Utilization of Human Resources

(work style reform and the creation of workplaces where diverse human resources can play active roles)

Work Style Reform

Approach to Work Style Reform

The purpose of the work style reform that our Group pursues goes beyond shortening working hours to enhance the growth and productivity of every employee, thereby efficiently advancing high-quality work in a limited time frame and creating new value, which we believe will lead to growth of the Group as a whole. We announced the start of work style reform efforts in April 2017, and since then have continuously advanced a variety of initiatives. In addition to strengthening management of appropriate working hours and reducing long working hours, we have created an environment that lets all employees demonstrate their abilities in work. We anticipate that employees will invest the time created through work style reform in themselves, using it as an opportunity for personal growth.

Work Style Reform Initiatives

In our Group, particulars of work often differ by division and workplace, with the result that work style reform activities are generally undertaken on a per-workplace basis. Every year at every workplace, we create and carry out an action plan aimed at assessing and improving current conditions related to work styles.
Total annual working hours are steadily decreasing, and we have begun initiatives aimed at improving labor productivity.

Diverse Work Styles and Labor Productivity, Prevention of Long Work Hours and Overwork

Our Company complies with the laws and regulations of countries and regions regarding long working hours and overwork. As an initiative in Japan to prevent health disorders due to overwork, since 2003, before our working style reform initiatives, we have made the Company aware of employees who have worked overtime for over 45 hours per month and conducted health guidance by occupational health physicians for employees who have worked overtime for over 80 hours per month.
We make efforts to reduce employee average annual working hours to our target of 1,900 hours or lower, and report on progress toward this target every month at executive officers’ meetings. The recognition of diverse working styles (work-from-home and flextime systems) matched to the job leads a more active involvement in work from employees and promotes reduced working hours and enhanced productivity. In the Head Office District, we have introduced a flextime system with no core hours, achieving flexible working styles grounded in the independence of employees. To promote the taking of annual paid leave, we also engage in labor-management dialogue at all business sites, and study and carry out related measures based on the situation at each site. Based on the reduction of annual working hours achieved through these initiatives, since April 2021 we have unified the annual scheduled working hours for all working styles to 1,920 hours. In FY2023, annual total working hours were 1,945.2 hours (average for all employees) and the percentage of paid leave taken was 85.2% (annual average for all employees).

■ Average Annual Working Hours¹ and Percentage of Paid Leave Taken²

• 1Average annual working hours = scheduled working hours (excluding leave, paid leave, etc.) + overtime hours
• 2Reporting boundary: Employees of Sumitomo Metal Mining Co., Ltd. during the year (excluding limited-term employees who are specially hired employees)

Creation of Workplaces Where Diverse Human Resources Can Play Active Roles (initiatives and development of systems)

Support Matched to Employees’ Life Stages

Our Company offers support measures and systems matched to changes in life stages, such as joining the Company, marriage, childbirth, childcare, nursing care, and reaching retirement age. We also provide consultation and opportunities for information provision through training.

■ Support Matched to Employees’ Life Stages

Development of Support Systems for Balancing Work and Child-Rearing and Nursing Care

By enhancing our support measures beyond statutory requirements to let employees balance work with child-rearing and nursing care without worry, we are making efforts to create comfortable working environments. In 2009, we created the “handbook of benefit,” which summarizes internal systems, including those for child-rearing and nursing care, and have revised it in response to changes to programs and notified employees with the aim of ensuring that all employees understand the programs and can effectively use them according to their individual circumstances.
We further hold seminars on support systems for balancing work and child-rearing, aimed at employees and their supervisors before and after return from parental leave; seminars on the parental leave system to aid managers’ understanding of systems associated with revision of the Act on Childcare and Caregiver Leave; and individual informational sessions on the parental leave system and interviews to confirm intent to take leave to aid understanding of the leave system by employees preparing for childbirth in the family.
Of 101 employees (91 men and 10 women) who were eligible to take parental leave in FY2023, 102 (91 men and 11 women) did so. The percentage of eligible employees taking parental leave was 101.0% (100.0% for men and 110.0% for women).

■ Status of Taking Parental Leave¹

• 1Employees who gave birth in the previous fiscal year are included in those who took childcare leave during the reporting period, and therefore, the percentage of parental leave may exceed 100%
• 2The percentage of parental leave in FY2022 and later includes the utilization rate of leave for child rearing
• 3Number of employees who took parental leave in FY2023 ÷ number of employees who submitted a notification of birth to the Company for birth by their spouse in FY2023 x 100
• 4Number of employees who took parental leave in FY2023 ÷ number of employees who gave birth in FY2023 x 100

As understanding and cooperation by superiors and others in the workplace are indispensable in balancing work and nursing care, it is important to create an atmosphere that facilitates consultation with colleagues or superiors in the workplace and for each employee to have knowledge concerning the necessary preparedness and the Company’s support systems for achieving that balance. To that end, in FY2018 we began holding seminars on balancing work and nursing care, have continuously been reinforcing measures to support this balance, and since FY2020, we have continuously been offering lectures by experts on nursing care and seminars on the Company’s nursing care system, in order to reform awareness and to make the Company’s nursing care-related systems known to employees.
Questionnaire surveys conducted in 2015 and 2019 on awareness, the reality, and the needs of employees regarding nursing care uncovered issues in the workplace climate relating to acceptance of employees who provide nursing care, but these sources of concern are being eliminated through the creation of various support programs. Also, new initiatives have been launched since FY2023 including the establishment of a “nursing care cafe” as a forum for employees to exchange information and opinions on balancing work and nursing care. In FY2023, one employee took nursing care leave and 67 employees took nursing care short-term leave with pay.

■ Changes in the Number of Employees Taking Nursing Care Leave

■ Changes in the Number of Employees Taking Time Off for Nursing Care

Work-life Support Desk

In April 2021, we established the Work-life Support Desk to respond to a wide range of requests for consultation from all Group employees and to provide support for resolving issues. These issues span not only harassment and human rights matters but also careers, human relations in the workplace, and balancing work with childcare and nursing care.

Employee Awareness Surveys and Internal System Development

To achieve the goal of creating workplaces where diverse human resources can play active roles, as set out in Vision for 2030, we are undertaking reviews of our employees-related systems. We also conduct an employee awareness survey once each year ascertain the current statuses of employee awareness and motivation, as well as factors of their satisfaction or dissatisfaction, and to utilize the results in measures for achieving improvement.
The FY2023 survey results identified the issues that communication between management and employees and human resource systems do not lead to increased motivation on the part of employees. On the other hand, we confirmed that pride in the company, good relationships between superiors and subordinates, and a corporate culture of taking on challenges in the workplace are strengths that we would like to extend even further. In addition, in response to survey items concerning our corporate culture, “taking on challenges,” “on-site first,” “flexible,” and “open and vibrant” were listed as aspects that employees value, while “bureaucratic” was indicated as an aspect of the Company’s culture that employees would like to quickly eliminate.

■ Results of the Employee Awareness Survey (Extract)

■ Status of Development of Main Internal Systems over the Past Three Years (development of environments that facilitate and encourage work)

Diverse Work Styles for Older Employees

Through FY2020, we offered continued employment for employees reaching the age of 60 in the form of re-employment. From FY2021, we have changed the retirement age for general employees to 65, so that employees can remain in active roles for a longer time. In FY2023, we revised our managerial track personnel system so that senior employees can continue working past the retirement age of 65, up to age 70. By offering a variety of options, we are achieving diverse working styles. We have also developed career and life plan training targeting employees aged 50 or older at age 50 and 58, as well as a support system for change of career (with transfer support subsidies, re-employment support, etc.) to back up employees’ post-retirement lives.