Risk to business execution due to inadequate securing and development of specialized personnel
First written in FY2025. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
Sumitomo Corporation (Sumitomo Shoji Kaisha,Ltd.) moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 3 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Demand is rising sharply for personnel with advanced expertise and experience and the ability to respond to changes in the business environment, as a result of rapid changes in business models, particularly advances in digital and AI technologies and progress in GX. However, as competition to recruit talent in the labor market intensifies, if the group's recruitment and development initiatives do not progress as planned and the necessary professional personnel cannot be recruited and developed in a timely manner, strategy execution may stagnate, creating risks including a decline in the group's competitiveness and the loss of opportunities in new businesses.」
The specialized personnel risk disclosure provided more specific details on the sharp increase in demand driven by digital, AI and GX, intensifying competition for talent, and the potential for strategy execution to stagnate and opportunities to be lost. - FY2025First statedAnnual report
「However, our business may be adversely affected if demand for certain specialized personnel rises sharply due to rapid changes in the business model, or if the labor market for such personnel remains underdeveloped and our efforts to recruit and develop human resources do not progress as planned and prove insufficient to address these conditions.」
The sharp increase in demand for specialized personnel, the underdeveloped labor market and delays in recruiting and developing personnel were disclosed as independent human capital risks.