Transforming Human Resource Systems: EYSC's Support for JRBM's Skill-Based Approach

Introduction

In a significant move to enhance employee capabilities and align human resources with strategic business objectives, EY Strategy and Consulting (EYSC) has collaborated with JR Central Building Maintenance (JRBM) to introduce an innovative skill-based human resource management system. Set to take effect in fiscal year 2025, this system will facilitate a clearer understanding of employee skills and their relationship to evaluations and rewards.

Background: Transitioning to Building Management

JRBM, as a vital player in the JR Central Group, has historically focused on the maintenance of large commercial facilities, office buildings, and hotels. However, the company is now pivoting towards a building management approach, which emphasizes the enhancement of property value rather than merely maintaining it. Consequently, the need for skilled and productive personnel has become a pressing issue for JRBM's growth trajectory.

JRBM’s previous HR system, while existing, failed to adequately facilitate the required skill evaluation. An overly complex system with approximately 400 evaluation criteria made it challenging to translate assessments into actionable outcomes. Recognizing these challenges, JRBM has committed to restructuring its HR frameworks to ensure clarity regarding the essential skills and competencies required for their employees.

EYSC's Comprehensive Support Strategy

EYSC's role in this transformation involved a thorough reevaluation of JRBM’s existing HR strategies. This process included redefining the skills framework, detailing the necessary competencies for each job role, establishing skill levels, and developing an integrated evaluation and compensation mechanism.

By assessing needed skills from a practical standpoint across various functions, including equipment management, construction, cleaning, and security, EYSC struck a balance between role-specific requirements and company-wide competencies. Additionally, the evaluation was designed to go beyond binary assessments to include detailed level definitions tailored to specific job scenarios, fostering a shared understanding of performance metrics between employees and their evaluators.

Recognizing the necessity for fairness and reduced operational burden, EYSC supported JRBM in creating a system that effectively reflects skill acquisition in evaluations and pay scales.

Positive Outcomes: Fostering Employee Growth and Strategic Alignment

The introduction of the new skill-based HR system has empowered JRBM employees to gain a clearer insight into their growth trajectories. By simplifying the identification of required skills and behaviors for professional development, the system encourages self-directed learning and positive behavioral changes among staff members. Moreover, this shift from a management-centric approach to a growth-centric framework has laid the groundwork for better talent allocation and development across the organization.

Looking ahead, JRBM plans to enhance evaluator training and improve the precision of system operations. The company aims to leverage skills data to better understand skill levels organization-wide and identify key areas for training and talent deployment.

Commitment to Future Growth

EYSC remains committed to assisting businesses in harmonizing their business and HR strategies. By supporting transformative HR management practices, EYSC aims to contribute to sustainable value creation through the autonomous growth of employees and the strengthening of organizational capabilities.

Comments from Leadership

Mr. Akira Rokudai, HR Director at JRBM, commented, "The skill-based HR system we have implemented serves as a crucial foundation for supporting each employee’s growth and ensuring their achievements are fairly assessed and rewarded. By fostering a culture where employees can set clear personal goals and engage in continuous learning, we aim to transform our building management operations and enhance corporate value sustainably."

Yukiko Kuwahara, a partner in EYSC's People Consulting division, stated, "Skill-based talent management clarifies the necessary skills for organizations and significantly accelerates employee growth while aligning with business strategies. JRBM's commitment to developing a skill-based HR system is commendable, and EYSC has collaborated closely to create a management framework that fosters both individual growth and organizational strength."

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