#Central Development #Job-Based HR #HERB

Central Development Corporation Implements Job-Based HR System

Introduction of a New HR Framework
Central Development Corporation (CDC), headquartered in Shinjuku, Tokyo, has announced a significant overhaul of its human resources management system. This new framework will officially take effect from June 25, 2025, with a phased implementation beginning July 1, 2026. The company is shifting to a job-based HR model, dividing employees into three main categories: Business Professional (BP) positions, Management Engineer (ME) positions, and Associate (A) positions. This transition aims to enhance fairness and transparency in employee evaluations and salary structures.

Aim for Fairness and Transparency
One of the core objectives of CDC is to implement a fair and just HR system that promotes trust and satisfaction among employees. As part of this initiative, the company plans to publicly disclose the criteria for salary tables and promotion requirements for each role. This level of transparency is expected to contribute towards creating a sense of fairness in the evaluation system, continuing the ethos established by their new HR initiative known as HERB (Holistic Talent Engagement Role-Based Human Resource System).

Background of the HR System Modification
The transition comes as part of an ongoing evolution of the HR policies at CDC, which originally created a role-based grade system back in April 2012. Over the years, adaptations have been made in response to current societal conditions and human resource management challenges. The latest modification aims to better align employee capabilities, skills, and technological expertise with their compensation and career progression.

HERB: A Comprehensive Approach
The newly introduced HERB system will actively contribute to realizing the company's philosophy, management objectives, and business strategies. It will encourage a closer link between individual competencies and remuneration compared to the previous systems. This holistic approach is anticipated to improve performance among highly specialized employees and better equip the company to address future recruitment challenges stemming from Japan's aging population trends.

Structural Changes in Employee Evaluation
Under the new system, the classification of regular employees will be divided into three distinct categories—BP, ME, and A—where job descriptions will be integral to performance management. The company aims to provide a clear career path not only for managers but also for non-managerial specialists, thus enabling a more diverse scope of professional development. Each job position will have a detailed description evaluating key job elements like difficulty, responsibility, impact, and innovation, establishing grade classifications that reflect those positions accurately.

Point of Implementation
The phased introduction of this new HR system is structured over two years, with the following key points outlined:

• - 2025 Updates: BP and ME will transition from a role-based grading system to a job-based grading system. Evaluation methods tailored to achieve expected results and processes will be introduced in the Associate category.
• - 2026 Updates: Elaborate compensations will undergo refinement, and changes in job titles for managerial roles will take place.

Employee Perspective
In a recent statement, an employee from the technical department expressed satisfaction, stating that implementing a job-based HR system provides clearer definitions of roles. With the shift, managers now possess a clearer sense of responsibility in terms of evaluating results, even for positions not directly impacting overall business performance. Many feel the new system is a significant improvement.

About Central Development Corporation
Founded in 1946 as Japan's first geotechnical consulting firm, CDC has evolved over the years, contributing to big infrastructure projects and pushing the boundaries in construction consulting through the adoption of IoT technologies and advanced geological assessments. They are currently advocating for