Human Resource Strategy

Human Resource Strategy

Fundamentally, our strategy when it comes to human resources is to encourage autonomy, initiative, and the ability to respond to change. We seek to improve employee motivation and engagement, unlock the ability of people to create value, and foster an organizational culture that encourages positive challenges without fear of failure. Through this, we aim to maximize the value of our people as well as long-term corporate value by executing a human capital management and health and productivity management-centered human capital strategy.
Under our organizational and human resource strategy for achieving the goals set forth in ENGINEERED FUTURE 2035, we envision transitioning from a uniform operations division structure to a portfolio of globally diverse organizational models tailored to different business models. A key priority will be to develop and secure leaders who can formulate visions and execute strategies effectively even in highly uncertain environments. It will also be essential to develop engineering talent and an engineering mindset on a global scale. These people must be capable of taking a technology, improving and evolving it through a field-oriented approach, and implementing it in a way that benefits the world
Epson has focused on securing diverse talent while also helping existing employeesl develop their careers. We have assigned these people to growth areas and worked to put us in a strong position from a global perspective. Additionally, we have strived to enhance employee engagement, revitalize the organization, and maximize teamwork by fostering a healthy organizational culture, common values, and a work environment that enables a diverse workforce to thrive.
Over the first three years (Phase 1) of the current business plan, we will focus on the following five key areas:

(1) Effective utilization of our global organization and human resources
(2) Fostering leadership to drive our businesses
(3) Creating a framework and opportunities to develop key people
(4) Securing and retaining talented people who can unlock new organizational capabilities
(5) Improving personnel systems and developing data platforms


■Outline of the human resource strategy based on the long-term vision

Type of People We Seek

To realize its management strategy and conduct its business, Epson emphasizes the importance of human resources who share the same business goals and values, have a broad perspective and expertise, and can take initiative and adapt even in a rapidly changing business environment to create value for customers and society.
Under ENGINEERED FUTURE 2035, we are leveraging our efficient, compact, and precise technologies and philsophy to support social and industrial transformation through technology and engineering. We need human resources who can take a technology-driven and a field-oriented approach, implement technology in a way that benefits society, and take charge of everything from conception to execution to optimally grow and transform our businesses globally by collaborating across regions, businesses, and functions.
In the previous mid-term HR strategy, we defined human resource requirements based on skills and behavioral characteristics. Accordngly, we have been building a human resource portfolio to visualize human resources in connection with the management strategy.
Based on this, we will organize the overall picture of the quantity, quality, and timing of human resources necessary for formulating and executing business strategies and developing new business models, more clearly identify the quantitative and qualitative human resource gaps, and develop measures such as developing and reskilling internal human resources, shifting resources, recruiting external human resources, and succession planning from a global perspective, aiming to build an optimal personnel structure that contributes to the realization of mid- to long-term strategies across the Group.
We also aim to create an environment that promotes learning and growth using the human resource portfolio to facilitate communication between superiors and subordinates.

■ Human Resource Portfolio Initiatives

Human Resource Strategy

Epson is advancing the initiatives of the human resource strategy below to lay a global human resource and organizational foundation to realize ENGINEERED FUTURE 2035 and further strengthen the execution of its strategy. We will optimize the allocation of human resources and utilize our human resources agiley in line with the business strategy. Further, we will develop internal human resources, secure and retain external professionals, and establish evaluation and treatment systems and a human resource data platform to realize sustainable value creation that responds to environmental changes.

(1) Effective utilization of our global organization and human resources
To deliver valuable products and solutions to our customers, Epson has consistently focused on developing global talent who can effectively and efficiently manage our globally integrated value chain. Drawing on broad knowledge and experience across functions worldwide, these individuals coordinate activities from a company-wide optimization perspective and make accurate, timely decisions close to the front lines. By fostering such capabilities, Epson strengthens its ability to create value and respond swiftly to the needs of customers and markets around the world.
ENGINEERED FUTURE 2035 clearly recognizes the growing importance of utilizing strategic human resources from a Group-wide perspective. Thus we are laying the foundation for promoting collaboration and integrated solutions across business and regions. We will assign personnel by theme, clarify responsibilities and roles, and compensate them accordingly. Through the trial introduction of this global assignment system, we plan to gradually expand the cross-Group utilization of human resources, align personnel allocation and compensation according to expected global roles, and improve the execution of business strategies.

(2) Fostering leadership to drive our businesses
Once a year, Epson takes a company-wide view of workforce needs across each organization and establishes succession plans for critical positions, including managerial roles. In addition, we identify and maintain a pipeline of candidates for future executive, managerial, and global leadership positions, and develop tailored plans to support their growth and advancement.
However, talent management has historically been conducted primarily at the business unit level, and we recognize that there is further opportunity to strengthen company-wide visibility of talent and its strategic deployment from a management perspective. Therefore, we have established a framework, led by top management, for ongoing company-wide discussions of key talent management issues, particularly with respect to employees at the middle management level and above. Through this framework, we aim to more consistently evaluate and implement measures such as rotations, promotions, assignments, and organizational reviews in alignment with organizational challenges and business strategies.
We will also strengthen succession planning for critical leadership positions, including chief operating officers and general administrative managers, by linking it to systematic talent development and deployment. This will involve providing high-potential candidates with challenging assignments and opportunities to broaden their management perspective through hands-on leadership experience. In parallel, we will review and upgrade our existing leadership development programs to make them more practical, rigorous, and aligned with the capabilities required of future leaders.

(3) Creating a framework and opportunties to develop key people
In addition to on-the-job training (OJT), Epson provides systematic echelon-based training and specialized training. We are also examining how best to develop and deploy talent to achieve the goals of ENGINEERED FUTURE 2035 and are laying the groundwork to enable the continuous development and effective utilization of the talent required for future growth. Epson has long focused on securing diverse talent and supporting employee career development and growth. Going forward, we will further expand mechanisms that provide the right learning opportunities to the right people on an ongoing basis. At the same time, we will strengthen the expertise of our engineering talent and broaden the scope of their contributions, enabling more agile talent deployment across organizational and geographic boundaries. Through these efforts, we aim to empower engineers and other specialized professionals to share knowledge globally and enhance their ability to create value. Ultimately, we will strengthen our internal talent base by fostering a workforce that combines deep expertise and an engineering mindset with a strong capacity to adapt to change.

(4) Securing and retaining talented people who can unlock new organizational capabilities
As our businesses become increasingly advanced and specialized, we recognize the critical important of hiring and retaining both skilled managers and specialized professionals from outside.
In particular, we believe that the expansion of new businesses and growth domains requires knowledge and experience that may not be readily available within existing organizations or the current workforce. The ability to flexibly and rapidly incorporate such expertise through external talent is therefore an important driver of competitiveness.
Therefore, Epson is strategically reviewing its talent acquisition approach. Alongside our traditional practice of recruiting new graduates, we are exploring ways to effectively attract and retain highly specialized external talent in a timely manner according to business needs. In parallel, we are strengthening our onboarding processes to accelerate the contribution of new hires and creating an environment in which specialized professionals can adapt seamlessly to the organization and business operations, enabling them to realize their full potential more quickly.

(5) Improving personnel systems and developing data platforms
Epson understands that, in addition to acquiring and retaining specialized personnel, it is essential to have evaluation and compensation systems that appropriately reflect market conditions and individual contributions. We are therefore defining the value of expertise and roles, and are promoting a shift to an evaluation and compensation system that encourages commitment to results. This will make it easier to reflect the value of engineering personnel in their compensation and will also better position us to acquire and retain specialized personnel.
The use of human capital data is seen as critical for achieving long-term growth and effectively executing management strategies. The Epson Group possesses a wide variety of talent-related data, both structured and unstructured. To make effective use of this data, we are building an integrated database of human resource information.
Through the advancement of these human resource data platforms and the construction of talent portfolios, we aim to enhance the reproducibility and effectiveness of human capital management and to create sustainable corporate value even in a changing business environment.

Human Resources Management

Allocating Human Resources to Priority Areas

Epson prepares staffing plans based on forecasts of future changes in the workforce structure and the talent needed to execute its business strategies.
Under our previous long-term vision, Epson 25 Renewed, we strategically reallocated resources to priority growth areas through both targeted hiring and internal talent development. This included assigning newly hired employees to growth businesses such as Printing Solutions (office, commercial and industrial printing) and emerging fields such as environmental business and environmental technologies. At the same time, we also provided specialized training and reskilling opportunities to existing employees. As a result, we accelerated the shift of human resources toward areas targeted for expansion. Going forward, we will further strengthen the alignment between our business strategy and talent strategy to realize our current long-term vision, ENGINEERED FUTURE 2035. To support business portfolio transformation and the creation of new value, we will identify the organizational capabilities and talent required for future growth and secure them through both internal development and external recruitment. In addition, we will leverage talent data to optimize workforce deployment and advance reskilling initiatives, thereby strengthening the human capital foundation that supports sustainable value creation. Over the five-year period from FY2021 to FY2025, we placed 1,992 of the 2,830 newly hired graduates, mid-career hires, and existing employees who applied for a transfer, to strategically prioritized growth areas. 

Placement to Priority Areas

  FY2021-2024 Cumulative FY2025 Plan FY2025 Result
Total placements 2,430 351 400
Allocation to priority areas 1,693 253 299

Number of employees hired and placed through internal recruitment

Human Resource Review and Succession Planning

The concept of "role" is the basis for the placement of human resources and their assignment to positions. The basic approach is to design a global organization to execute business strategies, define the roles of each position within the organization, and then allocate and appoint the most appropriate people to that role.
To achieve this, we conduct an annual human resources review at each echelon of the organization to get a bird's eye view of the staffing situation, list potential successors for each position, and review their skill development needs.
Overseas, as in Japan, we work with local top management and human resource departments to define roles and human resource requirements and to formulate succession and training plans for key positions and key human resources. Through they actions, we are putting Epson in the best position from a global perspective.