Employee Relations

We encourage business management that values people and allows all employees to realize their potential. For that reason we are revising our approaches to work and organizational management to reflect changes in the employment and work environment while continually fostering awareness about health and safety.

Business Management that Values People

We respect fundamental human rights and do not discriminate based on race, nationality, gender, religion, creed, birth, age, or physical disability. On the basis of our standards of conduct, we strive to improve employee health and work-life balance, improve workplace environment and safety, and increase employee satisfaction. We are developing various measures and systems to support these efforts, while strengthening the foundations of our “ business management that values people. ”

Healthy, Highly Satisfactory Workplaces

Invigorating the Internal Culture

Since the year ended March 2014, we have conducted employee satisfaction surveys with the aim of creating healthy and positive workplaces, using the results to identify and analyze the current workplace situation and any problems in matters such as motivation for work, mutual communication between management and staff, and job performance. Through this repeated process of survey—analysis—improvement, we are endeavoring to raise the standard of workplace management.

In departments where employee satisfaction was relatively low, the Human Resources Department has worked with workplace managers to devise and implement corrective measures. Repeatedly carrying out this process has resulted in our satisfaction index* improving from 40% in the year ended March 2014 to 46% in the year ended March 2017.

In the year ended March 2016, we began conducting the satisfaction survey at all Group companies and are working on creating healthy and positive workplaces throughout the azbil Group.

* An index calculated by: satisfied employees (%) – dissatisfied employees (%).

Work-style Reforms

Azbil Corporation is promoting “ work-style reforms ” as an important part of its commitment to CSR-focused management that values people. This entails companywide initiatives in three areas: (1) reduction in the total working hours of each individual*, (2) realization of healthy lives both physically and mentally, and (3) creation of harassment-free workplaces.

In order to improve the work environment and ensure the health and safety of all employees, the company is making various measures to prevent long hours work, including the formulation of a basic policy stipulating that employees should start and stop working at the regular times. Specifically, supervisors not only manage the progress of work during meetings, etc., but also work with their staff to think up more efficient ways of working. With regard to data management, they also use a web-based work management system for daily tracking of staff working time. Furthermore, the company has set a monitoring period (an alarm) to prevent exceeding of the overtime limit defined by the agreement between labor and management. If an employee triggers the alarm, labor and management share that information with the workplace supervisor, and all three parties work together to make and implement a plan to help the employee.

The company also designates two days of the week when employees should leave work at the regular time, improving-work efficiency. For employees who cannot avoid working many overtime hours, the company enforces consultation with the occupational doctor, and based on data such as the results of medical checkups, the company decides on work limits to ensure employees’ well-being. Across the organization, at work sites with many employees doing much overtime, work schedules are revised and necessary staff are relocated.

*We have been working hard to reduce the total number of hours worked and appropriately manage the overtime hours of employees by setting time management levels for each workplace under a three-year plan that began in the year ended March 2017. In addition, we are acting to reduce overtime work by introducing a diversified work system that takes efficiency and customer service into account. Through these efforts, the number of employees doing heavy overtime hours in the year ended March 2017 decreased by 89% compared with the year ended March 2016. Our aim is to have no employee exceed the maximum overtime of 45 hours per month by the year ending March 2019.

Employee Health and Safety

Raising the Standard of Health and Safety among Group Companies

In the year ended March 2017, we extended the Azbil Corporation’s Basic Policy on Health and Safety, its Health and Safety Regulations, and its Health and Safety Committee Regulations to cover the entire azbil Group in an ongoing effort to raise the standard of health and safety among Group companies.

Progressive Expansion of OHSMS Certification

In October 2011, the azbil Group introduced its Occupational Health and Safety Management System (OHSMS) to maintain and enhance the safety and health of employees based on the creation of healthy, cheerful, and comfortable workplaces where employees can work with peace of mind for many years to come.

Guidelines issued by the Ministry of Health, Labour and Welfare in March 2006 encourage companies in Japan to proactively introduce and build an OHSMS through a framework for phased enhancements in the occupational health and safety standards of business sites.

During the fifth year of our Occupational Health and Safety Management System certification, we continued to maintain highly safetyconscious workplace environments and are expanding the scope of our efforts to address workplace safety issues by increasing the number of our business establishments that have OHSMS certification.

Health and Safety Education through E-Learning

We educate all employees about safety through e-learning programs in order to prevent disasters caused by carelessness (human error), including accustomedness and disregard for danger. We also provide education on past occupational accidents to prevent disasters from happening in the future.

Mental Health Measures

As mental health measures, we provide self-care education to help employees notice their stress levels and deal with them effectively. We also conduct training so that workplace managers can quickly identify mental issues among their staff. In addition, we conduct annual stress checks, the results of which are used to provide individual care for high-stress employees through interviews with industrial physicians. The results are also used to analyze the situation in the organization and, together with the results of the separately conducted employee satisfaction surveys, provide valuable feedback regarding our efforts to improve workplace environments.

When an employee is reinstated after taking a leave of absence due to mental illness, we carefully check the preparedness of the workplace to which the employee returns, and we have a system in place to provide support to prevent a recurrence of the illness.

Eradicating Harassment

We conduct compliance awareness surveys of all employees and use the survey results to plan and implement remedial measures at departments deemed highly susceptible to harassment.

At departments that require remedial measures for two consecutive years, we hold review meetings with management and HR department staff and take concrete measures accordingly. These efforts have led to improvements, as the results of our awareness surveys confirm.

Diversity Reforms

Seeking to create healthy, low-stress workplaces conducive to long-term employment, we are enhancing our framework for maternity leave, childcare leave, and nursing care. We have also introduced system allowing employees to take paid leave on an hourly basis, and we are encouraging employees to take advantage of it.

Based on the Act on Promotion of Women’s Participation and Advancement in the Workplace, we have put together an action plan that encourages women to remain in the workplace for the long term and enhances efforts to create opportunities for women to take on more important roles and greater responsibilities. Moreover, the plan aims to develop a more pleasant working environment for all employees, men and women alike, in order to improve job satisfaction. We have set a target of at least doubling the number of women in management or specialist positions by the year ending March 2022 compared with the year ended March 2015 level, when there were 35 women in such positions. We aim to continue our efforts to create pleasant workplace environments in which employees can actively demonstrate their capabilities.

Maintaining and Increasing Employment Opportunities for People with Disabilities

In 1998, we established a special subsidiary company, Azbil Yamatake Friendly Co., Ltd., with the aim of creating a place where employees with intellectual disabilities can thrive and play an active role in the company. Azbil Yamatake Friendly’s management policy is to assist in the skill enhancement and self-realization of people with intellectual disabilities through work, thereby enabling these employees to contribute to society. With this in mind, we endeavor to increase employment opportunities for people with disabilities. Having received approval to use the special provision applicable to large companies in regard to the statutory employment rate, our special subsidiary company is strengthening its partnerships with other Group companies in order to offer a wider range of opportunities for people with disabilities to play an active role in society.

Human Resources — Developing diverse personnel who can make “ A Company that Never Stops Learning ” a real

In order to respond flexibly to changes in the business environment, we established the Azbil Academy as an organization dedicated to the development of human resources, and we actively cultivate diverse personnel around the world.

In the year ended March 2017, its fifth year of operation, it launched the initiatives described below.

Career Development

Personnel Deployment for Structural Enhancement and Education for Transferred Employees

The azbil Group is carrying out business structural reforms that include the promotion of overseas operation, the training of field engineers and service engineers both in Japan and overseas, and responses to Olympics-related demands. Accordingly, to accomplish the optimal deployment and training of personnel, the Azbil Academy has deployed approximately 600 people in total and provided education to 170 employees who were transferred to another business line or occupation since the year ended March 2013.

Development of Software Engineers

Software engineer education has been reinforced to cultivate personnel who can carry out the development of products that take advantage of technological innovations in areas such as the IoT, AI, and big data as well as service business that takes advantage of IT infrastructure, and personnel to implement the computerization of engineering, design, and other areas for operational efficiency. In the year ended March 2017 we trained 50 software engineers.

Global Human Resource Development

Global Leader Education

As a part of human resource development to further the Group’s fundamental policy of “taking global operations to the next level,” the basic policy of the Group, we started to provide the training sessions in the year 2014 to foster leaders for the global business with strengths in logical thinking, problem-solving skills, and communication ability. The year ended March 2017 was already the third year of this global business training. Japanese employees take the training courses together with the employees of overseas subsidiaries, and all of the lectures and discussions are in English. We have trained more than 40 global leaders in total as of the end of March 2017.

We have also offered, since the year ended March 2016, a management training program for employees in leadership positions in order to enhance human resource development at overseas subsidiaries. In the year ended Marcy 2017 we expanded the program to subsidiaries in China, South Korea, and Thailand.

Development of Staff of Overseas Subsidiaries

In the year ended March 2017, we started a study-abroad program that enables administrative staff of overseas subsidiaries to come and study at Azbil’s headquarters in Japan. The main goals of this program are for the staffs of overseas subsidiaries to learn and understand Azbil’s CSR management, and to build up a network of personal contacts between employees in Japan and the staff of overseas subsidiaries. The staff of subsidiaries in China and Taiwan have previously been able to take year-long training courses in the year ended March 2017.

Human Resource Development for the Solutions Business

Recognition System for Technical Professionals

In the year ended March 2015, we introduced a system to award the title of “Technical Professional” to azbil Group employees with top-class technical skills who improve the level of technical ability and pass on technical know-how to younger employees. As of the end of March 2017, the title has been given to five top-class engineers from the building automation (BA) business and two top-class engineers from the advanced automation (AA) business.

Education for the Solutions Business

We have established a training system that will provide young employees in Japan with level-specific education on an accelerated schedule so that they can acquire important business skills at an early stage. The program is designed especially to enhance young employee’s logical communication skills and cultivate their ability to recognize and solve problems. Based on the aforementioned soft skills, we started a selective education program specialized in each line of business and occupation in the year ended March 2017.