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Fostering the Culture

Approach and Policy

The NGK Group’s Human Capital Management Policy positions human resources as important management capital and defines maximizing their value as the foundation of Human Capital Management.
Under this policy, The NGK Group has identified Fostering the culture as one of its Priority Strategies, alongside Human Resources Department and Growth opportunities, to address the management challenge of accelerating the business structure conversion.
Through Fostering the culture, we aim to build an organization in which each employee acts autonomously and creates value by taking on challenges. We believe this requires an open organizational culture where diverse human resources respect one another, feel comfortable expressing their opinions, and are encouraged to take on challenges.
While building on our corporate culture long grounded in earnestness and resilience, we are evolving our organizational culture to adapt continuously to a rapidly changing business environment by incorporating a spirit of challenge and vitality.
Through these efforts, we seek to create a virtuous cycle in which challenges and employee engagement reinforce one another, enabling employees and the organization to work together to drive transformation on an ongoing basis.

Promotion Framework

For our overall Human Capital Management Promotion Framework, please see below.

Strategy, Metrics and Targets

Strategy

The NGK Group aims to foster a corporate culture in which each employee's efforts to take on challenges and grow strengthen employee engagement, and stronger engagement in turn drives further challenges. Through this virtuous cycle, both individuals and the organization continue to grow together.

Metrics and Targets

To track progress in fostering a corporate culture, NGK includes questions on taking on challenges in its Survey on Workplace Vitality (employee engagement survey) and regularly measures employees' current perceptions.
From FY2030 onward, we target a Score for taking on challenges of 3.8 or above. To achieve this, we will advance initiatives including introducing and operating a personnel system that supports taking on challenges, and embedding the new Key Personnel System.
A score of 3.8 represents the target level at which approximately 80% of employees feel that NGK is a company that takes on challenges.

Survey on Workplace Vitality (Employee Engagement): Score for Taking on Challenges*
FY2025 FY2030 onward
Taking on Challenges 3.3 3.8
  • *Scores are shown on a scale of 1 to 5 points, and the closer the score is to 5 points, the higher the employee’s level of satisfaction with regards to each question

Initiatives

Understanding Employee Engagement

Survey on Workplace Vitality (Employee Engagement)

The NGK Group conducts a Survey on Workplace Vitality annually to build an organization where every employee can maximize their capabilities.
The survey quantitatively measures employee perceptions in five areas—"job fulfillment," "workplace environment," "management," "taking on challenges," and "diversity"—using a 5-point scale. Scores range from 1 to 5, with a target of 3.5 or above. This threshold reflects a state in which more than half of respondents rate each item at 4 or higher (satisfied/positive).
In FY2025, 5,151 employees participated. Results showed year-on-year improvement in some categories and decline in others. Scores for "promoting women's active workplace participation" and "work-life balance" have risen steadily over the past three years, with both surpassing the prior year in the most recent survey. We attribute these gains to ongoing efforts including workshops for managers and improvements to our systems and workplace environment.
By contrast, "utilization of diversity" and "taking on challenges" show a gradual upward trend but have yet to reach the target level. Although we have implemented measures such as top management messaging and the New Business Proposal Program, we will continue to strengthen management practices that encourage employees to take on challenges and to develop workplaces where diverse human resources can fully demonstrate their capabilities.
Survey results serve as baseline data for HR and human resource development initiatives. We also share workplace-specific findings with each department head to drive day-to-day improvements. By embedding these results in a continuous improvement cycle, The NGK Group is working to create an organization where employees can work comfortably and with a strong sense of purpose.

This graph shows the trend in scores from our survey on workplace vitality. It shows the scores related to our Human Resource Development Policy and our Workplace Development Policy. In FY2025, the scores of all items on the survey improved.
  • *Scores are shown on a scale of 1 to 5 points, and the closer the score is to 5 points, the higher the employee’s level of satisfaction with regards to each question. Our target is 3.5 points or above, and the majority of our employees had a satisfaction level of 4 or above

Global Engagement Survey

NGK conducts a Global Employee Engagement Survey to embed the NGK Group Human Capital Management Policy across all operations worldwide and to improve the workplace environment globally. In FY2025, we collaborated with three Group companies in Europe to administer a 13-question survey based on the Policy. Results are reported to senior management at headquarters to visualize the organizational state of Group companies outside Japan. We also engage in dialogue with senior management and HR teams at each subsidiary to share initiatives and drive improvements. In FY2026, we plan to extend the survey to Group companies outside Japan beyond Europe.

Programs that Encourage Taking on Challenges

New Business Proposal Program

The NGK Group operates the New Business Proposal Program, open to all employees, to accelerate new business creation. The program aims to translate individual employee insights and ideas into new value while fostering a Corporate Culture of Taking on Challenges.
Ideas are accepted on an ongoing basis throughout the year. Submissions advance through document screening and interviews before proceeding to a preliminary study that validates market potential and business feasibility. The program secretariat and external mentors provide continuous support, helping employees develop their ideas through consultation sessions and workshops. Dialogue with internal and external stakeholders and sharing of preliminary study findings create a cross-functional co-creation environment. An incentive program for outstanding proposals and activities further motivates employees to take on challenges.
As of June 2026, more than 150 ideas have been submitted, with some progressing to departmental business feasibility reviews. Going forward, we will expand this initiative across The NGK Group to further accelerate new business creation and embed a culture of challenge-taking.

Key Personnel System (Management Positions)

NGK has revised the Key Personnel System to build an environment where diverse human resources can actively contribute and act autonomously. Compensation is based on the content of each role rather than age or years of service, encouraging employees to take on challenges. We have also established and published job descriptions for all positions to clearly define role expectations.
Furthermore, based on the NGK Group Human Capital Management Policy, we have established key personnel competencies that define the behaviors required to realize our vision, including embracing transformation challenges and leveraging diversity. These competencies are applied in performance evaluations and 360-degree surveys to advance people management practices.

System Overview
Job Class System
  • Grades are determined based on the roles employees will take on going forward, not their past performance.
  • To help diverse human resources leverage their individual strengths, we have introduced a multi-track grade structure with clearly defined roles.
Grade Types
  • Management: Position holders accountable for organizational management and the results of their teams.
  • Senior Professional: Core contributors to business advancement through the application of expertise and team leadership.
  • Expert: Core contributors to business advancement through the application of highly specialized expertise.
Performance Evaluation System
  • Evaluation results for each year are reflected in the following year's annual compensation.
  • In addition to the existing outcome-based evaluation, we have introduced a system that also evaluates the behaviors required of key personnel.
Internal Job Application and Scouting System
  • We have launched a new internal scouting system that allows employees, at their own discretion, to enter the selection process after receiving a direct scout from another department.
  • We have extended the internal job application system, which enables employees to apply, at their own discretion, for openings in other departments, to all key personnel.
Share-Based Incentive Program
  • This incentive program provides key personnel who meet certain criteria with restricted shares drawn from treasury stock under the Restricted Share Compensation Plan.
  • The program aims to encourage employees to adopt a shareholder perspective and take active ownership of the company's medium- to long-term growth and value creation.