Special Feature 2021 - Integrated Report 2021

Human Resources Strategy

Toward sustainable growth of Nidec Fumiaki Ushio Senior Vice President Chief Administrative Officer

Human resources strategy is becoming an increasingly important issue for Nidec to grow sustainably over the next 100 years and beyond. In the new medium-term strategic goal Vision 2025, we have set a goal of increasing sales and operating profit per employee by 30% by FY2022 and doubling them by FY2025 (compared to FY2020). This goal is a prerequisite for a 30% increase in employee salaries by FY2023 (compared to FY2020). We are working on achieving this goal as an urgent issue for enhancing our competitiveness. We recognize that expansion and promotion of diversity as well as improvement of productivity is an important issue for the sustainable growth of Nidec. In the medium to long term, we would like to raise diversity management to a level where it becomes the strength of the Nidec Group.

Measures to Improve Productivity

1. Work style reform

As the first step towards work style reform, we established the Work Style Reform Committee in 2016 and conducted an interview with on-site employees to identify organiza-tional issues with the aim of improving productivity. As a result, we decided that the following three systems were necessary: a home working system, a staggered shift work system, and a by-the-hour annual paid leave system.
 A home working system was introduced in April 2017, and a by-the-hour annual paid leave system also started at the same time. For the staggered shift work system, the range of eligible reasons was expanded in April 2017 to include operational reasons, childcare needs, long-term care needs, and personal development, enabling employees to use the system more flexibly.
 All three systems have enabled employees to work flexibly. The home working system also plays a major role as a Business Continuity Planning (BCP) measure. With the spread of the COVID-19 pandemic, we have eliminated the eligibility for the system and the limit on days available for the system, placing top priority on the health of employees and their families, so that employees can make the most of the system.

Improving productivity to achieve management goals Realize a doubling of productivity▶ Pursuing work efficiency instead of doing hard work for the sake of it Shifting the focus to productivity and away from working hours

2. Personnel system reform

Regarding the personnel system, the appraisal system, the ranking system, and the compensation system have been significantly revised. In the new appraisal system introduced in FY2020, the ability and achievements of employees are more clearly reflected in their evaluation made on a quarterly basis, with a focus on rewarding personnel who lead the company to a better future. The ranking system and the compensation system are designed in line with the idea of a job-based personnel system and have begun to be implemented from FY2021. The ranking system clarifies the responsibility and authority of employees by job rank to help employees develop expertise and clarify their career vision. The compensation system aims to treat employees fairly based on their responsibility and performance. The appraisal system, the ranking system, and the compensation system are linked together to enable the optimization of organizations, human resources, and treatment.
 The above reform is intended for employees. Meanwhile, for the treatment of directors, the performance-linked share-based compensation system* has been introduced to increase incentives to achieve their goals.

* Please refer to page 52 of "Integrated Report 2021" or "Corporate Governance".

3. Promotion of DX

Regarding Digital Transformation (DX), we established the DX Promotion Office in December 2020 with the aim of improving productivity and have promoted DX from the following three perspectives:
① DX for three “news” (new markets, new products, and new customers):
Digital transformation for sales
② DX for manufacturing:
Digital transformation for design and manufacturing
③ DX for employees:
Digital transformation for the improvement of productivity per employee
 We aim to realize “One Nidec Platform” by introducing advanced sales support tools that stimulate DX and using a system common to all Group companies in the future. We will continue to make investments that we deem necessary to improve operational efficiency and productivity.


Nidec recognizes diversity as the source of its competi-tiveness and an important foundation for its sustainable growth in the future. The Nidec Group, which operates globally, employs people from diverse backgrounds. We conduct personnel evaluation and promotion in such a way that individual employees can demonstrate their full potential regardless of their attributes and values, and we work to create work environments that can achieve that purpose.
 Regarding women’s empowerment, we established the Diversity Promotion Office (currently D&I Promotion Group of the Human Resources Department), an organization dedicated to promoting diversity, in 2017. Our actions have led to an increase in the number of female managerial employees and candidates for managerial positions and to more male employees participating in child-rearing. The ratio of female managerial employees at Nidec Corporation was 5.7% (female employee ratio: 20.6%) in FY2020 on a non-consolidated basis.
 In 2018, as a measure to support employees’ work-life balance, we introduced a spouse transfer leave system and revised the comeback system (the former re-employment system). In 2020, we revised our sick/injured childcare and nursing care leave system to enable employees to take time off “by the hour,” an improvement from “half a day.” Through these systems in addition to the above-mentioned by-the-hour annual leave system, we support the flexible working styles of employees.
 As actions for LGBT employees, our work rules stipulate that employees must respect each other’s personality and work together regardless of gender differences, sexual orientation, and gender identity, and as part of such actions, we apply the personnel rules for employees’ spouses to same-sex partners as well.
  Regarding the employment of people with disabilities, we have a corporate culture where employees are promoted with emphasis on their ability regardless of gender, academic background, age, and other personal attributes. In addition, we actively promote barrier-free working environments by, for example, building slopes, multi-purpose toilets, and parking spaces for people in wheelchairs.

Employee breakdown by region

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