The secret of Shiseido's personnel affairs Will the company change due to "outgoing and seniority"? July 22, 17:17

As a system different from Japanese-style employment, which is based on lifelong employment and seniority, the "job-type" work style has become a hot topic in the business world recently. This is a personnel system that evaluates the quality of work and results. From January next year, Shiseido will introduce a job type targeting approximately 3,800 general employees, and will begin drastic reforms. How will the introduction of the job type change employees and companies? Six years ago, I spoke with President Masahiko Uotani, who was invited from the outside to become the head of Shiseido and is engaged in management reform. (Akihiro Shiraishi, Reporter, Ministry of Economic Affairs)

Shiseido cannot survive!?

Shiseido was founded in 1872 as a dispensing pharmacy in Ginza, Tokyo. Currently, we are developing cosmetics business in approximately 120 countries and regions.

As the new type of coronavirus changes our lives, cosmetics are beginning to change. Perhaps because the mask hides the mouth, recently lipstick sales have decreased.

On the other hand, the sales of eye makeup that emphasizes the exposed eye area even when wearing a mask and skin care products that care for the rough skin caused by wearing the mask for a long time are increasing.

Up until now, it was supported by “inbound consumption,” where overseas tourists purchase a large amount of goods in Japan, but recently, sales have fallen sharply due to the sharp decline in tourists.

On the other hand, online shopping is growing significantly. It is necessary to review the product lineup and shift from the conventional business model centered on over-the-counter sales.

President Masahiko Uotani, who serves as the leader in such an era of change. Mr. Uotani, who has been a president of a major foreign-affiliated beverage maker and is known as a "professional manager", said that he had a sense of crisis that he could not survive unless he changed Shiseido into a globally competitive organization.

President Uotani
"I had a strong sense of crisis that Shiseido had to change. Considering 10 years, 20 years, and 100 years from now, we have to further promote global growth. To do that, I think that the future of the company cannot be created without rebuilding the corporate culture, processes, and structures within the company, and providing the diversity of employees and the flexibility of working styles.''

What is the right place for the right person?

In order to change Shiseido, President Uotani is currently trying to change the personnel system. Five years ago, in 2015, a job-type system was introduced for approximately 1200 managers at the head office. Next January, we will expand the system to approximately 3,800 general employees.

By adopting a "job type" rather than a "membership type" employment system such as lifelong employment and seniority, which is spreading mainly at large Japanese companies, we will recruit employees with diverse backgrounds and bring out their individuality. The aim is to make use of it in company management.

President Uotani
"I don't think that all Western companies that are adopting the job type should be praised. However, I think that the job type is the "right place for the right person." Diversity To promote (diversity), not only promote the active role of women, but also have foreigners participate in the business more, or have them hired from outside at the same time as those who are growing from new employees. When it comes to increasing the diversity of human resources in various ways, I think the so-called Japanese-style employment practices such as recruiting new graduates, seniority, and lifetime employment are good mechanisms in Japan during the high-growth period. I think it is getting out of step with the times.''

What is Shiseido's job-type mechanism?

Shiseido's job-type employment for managers is as follows.

・Approximately 20 departments such as sales, development, and marketing set grades (classes) according to each post.
・Employees will inform the company of their desired post, taking into consideration their own expertise and work experience.
-The company side determines the grade based on the aptitude of employees for the expertise and experience defined in the post, and appoints employees to posts that meet the requirements.
・Post-employees meet with their direct supervisors to determine goals to be achieved and concrete plans, and create a document called a job description.
-The salary and the next post are determined according to the degree of achievement of the goal determined by the job description.

With an employment system based on seniority ranking and working hours evaluation introduced by many Japanese companies, for example, people who work in a short time while raising children or doing housework, or foreigners who have changed jobs from overseas are There was a problem that it was difficult to promote the appointment.

Shiseido says that the introduction of the job-type will enable the opinions of various positions to be utilized in management, and also promote the growth of individual employees. When I listened to the employees who actually work in the job-type system, I heard that the goals were clarified and the waste was reduced.

Employees in managerial positions
"It is difficult to create a job description, but I think it is good that the goals and results to be achieved are clear. There are times when I feel pressured that I cannot achieve them, but gradually I'm getting used to it.''

Employees in managerial positions
"With conventional time management, there are times when it is difficult to raise children and housework, so it is difficult. I think that I was able to get rid of waste and firmly face the essential things I really need to do."

Innovation from HR

Mr. Uotani says that introducing the job type is not the goal in itself, but it is important to develop the power of various individuals to bring about innovation in business and increase corporate value.

President Uotani
“As times change drastically, it is necessary to create new ideas and new values ​​rather than the conventional way. The influence of the new coronavirus will promote the active participation of women, the movement of SDGs and sustainability. I've heard some people think it's going to be sluggish, but I think it's the other way around. Now, financially, every company is in a difficult situation, which is why I would like to improve the foundations and systems of the company so that I can exercise my strength, and to make it possible to overcome this predicament.''

Shiseido wants to innovate by reforming its personnel system. Through the interview, I felt that being able to realize my career plan without being bound by seniority or working hours would lead to “diversity in work styles”.

As President Uotani says, not all Western models are correct, but I would like to expect and focus on the efforts to change the company from human resources.

Economics reporter
Sakuishi Meidai 2015
Joined in 2015
After working at the Matsue station, the economics department covered a wide range of manufacturers from the cosmetics to the steel industry.