Hiring and Treatment of Human Resources
Initiatives

Increased Use of Mid-Career Hires

Besides utilizing internal personnel, we are also hiring experienced workers who can contribute immediately to support our business portfolio transformation. Specific recruitment initiatives include posting position vacancy details to the Canon Group website; encouraging those who previously left Canon for unavoidable reasons (including moving to other firms or due to the assignment of a spouse) to return to Canon; and asking employees to refer suitable family members, friends or acquaintances. We contact potential recruits with matching characteristics or specialist expertise directly, too, alongside the use of recruitment referrals. Mid-career hires constituted 31% of new recruits at Canon Inc. in 2024, which was 2.4 times the equivalent ratio from 2014. Going forward, we will further increase the ratio of experienced employees in our hiring and also actively promote them to managerial positions.

Enhancing Employee Engagement

Believing that the enthusiastic work of individual employees who are aligned with the business philosophy and corporate strategy will translate into the growth of Canon, we have developed measures to enhance employee engagement. As a first step, we conduct an employee survey every two years to gauge workforce opinions on the organization. After a multifaceted analysis of the survey results, we hold a training event in the year after the survey for all line managers known as CAMP (Canon Active Management Program). This training involves the managers at each workplace discussing the HR issues at that site to help formulate specific measures for improving engagement. The effectiveness of these measures is ascertained using the next edition of the survey. In the 2023 employee opinion survey, the proportion of positive responses increased across all categories compared to the previous survey, including the level of autonomy in work assignments and personal growth. In particular, we have seen steady improvement in categories related to engagement, such as a sense of fulfillment, personal growth, and a comfortable working environment. The theme of the CAMP training program held in 2024 was “Think Engagement” to help further promote this. A total of around 1,800 people from 140 departments took part in the program. The best examples of initiatives to improve workplace culture were collated within the “Best Practice Handbook.” We will continue to identify organizational issues from a variety of perspectives and link these efforts to different HR policies to support the growth of employees and the company.

• * Percentage of positive responses for categories related to engagement, such as a sense of fulfillment, personal growth, and a comfortable working environment

Promoting Globalization of Executive Management

As part of promoting the development of globalized management, Canon appoints appropriate personnel, regardless of nationality, as presidents, executive officers, and managers of subsidiaries in each country and region where it operates.

For example, within the region overseen by Canon Europe, the HR globalization ratio* is 86% for presidents and 93% for managerial positions.

• * Ratio of non-Japanese in CEO/managerial positions

Developing Globally Minded Personnel

Ratio of Internationalization in Canon Group Companies Outside Japan (Data Summary)

Creating Local Employment Opportunities at Production Sites

In order to help stimulate local communities and economies through job creation, we focus on local employment at production sites.

For example, our production sites in Asia employ over 50,000 local employees. In every region of the world, Canon ensures its employees are paid substantially more than the local minimum wage.

2024 Comparison of Canon’s Minimum Wage to Local Minimum Wage (Data Summary)

Fair and Impartial Compensation System

Salary Linked to Duties and Performance

Canon Inc. has introduced a position-based pay system to evaluate and compensate individuals fairly and impartially, regardless of gender or age.

In this system, remuneration is based on duties and performance. Basic pay scales incorporate the level of position in the company based on responsibilities and other factors. An employee’s achievements as well as work-related processes and performance during the year are evaluated to determine annual remuneration. Bonuses reflect individual achievements and company performance. In 2021, to enhance further the balance of Canon’s remuneration system, the level of “OS” (for OutStanding) was added to the individual evaluation scale to recognize special contributions in the development of groundbreaking or innovative products, or for other types of superlative achievement at work. Employees awarded an evaluation of OS are paid a special annual bonus.

This system is being promoted across the Group worldwide, and has been adopted by most Group companies in Japan and manufacturing subsidiaries in Asia. Systems for determining compensation based on duties and performance have already been established at Canon U.S.A. and Canon Europe, along with other Group companies in those regions, as well as Group marketing companies in Asia.

Regarding basic salary amounts and increases as well as calculation and payment of bonuses, a wage committee meets with the Canon Workers’ Union (Japan) three or four times a year to check whether remuneration is being paid in accordance with the rules of the labor agreement. The minutes of these meetings are made available to all employees. The committee also facilitates discussions between labor and management on the implementation and improvement of the compensation system.

2024 Base Salary and Total Salary per Employee by Gender (Data Summary)

Corporate Pension Plan

At Canon Inc., we offer employees the defined-benefit Canon Corporate Pension as a form of performance-based pay—a role- and grade-based retirement system— to supplement their public pension and contribute to a more comfortable retirement. A company-run pension fund manages pension assets, so employees do not need to provide any additional funds. Canon Inc. also offers a defined-contribution pension plan with matching contributions, which, coupled with the defined-benefit pension plan, provides solid financial security.

Other Group companies in Japan have also set up their own corporate pension plans.

Employee Benefit Programs

Canon offers various employee benefit programs, covering each stage of life from hiring to retirement, enabling employees to lead comfortable and enjoyable lives.

For example, as well as providing staff canteens and sporting facilities, Canon funds or subsidizes programs and clubs that bring together people with shared interests to foster better workplace communication. We host various events for employees and family members that incorporate the local culture of each region. In addition, benefit programs have been developed in line with employee needs.

With a view to securing their futures, in addition to national social insurance programs, employees of Canon Inc. and Canon Group companies in Japan are eligible for added benefits that include a corporate pension plan as well as membership in our welfare association and health insurance society. Canon Inc. also offers a voluntary employee stock ownership plan, a savings plan and group life insurance policies, among other benefits.

Reducing Total Work Hours

Canon works diligently to ensure that employee work hours comply with the laws of each country and region where it operates, targeting reductions in hours where appropriate.

For example, at Canon Inc., we have been reviewing and revising work practices. We have promoted an open vacation program where employees can take five consecutive days of vacation once per year. We have also encouraged the taking of paid leave in various ways, such as having employees submit a plan for taking five or more days of annual vacation at their first meeting with their supervisor in the new year. Average paid leave taken in 2024 was 17.6 days. Total hours worked per employee were 1,730, a 69-hour decrease from 2010 (1,799 hours), when activities to reduce total working hours began.

Annual Hours Worked per Employee (Data Summary)

Average Monthly Overtime Hours per Employee (Data Summary)

Flexible Work Styles

We promote flexible work styles in line with national and regional employment customs.

For instance, in 2005, Canon Inc. formulated an action plan following the guidelines of Japan’s Ministry of Health, Labour and Welfare, and is encouraging the adoption of flexible work styles while helping employees achieve work-life balance and taking steps to aid the development of the next generation.

Promoting Flexible Work Styles

Canon Inc. has several leave programs that enable employees to take time off flexibly in line with personal circumstances, including a program that facilitates leave in 30-minute blocks for reasons such as childcare, nursing care, injury or illness. We also have a long-service leave system where those employed for certain numbers of years can then take a vacation to refresh. In 2020, we introduced a remote working system aimed at boosting productivity by promoting flexible work styles not limited by time or location. The current initiatives make up the eighth phase of the action plan spanning the three-year period from April 2024 to March 2027.

In addition, Canon Inc. conducts surveys on flexible work styles to assess the circumstances and needs of employees, aiming to create a flexible workplace environment.

Percentage of Taking Paid Leave per Employee (Data Summary)

Action Plan Phase VIII (from April 2024 to March 2027)

A System for Supporting Working Parents / Care Givers / Employees Undergoing Medical Treatment

To enable employees to focus on childcare responsibilities with peace of mind, Canon Inc. offers an array of programs that go beyond the legally stipulated minimum requirements, including a childcare leave program that enables employees to take leave until their child reaches the age of three, and a system for reducing work hours to support childcare, making it possible for employees to reduce their workday by up to two hours until their child has finished the third grade of primary school. In 2024, 442 employees (337 men, 105 women) started to utilize our childcare leave system.

Furthermore, to support employees who are undertaking fertility treatment, we have put in place a fertility treatment subsidy program that subsidizes 50% of treatment costs (excluding costs covered by health insurance), up to a ceiling of ¥1 million, together with a fertility treatment leave program to enable employees to take leave for the period required for treatment. Furthermore, we have implemented a system that allows male employees whose spouses have given birth to take two days of paternity leave.

In addition, to support the work-life balance of those in our local community, Canon Inc. established Poppins Nursery School Tamagawa. Located on our property adjacent to the Shimomaruko headquarters, the school is certified by the Tokyo Metropolitan Government and open to local residents. Approximately 60 children are enrolled at the school.

To help employees caring for aged relatives, we provide various support systems that go beyond the legally stipulated minimum requirements, including nursing care leave available for up to one year, sympathy money, and a system for reduced work hours to support nursing care, enabling employees to reduce their workday by up to two hours a day. A total of 17 employees began using our nursing care leave system in 2024.

To assist employees living with illnesses in balancing work with medical treatment, we have also put in place systems to support flexible ways of working, including sick leave, leave that can be taken in increments of 30 minutes, and programs enabling employees to take leave of up to three years. For employees requiring particular work-related consideration, managers, occupational physicians, occupational health nurse and HR staff coordinate to provide individual support through the workplace environment, including in terms of workstyles and job suitability.

In addition, hotlines have been set up at each of our operational sites to handle employee inquiries about these systems.

Comment from a Male Employee after Childcare Leave

My children are currently aged three and one. I have taken childcare leave on three occasions, based on our family circumstances. I feel that spending quality time with my growing children each day while I was on childcare leave was an irreplaceable part of my life. Another important outcome was how my wife and I were able to raise the children as a team, which I feel will be important for fostering our family culture in the future.
I am grateful to my co-workers for their respect for my wishes and the warmth of their support. It gives me a sense of security from working at Canon and motivates me in my work.

External Recognition

Canon Inc., Canon Marketing Japan, Oita Canon Materials, Fukushima Canon, Canon Precision, and Canon IT Solutions have all been granted “Platinum Kurumin” accreditation by the Japanese Ministry of Labour, Health and Welfare to recognize that their family-friendly HR policies and initiatives are of a particularly high standard. The Kurumin Mark recognizes activities by companies to support childrearing activities.

Supporting Employees’ Volunteer Activities

Canon Inc. has in place a volunteer leave system for interested employees. Under this system, employees wishing to participate in volunteer activities certified by the company may take up to one year of leave (two years and four months in the case of JICA Japan Overseas Cooperation Volunteers).

Worker-Management Relations

At Canon Inc. and Canon Group companies in Japan, worker-management relations are founded on the principle of prior consultation, that is, finding solutions through thorough discussion. Candid discussions between management and the labor union are held whenever policies that affect wages, working hours, safety and health, and benefit programs are to be implemented.

Canon Inc. convenes a Central Worker/Management Conference with the Canon Workers’ Union^*1 to exchange opinions and information spanning a range of subjects. The CEO and other senior management attend the conferences.

In addition, special committees have been created to establish programs and enact new policies relating to wages, working hours, OHS issues, and benefit programs, based on discussions between labor and management. As of July 2024, combined employee membership in the Canon Workers’ Union totaled 22,328, with a union membership rate of 79% for Canon Inc.’s workforce. The working conditions for non-unionized workers of Canon Inc. are stipulated via our employment regulations.

The annual Canon Group Workers’ Union Conference is held for Group companies in Japan and representatives from Canon Inc. to enable discussions on working conditions, the status of the business, and other issues. The conference brings together 18 Group workers’ unions and executives from 23 Group companies in Japan. As of the end of 2024, there were 48,083 employees in unions that belonged to the Canon Group Workers’ Union Conference, for a union membership rate of 82% in the workforce of the 23 Group companies in Japan.

Dialogue-based proper labor-management relations are also maintained within Group companies outside Japan, in accordance with national and regional labor laws. The union membership rate^*2 for employees of major overseas Canon Group companies is 77%.

• *1 The Canon Workers’ Union consists of employees from Canon Inc., Canon Marketing Japan, Fukushima Canon, and Ueno Canon Materials.
• *2 Calculated for companies that have internal workers’ unions.

Percentage of Employee Membership in the Canon Workers’ Union (Data Summary)

Minimum Notification Period for Changes in Work Duties

Canon Inc. has included a minimum notification period clause in its labor agreement to ensure personnel transfers do not negatively impact the lives of employees.

The minimum official notification period is four weeks for personnel transfers requiring relocation, two weeks for assignments not requiring relocation, and one week for other types of transfers.

Additionally, Group companies worldwide have established minimum notification periods in accordance with the laws and regulations of the countries and regions where they operate.