Human Capital Strategy

The TechnoPro Group’s business strategy links directly to its human capital strategy. The Group’s human capital divides broadly into engineers (the engineers and researchers who provide services and solutions to customers) and non-engineers (those involved in sales, recruiting, training, and other back office operations). Both types of employees are vital management resources for realizing our growth strategy aimed at value creation and the TechnoPro Group Sustainability Policy.

Engineers

Our talents, intangible assets, are the TechnoPro Group’s source of value. Through a business model centered on human capital, we generate both economic and social value. To cultivate talents, we actively invest in human resource development to hone engineers’ skills and ensure their proficiency. In addition to boosting their market value, this development enhances their engagement and job satisfaction. Our talent management system, which raises engineers’ market value by making technical skills visible, conducting gap analysis, promoting reskilling, and measuring the effects of training, is one of the Group’s core competencies. When assigning engineers, we strive to maximize the opportunities for them to excel by creating attractive jobs. We work to provide optimal assignments and charges for engineers, promote the development and deployment of solution-oriented personnel, and expand in businesses where we can increase engineers’ compensation. By enhancing their mobility across industries and technical fields, we help to solve social issues, addressing Japan’s shortage of technical personnel and promoting innovation.
On the hiring front, to ensure a stable supply of engineers we utilize diverse personnel, including foreign nationals, and are moving toward flexible employment options such as freelancing. This helps us to promote diversity and equal opportunity.

Non-Engineers

Under the current medium-term management plan, we are focused on improving the productivity of our non-engineer employees by systemizing and streamlining back-office tasks. We are also working to optimally allocate and develop personnel across the Group in line with our overall corporate strategy. In other words, we are working to realize the human resource portfolio required to execute our strategy.

Areas of Commonality among Engineers and Non-Engineers

Given the difficulties in hiring personnel in Japan, we are looking to recruit non-Japanese talent and promote females in the workplace in line with our aims for diversity and inclusion in knowledge and experience. In addition to hiring non-Japanese personnel in Japan, we are utilizing our offshore assets by promoting personnel exchanges between the Group’s overseas and domestic subsidiaries. Furthermore, we are making more active use of females in the workplace by establishing communities for female employees and promoting changes in mindset. To bolster employee engagement, we are promoting an awareness of the Group’s Purpose, Values, and behavioral guidelines through digital and physical touch points. Additionally, we conduct an employee satisfaction survey to reflect various measures and improve employee satisfaction levels. As employees are the source of our value creation, ensuring that they are healthy both physically and mentally is essential for our business operations. Therefore, we implement various initiatives under the TechnoPro Group Health Management Declaration. As part of our efforts to expand opportunities for employees, we have also introduced a system for internal job postings and a side job system. Risk management of human capital is integrated into our Enterprise Risk Management structure and processes.

Human Capital KPIs

The Group implements its business strategy through human capital initiatives. We believe that ongoing investment in human capital links directly to our financial performance and contributes to the enhancement of sustained shareholder value (economic value). Therefore, in line with the value drivers of our business strategy, we place importance on the human capital KPIs shown in the figure below, and we are working to improve these KPIs.

Indicators and targets are listed in the ESG Data Book.
https://www.technoproholdings.com/en/sustainability/databook.html

Management Development Committee

The Group established the Management Development Committee in August 2023. The committee has begun working toward its aims of linking management and personnel strategies at the Group level, establishing and operating succession plans for key positions, and allocating, promoting, and cultivating management talent from the perspective of the Group optimization. Matters discussed by the committee and the status of its initiatives are regularly reported to the Board of Directors and the Nomination and Compensation Committee.