The inside story of a traditional IT company
NTT Group, which has 330,000 employees, is working on reforming its personnel system. Fujitsu has 130,000 employees and Toyota has 360,000, so you can see the scale of the project.
I found a video on YouTube in which an executive officer herself explained the contents, so I will summarize the gist of the video as a memo.
- Integrated ICT Business (docomo, NTT Communications, NTT Comware): 50,000
- Regional Communications Business (NTT East, NTT West): 70,000
- Global solutions business (NTT DATA, NTT): 190,000
- Real estate, energy, etc.: 30,000
I had a strong image of telecommunications, but the NTT DATA Group has 150,000 employees, so the weight of that group is significant. However, the earning power comes from the integrated ICT business.
Of the NTT Group, 140,000 are overseas, and this is the part that has grown in the last 10 years or so.
Introduction of a job-based personnel system for managers
In this era of VUCA, they are moving to a job-based system. However, employment is being protected, so a Japanese-style job-based system is being applied to only 12,000 managers as start point.
Main change is a job grade system and they increased the linkage of company performance KPI to bonuses. There are 6 levels of job grade.
Revision of the system to enhance professionalism (general employees)
General employees are not job-based. Two specialist grades and six general grades.
Salary increase and promotion are determined by company outcome contribution, behavior assessment, and professionalism assessment. After the general grades, employees decide whether to become a manager or a specialist (grade).
60~70% of the employees come from new graduates.
They created Sustainability Charter, aiming for 25~30% female directors by FY2025. Super-flex system has reduced the number of women working shorter hours.
The standard pattern has created to encourage men to take maternity leave.
Remote work is also being promoted, and about 70% of office workers are doing so. Camera ON is recommended in remote work handbooks.
A remote standard system with no restrictions on place of residence was also be introduced from 2022 (30,000 eligible employees). The number of employees working alone from their original home has decreased.
I think it is too late to keep the system with a strong seniority system. I got the impression that many smaller Japanese companies have already introduced a career path other than becoming a manager.
There were some good points in other areas, and I would like to imitate them when I am in a position to decide on a personnel system.