About the Simplex GroupOne reason for corporate stagnation is the formation of silos. Japanese companies are often vertically organized and there is little cooperation between departments and the sharing of information can be extremely diffi cult. We also cannot ignore adverse eff ects when talented people are hoarded within one own team. In this context, we have managed to achieve a fl at organizational management structure that eliminates divisional boundaries and assigns talent on a project-by-project basis. Simplex does split up the organization by business area for simplicity in external reporting. However, in reality, employees move back and forth across divisions between projects. Recently, we have also been focusing on intra-Group secondments from Simplex to Xspear. This mission of placing the right people in the right places throughout the Group is carried out by the independent Resource Management Division.Business ModelProjectAGrowth StrategyProjectBProjectCMateriality Issues and Major RisksThe Resource Management Division was formed in 2020 with the goal of executing dynamic and strategic resource assignments. In addition to matching project-side demand with company-wide supply of talent, the Division focuses on the strategic rotation of employees from a personal development perspective. It may be easier to think of the Resource Management Division as a “home base” for all employees. We assign employees to each project for a specifi c period based on the status of all projects within the Group. By having an overview of the skillsets of employees and how they are being used, including assignment periods, our goal is to perform Group-wide optimization of talent deployment according to project status.When the assignment deadline is approaching, I conduct interviews in my additional capacity as head of the Resource Management Division with relevant employees. During these interviews, I focus on understanding career aspirations, current roles in projects, sense of accomplishment, and any stresses they may be experiencing. We are very thorough when it comes to discussing future career aspirations, covering matters such as whether employees want to focus on management or solutions development, whether they want to deepen their technical expertise as an engineer, or be involved in projects from their initial stages as a consultant. I said earlier that I interview employees around 80 to 100 times a month, and these interviews are the core activity of the Resource Management Division.After that, an assignment meeting is held once a week with the executive directors, division heads, and others in attendance, and based on the results of the employee interviews, adjustments are made with project managers. Of course, it is not always possible to fulfi ll everyone's wishes, but if an assignment is made that does not align with an employee’s preferences, care is taken to explain the reasons for the assignment until the employee is satisfi ed.This strategic assignment of employees based on career aspirations has enabled us to put the right people in the right places, which in turn has contributed to reducing our turnover rate from 11% in FY3/2021 to 8% in FY3/2024. MTBP2027 aims for a turnover rate of less than 9%, which we have already achieved numerically. The challenge now is to further improve or at least maintain this level.DataThe businesses that we currently operate are not the kind that generate high returns from moderate eff ort. We are not engaged in the business of developing blockbuster games to generate large revenues or operating platforms for advertising. It is a steady, labor-intensive business model that provides high value-added services that boost clients' business. Therefore, to achieve sustainable growth and high profi tability in the future, more and more talented people will be needed.It is no exaggeration to say that more than half of our management issues are related to human resources. From a diff erent perspective, it means that the HD Division is directly responsible for more than half of our management issues, and thus plays a pivotal role in the organization. I believe that the sum of the value added by each and every employee is refl ected in the company's business performance. Although the hiring environment remains challenging, we will continue to strengthen our recruitment, reduce our turnover rate, and put in place an environment in which employees are motivated to increase their own added value. We will continue to work hard to achieve performance targets we committed to in MTBP2027 and the vision we set forth in Vision1000, while being acutely aware of the responsibility we carry in shaping the future of Simplex Group.Simplex Integrated Report 202446Resource assignment system illustratedAssign employees to each project for a specifi c period“Home base” for all employeesUpon the expiration of the period, conduct an interview with each employee to help them determine the next assignmentResource Management DivisionESG: SocialDynamic and strategic resourceassignment– What is your approach to resource assignment?Contribute to adding value to each and every employee– Finally, what are your thoughts as head of the HR Division?
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