Cosmo Energy Group Human Resources Strategy—HR Transformation (HRX)
The Cosmo Energy Group regards human resources as a management asset and has established the Human Resources Policy to serve as the basic framework for ensuring all employees to reach their full potential.
We understand that human resources are the source of our value creation. As pathways to the needed change, the Group has defined four elements, diversity, autonomy and independence, desire for growth, and digital transformation (DX) literacy, and is pursuing a human resources strategy that brings out the best in and makes the most of its people. This strategy will enable our employees to achieve daily growth and demonstrate their full potential in the energy industry as it undergoes a period of transition.
In order to simultaneously take on the challenges of entering new areas of business and transforming existing ones, we are pursuing a human resources strategy focused on HRX. This aims to foster a talent pool consisting of autonomous individuals with a diverse range of mindsets, who will continue to take on challenges, ensuring both our employees and our Group are able to grow together.
Human Resource Development
Human Resource Development Tied to Management Strategy
By developing the human resources necessary to achieve management strategies and placing the right people in the right positions, the Cosmo Energy Group aims to make the most of each employee’s contributions.
Cosmo Human Resources Requirements
In order to realize our Vision 2030, we have articulated what we expect of all Cosmo personnel in three key phrases, “Take on challenges,” “Nurture your career,” and “Excel at work.”
We are developing strategic human resource policies and related measures based on these three requirements, and employees that demonstrate these characteristics will be fully recognized.
Human Resource Strategy Committee
In order to further integrate our human resource and management strategies, the Human Resource Strategy Committee, comprised of certain top Group executives, meets regularly to deliberate and advance human resource strategies. To enhance oversight, the outcomes of these discussions are periodically reported to meetings of the Executive Officers’ Committee and the Board of Directors.
| Frequency | ・ 2 or 3 times a year |
|---|---|
| Committee members | ・Representative director and Group CEO, Cosmo Energy Holdings (Chairman) ・Senior executive officer in charge of human resources, Cosmo Energy Holdings ・President and representative director, Cosmo Oil ・President and representative director, Cosmo Oil Marketing ・President and representative director, Cosmo Energy Exploration & Production |
| Matters for deliberation | ・Reports on the implementation status of human resource strategies, human resource allocation policies, and policies for developing executive candidates, etc. |
Fostering Management Personnel
We are identifying and nurturing management candidates as successors to our executive leadership team. This involves implementing educational programs, including external assessments and assignments, and fostering skill development through tough assignments within the Group, appointing candidates to key positions.
Succession Plan
We have developed job descriptions and a successor list for department head positions and regularly assess the progress in terms of successor readiness. We are also actively implementing initiatives such as talent development, internal transfers, and external recruitment to ensure a sufficient talent pool.
Promoting Self-Directed Career Development
We encourage employees to take the initiative in developing their careers in order to foster a talent pool of individuals who take independent action to improve and are passionate about growth. In particular, we have designated September to October as “Kyari-tsuku (Career Development)”1 period. This campaign is devoted to strengthening career design, focusing on actively creating opportunities for personal growth, and improving health.
1. Learning and thinking deeply about oneself; studying topics related to career and health; engaging in dialogue about the future, working toward personal growth, and improving one’s health; all toward building a fulfilling career
Raising Awareness of Career Development
We published the in-house career guidebook, “Navigating Your Career at Cosmo,” which provides comprehensive insights into the duties, responsibilities, and required skills across various departments.
Job Challenge System
This system enables employees to directly approach the Human Resource Department to express how they would like to contribute within the Cosmo Energy Group and request transfers to their preferred departments. We aim to empower employees to proactively and enthusiastically engage in skill development and hone their specialization to progress along their self-defined career paths.
| FY2021 | FY2022 | FY2023 | |
|---|---|---|---|
| Number of employees who requested a transfer | 26 | 27 | 34 |
| Number of employees transferred as requested | 10 | 18 | 17 |
| Transfer rate | 38% | 67% | 50% |
Note: Cosmo Oil employees
Career Declaration System
We utilize our career declaration system as an annual measurement to encourage employees to take the initiative to develop their careers.
The system motivates employees to approach their work with enthusiasm and continue to learn by providing tools for employees to inventory their own abilities, experience, and skills, to review their medium- to long-term career goals, and to dialogue with their superiors.
Self-Development Training
In order to respond to our employees’ personal aspiration to learn, and in order to support autonomous study, we cover the full cost of remote/online training courses for employee self-development. We also utilize the online learning platform Schoo, a new self-development tool designed to broaden interests and ease psychological barriers to learning.
Number of Remote/Online Course Participants
| FY2021 | FY2022 | FY2023 | |
|---|---|---|---|
| Number of remote/online course participants | 217 | 217 | 218 |
| Number of online course participants | 278 | 237 | 312 |
Note: Cosmo Oil employees
Fiscal 2023 Training Data By Rank
| Target | Training name | Participants | Training hours/person |
|---|---|---|---|
| Management level | Department manager training | 42 | 13.0 |
| Line manager training | 420 | 8.0 | |
| New line manager training | 33 | 21.0 | |
| OP5 grade training (section chief) | 19 | 14.0 | |
| Non-management level | Team leader training | 75 | 14.0 |
| New S4 grade training | 48 | 14.0 | |
| New S3 grade training | 52 | 14.0 | |
| Training for on-the-job trainers | 39 | 15.0 | |
| New S2 grade training | 48 | 14.0 | |
| OP4 grade | 42 | 14.0 | |
| OP3 grade | 30 | 14.0 | |
| OP2 grade | 50 | 14.0 | |
| OP second year training | 38 | 7.5 | |
| OP new employee training | 42 | 37.5 | |
| Second year training | 29 | 14.0 | |
| General training | Training for mid-career hires | 84 | 4.0 |
Notes:
1. In addition, the company provides support for remote/online education to all employees and support for acquiring current job-related qualifications.
2. Cosmo Oil employees (including seconded employees)
Compensation System
Compensation for managerial positions is handled according to a grading system. Promotion to line manager is based on ability and performance. Post-retirement age employees are also treated according to their assigned roles, without an arbitrary change in the compensation they were receiving before reaching retirement age. As employee values and attributes become increasingly diverse, the Group seeks to enhance employee motivation and job satisfaction by respecting this diversity, striving for fairness in compensation among employees, and rewarding those employees who have demonstrated their abilities to the fullest in the roles, responsibilities, and targets assigned to them.