Case Study 03

Consulting for HR Systems Case 1

Clarifying qualifications and evaluation standards for a system that visualizes future career potential.

Company C: manufacturer

with approximately 900 employees

Company C was a new client. Human Link had to compete for the contract to reform their HR system. Company C chose Human Link based on our successful track record of introducing HR systems. Human Link formulated a system for job categories and grades in order to clarify career paths of employees. At the same time, Human Link was able to design an HR system that improved employee motivation by linking performance strongly with bonuses.

Challenges

The company's HR system does not correspond to different job types despite having a diverse workforce.
There is little variance of bonus amounts among non-management personnel. In addition, there is no consistency in the company's management objectives (MBO).
There is little correlation between an employee's fixed bonus and fluctuation in company performance, so high amounts of fixed bonuses continued to be paid even when the company's performance was low.

Solutions

Human Link identified the career paths for the majority of job types, and established a system for job responsibilities and qualifications.
Target levels for each qualification were clarified and linked to bonuses, improving the functions of qualifications as a management tool. Bonuses were paid out in correspondence to performance by limiting the fixed amounts and linking bonuses more with performance.

Effects

As career paths for each job type were made clear, more employees took the initiative to seek capacity development. In addition, departments collaborated more closely, and operations as a whole were optimized by utilizing personnel throughout the organization.
High potential employees were motivated when the performance portion was linked with their bonus.
The company was able to pay out appropriate bonuses considering the company's overall performance.

Human Link continues to provide consultations as needed for labor matters in operations and related issues, after the completion of the project.