Employee Growth and Engagement

Image

Social

Employee Growth and Engagement | Diversity, Equity & Inclusion | Safe and Healthy Working Environment | Human Resources Data and Third-Party Verification

Our Approach

Since the introduction of the “Renesas Culture” guidelines in 2020, we have made significant progress in embedding our shared values across the global organization. Designed to support value creation in a fast-evolving business environment, the Renesas Culture framework is centred around being Transparent, Agile, Global, Innovative, and Entrepreneurial and continues to guide how our employees operate and collaborate worldwide.

Over the past five years, we have strengthened our HR policies and systems to empower employees to realize their potential and contribute across regions and functions. These enhancements include new development programs, cross-border opportunities, and inclusive initiatives that support personal growth and organizational agility.

To ensure we remain aligned with our cultural goals and responsive to employee needs, we have conducted annual company-wide surveys since 2020. These surveys provide valuable quantitative insights, enabling us to track progress, identify areas for improvement, and implement targeted action plans—driven directly by the CEO and executive leadership. This continuous feedback loop reinforces our commitment to cultivating a purpose-driven, high-performing global workforce.

picture_as_pdf 2024 Renesas Culture Survey Results

Succession Planning for Key Positions

Succession planning at Renesas is a strategic process that identifies key roles within our organisation and develops internal talent to ensure a smooth transition when those positions become vacant. Succession Planning helps maintain business continuity, supports our long-term growth, and ensures that our potential leaders are prepared to step into critical roles as needed.

At Renesas, we are committed to building a strong and resilient management foundation by proactively identifying and developing future leaders. We have a structured process in place across the Group to pinpoint critical positions, select potential successors, and create tailored development plans to support their growth. Our leaders work closely with HR to build a strong pipeline of future managers and global leaders.

Efforts to Cultivate Leaders

Effective leaders drive clarity and alignment around the Company goals and elevate employee capabilities and performance. They also understand the importance of balancing economic, social, and environmental responsibilities. Through our development program, our goal is to enable leaders to become more adept at identifying and mitigating risks associated with unsustainable practices, ensuring long-term viability and growth.

In 2024, Renesas formalized management and leadership assessment and development activities, fostering a culture of continuous growth and innovation. By equipping leaders with the skills to drive sustainable practices and inspire their teams, we are building a resilient leadership pipeline that supports long-term organizational success and aligns with our sustainability goals.

At Renesas, we focus on developing current and future leaders globally through a rotation program and high potential accelerated leadership development programs.

1. Global Internal Job Opportunities

   At Renesas, we know our people are our most valuable resource, and we believe in helping our employees develop their careers. We encourage employees to explore job opportunities across Renesas by connecting internal talent to internal job opportunities.

   Our Global Internal Job Opportunities system was created with the goal of empowering employees, and to drive an equitable and transparent approach to internal job opportunities.

   The system allows employees to accelerate their career development, increase their network, and build relationships while developing new skills. At the same time our leaders have the ability to attract and retain top talent and increase cross functional collaboration.

2. The Development of Multi-Track Career Paths to Allow Employees to Choose their Careers More Independently

   We are promoting the introduction of multi-track career paths to enable each and every employee to visualize their future career visions, not only by forming a career as a generalist, but also by clarifying career paths such as managerial positions for supervising organizations and projects, and professional positions for contributing to the company with expertise knowledge and abilities.

   We aim to enable sustained growth for both employees and the company by establishing systems that enable individual employees to autonomously select diverse careers according to their intentions and suitability.

A System Allowing Employees to Learn Independently

In order to raise employees’ awareness of learning, we have been promoting initiatives that enable employees to learn independently. As part of the initiative, we have introduced a global online learning platform with more than 17,000 courses. The platform encourages employees to acquire and improve their skills and supports employees to achieve their career goals. For example, in Japan, our Self-Development Support Program empowers employees to take charge of their careers by choosing from 100+ skill-building courses, specialized technical seminars, and language classes. We’ve shifted many training programs online, ensuring accessibility for remote employees and making professional growth more flexible than ever.

Building a Job Rotation System

In order to support individuals’ growth, managers keep track of their subordinates’ abilities and career goals in management by objective (MBO) interviews and, in response to requests, assign them to various positions under a rotation system.

Employees can also be transferred under an internal public application system aimed at discovering and assigning promising employees and invigorating teams. Active rotation provides employees with career opportunities while pursuing their own personal growth.

Global Talent Acquisition Initiatives

Applicant Tracking System

In 2024, we successfully launched a new ATS, Smart Recruiters, transforming the recruitment process with an intuitive and user-friendly platform. This system serves as a single source of truth, accessible by recruiters, HR, and managers, streamlining operations such as candidate submission and interview feedback collection. Seamless integration with SuccessFactors allows requisitions to flow directly from SuccessFactors to Smart Recruiters, with offer acceptance triggering onboarding activities, ensuring a smooth end-to-end process. Additionally, simplified, in-system approval processes have replaced lengthy offline workflows, increasing efficiency.

Global Employee Referral

In 2024 we introduced a Global Employee Referral Policy, consolidating 15 regional policies into one consistent framework. This standardizes rewards for all employees and simplifies the submission process in the employee portal in Smart Recruiters, making participation easier and driving referrals globally. By leveraging employees' networks, we can tap into diverse talent pools, bringing fresh perspectives and ideas that foster creativity and innovation at Renesas.

Management Training

We leverage a variety of online learning platforms and programs to empower senior specialists and managers around the globe so they can succeed as team and project leaders.

Regional HR Induction Sessions

Delivered locally, these sessions cover:

• Company culture and leadership expectations
• Learning and development, performance management and employee engagement etc.
• Key policy and process overviews essential for success in role

Ad Hoc Training

Regional HR teams also provide targeted training to address specific development gaps as they arise (i.e. Performance improvement for Managers). Utilizing our existing learning tools and platforms, we’ve recently introduced tools like Articulate to create interactive e-learning content. Teams can request support for instructional design needs via the learning inbox.

Self-Paced Learning via LinkedIn Learning

We offer internally curated pathways for New Managers covering:

• Leadership development
• Hiring and onboarding
• Diversity, Equity, and Inclusion (DEI)
• Team management
• Effective communication

We have several exiting initiatives in development, including;

1. New Manager Essentials Pilot (Japan)
   We will be piloting a New Manager Essentials program with a globally recognized external vendor for a cohort in Japan. This will inform the development of a globally consistent learning series and toolkit launching in late 2025.
2. Manager 101 Learning Series
   This includes foundational content to support new managers in their first 90 days, with resources on performance management, feedback, and team engagement.

Global Talent Management – Mentorship Support

Our Global Talent Management organization provides advisory support and guidance to regional HR teams to help mentors and mentees build meaningful and productive mentorship relationships. We offer best practices, tools, and resources to support impactful development conversations aligned with both individual and organizational growth. Regional HR teams bring these frameworks to life by operationalizing mentorship programs tailored to local needs and contexts. Below are some examples of the Mentorship Support we offer across regions;

Enrichment of Technical Training

Providing advanced semiconductor solutions to customers requires hardware and software technology for designing and manufacturing semiconductor devices as well as broad knowledge of customers’ applications and related matters. Therefore, Renesas provides technical training on a wide range of topics, from “Basic Technical Course” for new employees to field-specific “Intermediate Technical Course” offering a higher level of specialization, to boost employee motivation and encourage growth.

Approximately 80 such courses are conducted each year; most of which are taught by Renesas engineers and some of others by lectures from outside specialist institution. These provide employees with the opportunity to study advanced technical topics in depth. Some of the teaching materials are also supplied to Renesas Group companies, supporting the training of engineers globally.

Human Resources Development

In 2024, Renesas advanced a sustainable and innovative HR model across APAC, harmonising terms, benefits, and processes, while further aligning practices in Japan with global standards. We optimised regional HR team structures to support sustainable growth and prioritised team development through succession planning and career path creation, ensuring a future-ready workforce.

Furthermore, Renesas advanced its commitment to sustainability and innovation through a number of key employee experience initiatives, including the launch of Phase 2 of the Remote Working Abroad program, promoting greater flexibility and inclusivity for a globally connected workforce.

360-Degree Reviews for the Executive Team

We conduct “360-Degree Feedback Reviews” for executives annually, to encourage further growth and enhance management innovation. Participants engage in an assessment process receiving anonymous feedback from superiors, peers, and direct reports to identify strengths and areas of development to build out their leadership capabilities, incorporation of TAGIE and alignment to enable the growth objectives for Renesas. Each executive builds a development plan and reviews this with the CEO on a regular basis.

Pay for Performance: Compensation Linked to Performance Evaluation

We continue to develop a “One Renesas” approach as a global organization operating in many regions around the world. This system embraces the concept of “pay for performance” across the entire Renesas Group, and this balanced compensation system is based on a globally consistent system of evaluation in order to reward the contributions of for delivering outstanding results, and motivating employees to achieve their best.

To embed the “pay for performance” mindset within the organization, it is essential that every employee is fairly evaluated and compensated according to their role.

Fair Evaluation

At Renesas, we emphasize Management by Objectives (MBO) assessment throughout the year, which includes interim reviews and formalized feedback discussions as part of performance evaluations. These discussions, based on targets and evidence, aim to foster a shared understanding of performance assessments and encourage further development and growth activities, rather than merely focusing on numeric evaluation scores or incentive payments.

In addition to the above, Renesas operates a performance-related short term incentive system (STI) in which the performance of both the organization and individual employees contribute to the actual incentive payouts, reinforcing the connection between pay and performance. Renesas STIs fully link to performance metrics.

Fair Compensation

Renesas is committed to ensuring all employees receive fair and equitable compensation for their contribution to the Company’s success.

We are committed to providing a living wage to our employees to ensure they can maintain a good quality of life, and we intend to conduct a comprehensive review of living wage standards in the countries where we operate. By December 2025, we will develop a strategic plan to enable us to demonstrate that our compensation consistently meets prevailing living wage standards.

Executive Communication

At Renesas, we are committed to creating a workplace where every employee can thrive, grow, and find fulfillment. To strengthen employee engagement, we continuously enhance initiatives that foster open communication and a strong sense of unity across all levels of the organization. We encourage meaningful dialogue between management and employees, as well as collaboration among peers, to build a more connected and dynamic work environment. As part of this commitment, our CEO personally addresses all employees across every region each year, sharing the company’s strategic direction and performance to ensure transparency, alignment, and a shared vision for the future.

Specific Initiatives

• Under the leadership of our new CHRO, Renesas is placing a stronger focus on open, regular communication with employees. She is committed to ensuring that all team members have direct access to leadership and clear visibility into company strategy and priorities.
• A dedicated platform allows employees to share their thoughts directly with the CEO, with many of their suggestions already driving real change. Company-wide surveys are also conducted regularly to assess how well Renesas Culture is being embraced and to identify areas for continued growth
• Renesas holds regular all-hands meetings, small-group roundtables, and live Q&A sessions in both Japanese and English. These events are designed to encourage open dialogue between employees and senior leaders, including the CEO. Feedback is actively gathered through follow-up surveys, helping shape future actions and improvements.

Contributing to SDGs

Renesas’ efforts in Employee Growth and Engagement contributes to these Sustainable Development Goals targets:

Image

4.4 By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship