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Advantest's integration of Verigy Ltd. has delivered a more global workforce and a greater diversity of approaches to work.
This has prompted us to embark on building a new human resources management framework unified across our global operations, designed to draw on workforce competencies to fuel growth of the company. This new framework establishes corporate practices that extend across organizational and regional boundaries, and creates a corporate environment that inspires all employees to make the most of their abilities.

 

Our integration of the former Verigy Ltd. has turned Advantest into a more global company, with over 90% of our sales revenue now generated outside of Japan and roughly 2,000 of our employees based overseas — or over 40% of our total workforce of slightly under 5,000 individuals. These changes in corporate structure necessitate that we adopt a uniform human resources framework across our global operations, such that it will enable us going forward to proceed smoothly with initiatives entailing collaboration, employee interaction, and job reassignments involving multiple business locations around the world. Toward that end, Advantest held a global human resources conference during which management considerated the most appropriate form for our new human resources program, with sessions held beginning in September 2011 before the Verigy integration. Consequently, management went about restructuring Advantest Group companies in respective countries, which involved transitioning in April 2012 to a new system under which a single Advantest company generally operates in any given nation, while also introducing the Advantest Resource Management System (ARMS) which establishes cohesive personnel practices worldwide.

Global Human Resource System

Under our updated human resources management protocol we have established a new, global employee grading system comprising 10 job levels, while doing away with the former employee grading systems that had been set up individually by operating companies in respective countries. Under the new system, job levels one through six are assigned to general employees, while levels seven through ten are for management. It also provides for a dual management track, with one management category comprising those who engage in tasks such as budget control, employee evaluation and labor management, and the other category comprising those who focus on coordination and execution of business operations. Under the updated employee grading system, the dual management track places line managers who oversee subordinates in the former category and managers such as those with a specialty in the latter, thereby enabling the company to fine-tune benefit packages to fit a diverse range of management talent.

We have also moved to apply consistent rules worldwide to our base salary and bonus structures. For instance, the new system shifts to a mode of calculating bonuses on the basis of consolidated earnings, whereas previously such compensation was largely a reflection of results of individual Group companies in their respective countries. We also introduced a new personnel evaluation program in fiscal 2012. Under the new program, employees are ensured equitable assessment results and benefit packages, given that they are now subject to a single performance evaluation yardstick worldwide.

 

Global Job Level and Title

 

Meanwhile, the new human resources framework offers labor management flexibility in setting up working hours, telecommuting arrangements and other job specifics, so that managers can more aptly address such matters directly in accordance with the laws and regulations of their respective nations and in line with local employment practices.
Gearing up for launch of the new human resources framework in April 2014, we are also putting together a human resources database that contains basic personnel data along with specific employee details such as career experience and skill sets, which we intend to draw on going forward in making effective decisions when forming project teams, reassigning personnel and other initiatives pursued across our global operations.

Moreover, we are setting up human resource development schemes with a worldwide reach, promoting employee diversity through active efforts to hire and promote employees with differing backgrounds, and taking decisive steps toward forging an employee recruitment strategy that accords with the business strategies of our operations in diverse countries.

In the spirit of establishing ourselves as a truly global company going forward, Advantest will continue to work hard to create a professional business environment where every member of a diverse Advantest Group workforce can make the most of his or her individual capabilities.