Human Resource Management Council Bodies

Human Capital Strategy

Under the Group Human Talent Strategy 2023, based on the Group Management Policies 2023, the IHI Group has set the Group’s future vision to become a “Good + Strong” company as well as one realizing “Growth + Well-Being” for all individuals, and has reformed its evaluation system and built a corporate culture that can assess the challenges of creating change. While maintaining this overall direction, the IHI Group will continue to pursue balancing a “Good + Strong” company with people’s “Growth + Well-Being” in alignment with its Medium-to-Longer-Term Direction toward 2040, with a focus on the following three priorities:
(1) Unlock the full potential of our people to develop talent that drives sustainable growth
(2) Build a culture where challenge and support reinforce each other to create new value
(3) Build an inclusive workforce where people collaborate with each other and with AI, turning differences into strength
In addition, as the value of talent continues to evolve in response to changes in the social environment and business structure, the IHI Group will redefine its approach to human capital in line with its business direction and begin to establish a new foundation for human resource management, thereby accelerating the creation of sustainable value across the Group.

Human Capital Strategy Toward 2040

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.

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 2025, the Group recruited 362 recent graduates (compared to a target of 414) and 598 mid-career hires (compared to a target of 585). 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.
Employee engagement in fiscal 2025 was 59 points, an increase of 4 points from fiscal 2024. Items for which there was a particularly noticeable increase included: “Employee Enablement,” “Development Opportunities,” and “Respect & Recognition.”
Furthermore, following the holding of presentations for managers 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.

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 annual total number of participants is over 33,000.

Engagement

Number of Employees

Years of Service, and Employee Turnover

Training Results

Career Development

Recruitment

Human Resource Development

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).

IHI Group Education and Training Framework

IHI Academy (Providing Training and Skills Enhancement for Senior Managers and Specialist Human Resources to Lead Transformation)

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.
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 2025 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 Innovation Platform Agency, Japan (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 IHI Academy Initiatives

Selective Training

The IHI Group has built and expanded Selective Training programs as a foundation for learning open to all employees, providing support to help employees independently shape their careers and acquire skills. The programs provide a framework for employees to choose and learn various subjects anytime, anywhere according to their career plan.
In fiscal 2025, 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 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.

Examples of Selective Training Courses

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.

Mutual Understanding Between Management and Employees

The IHI Group regards mutual understanding between management and employees as an important initiative to maintain and strengthen alignment between management direction and the actions and mindsets of each employee. The IHI Group has established systems for dialogue and exchange of views across the Group, and senior management, managers, and the human resources divisions work together to create an environment that connects management intentions with employee mindsets.
Major offices and affiliated companies hold dialogues between senior management and employees. In fiscal 2024, views were exchanged on the themes of quality, safety, compliance, and DE&I, and in fiscal 2025, on Group-wide key measures. Feedback gathered through these dialogues is provided to senior management and linked to necessary actions, thereby promoting understanding of strategy and improvements in employee engagement.
Business areas, Business Units, and sites also provide opportunities for dialogue between management or business area executives and employees. Through two-way exchanges of views, on-the-ground feedback and issues are identified and reflected in measures for each business area and organization.
In addition, the Group held company-wide meetings, in which the President directly communicated management messages to all Group employees and engaged in two-way communication with DE&I as the theme in fiscal 2024 and organizational culture aligned with the Medium-to-Longer-Term Direction as the theme in fiscal 2025. Regarding organizational culture, the Group defined the direction of its desired organizational culture through surveys and dialogue with all Group employees. Going forward, the Group will work to embed it through daily actions and dialogue.