies and related measures based on these three requirements, and employees that demonstrate these characteristics will be fully recognized.
Human Resource Strategy Committee
In order to further integrate our human resource and management strategies, the Human Resource Strategy Committee, comprised of certain top Group executives, meets regularly to deliberate and advance human resource strategies. To enhance oversight, the outcomes of these discussions are periodically reported to meetings of the Executive Officers’ Committee and the Board of Directors.
| Frequency | ・ 2 or 3 times a year |
|---|---|
| Committee members | ・Representative director and Group CEO, Cosmo Energy Holdings (Chairman) ・Senior executive officer in charge of human resources, Cosmo Energy Holdings ・President and representative director, Cosmo Oil ・President and representative director, Cosmo Oil Marketing ・President and representative director, Cosmo Energy Exploration & Production |
| Matters for deliberation | ・Reports on the implementation status of human resource strategies, human resource allocation policies, and policies for developing executive candidates, etc. |
Fostering Management Personnel
We are identifying and nurturing management candidates as successors to our executive leadership team. This involves implementing educational programs, including external assessments and assignments, and fostering skill development through tough assignments within the Group, appointing candidates to key positions.
Succession Plan
We have developed job descriptions and a successor list for department head positions and regularly assess the progress in terms of successor readiness. We are also actively implementing initiatives such as talent development, internal transfers, and external recruitment to ensure a sufficient talent pool.
Promoting Self-Directed Career Development
With the aim of making learning a habit for employees, the Group is building workplace environments where employees can independently chart their own careers and improve their abilities and skills in order to realize their career ambitions.
Raising Awareness of Career Development
We have published a career guidebook titled Navigating Your Career at Cosmo, which provides comprehensive insights into the roles and necessary skills across various departments. We also conduct annual career design workshops, actively creating opportunities for employees to consider their future career visions while taking into account their own life events.
Job Challenge System
This system enables employees to directly approach the Human Resource Department to express how they would like to contribute within the Cosmo Energy Group and request transfers to their preferred departments. We aim to empower employees to proactively and enthusiastically engage in skill development and hone their specialization to progress along their self-defined career paths.
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| FY2020 | FY2021 | FY2022 | |
|---|---|---|---|
| Number of employees who requested a transfer | 27 | 26 | 27 |
| Number of employees transferred as requested | 17 | 10 | 18 |
| Transfer rate | 63% | 38% | 67% |
Note: Cosmo Oil employees
New Career Declaration System
In fiscal 2023, we revised our self-declaration system and launched a career declaration system as a measure to encourage employees to take the initiative to develop their careers.
The system allows provides tools for employees to inventory their own abilities, experience, skills, and medium- to long-term career goals, and to review them regularly over time. By identifying the gap between current skills and the skills needed for a target career, employees are able to further increase their job and learning motivation. The system also allows superiors to better understand the career ambitions of their subordinates and more fully support them.
Self-Development Training
We offer training courses for employee self-development, which can help them improve the job skills they currently need, as well as to study for future career goal achievement. The company covers the full cost of courses related to an employee’s current position, and 30% or more of costs for other courses. Since courses are offered throughout the year, employees can start a course whenever they are ready according to their own needs.
Number of Online Course Participants
| FY2020 | FY2021 | FY2022 | |
|---|---|---|---|
| Number of courses available | 179 | 217 | 217 |
| Number of online course participants | 264 | 278 | 237 |
Note: Cosmo Oil employees
Fiscal 2022 Training Data By Rank
| Target | Training name | Participants | Training hours/person |
|---|---|---|---|
| Management level | New department manager training | 14 | 36.0 |
| Line manager training | 407 | 2.0 | |
| New line manager training | 36 | 21.0 | |
| OP5 grade training (section chief) | 18 | 14.0 | |
| Non-management level | Team leader training | 76 | 14.0 |
| New S4 grade training | 34 | 14.0 | |
| New S3 grade training | 47 | 14.0 | |
| New S2 grade training | 38 | 14.0 | |
| OP4 grade | 52 | 14.0 | |
| OP3 grade | 21 | 14.0 | |
| OP2 grade | 32 | 14.0 | |
| OP second year training | 39 | 7.5 | |
| OP new employee training | 63 | 37.5 | |
| Second year training | 36 | 14.0 | |
| General training | Training for mid-career hires | 78 | 7 |
Notes:
1. In addition, the company provides support for online education to all employees and support for acquiring current job-related qualifications.
2. Cosmo Oil employees (including seconded employees)
Compensation System
The Group seeks to enhance employee motivation and job satisfaction by promoting employees based not on their age but on their abilities and achievements, and also rewarding them according to their performance. We have revised the employment options for post-retirement age people, and we have updated our allowance system and changed the compensation system to reflect job duties and results.
As employee values and attributes become increasingly diverse, the Group respects these differences and strives for even greater fairness in compensation. We aim to reward those who demonstrate their abilities to the fullest based on the roles, responsibilities, and targets assigned to them.
Employment Options for Post-Retirement Age People
In 2021, the Group fundamentally revised its employment options for employees who have surpassed the standard retirement age of 60. Based on our policy of encouraging employees to continue to play an active role for as long as they wish, these employees can continue to contribute without changing their job grade, compensation, and evaluation systems.
Rather than setting remuneration reductions for positions based on employee age or setting an upper age limit for managerial positions, the Group instead promotes employees based on their abilities and achievements. This fosters an environment where employees can demonstrate their abilities to the fullest.
We are also working on ways to increase work style options for post-retirement age employees, such as offering three- or four-day work weeks for those who need to limit their work hours due to individual circumstances.
The Group seeks to create new value by bringing together the diverse abilities and experiences of young, mid-career, and veteran employees.
Incorporation of Personal Allowances into Basic Salaries
In fiscal 2021, the Group began progressively eliminating personal allowances that are not directly related to work, such as child allowances and housing subsidies. By uniformly incorporating these amounts into basic salaries, we have increased the proportion of compensation paid based on duties and performance, thereby revising the compensation system to better reward employees who attain higher results.
Compensation System Update For Specialized Personnel
The Group began redefining its SP positions in August 2023, basically meaning jobs requiring special expertise, by updating the position duties. These revisions seek to encourage the demonstration of high expertise that can be recognized externally as well, thereby fostering the creation of new value for the Group. Additionally, by also externally recruiting specialized professionals with high mobility, we intend to build the capabilities necessary to drive our business forward.
Promotion System Revision
We have shortened the minimum length of service required at each grade level before eligibility for promotion. As of April 2024, employees in their late 20s can be promoted to managerial positions as early as seven years after joining the Group as new graduates. By de-emphasizing seniority and opening managerial promotions to younger employees who have demonstrated growth and improved abilities, the Group intends to increase motivation among entry-level employees and enable them to take on duties with greater responsibilities.