For individual frameworks related to human capital management, please refer to the sections below.

Under the “Management Implementation Framework for Sustainability” described in “Management for Sustainability (Governance),” the NEC Group’s Chief Human Resources Officer (CHRO) oversees the development of the implementation framework for human capital management.

Roles of Management

Oversight by the Board of Directors

The Board of Directors receives reports from the CHRO on key material issues, such as human capital management, that significantly impact the NEC Group’s businesses. It oversees how these issues are being addressed and provides guidance as needed based on the discussions or approvals made through the decision-making bodies described under “Execution Framework.”

Execution Framework

The People and Culture Division, which comprises specialized departments for human resources, organizational transformation, general affairs, labour, and human resource development, promotes human capital management for NEC under the leadership of the CHRO. Depending on the agenda, the Executive Committee, the Business Strategy Committee, or the Risk Control and Compliance Committee discusses and deliberates on important matters related to human capital management.

Ever since establishing the Corporate Human Rights Promotion Committee in 1997, the Company continues its activities to promote human rights awareness, including the prohibition of discrimination and the prevention of harassment. Furthermore, under the direction of the President, the CHRO oversees activities related to occupational health and safety, including risk management, and reports on these activities to the Board of Directors.

To advance the “transformation of people and culture,” a tenet of Mid-term Management Plan 2025, the Company has established the I&D Steering Committee, chaired by the President, and the I&D Acceleration Team. These bodies evaluate and implement various inclusion and diversity-related initiatives. Furthermore, in fiscal year 2024, NEC established job-specific human resource development committees for different job functions—such as sales, business design, marketing, services, systems engineering, and consulting—chaired by corporate executives and officers at the corporate SVP level or above. This created a structure for systematic talent development across the entire NEC Group.

The NEC Group regards “people” as its most important management resource and considers human capital management a critical theme that contributes to both risk reduction and opportunity creation.

In 2019, the NEC Group established its Human Resources (HR) Policy, “NEC, for Those Who Seek Challenge,” to provide diverse opportunities for challenge and growth to every employee, ensure fair evaluation, and foster an environment and culture where those who take on challenges can do their best. In 2021, the Group also formulated the HR Mid-term Management Strategy 2025 to implement Mid-term Management Plan 2025 from a human capital management perspective. This strategy is built on four pillars: empowering diverse talent, reforming workstyle mindsets, realizing the “right person at the right job and the right time,” and talent management—all aimed at the “transformation of people and culture.”

The HR policy and HR Mid-term Management Strategy 2025, along with their specific initiatives, are outlined below.

HR Policy

Diverse Opportunities for Challenge

Since establishing NEC Life Career, Ltd. in fiscal year 2021, NEC has been enhancing support for employees’ career ownership and skill development. Specific initiatives include career design workshops with around 6,000 annual participants, career consultations used by over 3,000 employees per year, and reskilling programs to accelerate skill updates and behavioral change, all designed to support employees in building their careers autonomously.

Unlimited Growth Opportunities

NEC runs the NEC Talent Acceleration Program (NTAP) to develop future executive leaders who can lead the NEC Group with transfor-mational leadership grounded in fresh ideas, flexible perspectives, and a wealth of experience and achievements. The Group is also cultivating strong executive leaders and teams capable of winning in global markets.

Fair Evaluation and Forward-Looking Rewards

As part of a broad effort to implement job-based human resources management, NEC revised its job grade structure and compensation system in April 2024. The Company is transitioning to a competitive compensation system that reflects market value and ensures thorough performance-based evaluation and feedback. To further promote the “right person at the right job and the right time” across the Group, these systems are being rolled out to six Group companies (including NEC Corporation), covering approximately 49,000 employees starting in April 2025.

Creating an Environment and Culture Where Employees Can Perform at Their Best

NEC is working to create an environment in which every employee not only finds their work comfortable but also fulfilling, enabling them to perform at a high level and pursue self-realization autonomously.

Realizing Mid-term Management Plan 2025

In its Mid-term Management Plan 2025, the NEC Group has adopted the integrated approach of purpose, strategy, and culture as a core management policy aimed at maximizing corporate value, with engagement scores serving as a key indicator from the cultural perspective. To accelerate this effort, NEC has formulated HR Mid-term Management Strategy 2025 based on its HR policy, focusing on four priority themes: empowering diverse talent, reforming workstyle mindsets, realizing the “right person at the right job and the right time,” and talent management.

Leveraging Diverse Talent

NEC believes that creating a culture where diverse talent can thrive and where a broad range of perspectives and ideas are respected is essential and strategic for driving innovation. To that end, the Company is advancing initiatives such as global talent utilization, expanding mid-career hiring, promoting women’s advancement, encouraging the employment of people with disabilities, and fostering understanding and support for sexual minorities.

Reforming Workstyle Mindsets

Starting in fiscal year 2025, NEC has been accelerating its transformation into a purpose-driven organization that aims to realize its Purpose by maximizing team performance based on the health and integrity of each employee. Specifically, the Company encourages face-to-face interaction at least 40% of the time (equivalent to two days per week) and promotes a shared commitment between the Company and employees to act with integrity.

Realizing the “Right Person at the Right Job and the Right Time”

Realizing the “right person at the right job and the right time” is key to creating social value and remaining competitive globally. To respond flexibly and quickly to changing markets, NEC designs the necessary organizations and positions from a strategic perspective and assigns the most suitable talent from both inside and outside the Company.

NEC has been working toward job-based human resources management, beginning with a reform of its evaluation system in fiscal year 2019 and progressively implementing related systems and mechanisms. As of April 2024, jobbased human resources management has been applied to all employees.

Talent Management

To realize the transformation of the IT business in Japan outlined in Mid-term Management Plan 2025, NEC has set a target to secure 12,000 digital transformation (DX) professionals¹, ² who will continuously create and implement social value, and is strengthening efforts to develop such talent. NEC is also accelerating the growth of promising nextgeneration leaders by offering them a variety of development opportunities such as tough assignments and training.

In addition, NEC has identified “diverse human resource development and cultural transformation” as a material issue.
For details, refer to “Sustainability Management (Strategies).”

To achieve its business goals, the NEC Group must secure and retain talented employees. If a large number of capable employees leave or if the NEC Group fails to attract new talent, it could have a significant impact on business operations.

These risks are identified as material risks under “human capital management” and are addressed as part of companywide risk management. Led by the CRCO, NEC evaluates the impact and urgency of such risks quarterly, builds relationships with external agencies and universities, and continually monitors gaps between initially budgeted staffing plans and actual results to mitigate these risks.

Risks and corresponding countermeasures are as follows.

Talent Acquisition and Development

In recruitment, NEC is actively pursuing talent through methods beyond recruitment agencies, including direct scouting, branding, and public relations. As a result, in fiscal year 2025, NEC Corporation and two of its major subsidiaries, NEC Solution Innovators, Ltd. and ABeam Consulting Ltd., collectively hired 1,034 mid-career professionals in the IT services domain.

In terms of development, NEC classifies DX professionals into eight categories, such as cloud, data science, and cybersecurity, and has established specialized training programs for each. A system is in place to continuously monitor DX talent and training progress across organizations. The retention rate in the IT services domain stands at a high level of 97%.

Long Working Hours That Compromise Health and Safety

NEC conducts regular monitoring and analyzes departments with high overtime to identify root causes, addressing the issue from both individual work styles and cross-organizational perspectives.

Occupational Safety and Harassment

Under the NEC Group Safety and Health Policy, which outlines the Group’s fundamental principles and guidelines, NEC identifies and addresses risks through the NEC Group Occupational Health and Safety Management System.
NEC conducts regular online training for all employees and holds workshop-based sessions for managerial staff.

Initiatives aimed at creating opportunities are outlined below.

Introduction of Job-based Human Resources Management and Flexible Talent Allocation Aligned with Business Strategy

Through the initiatives outlined in the “Strategies” section, NEC aims to build and optimal talent portfolio that can adapt to change, realizing the “right person at the right job and the right time.” This enables rapid response to shifts during strategy execution.

Promotion of Inclusion and Diversity

The NEC Group sees diversity as a source of innovation. By turning individual differences into strengths and building a resilient and winning organization, it promotes “diverse human resource development and cultural transformation.”

Enhancing Employee Engagement

Under the NEC Way, the NEC Group strives to be a company where diverse talent gathers, innovation thrives, and employees choose to work. To achieve this, NEC reviews the results of its annual engagement score surveys to assess progress, identify issues, and consider further actions.

Engagement scores are measured across three dimensions: Say³, Stay⁴, and Strive⁵. The NEC Group recognizes that while Stay scores are high, improving Say and Strive remains a challenge. To address this, we are focusing on the two factors highly correlated with Say and Strive: “embedding companywide policies and strategies” and “evaluation, compensation, promotion, and career.” Centered on NEC, we are implementing various initiatives, including those outlined in the “Strategies (HR Policy)” section, to enhance communication for deeper strategic alignment, foster self-directed learning and career development, and ensure fair evaluations, promotions, and market-competitive compensation. In particular, NEC promotes employee engagement by creating opportunities for cross-hierarchy dialogue and building mutual trust between management and employees, aiming to reduce risks and unlock new opportunities.

Targets have been established under Mid-term Management Plan 2025 and corresponding HR Mid-term Management Strategy 2025.

(1) Culture-Related Target in Mid-term Management Plan 2025: Engagement Score of 50% in Fiscal Year 2026
The goal is to achieve a 50% engagement score⁶ in fiscal year 2026. The engagement score for fiscal year 2025 was 42% and continues to improve.

(2) HR Mid-term Management Strategy 2025: Advancing Diverse Talent
NEC accelerates diversity, the source of innovation, through proactive appointment and planned development of diverse talent, including women and non-Japanese employees. The targets set for the end of fiscal year 2026 and the actual results as of the end of fiscal year 2025⁷ are as follows.

(3) HR Mid-term Management Strategy 2025: Talent Management
NEC aims to reach 12,000 digital transformation (DX) professionals in fiscal year 2026 through development and recruitment. As of the end of March 2025, the cumulative number of DX professionals is 11,935.

Employee Survey

One NEC Survey

One NEC Survey

To realize the NEC Group’s Purpose, the Company believes highly motivated employees are essential, and it has been conducting initiatives aimed at transforming into an employer of choice. Once a year, a global survey is conducted targeting all NEC Group employees, with a goal of achieving a 50% engagement score in fiscal year 2026.

By achieving this score, the Company believes it will achieve its target of becoming a highly engaged team corresponding to Tier 1 at the global level. The whole Company is continuing to undertake these initiatives.