Operators promise "energy saving, emission reduction, intelligent, automatic"

Social Responsibility

Compensation and Benefits

Hiring	2017	2018	2019	2020
Total number of new employee hires	656	782	478	538
Percentage of internal hirings	62.9%	43.1%	81.2%	54.6%

Data covers only Taiwan sites, with coverage rate of 51.46%

Over 50% of internally filled vacancies from 2017 to 2020 were production operation positions. The male-female ratio was maintained at around 80:20. Around 50% of the employees who filled vacancies were in the 30-50 age group. Due to the nature of the industry, the majority of workers are male. The male-female ratio is maintained at around 80:20. Young adults represent the mainstay of our labor force (the 30-50 age group accounts for around 50%).

Human Resource Analysis
Performance measurement	Performance appraisals for the whole company are carried out every six months (in June and December). Assesses of very business unit are evaluated at every level by immediate supervisors. After performance interviews are conducted by supervisors at all levels, staff members at the manager level and above carry out self-evaluations in a synchronized manner. Performance appraisals consist of the following key elements: Rank and file: Key objectives 70%, competence 15%, attitude 15% Management: Key objectives 80%, competence 10%, attitude 10% Factory director/department director and above: Key objectives 100% (key objectives for personnel at grade 9 or above are determined based on the KPI target management card scores for the previous two quarters)
Skill shortage identification	HR conducts interviews with BU supervisors at the beginning of each year to gain a clear understanding of the strategic directions and objectives of each unit in the respective year and discuss the provision of assistance. Skill inventories and task analysis are carried out for all employees to gain a full understanding of core skill shortages during operation processes and facilitate the provision of assistance in the planning of follow-up training topics.
Recruitment strategy	In addition to conducting interviews to gain a better understanding of how to strengthen the competence of employees, the Company carries out simultaneous assessments of the external recruitment of highly qualified talent with the required competency set to increase team competence and performance. Talent recruitment relies on different types of channels to meet the individual demands of each business unit. During annual budget planning, a workforce planning chart must be created by each business unit based on the organizational structure and corresponding expenses. Cross-checks with interview results ensure a more precise recruitment process.

HR strategy planning
Motivation	With a view to assisting business units in goal achievement and meeting the demands of new business development and organizational reform, the Company carries out the aforementioned HR analyses in a routine manner. In addition to the optimal utilization of available manpower, we also strive to enhance the efficiency and applicability of HR analysis and thereby achieve a perfect synthesis of talent and organizational operation strategies.
Action	Annual interviews: The goal is to gain a clear understanding of the demands and limitations of each unit through interviews with BU supervisors and facilitate the planning of training courses through an analysis of employee skill inventories. Project-based task inventories: Work contents, required working hours, and division of authorities and responsibilities for all BU personnel are surveyed through Corporate Manpower Planning (CMP). The goal is to gain a deeper understanding of current manpower allocation conditions and determine whether job contents conform to development goals and how to plan job rotation training.
Results	Annual training plans are formulated in accordance with business unit requirements and reviews of learning goal achievement are carried out before employees are promoted or during performance appraisals to ensure that they possess the corresponding skills required for the performance of their new duties. Task inventories are carried out to gain a better understanding of manpower utilization conditions, organizational structures are adjusted in line with operational requirements, and division of duties between units is redefined. Promotion lists submitted by each business unit must conform to the criteria of corresponding cost and technical program tests (passing score of 80) in accordance with the job grade and job characteristics of promotion candidates. In 2020, a total of 111 individuals were promoted (cost and technical program test scores reached 84.7 and 85.3, respectively)

Long-term compensation plan

In 2019, TECO adopted the "Special Bonus Issuance Operation Standard" coupled with a cash incentive method applicable to supervisors above the rank of manager. According to the reward approved for the personal performance, the reward is to be issued at three time points in a period of two years, and the actual amount of bonus collected at the time of issuance is linked to the KPI score in the last quarter. In 2020, the Company continued to issue special bonuses in accordance with this standard.
For TECO’s performance evaluation KPI, as the setting of the natural of the project execution involves the sustainability project related personnel, the KPI is also linked to relevant sustainability indicator.
In 2020, a “Solidarity Shareholder Meeting” was formed to enable employees at the supervisor level to subscribe to shares at preferential prices which are non-transferable for a period of three years. TECO will continue to optimize the long-term reward guideline and to increase the ratio of sustainability indicators incorporated into employee performance appraisals.

Employee Turnover Rate	2017	2018	2019	2020
Total employee turnover rate	14.99%	16.11%	14.67%	15.73%
Voluntary employee turnover rate	13.33%	13.67%	12.54%	12.79%
Data coverage	100%	100%	100%	100%

Data covers 100% of reporting scope.

In 2020, the number of departing employees reached 707, which represents a turnover rate of 15.73%. The voluntary separation rate was 12.79% (a total of 575 employees resigned voluntarily). The slightly increased turnover rate can mainly be attributed to organizational adjustments in overseas companies as a result of the COVID-19 pandemic. The Company also conducted a statistical analysis of the turnover conditions in the management level (entry- to top-level). The number of departing managers reached 44, which represents a turnover rate of 4.88%. Broken down by age groups, the turnover rates reached 12.1%, 8.25%, and 6.8% in the below 30, 30-50, and above 50 age groups, respectively. This clearly shows that young employees are more likely to leave the Company. We have therefore made an ongoing commitment to improving workplace experiences to strengthen the intent of young employees to stay with the Company.

Contact window: CSR Task Force/Jay LC Huang, Special Assistant, csr@teco.com.tw

TECO 東元電機

Social Responsibility