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Human Capital Highlights

Recognition of Issues in Human Capital Strategy toward Achieving SF2030 and Progress of Initiatives

We at OMRON uphold the idea of 窶彝espect for All窶 as one of Our Values that we live up to as we practice the OMRON Principles. Based on this value, we aim to become a corporate group that encourages a diverse assembly of people with varied thoughts and value perceptions to fully demonstrate their capabilities and bring out their unique potential. If employees challenge themselves with a shared vision and goals while living up to the OMRON Principles, it will lead to innovation born from diversity. We believe that this in turn will allow us to solve social issues through our business.

In SF2030, we set 窶廨enerating Diverse Talent Taking on the Challenge of Value Creation窶 as one of the five material sustainability issues. Under the human capital strategic vision, 窶廬nspired by the corporate philosophy of 窶歪ontributing to a better society,窶 the company and its employees will always choose each other and continue growing together,窶 we have been implementing a human capital strategy that will help enhance corporate value globally with a long-term perspective. Based on this human capital strategic vision, we will continue creating a 窶徭trong organization in which each employee can act autonomously and grow sustainably窶 by bringing out the capabilities of diverse talent.

Under this policy, in working on the Structural Reform Program 窶廸EXT 2025窶 launched in fiscal 2024, we implemented specific measures to realize 窶徭taffing and labor cost structure optimization窶 and 窶徭hift of organizational capabilities,窶 by recognizing three points as issues from the perspective of further advancement of human capital strategy for sustainable business growth in the future.

  1. 1. The staffing and labor cost structure is not resilient to drastic changes in the business environment
  2. 2. The shift to organizational capabilities essential to accomplish the SF2030 vision is markedly inadequate in terms of both speed and impact
  3. 3. Teams have not been able to sufficiently capitalize on the capabilities and motivation of diverse talent to correctly identify customer needs and deliver value continuously

Integrated Report 2024 CHRO Message

Talent Attraction / Message from the CEO

Staffing and Labor Cost Structure Optimization

In order to make our staffing and labor cost structure resilient to drastic changes in the business environment and achieve profitable growth, we worked globally to optimize the staffing and labor cost structure. In fiscal 2024, a total of 2,526 personnel worldwide (1,206 in Japan and 1,320 overseas) selected new career outside the Omron group. As a result, labor cost as of the end of fiscal 2024 was reduced by JPY 17.2 billion compared to fiscal 2023. Going forward, we will maintain a staffing and labor cost structure that is resilient to changes. At the same time, we will prepare for the next stage of business growth by quickly achieving the transformation and enhancement of human capital capabilities and skills, as well as the transformation of organizational culture.

Shift of Organizational Capabilities

In order to resolve the 窶彿nadequate speed and impact for the shift to organizational capabilities essential to accomplish the SF2030 vision窶 and build 窶徼eams that sufficiently capitalize on capabilities and motivation of diverse talent to correctly identify customer needs and deliver value accordingly窶 in response to the recognized issues, we are working on the transformation and enhancement of human capital capabilities and skills, as well as the transformation of organizational culture (see Table 1).

Table 1. Main Initiatives to Promote Shift of Organizational Capabilities
Direction of Initiatives Main Initiatives
1. Transformation and enhancement of human capital capabilities and skills Talent Development
  1. (1) Transformation toward customer-driven management style
  2. (2) Acceleration of development of business leaders
  3. (3) Development of the capabilities of all employees
Talent Acquisition
  1. (4) Acquisition of human capital for future business growth
2. Transformation of organizational culture
  1. (1) Resolution of organizational challenges and improvement of engagement in each organization
  2. (2) Promotion of collaboration between organizations

Direction of Initiatives 1. Transformation and Enhancement of Human Capital Capabilities and Skills

Initiative (1) Transformation toward Customer-driven Management Style

In order to accelerate the shift to organizational capabilities toward achieving SF2030, it is necessary to transform the management styles of leaders who lead organizations by customer-driven approaches, so that employees will be able to act autonomously at the individual organization levels. If leaders understand their organizations correctly and bring out the capabilities of diverse talent, employees will be able to identify customer needs autonomously and flexibly. We need to evolve our organizations in this way and deliver value continuously to customers.

With this issue in mind, we are requiring all managers to develop their people management skills and put them in practice, to transform their management style to one that involves people management that draws out capabilities of diverse talent, in addition to the existing requirement of performance management.

In the practice of people management, we have identified the following three important skills.

  1. 1) Storytelling to energize people

    A leader should help his/her team members understand the goals and strategy of the business and how they relate to the team窶冱 operations by presenting them as a story told in his or her own words

  2. 2) Open communication with psychological safety

    A leader should draw out various opinions from members and communicate with them interactively

  3. 3) Empowerment for drawing out everyone's strengths

    A leader should empower his/her team members for higher performance and growth by appropriately assigning responsibilities and authorities to them in accordance with their specific situations

In fiscal 2024, we introduced processes to enhance people management in Japan (see Figure 1). Firstly, we encouraged managers to have conversations with their supervisors to develop a common understanding of their desired management , and to make a self- declaration to transform and enhance their management style. Then, we provided training for managers to learn about the basics of people management skills. In fiscal 2024, 91% of managers in Japan who lead a team participated in the people management training and completed programs to learn the basic skills.

To encourage managers to practice the acquired skills in their daily operations and to make the status of the practice visible, we introduced a new survey to gather feedback from their team members and colleagues. Based on the feedback from people around them obtained from the survey, managers have conversations with their supervisors and engage in self-reflection for further behavioral changes. In addition, we launched a companywide common process called the 窶弋alent Review Meeting ,窶 where plans for the development and appointment of managers are determined through discussions on each manager from multiple viewpoints. All managers are subject to this process. It checks whether each manager has implemented their desired management as an important confirmation item and facilitates formulation and implementation of development plans for each manager based on the divisional human capital portfolio.

In fiscal 2024, challenges of individual managers in applying the three people management skills were identified through these initiatives. In fiscal 2025, we will provide training on each skill focusing on application of the acquired skills in each organization, to enhance managers窶 capabilities in practical situations. Going forward, we will implement similar initiatives globally to promote transformation of management style in the OMRON Group as a whole.

Figure 1: Process to Enhance People Management Skills
Talent Review Meeting: 笳舟ake organizational decisions on plans for appropriate assignment and development based on the manager窶冱 aptitude for management, Development: 笳愁eepen the understanding of desired management through top management messages and conversation between managers 笳終mplement training to develop people management skills, Practice in Workplace: 笳終dentify the manager窶冱 development points through a 1-on-1 meeting with the supervisor and work on self-development in daily operations, People Management Feedback Survey: 笳酬isualize the degree of implementation by receiving feedback surveys from their subordinates and peers.

Initiative (2) Acceleration of Development of Business Leaders

In developing business leaders, we seek to secure leaders both now and into the future who will drive the business growth that the OMRON Group aims to achieve and develop a human capital foundation that supports long-term business growth. To this end, we have designated the important positions for driving management and business as the Global Core Positions and have been focused on ensuring to assign right talents for those positions, developing future candidates, and enhancing talent pipelines.

In the initiatives pursued thus far, we have secured an average of two or more successors in these core positions. In the meantime, given our aim to accelerate business model transformation and growth, the required skills and qualities for people taking on the core positions as organizational leaders are getting higher. In addition, the importance of diversity of top executives who make business decisions is further increasing. Considering these situations, we are working on early development of future leaders and women candidates for leaders as priority issues for business growth in the future.

笆Development of future leaders

We are implementing a program for managers who are driving business growth in each organization, to accelerate their growth into talent who are expected to take on the Global Core Positions over the medium to long term. In addition to the ability to describe and convey the visions and missions that we have focused on developing in our programs this far, we have made advancements in the program for fiscal 2024 with the following points defined as the skills required for leaders.

  1. 1) Improvement of decision-making skills to develop better perspectives as a business manager

  2. 2) Improvement of the ability to inspire the organization to bring out the capabilities of diverse members to contribute to business achievement

The program encourages participants to practice skills through real case studies based on major decisions made by OMRON in the past, dialogues with members of management team, and experience learning to plan and implement engagement improvement actions based on the results of the employee engagement survey, VOICE, in participants窶 organizations.

Going forward, we will continue to promote the development of future leaders capable of steering the organization toward business growth even amid significant changes in the business environment.

笆Development of women leaders

We have been developing women managers and women candidates for managers, under the idea that it is essential to incorporate diverse viewpoints and opinions including those of women, in all decisions including management decisions, in order to enhance corporate value. As a result, the ratio of women in managerial roles at the OMRON Group worldwide reached 20.5% as of the end of fiscal 2024. We regard the career advancement of women in positions closer to the management ranks as our next challenge. To this end, we are implementing a program for women managers across the globe to develop women leaders who have potential to take on the Global Core Positions in future involved in important business decisions.

Under the program, we are holding dialogues with women members of management and introducing curricula that promote career advancement mindsets, with the following three main objectives.

  1. 1) Foster confidence and motivation for taking on executive positions

  2. 2) Expand perspectives to become global leaders

  3. 3) Develop career visions based on participants窶 own value perception

In fiscal 2024, participants in the program engaged in dialogue with management team members under the theme 窶忤hat OMRON should do to support career advancement of women leaders.窶 As a result of the cross-regional discussion, common issues were identified, relationships among participants were strengthened, and top management team deepened their understanding of issues unique to women. The program activities thus far are bringing positive results, such as an increase of women leaders who have will to take on top executive positions and the formation of networks of women leaders across businesses and countries. Some participants, who had an opportunity to think about their careers through the program, are taking on challenges for new roles to expand their perspectives for future career advancement. We will continue implementing and evolving the program as an important pillar of OMRON Group窶冱 women leader development.

Initiative (3) Development of the Capabilities of All Employees 窶 Improvement of Employees窶 Digital Transformation Skills 窶

After clearly identifying the capabilities necessary for regrowth in and after SF 2nd Stage , we are systematically promoting development of employees窶 capabilities.

Toward achieving SF2030, OMRON is working on promotion of data-driven corporate management and digital transformation (DX) in a focused manner. Driving DX, will help us respond to changes in the business environment and understand customers' and socials issues more deeply, provide intrinsic value, and serve as a source of new business opportunities and sustainable growth. The three elements of DX that OMRON is pursuing consist of the following:

  1. 1) Solutions to customer needs and social issues

  2. 2) Transformation of products, services, and business models

  3. 3) Utilization of data and digital technologies

To promote these, it is essential to have human capital with DX skills and the ability to drive transformation independently. Under SF2030, we are addressing social issues and creating new value by evolving our perception of value creation from products to both products and services. To realize value through products and services, it is essential to have human capital who can develop the data platform as the foundation and utilize data. In addition, business models also need to be transformed into those based on data and digital technologies, to make DX part of the daily routine of all employees. As a driver for this iteration of business transformation, we will implement initiatives to improve employees窶 DX skills systematically.

笆Improvement of basic DX skills of all employees

In order for all employees to be able to utilize data and digital technologies at a certain level, we started 窶廛X training窶 for the acquisition and enhancement of DX skills gradually in each area in fiscal 2023. The training is bringing positive results in areas such as operational reforms.

[Current and Future State of DX Talent in Japan]

Before starting DX training in Japan, we conducted an assessment for visualizing employees窶 DX skills to understand the current state. The assessment, which involved 92% of the employees in Japan, revealed the strengths and weaknesses at an individual level, as well as issues faced on an organizational level. For example, by ranking employees窶 DX skills and visualizing them for each business, we found that employees tended to have lower DX skills, with the exception of those in digital divisions (divisions where digital technologies are actively utilized in daily operations). In response, we are increasing the skill level of all employees to a certain baseline through DX training. In addition, we will work on enhancement of specialized skills by defining human capital who can lead business DX as 窶廛X specialist talent.窶 In addition, by promoting not only training but also opportunities for utilization and practice of the acquired skills, we will provide employees with successful experiences and thereby develop human capital who can implement DX in a practical manner. Going forward, we will work on the development of human capital, aiming to raise the ratio of DX specialist talent to employees in Japan to approximately 20%.

笆Development of DX human capital through the Generative AI Utilization Promotion Project 窶廣IZAQ窶

Considering effective utilization of generative AI as a key for corporate growth, we launched 窶廣IZAQ,窶 a companywide project, for promoting utilization of generative AI in 2023. In the project, DX human capital are developed through verification of effective use of generative AI in operations for productivity improvement. Employees participate in the project on their own initiative, where they will acquire skills to utilize digital technologies, as well as capabilities to resolve issues in operations independently. The project has been implemented for approximately one and a half years since fiscal 2023. A total of 1,000 employees, accounting for approximately 10% of the employees in Japan, have participated, with nearly 80 themes for operational improvement being verified. The development of DX human capital and utilization of generative AI through the project have contributed to quantitative results such as time saving due to the improved operational efficiency, as well as qualitative improvement such as reduction of psychological burdens and elimination of dependency on particular members. Business process transformation through AIZAQ is leading to creation of customer value. Furthermore, this endeavor contributes to the advancement of organizational culture change, as it facilitates communication across organizations and fosters independent mindsets for project participants through successful experiences.

From fiscal 2025, we will expand the area subject to DX from each organization-driven business process transformation to management-driven transformation of OMRON through resolution of management issues, aiming at further enhancement of customer value. Under the new initiatives, we will address issues within a predetermined budget and time by focusing on resolution of management issues and gaining the commitment of Business Company Presidents and Heads of Head Office Divisions. By driving DX at both the management and individual organization levels, we will achieve development, utilization, and capability enhancement of DX human capital across the entire OMRON Group.

Initiative (4) Acquisition of Human Capital for Future Business Growth 窶 Talent Acquisition in the Power Electronics Domain 窶

We are devoting companywide efforts toward 窶廣chievement of Carbon Neutrality.窶 As part of this, we are expanding specialized capabilities in the power electronics domain, which supports various growing businesses that will contribute to its achievement. In order to achieve net sales of JPY 200.0 billion in the related businesses in 2030, we have determined that we are currently short by approximately 100 engineers based on our current headcount, and are actively engaged in the recruitment of engineers. In addition, to support the long-term success of the engineers who join us, we are promoting their appropriate job assignment and growth on the job through discussions among managers and individual interviews regarding each engineer's career plan. For example, we are implementing a human capital cycle, where an engineer may transfer to a business division with a technology he or she has developed for its commercialization and social implementation, and come back to lead technology development again utilizing the practical knowledge he or she has obtained. In this way, we accelerate growth of human capital and contribute to enhancement of OMRON窶冱 capabilities for technology development. Furthermore, we are providing training programs for engineers to improve their skills in accordance with their career plans. We will implement similar initiatives in other specialized domains that support focus businesses to continue to expand their specialized capabilities.

OMRON Establishes New R&D Center to Focus on Power Electronics (News release article) (Japanese Only)

OMRON窶冱 Design for Enabling a Decarbonized Society Through Power Electronics (EDGE & LINK article) (Japanese Only)

Direction of Initiatives 2. Transformation of Organizational Culture

Initiative (1) Resolution of Organizational Challenges and Improvement of Engagement in Each Organization 窶 Evolution of the employee engagement survey 窶弖OICE窶 窶

Since fiscal 2016, we have been conducting the employee engagement surveys 窶弖OICE窶 as an initiative to gather frank feedback from all employees across the globe, by which members of management identify management issues to ensure sustainable growth of OMRON and contribute to actions to address the challenges.

Until now, we have focused on challenges common to the entire company. However, considering the rapidly changing business environment, we need to identify issues that are occurring in each organization on a timely basis and allow employees to address such challenges autonomously and quickly. To this end, we significantly upgraded VOICE in fiscal 2024 (See Table 2).

  1. 1) In response to the speed of changes in the business environment, changed the frequency to once a year to understand organizational health in a shorter cycle and address challenges quickly

  2. 2) To enable employees to address challenges specific to each organization, in addition to addressing companywide common initiatives led by management, changed the design to allow for a more specific understanding of the engagement issues and factors that vary from organization to organization

  3. 3) Accelerated organizational development led by each organization by sharing reports that visualize issues specific to each organization with all organizations and holding dialogue sessions (engagement workshops) at each organization

Table 2: Key advancements of VOICE
VOICE (until FY22) VOICE (from FY24)
Frequency Biennially
Planned with a view toward execution and the timeframe needed to monitor changes.
Annually
Capture the organization's condition in shorter cycles to identify emerging challenges and resolve them swiftly.
Action for improvement Promoting implementation led by management
Implement management-led actions to address company-wide challenges and guide them to resolution.
An organization-wide collaborative effort
Complementing management-driven efforts, individual teams lead initiatives to resolve their own organizational challenges.

笆OMRON窶冱 Strengths and Challenges Identified from the FY2024 VOICE Results

[Strengths]
The survey in fiscal 2024 showed that 窶彳mpathy for the OMRON Principles窶 remains the largest strength of OMRON. We regard this as an outcome of various activities in the past to support practice of the OMRON Principles. In addition, it was confirmed that 窶彡onnection with colleagues, supervisors, customers, and other people around me窶 served as motivation toward actions for many employees even under the structural reform, representing another strength of OMRON.

[Challenges]
The engagement score *1 of VOICE conducted in fiscal 2024 was 63 points, a decrease from 76 points in 2022. As for the factors that affect engagement, employees found that 窶徼here are factors that restrict customer-driven actions in the organization,窶 and that was confirmed to be a challenge common to the entire company. Since the restricting factors are different from one organization to another, each organization needs to address its own specific challenges. Accordingly, we updated the system to enable employees to identify challenges at the organization level. Challenges identified at the organization level include 窶彿nsufficient collaboration across organizations窶 and 窶彿nsufficient time secured for implementing actions for customers.窶 Initiatives for resolving these challenges and improving engagement are being promoted in all organizations under the lead of the respective organization heads, in parallel with companywide initiatives for management transformation.

*1 The survey content and indicators for the employee engagement survey (VOICE) have been changed since the fiscal 2024 survey. The score after the change was 66 points. The score of 63 points referred to above is a score converted using the past calculation methods for the purpose of comparison over time.

笆Resolution of Organizational Challenges Driven by Each Organization

OMRON operates various businesses, and each organization faces a variety of challenges. To improve engagement, different organizations are working on each organization-driven improvement activities. These improvement activities at the organization level are registered in a platform shared companywide, through which discussions and activities promoted by various organizations are made visible to the entire company. As of September 2025, approximately 1,000 improvement activities are registered in the OMRON Group worldwide. For example, the New Business Creation team identified the large volume of activities which are not directly linked to value for customers such as reporting within the company and preparation of materials, as a factor that restrict customer-driven actions. The team discussed that creation of new businesses requires discovery of customers窶 intrinsic issues and new value propositions, and thus the team needs to be engaged in more activities looking outside of the organization. Based on this discussion, the team increased resources and time to engage with customers and markets as an improvement activity. Specifically, the team utilizes generative AI and other technologies that reduce internal materials and meetings to a minimal level, and endeavors to improve business efficiency. Through these initiatives, the team prioritizes securing time for activities that directly contribute to value creation, such as dialogue with customers and demonstration experiments, in a focused manner. In addition, the team is working to accelerate the creation of new businesses and customer value by promoting open communication within and outside of the organization and actively adopting knowledge and technologies from outside of the organization. As discussed above, we are working on the formulation and implementation of each organization-driven improvement activities for challenges specific to organizations. In this way, we are improving engagement and fostering an organizational culture where people can act autonomously.

Initiative (2) Promotion of Collaboration between Organizations 窶 Evolution of TOGA 窶

OMRON has been holding The OMRON Global Awards (TOGA) for more than 10 years since 2012 as an initiative to share the examples of practice of the OMRON Principles through daily work with all employees in the OMRON Group worldwide and to expand the circle of empathy and resonance.

The employee survey about TOGA conducted in fiscal 2024 reconfirmed that TOGA has been a great driver for employees to practice the OMRON Principles daily practice, as positive comments were received from many employees, such as 窶徘ractice of the OMRON Principles has been promoted through TOGA窶 and 窶徼he circle of resonance and empathy has been expanded.窶 In fiscal 2025, we started a new transformation to further promote collaboration between organizations through TOGA (See Figure 2).

Figure 2: Annual Cycle of Evolved TOGA
Throughout the year(Entry)竊担haring (publication of the theme)竊辰onnect竊担upport竊単raise竊但pplication 竊脱mployee voting竊巽ounder窶冱 Day (award ceremony) Selection of award-winning themes

Evolved points of new TOGA

  1. 1) Open and real-time sharing

    Previously, only themes that passed the selection process were shared globally at qualifying competitions. However, the new TOGA process shares all themes with all employees upon their entry, providing more opportunities for employees to learn from the initiatives of others.

  2. 2) Formation of communities through the 窶弋OGA app窶

    We have developed the 窶弋OGA app窶 as a new platform. By seeing other teams窶 initiatives to practice the OMRON Principles on the application, employees can connect with others who have the same objectives and passions, collaborate with others, and gather members freely across divisions and countries.

  3. 3) Selection of award winners by employee voting

    Award-winning themes, which were previously mainly selected by members of management, are now decided by employee voting. This helps create a greater sense of unity. In addition, the number of award-winning themes has been significantly increased to cast a spotlight on a larger number of initiatives.

Through TOGA, which was launched with a new concept, 窶徘ut employers at the center, bring excitement to employees ,窶 we will foster connection among employees/organizations and promote transformation toward an organizational culture where people can take on challenges proactively.

We are continuing the initiatives on behalf of promoting the empowerment of women and people with disabilities under 窶廾MRON unique initiatives for D&I.窶 Furthermore, we are evolving the health & productivity management initiatives, which have been promoted companywide, from the conventional focus on 窶徂ealth promotion窶 to 窶彡reating a foundation that encourages each individual to demonstrate their abilities.窶 For further details, please refer to the following:

Talent Attraction / Respect for Diversity

Employee Health