Personnel System Reform | Sustainability | CTI Engineering Co., Ltd.

In April 2023, the Company introduced a new personnel management system with a completely revamped job grade, performance review, and compensation system.

Based on our unique human resources policy where “our greatest capital is our people,” we aim to be a company where all employees strive for self-improvement toward their own goals, and backed by strong organizational support, are able to demonstrate their full potential.

Job Grade System

We revised our seniority-based treatment of personnel hitherto, and newly introduced a job grade system that treats employees in senior general positions in a manner that is commensurate with the magnitude of their roles. In addition, we reorganized specialized occupational groups into job-specific positions to facilitate fair treatment.

[Key Points]

For senior general positions, the system aims to enable employees to take on promising management positions at an early date while continuing to actively participate as specialists by promoting their development in both management and specialist directions.
For engineering specialists, the system has established the position of Chief Engineer, which is the same rank as a General Manager, and strengthened the career path to becoming an executive-level Principal Chief Engineer.
For job-specific positions, the system incorporates the concept of job-based employment, establishing job divisions according to the characteristics and level of difficulty of the job, and clarifies job descriptions to encourage non-permanent employees to take on such roles.
To recruit and retain outside personnel to handle highly specialized areas where in-house personnel development is difficult, we have established an Advanced Expert job division for job-specific positions.

Performance Review System

For general positions, we will continue to use a job performance grading system as a stage focused on development. For engineering roles in particular, we put into full operation a performance review system linked to the Initial Professional Development (IPD) system to promote the growth of globally competent engineers with a broad outlook and perspective and enable them to promptly acquire Professional Engineer certification.

[Key Points]

To promote effective skill development, we will create career roadmaps clarifying the skills that need to be developed for each job grade based on the IPD system.
We will determine promotions using assessments of abilities that are based on career roadmaps, and are separated from single-year business results, which are affected by market conditions. This will enable talented employees to be promoted at an early date.
We will promote growth through training offerings linked to career roadmaps, the IPD supporter system, and so forth.

Compensation System

The compensation system discontinues seniority-type age-based pay, while increasing compensation for important roles, resulting in an average 6% increase in monthly wages for employees overall. Also, we introduced a framework for bonuses for senior general positions that is more closely linked to performance by expanding the range of fluctuation for bonuses.

New Reemployment System (personnel aged 60 and above will be treated the same as before their retirement)

CTI Engineering Co., Ltd. will introduce a new reemployment system in April 2024, which will extend the personnel treatment system (e.g., job grade, performance review, compensation) beyond the retirement age of 60 to 65 years old.

Based on our unique human resources policy, “our greatest capital is our people,” we are strengthening our workforce by securing diverse human resources with the aim of achieving sustainable growth. In particular, we consider it important that employees with significant expertise and motivation remain satisfied with their jobs even after reaching retirement age. While we have had a reemployment system for retirees since 2006, we have revised it to ensure that every employee can continue to play an active role even after retirement by maintaining a high level of motivation and demonstrating their capabilities through a system that is aligned with their lifestyles.

	Before revision	After revision
Employment status	Fixed-term contract employee If the employee wishes, the contract may be renewed until age 65	No change
Personnel treatment system	Personnel treatment system for reemployed employees (job grade, performance review, compensation, etc. of reemployed employees)	The pre-retirement personnel treatment system will continue to apply If the employee wishes, performance targets can be lowered
Work arrangement	Work full time, five days a week in principle	Work full time, five days a week in principle If the employee wishes, he/she can choose to work four or three days a week