Efforts to Quantify As-is and To-be Gap
In RP24, we explained the following actions to be taken to realize Corporate Culture Reform: "development and appointment of those who can lead reform (Inclusion & Diversity)", "recognition of delivering on the reform through incentive schemes", and "encouragement of open communication b/w management and frontline/region/business units". We decided to approach these actions in three steps: 1) identify and quantify people/organizational issues to make indicators; 2) develop and implement HR initiatives for the reform and improvement; and 3) monitor changes in the indicators on a regular basis to check the effectiveness and efficiency of human capital investment.
In order to identify and quantify issues, we conducted an employee survey with questions about leadership, engagement/motivation, reward, customers, culture and behaviors, and NSG values in 2022. The "Your Voice" survey targeted all 27,845 employees in 28 countries, including those working at manufacturing sites, by ensuring easy access to the questionnaire not only from company PCs but also from personal smartphones using a QR code. 66% of employees (18,292 employees) responded to the survey carried out in January.
When the survey results were benchmarked against the industry median for similar sized global manufacturing companies in the database of HR consulting firm Willis Towers Watson, it was found that we have a lower percentage of employees with a positive perception of the company in the following three areas related to human capital.
The first area is "Engagement/Motivation". With respect to the current status, 73% of our employees gave positive feedback vs. the benchmark of 84%. Further analysis showed that "employees feel proud to be a member of NSG Group and determined to face current challenges; however, they cannot be optimistic about the company's future, which is leading to lower engagement".
The second area is "Reward". Benchmark of positive responses was relatively low at 59% vs. NSG even lower at 48%, indicating that less than half of our employees have a positive opinion of the current reward. Further analysis showed that "while employees understand that the company is working to improve compensations, they are concerned about having fewer opportunities for promotion and personal development".
The third area is "Culture and Behavior". 67% of NSG employees gave positive ratings vs. benchmark of 79%. Further analysis showed that "one third of respondents are not satisfied with the current company culture and the way leaders behave".
We will collect continuous employee feedback thorough such surveys to achieve Corporate Reform set forth in RP24. In the second "Your Voice" in 2023, we will use the percentages of positive feedback received in the three areas described above in 2022 survey as indicators and monitor the effectiveness and efficiency of human capital investments made in key initiatives explained in the previous section according to the changes in the indicators.