Human Resource

Approach to Human Resource management

We believe that our corporate growth are enabled by people, and our employees we create and fulfill company values. Based on this approach, we practice motivation-oriented management. We actively invest in our employees and implement a variety of measures while also providing many opportunities for employees to challenge themselves to achieve high-level goals by making the most of their individual potential.
These initiatives have led to continuous improvement of employee engagement scores and the maintenance of high retention rates. This has also helped us earn the trust of our customers by ensuring reliable technology.
Our global uniform human resource platform discloses information such as job duties and career opportunities to all employees. Through this, we are implementing autonomous career development and visualizing career paths.
In addition, to promote career development, we are investing in capability development through TEL UNIVERSITY*. Furthermore, we differentiate employee evaluations based on Company performance as well as employee’s individual responsibilities and contributions to the Company. Through this, we achieve fair and competitive global level compensation while striving to attract and retain the best human resources.

TEL UNIVERSITY: Refer to Human Resource Concept at TEL UNIVERSITY An in-house education platform that helps employees independently build their careers and realize their personal goals for their growth and development

Employee Engagement

Improving employee engagement is essential to maximize corporate performance and achieve sustainable growth. Recognizing that employees both create and fulfill company values for us, we have been regularly conducting engagement surveys since fiscal year 2016 to assess the current state of employee engagement and identify issues.
Based on the results of these surveys and on employee feedback, we endeavor to establish better workplace environments; at the same time, we are working to foster a better corporate culture that empowers all our employees to maximize their abilities in an open-minded environment, to engage energetically with their work and to participate in constructive discussions and exchanges of opinions.
Examples of our measures include ensuring continued messages from the management; increasing opportunities for direct dialogue between management and employees on the current state of the company and its future; and providing training aimed at increasing employee awareness of safety, quality, compliance and other foundational management principles.
As a result of these initiatives, employee engagement scores improved in nearly all Group companies in Japan and overseas subsidiaries between fiscal year 2016 and fiscal year 2023. Our overall employee engagement score has risen by 18 points since fiscal year 2016 and by 6 points since fiscal year 2021, and in Japan our employee engagement score now falls within the top 25% of all companies.
As our employee engagement score has risen, so our employee retention rate* has reached an extremely high level, standing at 92.7% globally and 98.9% in Japan for fiscal year 2023.
We believe that improving employee engagement is vital for providing increased value to our stakeholders. To this end, we intend to implement various measures in a continuous and effective manner, such as further enhancing our employees’ work-life balance, improving work efficiency through DX, and strengthening safety, quality and compliance.

Retention rate is calculated using data on turnover rate.

Regular engagement survey process

Diversity, Equity and Inclusion (DE&I)

Diversity and Inclusion and Inclusion System and Initiatives

With the strong commitment of managements, we actively promote DE&I as one of management pillars that leads to the continuous generation of innovation and increased corporate value. Based on the idea that “One-TEL and DIFFERENT TOGETHER with 3G (Global, Gender, Generation)”, we have taken on gender, nationality and generation as major themes. Each Group company is implementing various initiatives, such as setting the following goals for the ratio of female managers based on the characteristics of each region.

• Conduct a diversity-conscious talent pipeline (plan for developing human resources) for succession planning and achieve the goal of increasing the ratio of female managers* to 8％ globally and 5％ in Japan (by fiscal year 2027)

Ratio of Female Managers

• Taking into consideration that many of our employees are engineers, we actively invest in the use of recruiters and employer branding to hire female engineers at a level that is equal to or greater than the general ratio of female engineers*² in each region
• Create an organizational structure where even those from outside of Japan can take on corporate roles through the use of technology and shared global human resources systems
• We promote collaborations between Japanese employees and employees of overseas subsidiaries, and cross-departmental projects
• We organize events such as “DE&I Talks” and other events with internal promotion leaders and external experts, create networking opportunities for employees with similar characteristics and experience, and hold roundtable discussions regarding careers before and after taking maternity/paternity leave and childcare leave

Include experts in the number of managers

The ratio of females majoring in science or engineering

Diversity, Equity and Inclusion Talks (DE&I Talks)

In March 2023, we held a DE&I Talk that was streamed simultaneously online to the Group companies worldwide. As the fifth of these events held, “equity” was added to the discussion this year, with the name “DE&I Talk” being used for the first time. While there have been no significant changes to the original purpose and policy of these talks, this addition aims to more proactively pursue the development of environments where diverse employees can play active roles.
In his opening speech at the event, the CEO stated “By continually driving motivation-oriented management, while improving diversity through our 3G policy, we aim to further grow the company.” Guest speakers also helped deepen our understanding of DE&I, with one speech titled “The Importance of Equity: World Trends D&I to DE&I” and another titled Corporate Transformation through Diversity: An Organization That maintains strength through its recognition of the “differences” from LGBTQ+.

Main DE&I Activities

As a global, borderless company, we are implementing various initiatives as detailed below to leverage the strengths of our diverse human resources and create well-balanced systems and teams.

• We create and publish reports on the DE&I activities of all of our Group companies, including overseas subsidiaries, to make the activities of each site more visible. We also communicate internally and externally through an internal newsletter, intranet, social media and other channels.
• We hold Career Design Seminars for Women employees. With voluntary attendance of about 100 employees, participants acquire basic knowledge of such things as self-leadership skills for independent career planning. Participants explore their career potential at us by learning self-centered career design and personal strength-based leadership, etc.
• Employees have participated in J-Win*¹ programs since 2021. Enabling participants to meet personal role models and foster a readiness for career advancement, by conducting activities with members of other companies in external environments that have a high level of diversity, the programs help increase willingness to take on the challenge of management positions, or senior director and above positions*².
  • We established the Employee Resource Group (ERG) to create networking opportunities for employees with similar characteristics and experience. Events are held on an ongoing basis, including Mommy & Daddy Talks, which are roundtable discussions regarding careers before and after taking maternity/paternity leave and childcare leave.
• An LGBTQ+ helpline was established in April 2021, and a congratulations and condolences system that includes same-gender partners was adopted from October 1, 2022. The aim is to improve and expand systems and facilities going forward to ensure ongoing development of workplaces where everyone, not just the people concerned, can work with enthusiasm and energy.
• New graduates and mid-career recruits are continually employed on the basis of whether they will work actively at us, regardless of gender, nationality, generation or other characteristic, by considering such aspects as their expertise, experience, and expectations for their future.
• A competitive remuneration system based on responsibilities and contributions was established for all workers, even when reemploying people after reaching retirement age, to take advantage of experience, knowledge and skills learned at us.

Japan Women’s Innovative Network (NPO J-Win) was established in April 2007 as a corporate member-based organization with the aim of supporting the promotion and establishment of diversity management in companies.

Employees of a certain level or position based on the global human resources system

Initiatives at Group companies in Japan

Disclosure of information about women in leadership roles

Group companies in Japan

Disclosure of the career-track recruits ratio of regular employees in accordance with the Labor Measures Comprehensive Promotion Act.(Disclosure date: May 1st , 2023)

In the Tokyo Electron Group, all new graduate recruitment is done by headquarters. Career-track recruits are done by each of the Group companies

Diversity Activities

Employee Resource Group “DRIVE”

DRIVE is a working group comprising engineers who gather from sites located all over Japan under the vision “To aim to be a company where anyone can play an active role and generate high added value and profits.” Members share opinions and actively conduct activities based on the activity policy of creating opportunities to know about diversity and inclusion (D&I), listening to various ways of thinking transcending site boundaries, and developing proposals on creating workplaces where anyone can play an active role.

Active Involvement of Diverse Human Resources

We seek to be a corporation where a diverse range of employees can work to their full potential. By developing a workplace where anyone, irrespective of gender, nationality, age, background or ability, can work easily and feel motivated, TEL will promote creation of an environment where the diversity of talent leads to greater competitiveness.
Furthermore, TEL have established an inclusive working environment for people with disabilities. People with disabilities account for 2.43% of employees at TEL headquarters and 2.3% of employees in Japan operations overall. *

As of March 31, 2021

TEL Values

Systems and Initiatives for TEL Values

A total of 17,204* employees are working at Tokyo Electron, which operates worldwide. We believe that each of them maintaining a high level of engagement and demonstrating their full potential will lead directly to our growth as a company.
By sharing with our employees the direction toward which management is aiming and providing platforms for direct dialogue through the employee meetings and discussions held at each site, we are striving to build mutual trust between the organization and individuals. Furthermore, to realize our Corporate Philosophy, we established TEL Values, which delineate Tokyo Electron’s values, the mindset that each employee must possess and the codes of conduct to be passed on to the future. The TEL Values—pride, challenge, ownership, teamwork and awareness—are being put into practice by our employees all over the world.

As of March 31, 2023

Human Resource Development

Principles of Human Resource Development

We are making continued efforts for employee education and training while encouraging and supporting employees' proactive approaches toward learning in line with our basic human resource development policy, which consists of the following three principles:
1. Self-motivation and a sense of responsibility are the basic requirements for developing the talents of employees.
2. The workplace supports employee development.
3. The company provides employees with opportunities and incentives to learn and must build the necessary platform or framework.

Global Human Resources System

We operate in 83 sites in 18 countries and regions. We believe it is important for human resources with different cultural backgrounds, experiences and attributes to share values and work together as one toward value creation.
In addition to implementing a common global job-based human resource system (GTC: Global TEL Careerpaths) and this system, we are also focusing on global human resource management to promote career advancement under a common platform without biases against any country or the Group companies affiliation. This allows us to respond to changes in business environments and allocate resources in an agile and optimal manner.

Human Resource Development Concept at TEL UNIVERSITY

Provision of Global and On-demand Learning Opportunities

Since each employee develops differently, we provide on-demand education* that enables learning in multiple languages according to individual needs and timing. In addition to group training, we actively use online education and other methods to provide a common platform for learning from any location in the world.

On-demand education: Education programs that allow employees to learn at their own convenience, anywhere, anytime

Support for Career Development

We are expanding our education programs to help employees quickly acquire basic skills. We also provide information and tools so that employees can gain a more concrete image of their own learning, experience and career development.

Leader Programs

In order to nurture the next generation of leaders to support our future, we identify and systematically nurture staff to take on the role of realizing medium- to long-term corporate value enhancement. We provide next-generation management candidates with opportunities to build networks through participation in events such as external training, to develop a broader perspective, and to receive 360-degree feedback*. In addition, management, including outside directors, conduct systematic assignment considerations and reviews.

360-degree feedback: Process for collecting feedback from the subordinates, peers and supervisors of employees, as well as self-assessments by the employees themselves

Corporate Education System (TEL UNIVERSITY)

Onboarding Education

We provide important knowledge and skills related to ethics and compliance, information security, environment, safety and quality, risk management, and sustainability at the time of joining the company. We have prepared appropriate programs in accordance with the laws and cultures of each country. Additionally, we are expanding DX basic education to all employees to ensure they understand the importance of DX and can take action towards transformation.

Work-life Balance

Work-life Balance Concept and Systems

We believe that harmony between work and life for each employee produces a synergistic growth effect both of employees and the company, and we are building structures for this.
Our vision is to realize a truly global company that creates high added value and profit. We recognize that in order to achieve this, it is necessary to reduce overtime through efficient work techniques and to have mechanisms in place to evaluate the outcomes. In fiscal year 2018, we began global operation of a new unified human resources system. It clarifies the roles and responsibilities for each employee, sets appropriate targets and challenging targets, provides absolute evaluation of degree of achievement, awards performance bonuses and provides further career opportunities. We aim to encourage greater engagement by evaluating the proactiveness of employees. Furthermore, we will realize creative work styles through awareness of more efficient working, where time gained can be used for learning opportunities and can provide further benefit to our business.

Work Styles and Offices

We endorse work styles that contribute to a positive work-life balance, and are continually working to create environments that facilitate this.
For example, we recommend that both mothers and fathers take advantage of our parental leave systems—one of several childcare leave systems we operate—and this has resulted in a high proportion of our employees returning to work after taking maternity/paternity leave and childcare leave.
We also offer a range of work style programs, such as flextime system that allow employees to work flexible hours, and work for home system. We incorporate user feedback to improve our programs and promote efficient work styles that cater to diverse lifestyles and social situations.
We are engaged in building unprecedented new office environments that are work-friendly for all our employees and that support their endeavors.
To take one example, the Miyagi Technology Innovation Center we opened at Tokyo Electron Miyagi in 2021 features an “Innovation Area,” which is a communal space for creating new technologies, and a “Creative Office,” which is centered on a bright and open communication space.
We are also working on creating office spaces at our other sites that encourage interactions between different departments and that provide support for new innovations.

Leave System

Usage for employees in Japan

Leave to care for a sick or injured child: employees are granted five days of paid leave per year until the child enters elementary school. Childcare support leave: employees are granted five days of unpaid leave per year until the child enters junior high school

Childcare and Nursing Systems・Employee Life Support

Childcare and Nursing Systems

We respect the various lifestyles of its employees and is investing effort into providing an environment where each employee can thrive. In addition, to the system made available by existing laws, we are independently building a substantial framework that allows employees to adopt a flexible approach to work that accords with diverse life events such as raising children or caring for family members.

With regard to the situation in Japan, we have acknowledged the maximum extension of the childcare leave period to the day a child reaches three years of age, as well as expanding our provision of a reduced working hours program for childcare to include employees rearing children as far as graduation from elementary school. In addition to leave to care for a sick or injured child, we are enriching the provision of support through establishment of our own childcare leave, etc. As a result, currently in Japan, 42% of female TEL employees are working mothers. To further our support for the compatibility of work, and nursing care, nursing care leave on full pay is available for up to five days. We are advancing improvement of the system, for instance, by allowing nursing care leave to be taken up to three times per person requiring nursing care for a one year in total.

Employee Life Support

We are enacting a diverse range of support toward achieving a workplace environment where employees can work energetically while each making full use of their abilities. We present regular opportunities for employees aged 50 or over to attend seminars providing necessary information and review of financial planning, encouraging them to consider their way of working after retirement. Furthermore, we support employees’ everyday lives by offering assistance to all age groups on familiar topics such as nursing care for family members and inheritance.

Management foundation