Yamaha Motor Introduces New Personnel System - Expanding Employee Career Opportunities and Empowering Individual Challenges and Achievements -

IWATA, September 26, 2024 -- Yamaha Motor Co., Ltd. (Tokyo:7272) announces that it will introduce a new personnel system for the Staff and the EX*¹from January 2025, aiming to balance "achieving individual career and challenging goals" with "challenges towards realizing the long-term vision."

The new personnel system for the Staff will evaluate actions and results that involve challenging tasks beyond their traditional roles, focusing on self-directed career development by leveraging individual strengths, rather than evaluating based on seniority. The system will reward employees with appropriate compensation that reflects their expected behavior and demonstrated performance.
Key changes to renew promotion and appointment procedures include the integration of the Job Type C (career position), the Job Type G (general clerical position), and the Job Type P (production position) into a unified grading system, the removal of tenure requirements for promotion eligibility, and the introduction of grade-skipping. These revisions aim to foster self-directed career development that aligns with employees' aptitudes and willingness. Moreover, the new evaluation method will assess both competencies*² and performance, with the results being reflected in base salary, bonuses, and promotions.

For the EX, the new personnel system will offer multiple working style options, assigning roles that match the individual's working circumstances and providing corresponding compensation.
To support senior employees in their bold challenges, the Company will create an environment where individuals can choose their roles and working styles, such as maintaining pre-retirement compensation levels based on performance equivalent to that of active employees or offering reduced workdays.

For the Manager (management positions), a new personnel system was already introduced in January 2024, aiming to support career development that leverages individual strengths by clarifying each key role and providing compensation based on actions and results that involve challenges beyond expected roles.
In addition to the existing Line Management roles (e.g., General Managers and Division Managers), a new Strategy Lead role has been created to utilize specialized skills and knowledge for strategically important functions, shifting the compensation system from one based on ability to one based on the significance of the role.

To adapt to and stay ahead of the rapid changes in society, it is essential to have a system that enables individuals to realize their career aspirations and supports their challenges.
As the Company accelerate our investment in human capital towards achieving our long-term vision for 2030, "ART for Human Possibilities - Let's strive for greater happiness" Yamaha Motor believe that empowering each employee to find and pursue their own challenges is key to creating the Kando*³ that our company aims for

*1: Employees rehired after retirement
*2: Defined competencies at each grade level to achieve the corporate purpose of "creating Kando."
*3: Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that we experience when we encounter something of exceptional value.



■ Main changes in the New Personnel System

1 New Personnel System for the Staff (Effective January 2025)
- Integrates the three traditional job types (C, G, and P) into a unified four-level grading system (Y1 to Y4), promoting self-directed career development.
- Eliminates tenure requirements for promotion, fostering early promotion opportunities by removing seniority-based elements.
- Introduces grade-skipping, allowing employees who achieve high performance in challenging tasks to be promoted two levels up.

2 New Personnel System for the EX(Effective January 2025)
- Management positions can choose from three levels: EX-K, EX-A, and EX-Y4. The Staff will be placed at levels equivalent to their pre-retirement grade.
- Compensation remains consistent with pre-retirement levels for those taking on equivalent roles.
- EX-A and EX-Y4 levels offer options for shorter workweeks (four-day or three-day workweeks).

3 New Personnel System for the Manager (Effective since January 2024)
- Shifts from an ability-based to a role-based personnel system.
- Introduces the Strategy Lead role, leveraging specialized skills and knowledge for strategically important functions. Strategy Lead positions are established in advance, regardless of the presence of eligible candidates, clarifying role or talent requirements, and aiming to support the organization's growth.
- Implements a compensation system that rewards based on the significance of the role in the organization.



＜The Vision for the New Personnel System＞

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