Sustainability | SocietyTalent Attraction & Retention

Our Approach

TDK takes a holistic approach to talent attraction and retention, recognizing that engagement plays a crucial role in building a thriving workforce. We focus on creating a positive and engaging work environment that fosters a sense of belonging and purpose.

We actively recruit and hire individuals who align with TDK's values and are passionate about their work. Once talent is onboarded, we invest in their development and growth. We conduct global engagement surveys to gather feedback and continuously improve our work environment and we utilize social media channels to support and enhance employer branding.

By nurturing a culture of engagement, TDK attracts and retains top talent, creating a loyal and committed workforce that drives innovation and propels the company forward.

Governance

The Global HR Headquarters is responsible for setting direction and promoting Talent and Retention within the organization. They take a proactive approach to understand the evolving needs of the business and align talent strategies accordingly. This includes understanding key talent trends, competitive landscapes, and emerging skills requirements. The resulting strategy encompasses various aspects including employer branding, recruitment channels, candidate experience, onboarding programs, career development initiatives, and team member engagement. By setting a clear direction and strategy, TDK Global HR enables the organization to attract top talent, nurture their growth, and create a supportive environment that fosters long-term engagement and retention.

TDK Global HR also establishes metrics and performance indicators to measure the effectiveness of talent attraction and retention efforts, ensuring continuous improvement and alignment with organizational goals.

TDK Global HR collaborates with subsidiary company HR and Business Leaders to educate and promote the awareness of Talent Attraction & Retention and its importance to our business. This is achieved through attending strategy sessions, functional meetings, and publishing success stories via internal communication channels.

Strategy

Our Long-Term People Strategy focuses on fostering a corporate culture that values diversity, promotes inclusive leadership practices, and creates an environment where all team members feel valued and included and create impact. Without providing an engaging work experience, our risk is that we may not be able to recruit and retain talented team members, hindering the execution of our plans.

Our opportunity is to ensure positive work environment through our Team Member Engagement System and Employer Branding initiatives to secure a highly motivated and productive workforce.

Risk Management

Through our annual global engagement surveys, we gain statistical insights into our team members’ perceptions, concerns, and engagement levels within regions, subsidiary companies, job functions, and demographics. The data helps us uncover patterns, trends, and correlations related to engagement. These insights help us make informed decisions about our talent strategies, including communication practices, recognition, performance management, DE&I, and training and development.

Metrics and Targets

Within our Medium- and Long-Term plan, we have established a key issues (materiality) strategy that addresses improving team member health and engagement. In addition, we have set specific goals for survey participation and making continuous improvements to address areas of opportunity.

Rooted in the essence of TDK United, we focus on attracting and developing a diverse and highly skilled workforce. We actively seek out talented individuals globally, empowering them to make meaningful contributions and create impact.

Initiatives

Team Member Engagement Survey

Engagement is the cornerstone of our success. It fuels innovation, collaboration, and a positive work culture. Our engagement survey provides a platform for our team members to voice their opinions, share their experiences, and contribute to the continuous improvement of our workplace.

The first company-wide Team Member Engagement Survey (“MyVoice”) was conducted in February 2023. A participation rate of 80%, an engagement index of 72%, and more than 42,000 comments and suggestions show that team members embrace the opportunity to make their voices heard and participate in creating a positive work environment. The survey consists of 27 questions that address the six key drivers of engagement: Purpose, Clarity, Growth, Connection, Empowerment and Well-being.

The survey also includes two key questions that measure overall engagement. “How happy are you working at this company?” and “Would you recommend this company as a great place to work?”. Through our Team Member Engagement survey process, we identify areas for improvement, celebrate our strengths, and create a workplace that reflects the changing world we live in.

At TDK, we are committed to cultivating a compelling employer brand that resonates with individuals worldwide, establishing TDK as a premier choice for top talent across the globe. Through our TDK United Approach, we collaborate across the organization to drive global Employer Branding initiatives. Our goal is to establish a partnership model aimed at revitalizing and implementing our global Employer Brand strategy.

Further initiatives for talent retention are linked to performance appraisal. Specifically, within TDK our subsidiaries have implemented numerous performance appraisal systems such as objective based as well as multidimensional or team-based.

One example of multidimensional performance appraisal is conducted at one of our largest subsidiaries, which offers an assessment of how the employee meets the values and objectives of the department or company, based on feedback from internal and external customers where a broader view of the employee’s performance result - what and how - is provided. Currently, it is applied in positions which require intensive cross-functional collaboration.

Another of our large subsidiaries offers a team-based performance appraisal system.

Teams in the production area are built by production line and evaluated according to values such as e.g., efficiency, and scrap. According to the team-performance, a monthly bonus is granted to team members.

Teams in indirect areas are built by department. The performance assessment is done quarterly or in some cases yearly based on values such as e.g., operating profit, customer claims or other department-specific KPIs. After evaluating performance, a quarterly or yearly bonus is granted to the team members.

Visualization of the HR skills of Group team members

We are pressing ahead with the introduction of a system to unify and visualize HR management and training, centering on managers in the TDK head office and Group companies. In this system, which is called the Talent Management System (TMS), we have prepared such modules as “Performance evaluation,” “Competency assessment,” “Succession planning,” and “HR training plan” so that we can comprehend the abilities of each individual. This system is an important initiative to fully display the individual qualities of our human resources on a global scale. Going forward, our aim is to introduce it for all sites and Group team members (team members).

Conceptual chart of TMS
Conceptual chart of TMS

Diverse Work Styles and Work-Life Balance

We believe that establishing an environment in which team members with diverse backgrounds can display their skills is crucial to continue generating innovative creativity and realizing corporate growth. One such effort is to support team members' work-life balance by creating an environment and systems that enable them to choose diverse and flexible work styles.

At present major changes are taking place in workstyles at TDK sites, including the introduction of telecommuting and super-flextime systems. TDK is promoting these activities further and has introduced the TDK Smart Work system, which will enable autonomous workstyles unbound by working hours and workplace, at some locations such as the headquarters and Technical Center. Our aim through these initiatives is to enhance team member engagement and maximize both individual and company performance.

Examples of programs supporting diverse work styles and work-life balance (TDK Corporation)

Working-from-home system and super-flex time system

Systems that enable team members to have flexibility in where and when they work and to achieve diverse and flexible work styles. Super-flex is a system that allows team members to freely decide their working hours according to their individual needs without core hours.

Maternity and childcare support programs

We have systems to support balancing work with housework and childcare, such as "Maternity Leave," "Childcare Leave," and "Part-time Working Options." In principle, "Childcare Leave" is available until the day before the child's first birthday, but if both parents take childcare leave, the leave may be taken until the child reaches the age of one year and two months. (The maximum period of leave for each parent is one year.) "Part-time Working Options" are available in principle until the child reaches the end of the third grade of elementary school, and multiple working hour options are available. In addition, financial supports for childcare and nursing care related services are available.

Nursing care leave

This system is for team members who have been with the company for at least one year and are willing to continue working are eligible to take three leave periods (up to one year in total) for each family member who is in need of constant nursing care for a spouse, child, parent, grandparent, sibling, grandchild, or spouse's parent.

Rehiring system

The existing TDK Rehiring System, which rehires retirees, was revised and began operating as a new second career system in April 2017. The purpose of this system is to make more effective use of the knowledge and experience possessed by retirees and to fulfill our social responsibility as a company to comply with the revision of the Law Concerning Stabilization of Employment of Older Persons. Similar systems have also been introduced at subsidiaries in Japan. Furthermore, in October 2017, we introduced the "Welcome Back System" to rehire team members who left the company due to unavoidable circumstances such as childbirth, childcare, or nursing care.

Workstyle Options to Accommodate Spousal Relocation

In October 2017, we introduced two new systems: a relocation system for team members whose spouses have been relocated in Japan and a leave system for team members whose spouses have been relocated overseas. With these systems in place, even if it becomes difficult to continue working in one’s current workplace due to the relocation of one’s spouse, team members can now choose to relocate or take a leave to be with their spouse. The workstyle options provided by TDK are designed to allow team members to balance work with various events in their lives, a policy that aims to make TDK a company where people feel safe working at for a long time.

Personnel Evaluation System

Further initiatives for talent retention are linked to performance appraisal. Specifically, within TDK our subsidiaries have implemented numerous performance appraisal systems such as objective based as well as multidimensional or team-based. One example of multidimensional performance appraisal is conducted at one of our largest subsidiaries, which offers an assessment of how the employee meets the values and objectives of the department or company, based on feedback from internal and external customers where a broader view of the employee’s performance result - what and how - is provided. Currently, it is applied in positions which require intensive cross-functional collaboration.
Another of our large subsidiaries offers a team-based performance appraisal system. Teams in the Production area are built by production line and evaluated according to values such as e.g., efficiency, and scrap. According to the team-performance, a monthly bonus is granted to team members. Teams in indirect areas are built by department. The performance assessment is done quarterly or in some cases yearly based on values such as e.g., operating profit, customer claims or other department-specific KPIs. After evaluating performance, a quarterly or yearly bonus is granted to the team members.

Personnel evaluations at TDK Corporation are conducted from two perspectives: "performance" and "behavior.” Performance evaluations are based on the achievement of the goals set at the beginning of the evaluation term. The evaluation outcome is reflected in bonus to compensate and further motivate the team members, and lead to the achievement of business goals. Behavior evaluation is based on the evaluation components set for each role, which include elements such as expertise, TDK Value, and compliance/risk management. By evaluating and providing feedback on the daily behavior to achieve goals, it encourages the understanding of the expected roles and behavior. In this evaluation process, team members have interviews with their superior six times a year at the timing of goal setting at the beginning of each six-month period, review during the period, and evaluation feedback at the end of the period, providing regular opportunities for team members to confirm the expected roles in addition to daily work communication.

Frameworks and Human Resource Systems to Maximize the Potential of Each Team Member (TDK Corporation)

TDK has a number of systems in place which are geared to helping each and every team member discover and develop their true potential.

In-house Recruiting System

In 2000, we introduced an active in-house hiring system under which team members can apply for new positions posted on the internal recruitment board directly with the Human Resources Department, without going through their superiors. This system aims at promoting the principle of "the right person for the right job" throughout the TDK Group, to respond in a timely manner to changes in the organizational makeup and staffing requirements of the organization. The system provides opportunities for career development to team members who have the desire and ability to try and shape their careers on their own initiative. As of March 2022, 249 applicants had fulfilled the relevant requirements and taken on new positions.

Career Option System

In addition to the in-house hiring system, TDK introduced the career option system in January 2006, giving team members the opportunity to apply for transfer to a desired department or position. This system is designed to provide incentives for further self-growth and for making a positive contribution to the development of TDK. It also aims at stimulating team members to reassess their career plans from various perspectives.

Self-Determined Reporting System

A self-determined reporting system has been introduced for the purpose of supporting efforts by individual team members to develop their own careers and abilities, as well as to help ensure the best possible match between each job and the person performing it. Once a year, team members can report directly to the Human Resources Department, indicating which positions they want and which business sites they would like to work at, as well as the extent to which they are satisfied with their current positions. Team members desiring an interview have the opportunity to directly explain their choices during a session at the Human Resources Department.
The opportunity to have a dialog with the Human Resources Department on a regular basis encourages team members to think seriously about their own careers, and also supports efforts such as transfer and participation in education and training for new positions. In this way, it helps team members shape their own career.

TDK Kindergarten

The TDK Kindergarten is the TDK internal start-up incubator, which has been created as an engine for future growth by offering an environment to identify, create, and scale new business creations that leverage our know-how. TDK Kindergarten is passionate about nurturing TDK team members and helping them develop new business ideas in a fast, efficient manner.

These are the key activities:

• Offers all TDK team members the chance to submit their business ideas and actively participate in a program, which fosters the creation of new ventures.
• Expert Guidance: TDK Kindergarten offers expert knowledge and guides the assembled teams through the startup formation process.
• Facilitation workshops, mentorship sessions, and hands-on projects.
• Encourages employees to think creatively and challenge the status quo.
• Creates a culture of intrapreneurship within the organization.
• Promotes diversity and inclusivity to nurture innovation.
• Embraces change, diversity, creativity, and forward-thinking as core principles.
• Consistently challenges limits, driving industry innovation, and shaping the future landscape.