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Human Resources - Honda Worldwide

assigning human resources to enhance Honda’s total strength. One approach is to develop and reinforce local human resources. Starting with the Honda Philosophy, Honda




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Human ResourcesGlobal hires recruited directly from overseas as a part of initiatives to diversify human resources. (In entry-level training)EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance Report65Honda SUSTAINABILITY REPORT 2015Basic approachall companies with which we do business. We follow the Three Principles of Respecting Initiative, Ensuring Fairness and Encouraging Mutual Trust when managing our human resources in areas such as recruitment, training, assignment and utilization, evaluation and treatment. Honda seeks to create an environment in which each associate s ambitions and abilities can be developed, as well as a workplace where an individual s potential can be actively the circumstance that our business activities expand into various parts of the world, based on the Universal Declaration of Human Rights and other international standards, we have established Associate Relations Policies in March 2012 and apply them to our daily corporate actions, which put the Three Principles of Personnel Management into practice. Honda believes that the Human Being is born as a free and unique individual with the capacity to think, reason and create and the ability to dream. Our wish is to nurture and promote these characteristics in our company by respecting individual differences and trusting each other as equal this standpoint, Honda sets forth Respect for the Individual consisting of the three elements of initiative, equality, and trust as one of our Fundamental Beliefs. We believe this spirit should permeate all our relationships, not only with those in the Honda Group, but also everyone in Our Fundamental BeliefsRespect for the IndividualInitiative EqualityTrustThree Principles of Personnel ManagementRespecting InitiativeHonda respects the individuality, creative thinking and judgment of each associate. Ensuring FairnessAt Honda, every person should have equal employment opportunities. An individual s race, gender, age, religion, national origin, social or economic status has no impact on the individual s opportunities. Encouraging Mutual TrustHonda and its associates should respect, trust and recognize each other as individuals and make sincere efforts to fulfill our responsibilities. We accept the individual characteristics and differences of our associates and respect their willingness and initiative. We will always respect each individual s basic human rights and will not allow forced labor or child Respecting individual human rights. Based on the principle that all human beings should have equal employment opportunities, we will strive to create opportunities for free and fair competition. We will not tolerate discrimination or harassment of any form in the workplace on the basis of an individual s race, ethnicity, national origin, religion, gender, or age among other No discrimination We will respect the social norms, customs and culture of each country. We will comply with the laws, regulations and ordinances enacted in each country and Complying with laws and ordinances. The associates and the company will respect each other s views and endeavor to promote mutual understanding. Maintaining a relationship of mutual trust, the associates and the company will make every effort to engage in sincere discussions about any issues that might arise or exist. Respecting freedom of association, or not to associate, and collective bargaining, the company will attempt to resolve any and all issues in line with the laws, conventions and usages of each respective country and Creating an environment of free, open-minded dialogue. The company will provide a safe and healthy workplace where all associates can concentrate on work with a sense of Maintaining a working environment where each associate can work with a sense of security. Associate Relations PoliciesTo put these Three Principles into practice, Honda has established the following Associate Relations Policies:Basic policy for personnel managementManaging human resources through thorough practice of the Three Principles based on our Fundamental Belief, Respect for the Individual66Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance ReportGlobal human resources managementHR* vision and strategy Reinforcing human resources that support self-reliant operations in six global regions and enhance Honda s total strengthHonda takes two approaches for supporting self-reliant operations in six global regions and developing and In accordance with our company principle that we are dedicated to supplying products of highest quality yet at a reasonable price for worldwide customer satisfaction maintaining a global viewpoint, Honda has been proactively developing business with a view to entering the global markets since its foundation. In regard to our expansion overseas, our business model has evolved from exporting to local production and then to local development. In recent years, our production and development functions are under reinforcement not only in developed countries but also in emerging countries where demand for motorization is growing. Honda is striving for autonomy of our regional operations in six regions order to achieve this goal, Honda is pushing ahead with global human resources management that facilitates developing and assigning global personnel who plan, design and develop products acceptable to markets according to demand and who supply products of quality in a stable manner. To be more precise, regional operation bases used to be managed mainly by Japanese expatriates, however, this style of management is being replaced with management run by local associates who are the most familiar with the region. By assigning associates with experience in working for local and global operations to global functions, we try to diversify and localize our workforce with multi-national people in order to be able to address market changes promptly and flexibly. Honda aims at establishment of an organization in which Honda can demonstrate our total strength by globally coordinating our operations. Local human resources developmentGlobal leader developmentat the corporate headquartersat regional operationsGlobally common foundationPassing on Honda Philosophy Making English an official languageEnhancing global communicationsEstablishing the global job grade systemOptimum assignmentSelectionGlobal human resources management approaches* HR stands for human resources. Honda s approachesDeveloping associates capable of addressing global challenges and assigning them to the most suitable positions in the world67Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance Reportassigning human resources to enhance Honda s total strength. One approach is to develop and reinforce local human resources. Starting with the Honda Philosophy, Honda Core Values, and competency, Honda aims to share values as Honda Group associates and vitalize communication through creating a communication environment and making English its official language for working with overseas. We provide training programs tailored for each region based on its needs and conditions while offering at the global level shared training programs to develop global , in order for these global human resources to be able to play active roles worldwide, Honda has adopted a global job grade system (p. 69) in which managerial positions varying from one operation base to another in the world are defined by common grades across the group. We aim to realize ideal management-level assignment with the competent local personnel actively demonstrating their abilities in respond to the needs of global operation resource management systemSetting companywide and regional policies and objectives in two meeting structuresAt Honda, the Human Resources and Associate Relations Division at the corporate headquarters draws up global human resources strategies from the mid- and long-term standpoint in coordination with operations in each region. Strategies proposed by the division are discussed by the management members annually in the Global Strategy of personnel strategies deliberated in this meeting are broken down by theme for further discussion in the Global Human Resources Committee in which HR responsible associates from six regions meet once a year. Once companywide and regional plans and targets become concrete, activities are launched in the entire company. Executive Council and Global Strategy MeetingGlobal Human Resources CommitteeTo discuss and decide human resources strategies and mid-term policiesTo share human resources strategies and mid-term policies and to set regional objectivesHuman Resources divisions of regional operationsTo scout, develop, and assign local workforceRegionalOperations(Japan)Region alOperations(South America)RegionalOperations(Europe region)RegionalOperations(China)Regional Operations(Asia andOceania)Human Resources andAssociate RelationsDivision at the corporateheadquartersTo plan and coordinate group-widehuman resources strategies RegionalOperations(North America)Global HR management chart68Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance ReportHuman resources management activitiesEstablishing a globally common foundation and developing human resources As part of efforts to develop global leaders, Honda provides training to associates chosen from operation bases all around the world including those in Japan who will undertake global management in the HEADS (Honda Executive Advanced Development School) program, a combination of the executive leadership training (off-the-job training) and an activity to draw up plans to resolve management issues in a cross-functional team was launched in 2012, in addition to the LDT (Leadership Development Training) s approach to personnel education is based on on-the-job training: building specialized skills and professional capabilities through direct experience. In order to facilitate effective on-the-job training, Honda has established for every job description and area of expertise training programs with systemized contents and levels for the knowledge and skills required. These programs provide an opportunity to understand each associate s level of expertise and control capabilities, while serving as indicators to know if further development is needed. To supplement these on-the-job training programs, Honda also offers off-the-job training designed to provide associates an opportunity to enhance their careers by developing new specialized skills or management capabilities. These training programs are level-specific and include specialized training for each job description, entry-level training, basic training based on the Honda Philosophy, management training provided for acquisition of new qualifications, quality training, off-the-job training programs1. Self-improvement training (career development)2. Work performance training (skill development)3. Management leadership training (management training)Besides providing training to develop global leaders who undertake global management, Honda introduced a global job grade system in 2011 for assigning its associates to the most suitable this system, individual positions existing in each operation base of Honda such as development, production, and sales facilities are evaluated and weighed based on roles and responsibilities and defined by common grades to be used group-wide in order to facilitate transfer of associates to posts and locations in which they can demonstrate their abilities better beyond the limits of regions and operation. Honda has adopted this system to positions of department and division managers of the corporate headquarters and higher to proactively promote local associates. We will strive to assign and utilize the most appropriate human resources actively to operation bases in the world in line with our growth strategies through the Global Talent Board and Regional Talent Board that manage worldwide key posts and key hours and cost per associateAnnual training time (hour)Annual training cost (yen)Japan 45,000North America 66,000South 40,000Asia and Oceania 4, 10,500Establishing the global job grade systemIntroducing globally common grades for assigning personnel to the most suitable positions globallyGlobal leader developmentOffering training programs to associates who will undertake global management of future generationsAn approach based on on-the-job trainingProviding both on-the-job and off-the-job training to support associates career development and abilities 69Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance ReportIt is important for progress of management localization to share business judgment and codes of practice. That is to say, to globally share a set of values such as the Honda Philosophy, Honda core values, and competency with local this awareness in mind, Honda provides a training program to teach the Honda Philosophy as a part of level-specific training that takes place worldwide. While teaching business cases, company executives and regional top managements make efforts to introduce practical examples related to decision-making and business judgments for what to consider and how to evaluate based on the Honda Philosophy, so that the training will become more pragmatic. In order for the Honda Group to exercise its total strength while operation bases in regions operate autonomously, it is essential to create an environment where its associates in the six regions can communicate an effort to achieve this, Honda is working on making English an official language by 2020 as a target. With the adoption of this initiative, when inter-regional communication takes place, information to be sent out will be in English. Documents to be used in meetings participated in by regional operation bases and communication for information-sharing will also be in English. As a part of this initiative, we strive to reinforce training programs to improve associates English levels in Japan. English proficiency will be required for associates to be promoted to managerial positions in the to a study conducted by Deloitte, a US accounting firm, and the Manufacturing Institute, a US NPO, although the manufacturing industry in the United States will generate more than million jobs within the next 10 years, 2 million of these jobs, approximately 60 percent, will be unfilled due to the talent shortage. Taking these circumstances into consideration, Honda North America, Inc. announced in March 2015 that it will provide a new training program to develop the next generation workforce to be involved with cutting-edge technologies in the manufacturing industry. The initiative intends to create interest in manufacturing by providing educational and training opportunities to junior high, high school and college students as well as to offer continued learning opportunities to current production area associates at the Honda Group. The program includes all sorts of educational projects tailored for each generation and takes place in Ohio where Honda s production base is located. For example, Honda created a video game themed on making things (monozukuri) and a moving lab for junior high school students to learn while having fun. For high school students, Honda not only partners with local high schools to develop the curriculum required for manufacturing jobs but also funds science and engineering curriculums. Scholarships are provided by Honda to college students who pursue an associate degree in Manufacturing or Mechanical Engineering Technology, in addition to an opportunity to participate in the work-study pilot program which allows students to go to school while working at programs are also designed to be utilized by Honda suppliers for their human resources development. Through these efforts, Honda strives to keep attracting people with willingness and skills and to contribute to the advancement of the manufacturing industry, the key to the US economy, by carrying out the continued on the Honda Philosophy Sharing a set of values among associates worldwidePromoting use of English as an official languageMaking English an official language for communication across regionsLaunching a human resources development program for the future of the US manufacturing industry TOPICS70Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance ReportStatistics on human resourcesConsolidated number of employees FY2013FY2014FY2015North America 41,260 44,608 48,024South America 18,255 18,144 16,635 Europe 10,198 9,055 8,597Asia and Oceania 54,013 47,067 50,649China 13,332 15,037Japan 66,612 66,355 65,788(Total)190,338198,561204,730Number of new permanent employeesFY2013FY2014FY2015JapanTotal of new employees 683 726 719By genderMale 595 621 636Female 88 105 83North America 5,0124,778South America1,7731,259 814Asia and Oceania5,6368,0555,996China2,0182,9552,1 90Number of employees by genderFY2013FY2014FY2015JapanMale44,6954 6,47844,363Female 3,173 3,385 3,326(Total)47,86849,86347,689Attrition rate (%) (including compulsory retirees)FY2013FY2014FY2015JapanAttritio n rate 1. 8 1. 8By genderMale 1. 7 1. 8Female America and Oceania 7. 0 of employees by employment contract and typeFY2013FY2014FY2015JapanBy contractPermanent43,53242,95342,342Non-p ermanent 4,336 6,910 5,347By typeFull-time47,74449,73647,549Part-time 124 127 140Percentage of associates from regional communities taking upper management positionsRegionPercentage of associates from local communities in the entire upper management positionsNorth America59South America36Europe40Asia and Oceania38The Three Principles of Personnel Management, Honda Conduct Guidelines and their basis, the Honda Philosophy, mention Honda s policy concerning human rights. Honda provides training on the Honda Philosophy all around the world to new employees with the aim of promoting awareness of its concept. All 812 associates newly hired in FY2015 in Japan have gone through this training. (406 hours of training in total.) Human rights training for associatesEmployment situationHuman rights Note: With the exception of the item Number of associates (consolidated), HR data for Japan is tabulated from numbers for the companies below Honda Motor Co., Ltd., Honda R&D Co., Ltd., Honda Engineering Co., Ltd., Honda Racing Corporation, Honda Technical College, Honda Access Corporation71Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance ReportPercentage of women in the Honda workplace: FY2015Proportion of women in the entire workforceProportion of women in management positionsJapan 7. 5South America11. 6 and 0Number of global hiresFY2014FY2015FY2016 (Plan)Number of hired people151517Base salary and proportion of total compensation for male and female in JapanBase salary (Female : Male)Total compensation (Female : Male)Management positions1 associates1 * The same pay scale is applied to male and female associates. Gaps are due to differences in factors such as age distribution and proportion of male and female in pay grades. Based on our fundamental belief of Respect for the Individual, Honda pushes forward with our policy on diversity, considering the promotion of diversity an activity to enhance our company s total strength, which is achieved by members of a diverse workforce fully exercising their abilities, while recognizing and respecting individual differences without regard for nationality, race, gender, age, educational background, with or without disabilities, adding new business of jet airplanes and robots to our main business area of motorcycles, automobiles, and power products, Honda intends to have more encounters with new customers globally in the future by way of creating new products and technologies. We pursue diversification of our workforce in line with the diversified business a part of efforts to diversify our human resources, Honda has started a global employment program where some of the new graduates who join our company are hired directly from overseas labor markets. We especially put emphasis on hiring from labor markets in emerging countries where Honda plans to develop business further. We strive to raise the total strength of our global workforce by developing these employees to be a core of our human resources who drive Honda s global business in the future. Honda has been pursuing awareness-raising activities, through the likes of company magazines, lectures, and training sessions, since a 2008 decision to focus on expanding opportunities for participation by women in Japan. As a result, the proportion of female associates in the workforce has increased from to within the past 10 years. However, women in management positions account for as little as , highlighting the need for additional support for career development of female associates. As a part of this effort, in January 2015, Honda established the Diversity Promotion Office, an organization specialized in diversifying our workforce, where full-time career advisors help female associates and their supervisors to develop their a management indicator for career development of female associates, Honda has also set targets to more than triple the number of women holding management positions in FY2015 by 2020, and more than 9 times the number in FY2015 by 2025. With the Diversity Promotion Office playing a central role in initiatives in the future to further support career development of each associate and to improve childcare support programs to gear up career development, Honda aims to achieve the targets. Fundamental approach to diversified workforceGlobal employmentExpanding participation by womenPromoting diversity72Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance ReportStatistics on human resourcesNumber of employees with disabilities and percentage of employment of individuals with disabilities in Japan* Laws governing the employment of people with disabilities stipulate that employment of one individual with a serious disability is equivalent to employing two less severely disabled individuals for purposes of calculating the number of disabled employees and percentage of employment. Data depicted in the graph are current as of June 1 of each year. FY2011FY2012FY2013FY2014FY2015Number of employees* 1,0361,0521,0661,0841,089Percentage of employment* rate (%) in Japan after taking childcare leaves FY2011FY2012FY2013FY2014FY2015Reinstatem ent of re-employed retirees in JapanFY2011FY2012FY2013FY2014FY2015Numbe r of re-employed retirees415452434567622Number of associates who utilize child/nursing care support in JapanFY2011FY2012FY2013FY2014FY2015Short working hours to facilitate childcare 82108171153172Child care leave250297314305392Short working hours to facilitate nursing care 0 0 0 1 3Nursing care leave 10 7 11 15 9Honda actively provides jobs to people with disabilities at its facilities in compliance with laws in each country where we do business. We strive to create an environment that allows associates with and without disabilities to work alongside one another, in addition to making adaptations to ensure that workplaces and opportunities are fully also offer employment at our affiliates in Japan, Honda Sun Co., Ltd., Honda R&D Sun Co., Ltd., and Kibounosato Honda Co., Ltd. Employment of individuals with disabilities at Honda Group companies in Japan in FY2015 stands at , or 1,089 individuals, well above the legally mandated level of In Japan s super aging society in which people aged 65 years or older account for about 25 % of its population, we face challenges including stable employment of senior citizens and how to pass on their skills and knowhow. Honda introduced a system in April 2003 to create opportunities for those associates who reach the retirement age of 60. Our proactive approach preceded the 2004 amendments of laws governing the employment of retired individuals. Honda instituted changes of the system in April 2010 in principle to offer all interested associates re-employment until the age of 65 in operations that utilize each individual s specialized a result, currently about 75 % of all associates retired at the mandatory age of 60 are re-employed, drawing on their extensive experience and specialized knowledge to contribute actively in a variety of workplaces throughout the company. Employment of people with disabilitiesRehiring retireesIn Japan s increasingly aging society with a declining birthrate, establishing an environment where people can balance work, parenting, and nursing care is a social issue. Under such circumstances, Honda works actively to provide programs that help associates balance the demands of work, parenting and nursing care, and to gain understanding of these programs by sending information by the means of guidebooks and the corporate April 2014, we introduced a selection-based welfare program (Cafeteria Plan) giving associates the options of support for nursing care, as well as life events such as childbirth and childcare, including babysitter agent services and childcare item rental. As a result of these initiatives, Honda has been certified as a company that supports child-raising by the Japanese Minister of Health, Labour and associates balance the demands of work, parenting, and nursing careWhereas workers working long hours and taking less paid days off are raised as social issues in Japan, Honda has always been an industry leader in introducing shorter workweeks. The company instituted a five-day workweek on alternating weeks in 1970, followed by a true five-day workweek in 1972. Other initiatives enjoyed by associates for more than 40 years include the banning of overtime on Wednesdays and Fridays and the introduction of a policy encouraging all associates--both labor and management--to use their allotted vacation time in full*.Optimizing work hoursBuilding healthy working environments73Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance ReportTotal working hours per associate and average vacation days taken in JapanFY2011FY2012FY2013FY2014FY2015Total working hours per associate1,9201,8401,9501,9001,890Averag e vacation days taken1 7. of associates going through the evaluation programsRegionPercentage of associates to be targeted for the evaluation programsJapan10 0North America America10 0Asia and Oceania 82China , to encourage our associates to take regular annual paid vacations and use their vacation time effectively to refresh themselves and increase motivation, Honda has recently introduced a system whereby associates are accorded blocks of three to five consecutive paid holidays, depending on their years of continuous a result, total working hours averaged 1,890 per associate in FY 2015, and associates averaged paid vacation days, putting Honda at the top level of the automobile industry in terms of reducing actual working hours.* An initiative to prevent vacation days from being lost when the number of annual paid vacation days that can be carried over to the next year is accordance with Respecting Initiative and Ensuring Fairness coming from the Three Principles of Personnel Management, Honda has introduced to the regional operations in the six global regions human resources evaluation programs adopted to the needs and conditions of each example, in Japan Honda places emphasis on two-way communication with supervisors in associate development and evaluation, and all associates have at least three interviews with their supervisors each year. During the first interview in April, associates come out with a clear vision for the future and their direction going forward through their supervisor s advice. They then work out their individual role based on the organization s business goals for the fiscal year in question. During interviews in June and December, supervisors evaluate associate performance during the preceding six months and share an assessment of each associate s strengths and weaknesses. By facilitating a discussion of subjects such as future objectives and career directions, the interviews pave the way for associates skill evaluation systemEvaluation and treatmentExamples of counseling hotlines in JapanHotlinesDescriptionCounseling hotlines dedicated to balancing work parenting, and family life responsibilitiesHonda created a counseling hotline at each worksite s general affairs department in order to accommodate counseling requests from associates striving to balance work and family responsibilities and to promote awareness and utilization of the company s support programs. Each hotline is staffed by a pair of male and female counselors who field counseling requests from associates themselves and from their supervisors. Sexual harassment counselling hotlineHonda operates a sexual harassment counseling hotline for all associates in order to prevent sexual harassment and to facilitate the rapid and appropriate resolution of planning seminar hotlineHonda offers life planning seminars to give associates an opportunity to start thinking about life purpose, health, and economic planning so that they will be able to lead a rich and fulfilling life after age 60. Seminars are also open to associates spouses. In-house seminar instructors and a secretariat offer one-on-one counselling for associates who have participated in the seminar. Honda supports associates by operating a variety of counseling hotlines as a way to build a healthier work environment. Counseling hotlines for associates74Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance ReportStatistics on human resourcesResults of associate surveys in Japan (Level of satisfaction: Working at Honda) (%) of respondents for all accordance with Mutual Trust coming from the Three Principles of Personnel Management Honda declares in the Associate Relations Policies that the associates and the company will respect each other s views and endeavor to promote mutual understanding. Maintaining a relationship of mutual trust, the associates and the company will make every effort to engage in sincere discussions about any issues that might arise or line with the policies, Honda strives to maintain a good relationship and resolve issues that arise through dialogues with our a company that holds Respect for the Individual as one of the fundamental beliefs, Honda has shared the value of no safety, no production within the group since its founding. Based on this value, Honda group companies in various parts of the world have established basic policies for occupational health and safety rooted in each region to carry out activities from the standpoint of preventing industrial accidents and their our global mid-term policy in relation to workplace safety of nurturing a safety-first culture and building organizational infrastructure to instill safety assurance as part of our corporate foundations, Honda is pursuing the following key conducts an associate survey in all regions to solicit worker feedback for building a healthier work environment. Taking place once every three years in Japan to coincide with the company s mid-term plan, the surveys include a variety of questions designed to gauge associate views on organizational culture, the company s personnel system, and management. Survey results are fed back to associates through in-house publications and are also incorporated into HR-related initiatives, such as management training and changes to the personnel an environment of free, open-minded dialogue Occupational health and safetyAssociate survey1. Development, purchase, production, sales, management and so on instigating area specific initiatives aimed at totally eliminating industrial accidents2. Building up safety support systems for global operations3. Standardizing fire prevention management systems4. Totally eliminating traffic accidents through strengthening of safe driving management and thorough implementation of awareness-raising activities (Japan)Initiatives for occupational health and safety managementEstablishment of good relationship with associatesPercentage of performance-based remuneration in JapanLevelProportion of performance-based remuneration in the entire compensation Director, Operating Officer positions *Management * A certain amount of stock options is included in the remuneration for director and operating officer on the Three Principles of Personnel Management, Honda gives its associates equal opportunities to make the most of the individual s potential, and recognizes and respects their abilities and accomplishments equally at worksites regardless of personal factors. Our compensation and evaluation system is built in line with this basic approach in consideration of the needs and conditions of each region. Performance of general employees at Honda in Japan is evaluated in two stages under this system: development of abilities and demonstration of abilities. In the former stage, Honda places emphasis more on how associates abilities are evolved, whereas associates demonstration of abilities and achievement are focused on in the latter stage. An annual salary system is applied to compensation for employees in management positions or higher. The higher their positions are, the more their accomplishments and company performance are taken into and incentives75Honda SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance ReportOverall incidenceDisabling injury frequency (%)(FY)Incidence of industrial accidents in Japan(overall incidence, disabling injury frequency rate)During FY2015, a period in which we completed entrenching firmly measures for strengthening safety functions mainly for the high-risk production area, we established the foundation for stable implementation of our tripartite approach*. In FY2016, we will undertake reinforcement of occupational health and safety functions of each region to entrench our activities to prevent industrial accidents globally at a high rate.* Tripartite approach: Consists of safety management structure with disciplinary, rule-making, and administrative roles.* Musculoskeletal disorders: injuries to the nerves and muscles of the neck, back, arms, and legs as well as surrounding issues due to simple, repetitive tasks or work that imposes too great a physical burden on the bodyHead offices in Honda regional companies are taking the lead in putting global control for safety in place. For the production area, particularly, local offices are leading activities vigorously focusing on implementation of management system regarding occupational health and safety, diffusion and execution of risk assessment and establishment of explosion and fire prevention. We conduct occupational health and safety audits and reviews as needed to share recognition of health and safety management, while striving to improve the management system and develop human resources for safety control in each country and has adopted a policy of helping associates lead healthy, well-balanced lives. We carry out a variety of activities to support our associates staying in good health. Global administration for safetyHealth managementHealth management efforts in JapanMedical checkupsHonda has implemented a program of as-needed medical examinations for associates, such as checkups for leaving for business trips abroad or long-term assignments overseas, on top of checkups for new hires and regular checkups as required by law. Targeted checkups are offered to associates aged 35 or older instead of the statutory age of 40 or older. By starting the targeted checkups 5 years earlier than required by law, Honda aims to lay stress on early discovery of associates health problems while giving them targeted health guidance to prevent adult-onset musculoskeletal disorders*Honda is incorporating the perspective of ergonomics into the creation of work environments in line with its concept of people-friendly production processes. This approach includes analysis of worker movements to ensure optimal work position and scope as well as installation of assistive devices and auxiliary lifts for work that involves lifting heavy objects. We also introduced a system in 2013 to scientifically analyze the actual burden applied to a human body. With analytical tools that we developed originally, Honda is working to improve the work environments where the burden imposed on associates is reduced. Health guidanceIn 2009 Honda began offering targeted health guidance in how to prevent adult-onset diseases based on results of associates regular medical checkups, in addition to support for associate staying in good health with the help of the selection-based welfare these initiatives, we support at-risk associates to take the initiative to become healthier by giving advice on improving their life rhythm, nutrition guidance that proposes improvements in diet, and exercise instruction with a daily exercise regimen. Health promoting eventsHonda carries out awareness-raising activities for associates to get and stay healthy through initiatives including health promoting events such as a walking event conceived to spur associates to develop good exercise habits and to refresh themselves. Prevention of danger of second-hand smokeHonda is undertaking creating workplaces where there is no danger of second-hand smoke. Our activities in line with needs and conditions of our operation facilities include prohibiting smoking inside buildings, setting non-smoking hours, holding events to coincide with World No Tobacco Day, and making a given day of a month a no-smoking challenge day. We also carry out awareness-raising activities for smokers and extend support to associates who want to quit health careHonda has put together a mental health team to station at its facilities in an effort to foster associates mental health based on principal policies: education about prevention, improvement of workplace environment, stress checks, enhancement of counseling programs, and a system to help returning employees to the workplace. We also distribute leaflets and pamphlets to associates to facilitate understanding of mental health SUSTAINABILITY REPORT 2015EnvironmentSafetyQualityHuman ResourcesPhilanthropySupply ChainMessage from the President and CEOSpecial FeatureReport Regarding Quality IssuesSustainability ManagementPerformance Report

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