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Initiatives for human capital management

New management style

In October 2021, the NTT Group unveiled its "New Management Style." In addition to promoting the appointment of female managers (newly appointed managers in FY2021: 29% (target 30%)), introducing new work styles (from July 2022) based on remote work and expanding satellite offices (551 locations at the end of September 2022) for promoting work-in-life (health management) through the workplace-residence proximity, we began a trial at the holding company from October 2022 for decentralizing the organization in order to enhance resilience.

We believe that promoting diverse work styles and increasing opportunities to harness the capabilities of people from diverse backgrounds will help achieve a more open, global and innovative business. We are promoting the participation of women, foreign employees and outside personnel as part of these efforts to increase the choices for working time, place, and residence. The NTT Group has reviewed its personnel system to assign the right person to the right job at the right time regardless of their gender, years employed, or age. We are focusing on specialization, encouraging self-guided career formation, and also raising the starting salary of new recruits as part of efforts to revise the personnel system for general employees.

Management where investment in human resources
leads to value provided to customers

The NTT Group focuses on assigning the best-suited person to the work and post, regardless of age, and is moving ahead with self-guided career development that will result in better earnings for the company by boosting the motivation of employees to take on challenges and encouraging them to enhance their skills by acquiring specialized knowledge. To achieve this, we are implementing a system for posts with clearly defined roles that assigns the right person to the right job, while taking into account employees' career plans, in line with the jobbased personnel system introduced in October 2021 for all management positions. We will also be rolling out a system for general employees from April 2023, built on a revised personnel compensation system with a greater focus on specialization so that employees can work on enhancing their professional areas of specialization and forge their own path forward.

Providing customers with a new sense of excitement only comes about due to having the motivation or taking action to create something new. In fact, each and every idea or product is created by a "person." We believe that employees creating added value helps to increase convenience throughout our customers' lifestyles and can even lead to the development of new social trends. All of these revisions have helped to inspire each and every employee to further increase their specializations and acquire or maximize their skills and have resulted in the creation of a working environment that allows them to create added value in a broad range of fields. Creating new value by reforming business and expanding into new business areas will provide the impetus for continued growth and development through the entire NTT Group.

Introduction of job-based personnel system to all management positions (October 2021)

Shift to assigning the right person to the right job for greater strategic capability

  • • Job definition and grading linked to management strategy and business strategy importance
  • • Assign the right person that suits the roles and tasks required of each job, regardless of number of years employed or age
  • • Framework where compensation is determined based on job assignment. Move to a working environment where special appointments or salary reductions are the norm
  • • Transform awareness for management positions and increase employee motivation to take on challenges, and promote self-guided career development

Revision to specialization-based personnel compensation system (general employees, April 2023)

Personnel compensation system that rewards specialization with promotions

  • • Framework that eliminates requirements for years employed or years served, and provides promotions and salary increases corresponding to acquired specialization or level of skills (set grade standards that clarifies the specializations or other skills required in 18 specialist fields)
  • • Formation of a new "Specialist Course" that provides high compensation for employees with a particularly high level of specialization (career diversification)

Personnel system that supports self-guided career development

  • • Shift to personnel assignment and transfer policy to boost specialization
  • • Greater support for self-guided career development (enhanced training, better career consulting functions, etc.)

Engagement Survey

In fiscal 2021, NTT Group revamped its existing Employee Satisfaction Survey, which focused on questions relating to ease of working, and added questions relating to job satisfaction as an indicator for defining culture. It also conducted a Group-wide Engagement Survey to quantify employees' attachment to and trust in the company to which they belong as an "engagement score." By understanding the issues that need to be improved for establishing corporate culture, and by taking action to make improvements, we hope to establish a corporate culture where employees identify with the company's and organization's policies and strategies, as well as feeling pride in their work.

NTT Group's Four KPIs

Willingness to make voluntary contributions
(1) I am motivated to contribute more than is required to get the job done at the company Attachment to and pride in the company
(2) I am proud to work at this company
(3) I would recommend our company as a great place to work to those I know Job satisfaction
(4) I gain a sense of personal accomplishment through my work

Flexible work styles not bound by time and place

In September 2021, we declared our policy aimed at eliminating the pressures of job transfers or working away from their family, as part of efforts to create work styles throughout the entire NTT Group that are no longer constrained by location or time. In July 2022, we introduced a work system that generally allows employees to work anywhere as long as they reside in Japan, and successfully rolled out Remote Standard for 30,000 employees, around half of all of those working at the Group's main companies. We believe that flexible work styles encourage individual diversity, dialog and innovation, which will lead to a work environment that delivers positive business outcomes.

Decentralization of the Organization (Including Head Officers and Back-Offices)

The NTT Group began initiatives for decentralizing the organization from metropolitan areas to regional areas (core cities)

<Specific Initiatives>

  • • Trial run for dispersing the organization across regions to begin at the holding company (starting in October 2022)
  • • From the standpoint of resilience, we will aim for sustainable business operations by opening offices in Takasaki City and Kyoto City for promoting distributed offices The first step will involve a trial of certain organizations (with approx. 200 employees) of the holding company
  • • The trial will be used to test for issues or measures related to business operations and communications with distributed offices, with a view to applying it to actual operations
  • • Introduce a working style based on telework in which employees engage in head office operations while residing in a distant location
  • • Introduce a "hometown double work" program to contribute to the revitalization of local communities and areas associated with the Company while continuing current assignments