In addition to doing away with ranking employees by age, the new system calls for an evaluation of workers based on their performance during a set period. The new system introduces the "role" concept, whereby an individual employee's potential and the contribution he or she is expected to make to the company's business results is under constant assessment. Setting out clearly defined goals, this will heighten target-awareness on the part of individual employees. Wages will be structured according to salary bands commensurate with each post. Raises will be paid within each salary band depending on employee performance. Wages within single salary bands will differ up to 10% by evaluation on the new system.

The new HR system also provides an evaluation of the employee's potential for future tasks. This means that not only wages but also promotion will become purely performance-based. Performance assessment will look at target achievement levels, at whether the right employee is in the right job. This assessment will also be used in the selection of education and training programs that will enable the employees to achieve their full potential and make a more productive and profitable contribution to the company.

The new system provides the company with an efficient tool for fair performance evaluation including bigger rewards for high-performing employees. This is expected to greatly increase motivation and behavior and thus directly contribute to the company's performance.

For employees, the new system means clearly defined target setting and a higher level of accountability. With the enhanced transparency that comes with a performance-based system, MMC will be able to place employees in the position best suited to their skills and the company's needs.