The IHI Group has established the IHI Group Human Resource Management Policy to enable Group employees to make full use of their abilities based on a set of values they all share.
In fiscal 2024 the IHI Group revised the contents of this policy, redefining the relationship between the Management Philosophy, the medium-term management plan and the Group Human Talent Strategy and the various human talent management measures that are based on them. As part of this process, the IHI Group has outlined the future vision for its organization and human resources in the Group Human Talent Strategy, and has set “Ideal Behavior & Action and Ideal Human Resources” as shared values that all employees should embody and which the Group is aiming to disseminate throughout it, and is rolling out concrete, specific measures.
Policy
IHI Group Human Resource Management Policy
To realize our management philosophies (“Contribute to the development of society through technology” and “Human resources are our single most valuable asset”) and the IHI Group’s medium-term management plan, we have established a “Group Human Talent Strategy” and are implementing various HR management measures.
We are committed to creating systems and environments, and promoting cultural reform, that allow all employees of IHI Group companies to maximize their abilities under a common set of values.
As part of our overall policy, we outline the future vision for our organization and human capital in our “Group Human Talent Strategy.” To achieve this, we have defined the “Ideal Behavior & Action and Ideal Human Resources” as shared values that all employees should embody, and we are working to promote their adoption across the organization.
Governance
In regard to human resources issues that must be addressed in order to achieve the goal of “business transformation to realize sustained high growth” outlined in the Group Management Policies 2023, the IHI Group reported on the direction of initiatives under the Group Human Talent Strategy 2023 at the Board of Directors meeting held on July 22, 2024.
In addition, periodic reports are submitted to the Human Resource Committee and the Management Committee, where management can discuss human resource management from a business perspective, and the Group also holds HRBP meetings where human resources managers exchange views on management measures developed by the Human Resources Division.
Human Resource Management Council Bodies
Names
Human Resource Committee
HRBP Council
Aims
Discussing human resource management from a business perspective
Communicating and exchanging views on human resource management measures developed by the head office’s Human Resources Division
Officers
Officer in charge of Group Human Resources
General Manager of Human Resources Division
Members
Representative Director, General Manager of Human Resources Division
General Manager of Human Resources Division, Human Resources Division Group Manager, IHI Academy Manager, and human resource manager of each business area
Frequency of meetings convened in FY2023
As needed
Monthly
Strategy
Group Human Talent Strategy 2023
In May 2023, the IHI Group announced the Group Human Talent Strategy 2023, based on the Group Management Policies 2023.
To accomplish this management policy, the Group Human Talent Strategy 2023 outlines the Group’s future vision to become a “Good + Strong” company as well as one realizing “Growth + Happiness” for all individuals. Moreover, the Group is reforming its evaluation system and building a corporate culture that can assess the challenges of creating change, drawing on four ideals of “new leadership,” “the agility for rapid self-transformation,” “employee success/happiness,” and “new partnerships” to embody the specific vision of the organization and human resources capable of realizing it.
In addition, the IHI Group is making use of a wide range of opportunities, including the initial training program for new employees and workshops held to facilitate understanding of and familiarization with the Group Management Policies’ key measures and with the actions necessary to utilize these measures, to spread awareness among all Group employees, including those outside Japan.
Group Human Talent Strategy 2023: Looking Toward the Future
Ideal Behavior & Action and Ideal Human Resources
In order to realize the vision set forth in the Group Management Policies 2023 and Group Human Talent Strategy 2023, the IHI Group defined its “Ideal Human Resources,” comprising seven items that all Group employees are expected to embody. Of these seven items, four items represent the “Ideal Behavior & Action” necessary to foster an organizational culture that embraces the challenges of change: (1) Set a Goal, (2) Tackle Issues, (3) Cross Boundaries, and (4) Implementation. Besides “Ideal Behavior & Action,” the Group has set three other crucial skills and mindsets that employees have always been expected to embody and which will continue to be vital in the future: (5) a High Level of Expertise, (6) Dedication to Customers and Society, and (7) Ethics and Compliance Awareness.
“Ideal Behavior & Action” and “Ideal Human Resources” have been positioned as items for employee performance evaluation. By linking the evaluation results with treatment, talent cultivation and day-to-day management, the Group is using them proactively to promote the realization of transformation through changes in the behavior of individual employees.
Risks
In order to maintain the IHI Group’s business foundation and lead it to future growth, it is imperative for us to acquire, retain, develop, and appropriately allocate the human resources necessary for conducting the Group’s business.
Should the Group finds itself unable to acquire external human resources or secure human resources capable of becoming key personnel (such as transformational talent), or to secure proper placement for them, then there is a possibility that this could adversely affect the Group’s future growth, business results, and financial health.
Opportunities
If every IHI Group employee understands the vision that the IHI Group has of where it wants to be in the future, and of the ideal behavior and action that its employees should embody, as outlined in the Group’s Management Philosophy, the medium-term management plan, and the Group Human Talent Strategy, then this will strengthen their awareness of the Group’s mission and of the importance of the role that the Group’s business plays in society. This in turn will bring about a transformation of employee behavior, thereby driving the realization of change that will enhance the value that the Group’s businesses have for society, and enhance the Group’s corporate value.
Risk Management
To assess the progress made and results achieved through its various human resources management strategies, the IHI Group monitors the following items.
Results regarding recruiting plan
Employee engagement survey score improvement
Number of transferees through the voluntary career challenge program
Attendance at selective training
Results Regarding Recruiting Plan
To determine quantitatively whether the recruitment of human talent is going to plan, the IHI Group performs quarterly monitoring of recruitment performance compared to the recruitment plan, targeting IHI Corporation and its main affiliates (20 companies with over 100 employees each).
In fiscal 2024 the Group recruited 384 recent graduates (compared to a target of 338) and 468 mid-career hires (compared to a target of 341). Going forward, besides proceeding with efforts to secure the human talent needed for its business activities, the Group will also be focusing on new measures aimed at talent retention and at maximizing new employees’ potential as soon as possible.
Employee Engagement Survey Score Improvement
The IHI Group believes that the effectiveness of the various human resources management strategies will be reflected in employee engagement, and so the Group monitors the results obtained in the annual employee engagement survey, which targets employees both within and outside Japan. The employee engagement survey covers the following items: strategy and direction, leadership, quality and customer focus, respect for the individual, growth opportunities, compensation and benefits, performance management, delegation of authority, resources, education and training, collaboration systems, performance appraisal process, organizational structure, etc.
In fiscal 2024, employee engagement rose by 1 point to 55 points, making this the second consecutive year in which there had been a 1-point rise. Items for which there was a particularly noticeable increase included: “Employee Enablement,” “Development Opportunities,” and “Respect & Recognition.”
Furthermore, following the holding of presentations to provide insights regarding the analysis methods used and the formulation of response measures, there was a noticeable improvement in individual units’ approval rate with respect to the taking of post-survey action, reflecting the results obtained through these measures.
Number of Transferees through the Voluntary Career Challenge Program
One of the indicators used by the IHI Group to evaluate the dissemination of self-directed career development, which is encouraged by the Group Human Talent Strategy 2023, is the number of employees involved in transfer through the voluntary career challenge program (open job posting system within the Group). In fiscal 2024, a total of 56 employees were transferred to new posts using this system; since the system was first introduced, a cumulative total of 405 employees have taken on new career challenge opportunities.
Attendance at Selective Training
To clarify the status of talent cultivation through education and training, the IHI Group monitors the number of participants in selective training.
The Group began to mainly provide selective training in the form of e-learning in fiscal 2021. Whereas in fiscal 2020, before this change was made, the total number of training participants was 1,948, the total number of participants in fiscal 2021 was over 25,000.
Metrics and Targets
Engagement
Employee-awareness Surveys
(Scope: IHI and affiliated companies)
Item
FY2021
FY2022
FY2023
FY2024
Employee engagement index (out of 100)
54
53
54
55
Ratio of answered employee-awareness surveys
88%
84%
83%
85%
Employees Union Membership Rate
(Scope: IHI and affiliated companies in Japan)
Item
FY2021
FY2022
FY2023
FY2024
Employees union membership rate
59%
60%
62%
63%
Number of Labor Complaints Received
(Unit: Reports, Owner: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Number of labor complaints received
0
0
0
0
Number of Employees
Number of Group Employees
(Unit: People, Scope: IHI and consolidated subsidiaries)
Item
FY2021
FY2022
FY2023
FY2024
Consolidated number of employees
28,801
28,486
28,237
27,990
Number of IHI employees
7,779
7,768
7,840
7,911
Male
6,727
6,695
6,753
6,773
Female
1,052
1,073
1,087
1,138
Ratio of female employees
13.5%
13.8%
13.9%
14.4%
Number of Employees by Region
(Unit: People, Scope: IHI and consolidated subsidiaries)
Item
FY2021
FY2022
FY2023
FY2024
Japan
21,390
21,266
21,187
21,316
Asia Pacific
4,053
3,902
3,912
3,723
Americas
1,291
1,406
1,443
1,284
Europe, Middle East, and Africa
2,067
1,912
1,695
1,667
Number of Employees by Business Area
(Unit: People, Scope: IHI and consolidated subsidiaries)
Item
FY2021
FY2022
FY2023
FY2024
Resources, Energy & Environment
6,514
6,626
6,434
5,973
Social Infrastructure
2,443
2,344
2,396
2,379
Industrial Systems & General-Purpose Machinery
9,797
9,645
9,574
9,292
Aero Engine, Space & Defense
7,062
7,010
7,111
7,520
Others
1,945
1,802
1,624
1,601
Entire company (common)
1,040
1,059
1,098
1,225
Number of Employees by Age (Male/Female)
(Unit: People, Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Under 30
1,401
1,452
1,137
1,085
Male
─
1,261
978
925
Female
─
191
159
160
30 to 39
2,327
2,341
2,405
2,424
Male
─
2,035
2,101
2,102
Female
─
306
304
322
40 to 49
2,086
2,090
2,014
2,000
Male
─
1,745
1,720
1,704
Female
─
345
294
296
50 to 59
1,687
1,664
1,912
1,997
Male
─
1,445
1,610
1,677
Female
─
219
302
320
60 and over
278
221
372
405
Male
─
209
344
365
Female
─
12
28
40
Number and Ratio of Employees from Abroad*
(Unit: People, Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Number of employees from abroad
74
66
59
36
Ratio of employees from abroad
0.9%
0.8%
0.8%
0.5%
As of April 1 each year. The scope of calculation was revised in FY2024.
Number and Ratio of Employees by Nationality*1
(Unit: People, Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Japan
Number
─
─
─
7,875
Ratio
─
─
─
99.50%
China
Number
─
─
─
11
Ratio
─
─
─
0.14%
South Korea
Number
─
─
─
10
Ratio
─
─
─
0.13%
France
Number
─
─
─
2
Ratio
─
─
─
0.03%
Thailand
Number
─
─
─
2
Ratio
─
─
─
0.03%
Other*2
Number
─
─
─
11
Ratio
─
─
─
0.14%
Ratios for each item are rounded off and therefore the total value does not add up to 100%.
One person each from the United Kingdom, India, Italy, Kenya, Cayman Islands, Mongolia, Malaysia, the Philippines, Russia, Sweden, and the United States.
Number of Employees by Employment Status
(Unit: People, Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Regular employment
Regular employees
7,400
7,358
7,416
7,479
Male
6,397
6,339
6,381
6,392
Female
1,003
1,019
1,035
1,087
Ratio of female employees
13.6%
13.8%
14.0%
14.5%
Seconded by other companies
270
283
286
283
Male
222
232
238
237
Female
48
51
48
46
Ratio of female employees
17.8%
18.0%
16.8%
16.3%
Non-regular employment
Re-hires
109
127
138
149
Male
108
124
134
144
Female
1
3
4
5
Ratio of female employees
0.9%
2.4%
2.9%
3.4%
Advisors and contract employees
102
117
129
140
Male
97
109
120
132
Female
5
8
9
8
Ratio of female employees
4.9%
6.8%
7.0%
5.7%
Part-time employees
453
436
453
466
Male
81
77
73
71
Female
372
359
380
395
Ratio of female employees
82.1%
82.3%
83.9%
84.8%
Fixed-term employees
35
15
31
28
Male
24
9
18
19
Female
11
6
13
9
Ratio of female employees
31.4%
40.0%
41.9%
32.1%
Number of Temporary Employees
(Unit: People, Scope: IHI)
Item
FY2021
FY2022
FY2023*
FY2024
Temporary employees
986
998
823
1,161
With consideration toward handling gender information regarding temporary employees, the IHI Group decided to refrain from disclosing employee numbers by gender from FY2023.
Years of Service, and Employee Turnover
Average Years of Service
(Unit: Year, Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
All employees
16.1
16.5
16.6
16.1
Male
16.2
16.6
16.7
16.2
Female
15.4
15.8
16.0
15.4
Turnover Rate
(Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Total turnover rate
3.1%
2.7%
2.8%
2.7%
Male
─
─
─
3.0%
Female
─
─
─
1.4%
Rate of resignation due to personal reasons
1.6%
1.5%
1.5%
1.5%
Rate of resignation due to personal reasons by age
Under 30
3.9%
3.7%
3.0%
2.3%
30 to 39
2.5%
1.9%
0.6%
1.8%
40 to 49
0.5%
0.5%
1.0%
1.2%
50 to 59
2.4%
0.1%
0.2%
3.0%
60 and over
37.6%
26.4%
14.5%
16.6%
Turnover rate within 3 years of joining the Company
3.4%
5.5%
5.3%
4.6%
Employee Turnover
(Unit: People, Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Turnover during 1 year
248
203
208
209
Male
232
175
182
194
Female
16
28
26
15
Ratio of female employees
6.5%
13.8%
12.5%
7.2%
Recruitment Results
New Graduate and Mid-career Recruitment Results
(Unit: People, Scope: IHI and affiliated companies in Japan)
Item
FY2021
FY2022
FY2023*
FY2024
Total number of employees
194
196
685
852
Male
153
156
577
682
Female
41
40
108
170
Ratio of female employees
21.1%
20.4%
15.8%
20.0%
New graduate recruitment
Total
109
98
358
384
Male
87
84
302
320
Female
22
14
56
64
Ratio of female employees
20.2%
14.3%
15.6%
16.7%
Mid-career recruitment
Total
85
98
327
468
Male
66
72
275
362
Female
19
26
52
106
Ratio of female employees
22.4%
26.5%
15.9%
22.6%
From FY2023, the scope of calculation has changed from IHI Corporation to IHI and affiliated companies in Japan.
New Employees by Age
(Unit: People, Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Age group
Under 30
140
116
152
189
30 to 39
28
24
56
81
40 to 49
8
12
30
36
50 to 59
5
4
16
16
60 and over
2
4
3
6
Share of Open Positions Filled Through Internal Recruitment (Managers only)
(Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Share of open positions filled through internal recruitment (Managers only)
─
─
─
97.3%
Average Recruitment Costs per Employee
(Unit: Yen, Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Average recruitment costs per employee
─
711,528
1,040,766
1,103,790
Number of Career Challenge Program Transferees
(Unit: People, Scope: IHI and affiliated companies in Japan)
Item
FY2021
FY2022
FY2023
FY2024
Number of transferees
67
112
89
56
Training Results
Participants in Main Training Courses and Number of Training Hours, Training Hours per Employee
(Scope: IHI and affiliated companies in Japan)
Item
FY2021
FY2022
FY2023
FY2024
Stratified Training
Participants
672
795
871
920
Training hours
24,028
25,960
29,616
19,726
Selective Training
Participants (total)
17,430
37,057
27,920
33,808
Training hours
49,648
88,822
71,348
79,248
Mandatory Courses
Participants (total)
253,716
282,415
412,942
362,973
Training hours
188,927
170,164
362,415
206,858
Senior Management Candidate Training
Participants
132
118
359
144
Training hours
13,992
10,525
47,444
5,762
Professional Development Training
Participants
275
249
186
180
Training hours
8,443
7,615
5,725
5,289
Division-specific/Affiliated company-specific training
Participants
─
─
70,147
63,752
Training hours
─
─
216,303
178,460
Training Hours per Employee
12.1
14.3
34.9
23.4
Training Expense per Employee
(Scope: IHI and affiliated companies in Japan)
Item
FY2021
FY2022
FY2023
FY2024
Training expense
─
23,512 JPY
40,380 JPY
40,432 JPY
Career Development
Number of Employees Undergoing Regular Career Development Reviews (By Male/Female)
(Unit: People, Scope: IHI and affiliated companies in Japan)
Item
FY2021
FY2022
FY2023
FY2024
Total
─
15,327
14,939
14,455
Male
─
13,024
12,605
12,191
Female
─
2,303
2,334
2,264
Employees Certified as Master Artisans
(Unit: People, Scope: IHI)
Item
FY2021
FY2022
FY2023
FY2024
Number of employees certified
41
41
37
38
Soma
12
12
15
16
Mizuho
13
10
8
8
Tomioka
2
1
1
1
Yokohama
4
9
5
5
Aioi
3
3
3
3
Kure
7
6
5
5
Initiatives
Recruitment
New Graduate Recruitment
The IHI Group is responding to the increasing diversity of students’ attitudes toward careers, and the trend for students to start job-hunting at an earlier stage as they approach graduation, by increasing the number of specializations for which internships are available, and the number of interns taken on. Internships help students get a clearer picture of how what they have studied in college can contribute to the ongoing development of society if they join the IHI Group, thereby deepening their understanding of the Group’s businesses, increasing their motivation to join the Group, and reducing the likelihood that they will leave their job soon after joining.
Mid-career Recruitment
In order to achieve the business and corporate structure transformation outlined in Group Human Talent Strategy 2023, the IHI Group takes steps to acquire human resources externally on an ongoing basis in business and technical fields where the Group finds its knowledge lacking, promoting their active participation and internalizing the knowledge they bring.
Mid-career hires are also playing an active role in the Aero Engine, Space & Defense Business Area, which is positioned as a developing business, and is actively utilizing their past experience, technical skills and specialist expertise, and their perspectives and values which bring something new to IHI.
Human Resource Development Program
The IHI Group has put in place the Career Development Support Program, the aim of which is to help every employee take on the challenges and learning required to realize their own career development, as well as a training system to support this.
The IHI Academy, which was launched in April 2023 and reports directly to the Chief Executive Officer (CEO), is cultivating managerial and DX talent and specialist talent capable of operating effectively on the global stage and of leading the transformation of the IHI Group.
In terms of training for specific roles, besides initial training for new employees, the Group also provides training that equips employees who have just started on the management career track, newly appointed managers and assistant foremen, with the knowledge and skills they need for their role.
Regarding the cultivation of global talent, besides helping employees to systematically accumulate experience in key tasks that they need to work at overseas production sites or on overseas projects, the Group also provides employees with classes on global communication skills and cross-cultural communication before they go on overseas assignments.
Furthermore, the Group also conducts training emphasizing diversity, equity, and inclusion (DE&I).
Providing Training and Skills Enhancement for Senior Managers and Specialist Human Resources That Are Applicable Globally
The IHI Academy is developing programs based around two core areas—managerial and DX skills, and high-level specialist skills—to drive the cultivation of managerial and specialist talent who are capable of operating effectively on the global stage and of leading the transformation of the IHI Group. What these training programs have in common is that by utilizing Action Learning* they encourage trainees to apply what they have learned to actual work, and hone the conceptual abilities needed to provide value for customers and for society as a whole on an ongoing basis, and the leadership skills needed to energize the organization.
In the two years since the IHI Academy was founded, its programs have trained a total of 372 employees (315 in the managerial and DX area, and 57 in the high-level specialist skills area).
The Group has also introduced a Growth program that employees can apply to enter, to serve as an introductory course for the managerial and DX area programs, and is working to source and retain a new generation of diverse, motivated human talent.
Action Learning: A learning method that strengthens individual and organizational learning capabilities by taking real issues as topics and getting trainees to formulate strategies and solutions, implement them, and then reflect on them.
Next-Generation Management Leader Training
The IHI Group’s expectations for the next generation of management leadership include both transformational leadership that is capable of discerning the structure of problems even in areas where it lacks direct personal experience, and then driving change with the overall best approach, and also the ability to implement concrete business management tasks based on an awareness of the management issues affecting the IHI Group. With this in mind, the Next-Generation Management Leader Training implemented in fiscal 2024 included not only a sustainability-aware management program that involved simulating presentations for investors, but also programs linked to the Group’s current key strategies and management issues including quality management, DX, and AI.
Looking ahead, the Group will continue to provide training programs that take into account the skills that next-generation management leaders need to possess.
DX Human Resource Development Training
For the IHI Group to develop businesses that solve the problems which will be affecting society in the future, and which provide value for customers in a timely manner, it needs to make effective use of digital technology and generative AI.
The IHI Group follows the digital skills standards formulated by Japan’s Information-Technology Promotion Agency (IPA) by defining the DX promotion role required from management leadership as that of business architect. To provide managers with the necessary knowledge and skills, the Group is implementing training programs that cover the DX mindset, and promoting understanding and effective utilization of generative AI, in line with current trends. These programs are designed and implemented in collaboration with the Intelligent Information Management Division (which oversees DX promotion throughout the IHI Group), with the aim of accelerating the cultivation of human talent able to address management issues in the digital era, and of further enhancing corporate value.
Professional Development Training
The IHI Group is working to cultivate human talent who possess high levels of specialist expertise in fields such as quality management, design, production, manufacturing, or intellectual property, and who are capable of being transformative leaders. Rather than merely teaching specialist knowledge, these training programs incorporate a lifecycle business perspective and a focus on making effective use of digital technology, with participants learning how to formulate a vision for the future and how to identify problems by analyzing the business environment, as well as how to formulate and implement strategies for solving problems.
Overall Image of Human Resource Development
IHI Group Education and Training Programs
Selective Training
Based on the Group Human Talent Strategy 2023, the IHI Group provides support to help employees independently shape their careers and acquire skills. The Group has been building and expanding Selective Training programs since fiscal 2021 as a framework for employees to choose and learn various subjects anytime, anywhere according to their career plan.
In fiscal 2024, besides the approximately 450 courses that it was already providing, the Group further expanded its course content by starting to provide additional courses on Microsoft Office applications. It also strengthened the functions of the IHI Group learning platform, with the introduction of new course navigation that uses a query-answering system to help employees find courses suited to their needs, and of a suggested courses page that presents a list of courses recommended for each position or grade. The Group is also improving the learning environment to make it easier for employees to learn, for example by sending out periodic promotional e-mails to encourage employees to take courses.
Career Development Support System
Career Development Support Program
In order to promote self-directed career design among employees and further both their career development and their personal growth, the IHI Group provides the Career Development Support Program as an initiative to support career design and create workplaces where everyone can participate actively. Based on this program, the Group holds Career Design Seminars tailored to each career stage, with the aim of enabling employees to independently formulate and carry out plans for developing their skills and abilities to better advance their careers in the future.
In addition, as part of the support for career plan creation, the Group manages a support desk where employees can consider their own career plan in one-to-one sessions with an in-house career advisor; to date, a total of around 250 employees have used the support desk.
Career Development Program
The IHI Group implements the Career Development Program (CDP) as its basic framework for career development and capability building. In fiscal 2019, the IHI Group introduced the Group-wide individually-tailored CDP as a tool for encouraging self-directed career development. Taking the individual employee’s career plan (future design) as a starting point, meetings are held with the employee’s supervisor to discuss what challenges and training the employee needs to undertake in order to achieve their career plan, so that the employee can formulate and implement a concrete plan.
Through this initiative, the Group is supporting each employee to think independently about their career plan, as well as supporting their growth through work and educational opportunities and through ongoing learning.
Career Challenge Program
The IHI Group has put in place the career challenge program (open job posting system within the Group), which aims to realize the dynamic, optimal allocation of human talent by providing opportunities for employees’ self-directed career development and skill enhancement, and by promoting the two-way movement of human talent within the Group. Under this framework, job postings by individual departments are announced on an ongoing basis, with employees who meet the requirements and wish to apply undergoing evaluation by the department in question, after which the department and the applicant employee reach agreement regarding a transfer.
Between the introduction of this system and the end of fiscal 2024, a total of 405 employees have made use of the system to arrange transfers, and have taken on new career challenges.
Support for the Job Crafting and Career Shift Program
To provide support for strengthening the motivation of employees in their 40s and 50s, the IHI Group provides job crafting training for interested employees in this age group (regardless of which Group company they work for or what position they hold), which helps them to clarify the meaning of their work and the role that they play, while also incorporating new perspectives.
The IHI Group also has a Career Shift Program targeting managers currently employed at IHI. Employees who take advantage of this career development training before the age of 50 are able to choose from multiple career tracks. Among these career tracks, the Group has also prepared a Career Shift Support Program to assist those who are looking to move on from the company and carve out a second career. Those who make use of the system receive a career shift retirement allowance based on their age.
Transfer
The IHI Group rotates staff between departments, and dispatches employees to external training programs as well as to assignments at partner companies, government agencies, and startups. Staff members also participate in joint development projects with other companies, universities, and research institutes, which are just some of the many ways in which the Group provides access to a variety of experiences and differing viewpoints that provide opportunities to Cross Boundaries, Tackle Issues, and Implementation.
To help facilitate the career development plans formulated by each employee, the Group is also implementing its career challenge program (open job posting system within the Group) on an ongoing basis.
In addition, the IHI Academy attaches great importance to realizing growth through practical experience, and allocates and assigns motivated human talent to challenging missions and important positions. By honing the leadership skills and other capabilities that they need for the career path they are aiming for, these transformational leaders challenge themselves with new missions on a daily basis.
External Training
The IHI Group provides opportunities to gain broader experiences and an open mind through active human resource exchanges outside the organization, such as external training and events as well as participation in various academic societies. In external training, participants deepen their professional skills and learn about the latest industry trends and better practices from other companies.
These external activities allow employees to interact with people from a variety of diverse backgrounds, expanding their possibility of incorporating different perspectives and ideas into the Group.
Not only does participation in academic conferences deepen understanding of cutting-edge research and technology, but also provides an opportunity to expand networking with other experts.
Concurrent In-house Positions and Side Businesses Outside IHI
The IHI Group provides opportunities for employees to think individually and proactively, taking on new challenges to achieve individual self-actualization and growth in their careers. As part of these efforts, the Group encourages employees to have concurrent positions inside the company and side businesses (second jobs) outside of it, in order to gain broad experience and leverage diverse viewpoints and ideas in management.
Examples of these activities include involvement with universities and research institutes, government agencies, and startups as side businesses outside of the company, and concurrent in-house positions, such as STEAM education planning, working to reduce the gender gap, developing Green Diamond projects, etc.
As of fiscal 2024, employees have registered approximately 130 different side businesses, around 45 concurrent positions, involving a total of about 130 individuals.
Performance Evaluation
In the IHI Group, annual targets are met after supervisors meet with their subordinates at the beginning of the fiscal year. Supervisors then confirm the progress made toward realizing the targets through day-to-day communication with their subordinates, including one-to-one meetings that are normally held at least once a month. At the end of the fiscal year, performance evaluation is conducted based on each employee’s performance over the course of the year, after which the supervisors provide feedback to encourage the employee to realize improvements in the following year.
The Group has also put in place a framework for evaluating performance at the team level, including a Group-wide award system for recognizing outstanding contributions to the Group’s performance, valuable inventions or ideas, and being a model of employee behavior.
Empowering People Over 60
The IHI Group promotes the continued active participation of employees who have already reached retirement age in many different ways. The Group has adopted a program whereby each employee can decide for themselves when to retire between the ages of 60 to 65. Many senior employees are also taking advantage of a program that enables promotion of employees over the age of 60, to encourage people to persevere regardless of age.
In April 2025, the Group abolished the framework whereby the salaries of employees over the age of 60 were reduced. It has also put in place systems to encourage active participation by employees who have already reached retirement age, including the adoption of a system which enables employees aged 60 or over to choose whether they want to switch to working a 4-day week, which embodies respect for diverse workstyles and the desire to encourage active participation by people across a wider age range.
Other Support Systems
Relearning
The IHI Group is expanding training programs for reskilling to proactively have employees acquire the knowledge and skills necessary to adapt to changes in the business environment and technological innovation.
As human resources are increasingly being shifted and optimally assigned to positions, the Group offers support programs to enable employees whose work duties have changed to quickly play an active role.
Passing Down Skills to Others
IHI strives to pass down welding, machining, and other core skills at each plant, which are the foundation of our manufacturing expertise.
Many of its employees are experts in each of these fields. The Group has introduced a master artisan program to encourage employees certified as master artisans to pass on their skills to new up-and-comers.
IHI Human Resources Development & Communication Center
The I-STEP Shonan IHI Human Resources Development & Communication Center (Yokosuka City, Kanagawa) hosts training activities and various types of meetings for Group employees from around the world. This facility is a base that promotes active communication and learning and where IHI Group colleagues can come together to share the Group’s corporate philosophy and values while they engage in active communication. The Center also offers a comprehensive range of recreational activities, with the aim of enhancing the well-being of employees and their family members.
Fair and Equal Treatment
In order to establish fair and appropriate treatment, the IHI Group is working to raise wages through sincere dialogues between labor and management.
Furthermore, under a principle of equal pay for equal work based on the Part-time/Fixed-term Employment Act, the Group appropriately handles personnel according to the range of their duties and responsibilities and has established a personnel system to avoid unreasonable disparities. Additionally, the Group has made it a principle to, at minimum, set wages in accordance with the minimum age in each country.
Conversion of Fixed-term Employees into Regular Employees
IHI has put in place a system to convert fixed-term workers into regular employees. This program lays a path for fixed-term employees who satisfy certain criteria to request a regular position.
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