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Social Responsibility

Compensation and Benefits

Hiring

2018

2019

2020

2021

Total number of new employee hires

261

201

219

304

Percentage of internal hirings

43.1%

81.2%

54.6%

36.8%
  • Data coverage 49.61% (Taiwan Sites)
  • Over 50% of internally filled vacancies from 2018 to 2021 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, most new hires who joined TECO between 2018 and 2021 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%).
  • TECO changes the analysis method in 2021, excludes non-FTE hires, to reflect the real trends. And also update all data from 2018-2021.

 

Employee Support Policy Superior to Regulatory Requirements

Support Type

Notes

Execution of Special Leaves

In addition to the vacations that employees are entitled to in accordance with relevant laws and regulations, the Company checks the utilization rate of special leaves of each unit and includes them in the supervisor’s annual performance appraisal index

Birthday leaves:

In view of the fact that the birthday is a once-a-year special occasion, the Company has decided to create a special birthday leave to allow employees to arrange activities in the month of their birthdays in a flexible manner, give them a chance to fully experience the joy of birthday, and offer our blessings to our employees on their special day.

Volenteer leaves:

TECO offers Volenteer leaves to encourage its employees to engage in welfare activities and fulfill its responsibility as a corporate citizen. Employees are eligible for a total of 3 day of paid Volenteer leave per year without affecting their performance appraisal.

Employees’ Physical and Mental Health

There are full-time nurses working in each factory, as well as a medical offices where professional doctors are regularly invited to take care of the safety and health of employees. We organize several health promotion activates, form various recreational and sports clubs and offer healthcare and spiritual growth courses as well as stress relief massage services.

Flexible Employee Working Hours

In order to allow employees to handle family affairs, take care of their families, achieve a work-life balance, avoid traffic jams during peak hours, and work according to the pace of personal life, employees may choose to work between 07:50 and 09:00 depending on their personal situation.

Part-time working options

on a case-by-case basis and adjust flexibly.

Babysitting Measures and Subsidies

To be considerate to employees who need to take care of young children, the Company provides paid family-care leave, and has signed special contracts with nearby kindergartens, so that employees can pay attention to both their families and their work with peace of mind.

Breastfeeding Facilities or Benefits

For pregnant employees, they may enjoy exclusive parking spaces and maternal health protection consultation after application; a breastfeeding room was set up which obtained the certification of excellence in Taipei’s 2019 assessment.

Paid family or care leave beyond parental leave

For the conveniece to balance the needs of personal and family care.

 

Long-term compensation plan

Average Pay in 2 years. 7.1% of non-management employee joins

  • 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. TECO will continue to optimize the long-term reward guideline and to increase the ratio of the sustainability indicator incorporated into the employee evaluation. The Solidarity Shareholder Meeting held a total of 2,677,395 shares (which was not equal to the number of shares purchased originally since there were employees who withdrew from the meeting after they resigned). Out of the shares, 962,172 were held cumulatively by top management, and 1,715,223 were held cumulatively by non-top management employees.

 

 

Human Resource Analysis

Item

Actions

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)

Human Resource Strategy

The key talent strategy of maximizing performance has become an accelerator for TECO’s growth, and core employees are the promoters of digital talent transformation to create the greatest value for the Company. The digital talent strategy is realized mainly through the blueprint for talent cultivation, talent and system KPIs, the establishment of a communication culture, and the building of a HR friend circle. The respective description is as follows:

  • Talent cultivation blueprint: For basic/middle/senior executives, key talents and the whole group, digital skill cultivation training is planned for Q1 to Q4 respectively, and the Company cooperates with the Business School of National Chengchi University on courses related to digital transformation projects to cultivate the digital ability of employees.
  • Talent and system KPI: It mainly promotes the progress review of projects, and is linked with the KPI of the Human Resources Center to thoroughly implement various projects and progress tracking, including the retention of key talents, the execution of digital projects, the execution of supervisor rotation, and female employee/supervisor promotion rate indicator.
  • Establishment of a communication culture: Make supervisors and key talents the communication channel between the Company and employees, and achieve the effect of corporate culture publicity through quarterly meetings and the Company’s official Line@community (Gather up! Happy TECO people).
  • Building a HR friend circle: It is expected to collect and contact potential candidates in the market for key positions, and increase access to potential talents through channels such as government agencies, schools, HR banks, external training centers and industrial HR.
  • Skills inventory and training planning: Identify whether there is a manpower gap. Manpower gaps can be bridged by recruitment from the external market or skill training from within.

Recruitment strategy

Based on the govenment survey on the supply and demand of talents in key industries by the National Development Commission of Taiwan, TECO's " machinery" reported that 100% of the company lacked talents and had difficulty in recruiting. TECO not only learn how to strengthen the capabilities of internal employees through interviews, but also evaluate the recruitment of high-quality talents with corresponding functions from the external market.

According to the needs from the business unit, it is planned to recruit talents through different types of channels; in addition, when the business department makebudgets, it is necessary to provide a labor planning form (workforce planning) for interviewers to search correct interviewee.

 

HR Strategy Planning

Item

Actions

Motivation

According to the company strategy, changes from the internal and external environment, in order to face impact and needs in the future, TECO adjusts human resources policies, so that the talent strategy and organizational operation strategy can be more closely linked.

Action

By annual interviews, Project-based task inventoriesm, proformance and headcount gaps to develop human resource strategy and actions:

  • Annual interviews: 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.
  • Make the annual budget according to headcounts and review productivity from each department to determine huamn resource demand and hire through management authority.
  • The annual headcounts are calculated with actual gap against number of FTEs, turnover rate and number of retirees.

Results
  • Based on annual training plan, 41 employee participant in the training. 29 digital projects were produced of which 11 projects achieved results by the end of 2021, including the establishment of 8 internal business and production management systems, increased revenue by NTD 18,324K, and reduced monthly production costs  NTD 322K.
  • 352 people were recruited in 2021, including 111 gaps reported from business units, 181 resigns and 60 to be retired.
  • In 2021, 158 people were promoted in the company, of which the average score of 84.9 and the average score of the technical course test is 86.8. (passing criteria is 80)

 

 

Employee Turnover Rate

 

2018

2019

2020

2021

Total employee turnover rate

16.11%

14.67%

15.73%

14.82%

Voluntary employee turnover rate

13.67%

12.54%

12.79%

13.25%

Data coverage

100%

100%

100%

100%

 

 

In 2021, the number of departing employees reached 651, which represents a turnover rate of 14.82%. The voluntary separation rate was 13.25%. 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.