Could you tell us about the background and your thoughts behind the decision to revise the HR system?

Mr. Takahashi I believe that the HR system is one mechanism to ensure that national staff can work with high motivation, a sense of fulfillment, and aggressiveness. On the other hand, the Indonesian market is experiencing very high economic growth, and along with that, the average salary increase rate is also high. If we do not properly keep up with this, it could lead to a decline in motivation among national staff. Therefore, although the HR system plays a supportive role, we wanted to design a system that provides clear rewards for the efforts of national staff, and use it as a mechanism for national managers to lead their teams and generate high performance.

What are your expectations for the new HR system?

Mr. Takahashi The national staff will play a central role in negotiations with local banks and other responsibilities. Therefore, it is important for national managers and leaders to manage their teams effectively and enhance performance. At our company, there are many key senior managers and managers among the national staff, and how they can maintain high performance including their teams is crucial for local operations. We wanted to create an HR system that could support this from the side.

You could have probably revised the entire HR system internally, but was there a particular reason or background for specifically requesting our assistance with the compensation system?

Mr. Takahashi When designing a compensation system, it is basically important to determine appropriate levels through benchmarking. However, it also requires fair and objective evaluation, which is an area that cannot be handled by national staff, and I understand that.

How satisfied were you with our support?

Mr. Takahashi I am extremely satisfied. Particularly, it was very good that TMHR conducted interviews with all staff and thoroughly captured the voices from the field.

Specifically, what points did you find favorable?

Mr. Takahashi I think there are two main points. The first is that TMHR gathered the voices of all national members. TMHR conducted hearings on not only the compensation system but also the overall HR system from national staff, and by reflecting these in the new HR system as a whole, you were able to achieve a balanced approach. Many staff members have also expressed that it was good to have this review done. The second point is that TMHR properly provided lectures to national managers on the aim of the HR system revision and how to operate the new system as part of management training. I believe this contributed to the understanding of the national managers. I have heard that, in general, local branches of Japanese companies have difficulties creating training opportunities for national staff. Through this review, our company was able to gain such opportunities, allowing national managers and staff to think about human resource management and providing a chance for various insights to emerge on site.

Please give advice to the companies that find it difficult to enhance the capabilities of their national staff.

Mr. Takahashi I am currently working in ASEAN, a region where market conditions are changing very rapidly. Naturally, flexible responses in strategy and business are required, but at the same time, there is also a need for speed. In such a situation, HR systems tend to be deprioritized. However, what is truly important for business on the ground is how national staff can demonstrate high motivation and performance. Therefore, in a competitive market, it is crucial to have HR systems that support national staff in maintaining high motivation and a sense of purpose, working together as a cohesive organization in response to changing environments.
In addition, as I mentioned at the beginning, designing a global HR system requires objective and professional knowledge, making it difficult to develop entirely in-house. Therefore, advice from experts like TMHR, who have extensive experience in revising HR systems overseas, has been extremely helpful and valuable, and I genuinely felt their strong support. From the perspective of a business company, it is important to focus on areas that need strengthening, while seeking advice from external experts like TMHR, who can provide objective and professional insights, to collaboratively build a good system and maintain it over time.