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Fujitsu Boosts Employee Compensation to Strengthen Global Corporate Competitiveness

TOKYO, Apr 27, 2023 - (JCN Newswire) - Fujitsu announced moves to improve its global competitiveness over the medium to long term with a comprehensive review of its compensation system and increase its investments in talent and career development. As a result, Fujitsu will raise monthly wages for employees at all levels in Japan by an average of 10% and a maximum of 29%, which corresponds to an increase of annual income of 7% on average and a maximum of 24%. Annual wages after review of the compensation system for employees in leader positions will be about 10 million yen or higher, and for senior management about 20 million to 30 million yen. The monthly wage for new university graduates will increase by 25,000 yen from last year to 255,000 yen.

Through this initiative, Fujitsu aims to retain and acquire talent able to create new corporate value. Fujitsu will further strengthen its efforts to acquire talent to drive innovation in five key technologies(1) to support Fujitsu's seven "Key Focus Areas"(2) within Fujitsu Uvance.

To realize its purpose, "to make the world more sustainable by building trust in society through innovation," Fujitsu will continue investment in its employees to acquire the right talent to support its future business portfolio and contribute to customers' digital transformation (DX).

Competitive compensation to attract and retain diverse talent

In recent years, Fujitsu has been transforming its business portfolio and business model with the aim of improving its global competitiveness over the medium to long term. Agile decision making and operations as well as flat organizations with clearly defined roles and responsibilities play an important role in realizing steady progress and transformation while delivering new value to customers and society. The acquisition and retention of diverse talent that to lead innovation, as well reskilling and upskilling initiatives to support employees' growth represent further important elements within this transformation.

Fujitsu regards investment in its employees as a top priority for growth investment. As part of its "Work Life Shift" initiative, Fujitsu has been promoting new ways of working, including a flextime system without core time and the option for employees to make effective use of remote work. Fujitsu further introduced a job-based human resources management system to empower employees to take ownership of their own careers. Based on this system, Fujitsu introduced training programs for all employees regardless of their rank, expanded on- demand learning contents, as well as the global, shared "Connect" employee evaluation system.

Fujitsu's decision to review its compensation system represents a further initiative to encourage the growth of all employees and attract and retain diverse and outstanding talent.

Changes in the compensation system

Based on its job-based human resources management system Fujitsu will update its compensation system as follows to offer employees competitive remuneration:

- Based on the benchmark results of global companies, Fujitsu will review the compensation levels for all employees.
- Monthly wages: Fujitsu will increase monthly wages by an average of 10%, whereas total increases will depend on employees' level. Monthly wages for members senior management will increase by up to 29%.
- Annual income: Fujitsu will raise annual income by an average of 7% and a maximum of 24%. Annual wages for employees in leader positions will be around 10 million yen or higher in average. Annual income for senior management will be around 20 million yen to 30 million yen.
- The Highly Specialized Personnel Compensation System (3): Fujitsu will review the classification and scope of certification for the existing system for professionals with highly specialized knowledge and expertise, including experts in AI and data science. In response to the increased demand for talent with high expertise in cloud solutions, Fujitsu will add ServiceNow to its certified experts system which currently includes SAP and Salesforce.
- Monthly wages for new graduates: Fujitsu will raise monthly wages for new graduates with bachelor's degree by 25,000 yen in comparison to last year, up to 255,000 yen, and for new graduates with master's degree by 15,000 yen in comparison to last year, up to 275,000 yen (including increases in response to in the annual "shunto" wage negotiations). Based on this revision of the compensation system in combination with the existing job-based human resources management, new graduates will be able to achieve an annual income of 10 million yen or more within several years of entering the company, depending on their job description and the level of responsibilities.

(1) Key Focus Areas:
Based on its vision of society in the year 2030, Fujitsu formulated seven Key Focus Areas that are comprised of the four cross-industry areas ("Vertical Areas") "Sustainable Manufacturing," "Consumer Experience," "Healthy Living," "Trusted Society," and the three technology platforms ("Horizontal Areas") "Digital Shifts," "Business Applications," and "Hybrid IT," based on Fujitsu's vision of society in the year 2030.
(2) Key technologies:
Fujitsu's technology strategy centers on five technology areas: "Computing," "Network," "AI," "Data & Security," and "Converging Technologies."
(3) The Highly Specialized Personnel Compensation System:
A system in which certification standards are established for areas that are extremely scarce in the human resources market, that are difficult to acquire or establish, and that have a high degree of contribution to our company's business over the medium to long term, and a special compensation level is applied to the certified human resources.

About Fujitsu

Fujitsu's purpose is to make the world more sustainable by building trust in society through innovation. As the digital transformation partner of choice for customers in over 100 countries, our 124,000 employees work to resolve some of the greatest challenges facing humanity. Our range of services and solutions draw on five key technologies: Computing, Networks, AI, Data & Security, and Converging Technologies, which we bring together to deliver sustainability transformation. Fujitsu Limited (TSE:6702) reported consolidated revenues of 3.7 trillion yen (US$28 billion) for the fiscal year ended March 31, 2023 and remains the top digital services company in Japan by market share. Find out more:

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