Basic Policy

In order to achieve Mission TREEING 2030 and realize sustainable management, Sumitomo Forestry has established human resource strategies based on three pillars: "Securing and developing human resources to lead business transformation and creation," "Structure to maximize employee performance and a free and open-minded corporate culture," and "Promotion of health management." In addition, as the basic policy for human resource development, we have set forth to "nurture employees who learn by themselves, think about the essence of things, and take action on their own," and "promoting a free and open-minded corporate culture."

Promotion System

Sumitomo Forestry Business (SBC) Institute, Personnel Department is in charge of planning and promoting human resource development initiatives throughout the entire Group. It assigns personnel in charge of human resource development to each division and Group company, conducts training to acquire knowledge and skills required by each business, and plans human resource development measures.

Sumitomo Forestry Business Institute, Personnel Department

This institute makes efforts to serve Sumitomo Forestry employees ranging from new recruits to middle management and management level employees, with a goal of "1. comprehend and develop the corporate philosophy based on Sumitomo's Business Spirit," "2. master universal business and management skills," "3. nurture global human assets," "4. train management," and "5. realize a free and open-minded corporate culture."

We are also promoting group management by "6. foster a sense of unity among all Group employees."

Human Resources Development Department, Housing Division

Human Resources Development Department of the Housing Division conducts practical education around the axes of the customer perspective and professionalism for employees who belong to the Housing Division (sales, design, interiors, production, general affairs, and head office staff).

This department also supports training at each company by working closely with each Group company managed by the Housing Division.

Group company and each department

Education to teach the necessary skills in each field and training to develop professionalism are conducted at each Group company and in each department.

Human Resource Development System at Sumitomo Forestry Business (SBC) Institute, Personnel Department

Under a theme of "nurture employees who learn by themselves, think about the essence of things, and take action on their own," and "promoting a free and open-minded corporate culture," Sumitomo Forestry Business Institute of the Personnel Department has increased training programs to not only include " hierarchical " and "selective" training, but also more "self-development" training, to develop employees' skills while valuing the autonomy of each individual.

1. Teach the corporate philosophy based on Sumitomo's Business Spirit

We hold Shikoku forestry training in which all of our new graduates and mid-career hires who join the company visit the ruins of the old Besshi copper mine and Company-owned forests to learn about the Sumitomo Group history and business spirit. In fiscal 2024, 726 employees of whom 276 and 450 belong to the parent company and Group companies, respectively, joined the training.

In addition, the Sumitomo Forestry Business Institute e-learning hosts a program on the history and corporate philosophy of Sumitomo Forestry taken by each Sumitomo Group employee every year.

2. Acquisitions of business knowledge and management skills

We support employees' learning by respecting their autonomy at Sumitomo Forestry Business Institute of the Personnel Department. In addition to 300 courses, including e-learning, correspondence courses, dispatch to external training programs for the purpose of acquiring business skills and knowledge, and online employee development programs by job group and grade, we offer approximately 8,000 courses (all external courses). Moreover, we have established a system to subsidize 50,000 yen for external training courses not designated by the company. In fiscal 2023, a total of 1,847 employees participated in such training, and 2,082 employees participated in fiscal 2024.

In hierarchical training program, new general managers are given training to learn their attitudes and roles and to develop a broader perspective. In fiscal 2024, 17 new supervisors participated. In order to establish and utilize the evaluation system revised n fiscal 2024, we conducted evaluator trainings targeting all of our managers and1,322 people participated in 2024. To improve management capabilities, all managers are also provided with skills training that draws out the potential of each employee and 98 people participated in fiscal 2024. In addition, as part of the multifaceted assessment to develop these skills, a multifaceted evaluation feedback workshop was offered for 109 managers who were subject to evaluation for the first time in fiscal 2024. The purpose of this workshop was to assist them accurately grasp and practice the evaluation results. We also conduct aptitude assessments for employees who wish to assume management positions to clarify their own strengths, weaknesses, and characteristics, thereby determining the direction of necessary skill development. In fiscal 2024, this program was conducted for 190 participants.

Furthermore, all of our 62 general managers from the Housing Division attended the housing general managers workshop co-hosted by Sumitomo Forestry Business Institute of the Personnel Department and Human Resources Development Department. General managers are to improve their management skills by engaging in discussions about setting visions, formulating strategies at each branch and their mindset as a person responsible for a branch with other general managers.

3. Nurture global human resources

Sumitomo Forestry strives to nurture human resources to entrust with business operations as our business expands globally. Therefore, we conduct a global human resource development program where employees engaged in overseas-related businesses for many years, including those who have been posted overseas, provide 1-on-1 program to employees who wish to work abroad with extraordinary business performance. This program includes learning English and Indonesian, offers an original curriculum adapted to the skill level and work content of each employee taking the course, and encourages the study of bookkeeping and accounting. In addition, we have been implementing a program dealing with international affairs in general since 2022. Thirty-two people participated in fiscal 2024.

The program is considered complete for those who have acquired the minimum knowledge (languages including English, and accounting-related knowledge) required to handle overseas-related businesses in anticipation of a future overseas assignment or have achieved that level through self-development complete from the program. A total of 114 people have completed the program since fiscal 2018, of which 79 have been stationed overseas or transferred to departments in Japan related to overseas operations (133 expatriates as of December 1, 2024: including those preparing for departure).

4. Nurture management human resources

Sumitomo Forestry conducts selective training for employees who are at least 35 years old. In fiscal 2023, 53 employees participated in 11 programs, and in fiscal 2024, 55 employees participated in 10 programs, focusing on management leader development training and middle reform-oriented training.

5. The realization of an open minded and energetic work environment

Since fiscal 2021, Housing Division has been implementing the "Three-Star Project" with the goal of realizing a free and open-minded corporate culture.

The Three Star Project aims to create branches where each employee is full of vitality, highly regarded from customers, and beloved by the local community, like three-star stores, highly regarded by customers, and deeply rooted in the local community. By fiscal 2024, 32 branches participated. Through a six month workshop, communication among employees was revitalized and their awareness of the need to create better branches was heightened as well as their willingness to contribute to the workplace.

In addition, since fiscal 2021, we have been conducting psychological safety training for all managers in order to create an open workplace where free and open discussion can take place, and 351 employees participated in fiscal 2024.

6. Foster a sense of unity between all Group employees and develop human resources

We are aiming to build a sense of unity throughout the Group and raise awareness of working members of society by offering training for new employees in a program common to the entire Group, and 455 employees participated in fiscal 2024.

Moreover, the e-learning system has also been deployed as a learning tool shared with Group employees, allowing employees of Group companies in Japan to share and learn from 164 courses on topics such as Sumitomo Forestry's history, business spirit and corporate philosophy, as well as acquiring business skills and knowledge.

Sumitomo Forestry Business Institute Training System, Personnel Department (FY2024)

*Expenditure on training for fiscal 2024 (Non-consolidated) is 811 million yen

Support for Obtaining Qualifications and Attending External Education

Sumitomo Forestry promotes independent efforts for capacity building and career development. For instance, the Company's Regulations for Assistance in Obtaining Qualifications and Attending External Education include provisions for assistance when an employee seeks to obtain qualifications or use an external educational institution.

With regard to obtaining qualifications needed for managing operations and qualifications recommended for capacity building, the regulations prescribe assistance limits for each of the 138 qualifications. In fiscal 2024, 1,465 employees took advantage of the program.

In particular, a lump-sum payment up to 500,000 yen is provided to the employee who passes the examination for first-class registered architects, and 20 employees satisfied the criteria in fiscal 2024, 39 employees obtained second-class architect licenses under the guidance of the Human Resource Development Department in fiscal 2024.

Introduction of in-house qualification system in Sumitomo Forestry Home Tech

Sumitomo Forestry Home Tech introduced an in-house qualification system, the "Structural Diagnosis Master" in fiscal 2021 and "Seismic Diagnosis Master" in fiscal 2022. The goal of the internal qualification system is to improve employees' motivation for self-improvement while also improving legal compliance and quality control.
As of December 2024, out of 820 employees eligible to take the Structural Diagnosis Master exam, 642 (78.3%) had obtained certification, while 146 obtained the higher qualification of Seismic Diagnosis Master.

Initiatives in the Human Resources Development Department, Housing Division

The Human Resources Development Department engaged in training and a variety of other initiatives in accordance with the training and education policies. We place particular emphasis on developing young employees with the aim of achieving independence by the end of their third year, focusing on "encouraging them to think for themselves". In the On the Job Training (OJT), we are strengthening the coordination with trainers and incorporates methods for flipped learning as a means to strengthen OJT. The training aims to provide faster mastery of the content as a place to find more practical follow up.

We have begun insourcing video materials to broadcast before training for the purpose of an effective flipped learning before regular training. There are interactive features in the 360-degree videos, such as information hotspots, quizzes, and knowledge verification modules, where clicking on information pulls up text and other information, contributing to increasing learner engagement and retention rates. In addition, Sumitomo Forestry is furthering links to a Learning Management System (LMS) to manage the learning progress of each employee while also driving future human resources strategies, human resource management and other initiatives in anticipation of the medium to long term by advancing the understanding of skills and accumulating employee data.

Flipped Classroom Using Videos

Sumitomo Forestry has been using the headquarters studio to create video materials for training for employees joining the since 2022. Since April 2023, we have also supported on-the-job training at branches by establishing "Jinkai e-Learning," an environment that enables employees to learn business operations from the time they join the Company. In conjunction with this initiative, we aim to establish a dual-axis training program for new graduates and mid-career hires by rooting a regular face-to-face training program for mid-career hires that began in 2022.

Example of LMS in Use

Flow of Flipped Learning

To ensure the OJT for junior and mid-level employees reaches its full potential, we are nurturing management skills, product knowledge, and human assets development capabilities of current and future managers to support and guide on efficient work styles.

Device-based training

Sumitomo Forestry has adopted a paperless system of training materials for employees in their first year who have a particularly high number of training opportunities during the education period and provides devices such as tablets during the training. By using this system, employees can revise and save things, such as notes on important matters in the electronic text during the training session. Trainees can even review and use learning materials anywhere by using these devices even after the training ends. In addition, the provision of devices to employees from the time they join the company also contributes to the enhancement of IT literacy among younger employees. We will continue to strive to realize an educational ICT environment to further develop the qualities and skills of each employee.

Hybrid Face-to-Face and Web-Based Training

Online training saves the participants from having to travel and enables highly productive lectures. This also allows for additional training management alternatives, such as multiple days of brief training sessions, which greatly contributes to the structure of the training curriculum. We have established a hybrid training management approach that combines small scale face-to-face training and online training, in addition to the usage of online training, since there are some lectures where face-to-face training has a greater training effect.

Hybrid training that combines smaller scale face-to-face training and online training

Training Using VR and AI

The training utilizing VR videos, which we've been working on for a while, has proven to be highly effective. In addition to on-site training, trainees quickly acquire the knowledge necessary for construction by experiencing various virtual environments without exterior influences, and deepen their understanding of operational processes through hands-on experiences as though they are training on an actual site. We hope to expand the highly productive VR training to the entire Group and boost the cost-effectiveness of training operations by bringing the training materials in-house.

In addition, we are currently conducting sales talk analysis for housing salespeople, with the goal of efficiently and effectively strengthening customer service skills by using AI to objectively analyze the content of business talks with customers. More customer service assessments will be conducted in the future, leading to the development of Sumitomo Forestry's conversation model and the improvement of individual skills.

Initiatives in Sumitomo Forestry Home Tech

Needs-Based Sales Training

We have been implementing "Needs-Based Sales Training" for new graduate employees in sales and design since 2021.
While owners who order renovations are typically around sixty years old after their life stage changes, those who interact with the owners are in their early twenty's and they have difficulty finding common topics during business negotiations, which is why these employees are the targets of the training program. The purpose of this training is to identify housing issues and concerns, provide solutions for the homeowners, and propose a plan that addresses the potential needs. Their sense of accomplishment increased with such comments as "the homeowner now recognizes me as a family consultant" or "I now enjoy sales as I am not selling goods, but providing solutions for the family."
For the fiscal year ended December 2024, the order amount for Needs-Based Sales Reform increased by 90% compared to the fiscal year ended December 2021, when the training program began. Needs-Based Sales Training leads to increased employee motivation by providing added value of housing with owners, which in turn helps prevent turnover due to negative reasons.

Promotion of Certifications Acquisition

Sumitomo Forestry encourages and supports employees to acquire certifications necessary for its business operations and promotes skilling up to secure sufficient certified personnel. Qualified workforce would lead to higher business performance and to improved customer satisfaction. For instance, in the Housing Division, employees in sales are encouraged to acquire the certifications of Real Estate Transaction Specialist and the Level 2 Financial Planner to enable them to provide consulting sales in financial and legal aspects. The average number of orders received by sales personnel in their second and third years with certifications is almost twice as much as by those without.

In fiscal year 2024, 238 employees in the Housing Division participated in these certification acquisition support programs.

The latest results of this support are as follows.　

*No support for obtaining qualifications in fiscal 2021 and fiscal 2023.

Sumitomo Forestry focuses on training to develop its design capabilities. The Company seeks to develop its "Design Skills", "Presentation Skills" and "Customer Service Skills" by having all design personnel evaluate drawings in advance to detect and reinforce the Company's design trends and challenges, resulting in a strong design group that can compete with other companies. In the future, we will also collaborate with interior designers to strengthen their "Presentation Skills", "Customer Service Skills", and "Total Coordination Proposals", and are considering and planning to develop a team that includes interior designers. We're also considering training engineers who can handle medium- to large-scale projects.

Handing Down the Techniques Used in Building Wooden Houses

Sumitomo Forestry recognizes that in order to preserve the way of building houses that makes best use of the traditional Japanese wooden post-and-beam construction method, it is important to pass on these skills and techniques to the next generation of workers.

The Sumitomo Forestry School of Professional Building Techniques is an in-house educational institution certified by the governor of Chiba Prefecture, and was founded by the Company in 1988 as a corporate boarding school for vocational training. Implementation of a one-year training curriculum, the school provides training for new employees at Sumitomo Forestry Home Engineering Co., Ltd. who aspire for a job in carpentry. In terms of construction-related subjects, students study classroom-based subjects such as an introduction to building, structure, drawing, methods of construction, materials and supervision, as well as practical subjects, such as tool operation and maintenance, the traditional technique of marking timber with sumi ink and a carpenter's square, processing, safety work, model-based practical training, demonstration-based practical training and computing with the goal of acquiring a 2nd class carpenter license upon completion. On completion of their training, graduates are assigned to places all around Japan, and after a few years, they return to the school to undertake seven to ten days of training in Japanese rooms and in a preparatory course for acquiring the 1st class carpenter license as a certified specialist.

In response to the recent shortage of successors in skilled trades, we have begun training carpenters as well as plasterers since 2020 and structural workers since 2022. We have also started accepting female applicants for skilled trades since 2021, and we are working to adapt our support systems in a flexible manner to meet the needs of the times.

In fiscal 2024, the school had another 94 new enrollments.