CSR
CORPORATE SOCIAL RESPONSIBILITY

Human Resource Development and Utilization

Basic Policy

INPEX HR VISION
  1. Talent Attraction and Engagement
    Make INPEX the best place to work “employer of choice”
    • Job satisfaction and opportunity for growth – challenging/rewarding jobs and career opportunities
    • Competitive reward programs – “Total Reward” – salary, benefits, career development, organizational culture and workplace environment
  2. Focus on People Development
    Future Leaders and global workforce capability
    • Recognize and invest in future leaders
    • Proper talent management cycle – performance management and stretch assignment
    • Provide employees with access to development programs (Training /Coaching/Mentoring/Cross-border trainee)
  3. Organization Effectiveness
    Maximize organizational performance through HR management processes
    • Workforce planning and organization review (performance, succession planning)
    • The right people at the right time, right place – staffing, internal posting and global mobility
  4. HR Excellence
    Support business strategy with world-class functional expertise
    • Effective, reliable and innovation HR processes & system
    • Develop HR professionals
    • Collaborate globally and share best practices

The INPEX Group is one of Japan's leading enterprises engaged in development of oil and natural gas resources. In our aspiration to evolve into a globally active integrated energy company, we have posted three growth targets and three foundations in the form of the INPEX medium- and long-term vision. One of the foundations consists of the recruitment and development of human resources, and construction of an efficient organizational setup. To this end, we formulated the INPEX HR VISION, which encompasses personnel affairs in the entire Group and is comprised of four pictures. On the basis of these four pictures, we are promoting various personnel-related measures from a global perspective. We are striving to link the improvement of employee capabilities to higher results as a team, and to build an organization endowed with a high degree of international competitiveness.

Human Resource Development

We hold training to build the all-round skills of our employees, so that they can continue to contribute to the company’s business over a long-term career.

We provide a range of level-based employee training and development programs based on the personnel requirements, anticipated future role, and required capabilities of each employee categorization, including global administrative staff, global engineering staff, and area staff members.

We also provide a range of programs to rapidly develop employees who can thrive in an international business environment, including overseas language study, training at overseas sites, and study at specialist overseas training facilities.

In addition to the general orientation and training for new recruits, we also operate a mentoring system for them. A senior employee is assigned to each new hire to help him/her adjust to work and life at the company, and to provide moral support during his/her first year. We have also begun taking approaches to measures such as a human resource development program encompassing the entire Group, inclusive of overseas locations, with a view to future instatement.

Diagram of Human Resource Development

■ List of Major Training Programs
Program Overview Participants
FY2012
Level tailored training Training for employees at milestones in their career— from joining the company to being promoted or moved to a new position—to help them gain an understanding and awareness of their new role and acquire necessary skills 281
Language training Training at overseas language school in the UK and other countries for young employees to improve their international communication skills 16
HSE training Training for acquisition of basic knowledge about HSE and improvement of operational experience through OJT 97
Business skill training In-house training to improve financial knowledge, logical thinking skills, and legal knowledge 138
OJT Training for younger employees, to enhance operational skills through practical training in domestic and foreign offices and on-site locations inside and outside the company 49
Overseas office training Practical training for young clerical workers at overseas offices to acquire knowledge of overseas business practices and to prepare for future overseas postings 17
Overseas specialized training Training at an overseas specialized institution for young employees to acquire expert knowledge of oil E&P business 107
Overseas study Training at an overseas postgraduate institution for young employees to acquire advanced expert knowledge of oil E&P business 4

Scheme for Proper Human Resource Evaluation

We strive to establish an employee evaluation system that fairly evaluates and rewards our employees for their achievements and demonstrations of capabilities, and to operate it in an equitable manner.

These evaluations are not merely one-way assessments of employees by their managers—they also include tools such as an Action Reflection Sheet and a Goals Challenge Sheet that our employees can use to complete a self-evaluation while reflecting on their performance. Employees are given opportunities to discuss their achievements at work with their managers in face-to-face meetings. This is to assess the gap between the self-evaluation and the superior’s evaluation. The system is designed so that improvements can be made to each type of evaluation, thereby contributing to human resource development and boosting the credibility of the evaluation.

To see that these arrangements take root, we have instated a program of practical training for evaluators in the context of layer-specific training, for personnel involved in line management (management of personnel and organizations). We provide this training on a continuous basis, and are working for proper operation of our scheme for personnel evaluation.

We also employ a self-report system under which our employees can submit requests for new assignments and transfers once a year. Although we cannot accommodate all requests, this gives the company a better understanding of the extent to which employees think they are fit for their current assignments and what career paths they wish to pursue—both of which are helpful for the company in developing plans for recruiting and allocating human resources. In particular, in cases such as those where an employee needs to care for a family member, the Human Resources Division operates an effective system in which it offers positions to suit these needs to employees who request such consideration during divisional transfers.

To make these systems an established part of the entire INPEX Group, we regularly provide line managers (i.e., personnel in charge of human resources and discrete organizational units) with practical training for conducting evaluations as part of level tailored training in order to operate the employee evaluation system fairly. It should be noted that we apply this scheme equally to all personnel, without regard to gender, age, job category, or rank.

Promoting Diversity

Diversity Management

We hire talented employees regardless of views, culture, nationality, belief, race, gender, or age. Our policy is to appoint and compensate the best person for the position, and there is no difference in the basic salary of male and female employees.

We hire and train employees we need regardless of nationality. Highly specialized global staff members work across the INPEX Group.

Additionally, because our large-scale overseas projects are now approaching their full-scale development and production phases, with expectation for long-term operations we directly recruit local employees who will play an integral part in running our overseas offices in line with local laws and with a transparent hiring process. We are working to maintain competitive hiring criteria, and offer fair compensation in order to maintain a strong work ethic among local employees and improve our employee retention rate. In fiscal 2012, foreign nationals employed in the whole INPEX Group numbered 779, or 31.7 percent of the total number of employees. Of these 779, 108 occupied senior management positions (93 men and 15 women). We will continue to actively practice diversity management.

Employment Opportunities for Physically Challenged

We have been proactive in hiring the physically challenged while giving consideration to varying working conditions and responsibilities. As of the end of fiscal 2012 (March 31, 2013), we employed 35 physically challenged employees, 2.13% of the total workforce. We will continue to make efforts in the future to employ as many physically challenged people as feasible.

Percentage of Physically Challenged Employees in Total Employment
Rehiring Retirees

We have a rehiring contract system whereby we rehire employees who have reached the full retirement age of 60 to help them continue working while making use of their extensive experience and advanced abilities and skills. This system allows for the hire of retirees for positions that match the interests of both the company and the employee, with the option to renew the contract every year until the age of 65. We have hired over 90% of all applicants to this program. As of the end of fiscal 2012 (March 31, 2013), 50 of our employees are working under a retire-rehire contract.

Employee Statistics

■ Number of Group Employees (As of March 31, 2013)
By Region Male   Female   Short-term
employees*
Total
Managerial
staff
Managerial
staff
Japan 1,291 451 181 4 306 1,473
Asia and Oceania 591 184 208 15 859 799
Eurasia 9 5 3 0 3 12
Middle East and
Africa
51 22 6 0 13 57
North and Central
America
13 8 3 0 2 16
South America 71 13 27 1 21 98
Number of
employees
2,027 683 428 20 1,204 2,455

* Contract employees, fixed term employees, temporary employees, etc.

■ Number of Employees (As of March 31, 2013)
Category Male Female Total
Number of employees 1,096 208 1,304
Average salary 929.2million yen
Average age 39.3years
Average length of service 15.6years
■ FY20112Hiring Data (Unconsolidated)
Category Male Female Total
New graduate hires 43 10 53
Mid-career hires 22 5 27
■ FY2012 Staff Turnover Rate (Unconsolidated)
0.77%
* Excludes age-limit retirees and employees rehired as executives
■ FY20112Number of Staff Turnovers (Unconsolidated)
Category Male Female Total
Under 30 years 1 4 5
30–60 year 8 4 12

Promoting Work-Life Balance

Seeking to maintain working environments that cater to different lifestyles and enable employees to fully express their abilities, the INPEX Group is working to create workplaces that support versatile work styles and offer a healthy balance between work and home life. We also pay close attention to factors in the external environment, such as Japan’s declining birth rate and aging population in order to promote work-life balance.

Making the Most of Work Time

With overseas operator development projects beginning in earnest, employees have been extremely busy as the INPEX Group expands its business. To promote efficient use of working time by focusing on work when needed and taking time off during less busy periods, in April 2011 we launched a campaign that encourages employees to leave work before 6 p.m. at least four times a month, with flexibility allowed for each person’s work schedule. We also ran a campaign encouraging employees to take paid leave over summer with the objective of allowing staff to refresh and revitalize through consecutive days off. Maintaining a regular work schedule helps employees to rejuvenate themselves both mentally and physically, use their limited work time more effectively, and be more productive at work.

And as a measure to reduce overtime work, when employees are forced to extend their overtime hours beyond the predetermined limit we encourage managers and junior staff to not only review the latter’s workload but also discuss current conditions and challenges they are facing.

Support for child raising and nursing care

We proactively strive to create an environment conducive to employees who are raising children or involved in nursing care for their working and family life, and adopt a greater variety of support systems than those required by law, which are offered to all employees including contract workers. Furthermore, we prepared a general entrepreneur action plan based on the Act on Advancement of Measures to Support Raising Next-Generation Children, and are making efforts to assist the participation of employees, whether male or female, in child-raising by offering support allowing them to care for their children while keeping their jobs.

Along with the spread of these provisions, all employees who had taken leave for childbirth or child care came back to their jobs in fiscal 2012, as was the case in fiscal 2011. These employees have continued to stay on the job after their reinstatement.

In the case of nursing care, we have also introduced a short-time working system for employees to enable the provision of nursing care while remaining employed (without a suspension from work) as well as offering nursing-care leave of up to 365 days that can be taken per each family member.

■ Family Care Support Systems (Unconsolidated)
System Overview Number of users
Parental leave system System to provide leave until a child reaches 18 months of age; 20% of salary is granted in addition to statutory childcare leave benefits 12 female employees,
2 male employees
Reduced working hours
system for child rearing
Until a child is in the fourth grade, employees can: (1) Reduce their standard working hours (reduction of two hours) (2) Work on flex-time (3) Receive exemption from working overtime or on days off 17 female employees,
5 male employees

Child healthcare leave

System that allows employees to take special paid leave to care for sick children under elementary school age; employees receive up to five days for one child and up to 10 days for two or more children, and may take leave in half day units 17 female employees,
5 male employees
Assistance for
nursery schools,
day care centers,
and babysitters
Employees who have children aged three and under are eligible to receive a partial subsidy for the startup fees and annual expenses for nursery schools, day care centers, and babysitters 15 female employees,
38 male employees (409employees
since program began)
Nursing care system Employees can take up to 365 days of leave per family member while receiving 20% of their salary 1 female employees,
0 male employees

Reduced working hours
for nursing care system

When not taking nursing care leave, employees can: (1) Reduce their standard working hours (reduction of two hours) (2) Work on flex-time (3) Receive exemptions from working overtime or on days off for up to one year during the nursing care period 1 female employees,
0 male employees
Special leave for
family care
System that allows employees to take special paid leave to care for their sick or elderly family member in need of assistance; employees can receive up to five days for one family member and up to 10 days for two or more family members per year, and are allowed to take leave in half-day units 4female employees,
4 male employees
Awarded Kurumin Mark
Kurumin

In August 2012, we have met certain standards based on the “Act on Advancement of Measures to Support Raising Next – Generation Children” and received a next generation certification logo (known as Kurumin). This mark is awarded to companies who have achieved the “General Entrepreneur Action Plan” which was established under the same act, and approved as entrepreneurs who have complied with the standards.

In the first phase (November 2009–March 2012), we set out to spread knowledge of the provisions related to childbirth and child rearing, and to prepare a workplace environment facilitating work by the employees. We posted four goals: 1) promotion of the taking of annual paid vacations; 2) notification of and information provision for internal provisions related to pregnancy, childbirth, and child rearing; 3) preparation of workplace environments facilitating the taking of leave for childcare with peace of mind and return to the job; and 4) attainment of the targeted rate for taking of childcare leave (also by male employees).

In the second phase (April 2012–March 2015), we made a partial revision of the aforementioned four goals and added a new one: support for the growth of children and youth through interchange with the community and other measures. We continue to take action to achieve these goals.

■ General Entrepreneur Action Plan based on the Act on Advancement of Measures to Support
Raising Next-Generation Children (Phase 2)
Planning phase
April 2012–March 2015
Outline
  Goal Measure
1 Promotion of the taking of annual paid vacations and measures for reducing overtime work
  • Continuation of a campaign for the taking of five consecutive days of paid vacation in summer
  • Further notification of all employees by means including posters prepared for a campaign encouraging employees to leave the office before 6:00 PM
2 Notification of and information provision for internal provisions related to pregnancy, childbirth, and child rearing
  • Renotification of provisions through the company intranet
3 Preparation of workplace environments facilitating the taking of leave for childcare with peace of mind and return to the job
  • Continued provision of advance explanations to allay apprehensions during childcare leave
  • Continuous distribution of the e-mail magazine to employees taking childcare leave
4 Attainment of the targeted rate for taking of childcare leave (also by male employees)
  • Targeting of leave-taking by at least two male employees and at least 80 percent of the female employees during the term
5 Support for the growth of children and youth through interchange with the community and other measures
  • Acceptance of youth for internship programs
  • Holding of business-site tours for local students (of junior and senior high schools, technical colleges, and universities)
  • Staging of events for local children
  • Cooperation with publication of educational comic books for elementary school students

Dialogue Between Employees and Management

We strive to maintain and promote sound relationships between our management and employees based on a foundation of mutual trust and cooperation and a common goal of furthering the company. To maintain a healthy relationship, our management meets regularly with employee representatives to exchange views and ideas on a broad range of issues that include challenges we are facing and our business outlook.

Although we take care to set an appropriate advance notification period in the case of matters that would cause a significant alteration in the duties of employees, there are currently no such matters under discussion. We do not infringe on employees’ freedom of association, including at our sites outside Japan.

As of March 31, 2013, the INPEX Labor Union has 1,034 employees, comprising 69.9% of the total regular employee base.

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