According to the CEO, investing in people capital will help the organisation's corporate value
Cosmetics company Shiseido has announced a JPY5-billion investment ($37 million) on its people as part of the company's bigger move to go on the offensive and "revitalise" the organisation.
Masahiko Uotani, president and chief executive officer of Shiseido, said the people-centred investment comes as they noticed a "cooped up feeling" among their people due to COVID-19.
"To overcome this situation, strengthening investment into people capital and improving employee engagement are very important strategies," said Uotani in a conference.
According to the CEO, investing in people capital will help the organisation's corporate value.
"People are our biggest assets for Shiseido. I strongly believe that investment into people capital will enhance corporate value and have raised people-first as our management philosophy," he said as quoted by Seeking Alpha.
As part of its investment, Uotani said they will enhance their re-skilling opportunities using Digital Academy through a joint venture with Accenture, among others.
"And also, through a job grade-based HR system, which had been introduced already, we have started individual career development as it's very important," added the CEO.
The company is also expanding its existing training programmes and study abroad programmes to develop future leaders for the organisation, according to Uotani, as they mull the establishment of a global training centre in Tokyo where their people can learn together.
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In addition to investing on their people, Uotani also announced the company's plan to introduce hybrid working arrangements.
"While promoting D&I, we will also promote improvement of office environment and work style reform through introduction of hybrid work styles," said the CEO.
The JPY5-billion people-centred initiative is just one portion of Shiseido's JPY10-billion ($74.8 million) investment on the company. The other JPY5 billion ($37 million) will be invested in the company's brand equity.
"We will implement that in the second half. And such investment will not be temporary, but rather continuing in next year onwards, we are committed to ensuring medium to long-term growth," said Uotani.
