Personnel Systems

Fair Evaluation and Compensation

Fair Evaluation and Compensation

In line with the business integration of Idemitsu and Showa Shell, from FY2020 we are unifying core HR systems (grading systems, development and evaluation systems, and compensation systems). As we unify these systems, from September 2019 to February 2020, we held a total of over 100 informational sessions on the system at around 30 locations in Japan and overseas. Through direct dialogue, we worked to ensure employee understanding and acceptance of the systems. And, in conjunction with these briefings, we held opinion exchanges related to the Management Vision and the Medium-term Management Plan in an effort to foster employee understanding through direct dialogue with the president and executive officers.

The new development and evaluation systems are designed to enable employees to continuously grow and develop themselves through comprehending the significance of evaluation that is given. They comprise an “competency evaluation”, which evaluates their work attitude and demonstration level of competencies, and a “performance evaluation”, which evaluates contribution and achievement level of objectives. In interviews with their superiors, employees confirm the target setting, the level of achievement, and abilities to be developed. The evaluation results connect to further growth and are reflected in compensation (pay and bonus) and personnel assignments and transfers. Evaluations are conducted once a year, and an interim interview is conducted during the fiscal year, providing opportunities for employees to work with their superiors to confirm their progress.

The compensation systems are designed to enable employees to work with a sense of security and acceptance. They comprise basic pay, which is stably provided for demonstrated abilities, bonuses for previous fiscal year results and contributions (based on goal accomplishment), and various allowances This is based on the concept of respect for each employee’s lifestyle and values along with a desire for the happiness of their family.

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Overview of systems for human resource development
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Development cycle toward the fulfillment of Action Mindset
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