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Fair Evaluation and Treatment

Human Resource System (Assessment and Compensation)

In fiscal 1999, Fuji Xerox shifted from a Human Resource system based on job qualifications to a role-based system. The goal is to build an equitable relationship between the Company and employees whereby the Company specifies the roles that need to be filled to achieve its management goals and our employees respond by demonstrating their individual abilities and specialized skills. By doing this, they experience professional personal growth and are granted recognition and rewards.

Dramatic changes in the Company's operating environment have made it essential to achieve further growth. Although our employees are the driving force for achieving this growth, it was found from the employee surveys and assessments conducted by outside organizations that our employees tend to be rather conservative. Therefore, in fiscal 2012, we implemented a change to our HR system in order to better evaluate employees on their ability to achieve growth and change, to promote such employees promptly, and to treat them fairly, thereby changing the employees' mentality from conservative to proactive. This concept of "confronting growth and change" means providing customers with products that provide overwhelmingly superior technologies and cost performance; accelerating solutions and services on a global basis; and developing new markets and customers. To attain these goals, the new HR system is based on the following four cornerstones:

  1. Clear definition of the roles expected of each position grade
  2. Adopting a system of behavioral evaluations incorporating relative evaluations in addition to performance evaluations in order to encourage innovation to take root
  3. Early advancement of employees who embody innovation (including promotion of women in the workplace)
  4. A renewed emphasis on thoroughness in compensation reflecting roles and results, as adopted in fiscal 2006

The evaluation system consists of two elements: performance evaluations, which break down organizational goals by employee and recognize employees who achieve challenging performance figures; and behavioral evaluations, which seek to recognize factors such as innovation in attaining high performance goals, proactive cooperation energizing the overall organization, and positive activities in human resource development or other areas. Evaluations are based on the extent of contributions or results, in light of individual grades and roles, the scope or effectiveness of the action demonstrated.

We also revised the HR appointment (promotion) review system to make it possible to appoint individuals with the talent and motivation needed for management positions at an early stage. Through this revision, the number of female employees and employees in their 30s holding management positions has increased. In particular, in fiscal 2014, the proportion of female managers rose to 5.8%. In order to promote women in the workplace, Fuji Xerox has issued a plan to increase the share of managerial positions held by women to 14% by fiscal 2020. As such, we will continue our companywide efforts to achieve this plan.
Furthermore, while implementing the early promotion of talented employees, in order to ensure that employees are given an adequate number of years of experience in management from the perspective of directing the organization, the management position retirement system (title: next generation training system) has been implemented not only for department head - levels. but also for manager-levels and above. With this system, we aim to have our senior employees holding management positions take on the role of "fostering the next generation and making way for them." After these employees have retired from their management positions, our aim is to have them feel revitalized and produce results for the company as professional employees.
In addition to the revision of the HR systems, going forward we aim to achieve 1) a business strategy with the flexible assignment of human resources, 2) human resource development by acquiring diverse perspectives and multiple skills and 3) realize employee career plans. By achieving these, we plan to stimulate company-wide rotation.

In and after fiscal 2015, to recognize and develop employees who strive for growth and reforms and to drive forward optimal deployment of human resources of Fuji Xerox and all of its affiliates, we will adopt a uniform personnel systems and programs infrastructure for all companies, including Fuji Xerox, affiliated companies, and sales companies.