Creating Value for Society

Employee Care, Development & Retention

Risks

Ineffective human resource management or inconsistent human rights principles management, especially in the areas of equality and respect for employees’ rights, may be risk factors for losing talented employees and affecting business continuity or competitiveness. Without the employee development process to update new skills, knowledge, and capabilities to accommodate the rapid changes in the business environment and modern customers’ needs, the Company would run the risk of losing business opportunities and failing to deliver products and services that meet customer needs.

Opportunity

If a company has effective human resource management that treats employees equally and fairly, protects and respects employee rights, and promotes employee development, the employees will perform happily and efficiently. This will result in increased engagement with the company and better-quality products and services. Additionally, it is a crucial factor in driving the business towards its intended goals and achieving sustainable growth.

Management Approach

The Company has established the Human Resource Management Committee as a strategic planning and monitoring mechanism, chaired by the Chief Executive Officer of AMATA Group and consisting of 13 members, including the Chief Marketing Officer, Chief Business Development Officer, Chief Finance Officer, Chief Technical Officer, Chief Administration Officer, Chief Executive Officer and Managing Directors of subsidiary companies. The Committee sets guidelines for employee care according to the rules, regulations, local laws, and international standards relevant to the Company’s business operations, including the human rights principles. All employees are treated equally and fairly, with their rights protected and respected. Channels for complaints are provided to receive suggestions, problems, and expectations from all employees in order to improve human resource management accordingly.

The Company prioritizes effective human resource management, focusing on recruitment, support, retention, and development to meet employees' needs and expectations and foster strong engagement. The company has implemented a holistic approach to employee well-being, addressing both physical and mental health, leading to improved quality of life, enhanced work efficiency, and mutual growth with the company, resulting in sustainable business success.

Recruitment and Employment

The Company emphasizes the importance of recruitment selection and hiring employees to join the Company in order to employ the right personnel that suits well with the Company business strategy and has potential for further development to help drive the organization according to AMATA DNA: DRIVE culture. The Company has to seek out the right candidates with suitable qualifications from both within the group and outside based on the principles of equity, transparency, and non-discrimination. In 2023, the Company targeted achieving at least 70% of its Recruitment and Employment Plan with the following strategies and performance:

Strategy	Performance
1. Plan manpower and competency according to the corporate culture	The Company has guideline to recruit the staff that match with the corporate culture whereby every new staff will have a chance to converse and interview with Chief Executive Office to evaluate the corporate culture fit.
2. Strengthen branding via on-line media to attract new generations	The Company has expanded communication channels through online social media, i.e. Facebook/AmataCorp and Linkedin/AmataCorp to strengthen the corporate image and better access the new generations. The "Friends Get Friends" program has been implemented by the Company to incentivize employees within the AMATA group to recommend job candidates who align with the organizational culture to join the Company. The Company has organized an internship program that allows college students in Thailand to intern and learn work skills with the Company. In 2023, six students participated in this internship program.
3. Encourage cross-function work to enhance staff competency and for the staff to work in the suitable function	The Company provides the opportunity for the staff to work in other functions of their interest in addition to their current position for 6 months in order to enhance their competency according to their interests and also to learn about other functions within the Company. In 2022, 5 staffs have transferred to other functions within the Company.

In 2023, the Company had 59 job openings and was able to fill 46 of them, with a 78% success rate. As of 31 December 2023, the Company employed 301 people, with details as follows:

Employment of Retired Employees

The Company's Retirement Policy permits retired employees to voluntarily recommence their employment. Given the Company's cognizance that specific retired employees remain in good health, work efficiently, and can impart their professional expertise to younger cohorts, the Company proceeds to extend re-employment opportunities to retired employees, with annual consideration given to the suitability of the work demands and the retired employee. The re-employed personnel shall be duly compensated in accordance with the established policy and are entitled to benefits similar to those of other employees. In 2023, the Company had three retirees, and fourteen were rehired under the Retirement Policy.

Employment of Employees with Disabilities

The Company has a policy to hire people with disabilities to create opportunities and income for them. In 2023, the Company hired 1 disabled employee, complying with the legal requirements (due to having 116 employees in AMATA Corporation Public Company Limited, and the subsidiary companies having fewer employees than the legal requirements).

Employee Care

Welfare Provision and Employee Care

The Company provides additional welfare and benefits to all employees without discrimination by considering the appropriateness of duties and responsibilities. In the case of permanent and yearly contract employees, additional welfare, i.e. medical and dental treatment fees, annual influenza vaccination, loans, and various types of financial support, are given in accordance with the criteria set by the Company. However, the provident fund and retirement fund are given only to permanent employees. Moreover, the Company provides certain welfare benefits to permanent and yearly contract employees that also extend to cover family members of the employees, such as educational scholarships for their children and family member death grants, etc.

In 2023, the Company revised its medical welfare (group insurance) for in-patient cases in hospitals by increasing medical benefits, effective from 1 January 2023, onwards. Additionally, the Company has also extended health insurance plans for family members of employees.

The Company has informed the employees of the available welfare and benefits since the first day of employment. The employees are also allowed to participate in the welfare program to improve it and create additional activities for the public's benefit through the Welfare Committee. The Welfare Committee consists of 18 employee representatives selected by the employees and 6 representatives of the Company. The Welfare Committee holds a meeting every two months intending to promote a better quality of life, which would also enhance the employees’ performance accordingly, as well as to be one of the channels for receiving opinions, suggestions, and grievances from the employees.

Provident Fund

To promote long-term financial and retirement planning, the Company has established a provident fund, which has 159 members, accounting for 52.8% of the total number of employees in 2023. Since 2020, the Company has diversified investment risks by appointing two asset management companies to manage the provident fund in order to maximize benefits for the employees. Moreover, financial experts have been invited to educate employees about economic conditions, investment, and tax incentives.

Employee Care During COVID-19 Pandemic

Employees are critical to the operation of any successful organization. Ensuring the safety of employees and mitigating the risk of infection amidst the COVID-19 pandemic are the primary objectives of the Company. As a result, the following measures have been implemented by the Company to ensure the health and safety of its personnel:

Promotion of technology utilization:

In 2023, the Company continued to allow some employees to work from home to reduce the risk of spreading infections in the office by utilizing online systems for work, meetings, workshops, and customer meetings. It was found that working proceeded smoothly, reducing meeting times, decreasing office visits, and enhancing satisfaction among both employees and customers.

Employee Safety and Welfare:

Since the outbreak of COVID-19 in the year 2020, the Company has consistently prioritized the well-being of its employees. In the event that an employee contracts an infection, it is mandatory to report it to the Company. Following this, face masks and fundamental medication will be delivered directly to the employee’s residence by the Company. Furthermore, a dedicated team of nurses is accessible to offer preliminary health advice and guidance via the LINE application.

Communication
:

The Company has consistently facilitated online employee meetings to disseminate critical preventive measures, disease knowledge, and self-protection advice through a medical professional, as well as the quarterly meeting of top management with employees.

Employee Performance Evaluation and Remuneration

The Company allows employees to participate in developing their work plans and performance targets together with their supervisors to be consistent with the department and the corporate KPIs. Employee performance evaluations are conducted twice a year, at mid-year and year-end. This allows supervisors and employees to have two-way communication and discussion on how to improve work efficiency while enhancing a good working relationship. This is an important method for increasing employee commitment to the Company and a key tool for driving the Company toward its goal. In 2023, all employees and executives within the organization (100%) were evaluated based on three categories:

1) Performance evaluation using Key Performance Indicators (KPIs) is an effective tool for driving performance management processes. It allows employees and supervisors to collaboratively set goals and track progress.

2) Assessing work behavior based on the Company's shared characteristics (AMATA DNA), which represent the core competencies and expected behaviors of the Company. It is believed that by having employees who embody these shared characteristics, the Company can effectively pursue its vision, mission, and strategy.

3) Career development evaluation identifies both strengths and areas that need further development for the A one to three-year employee development plan is also collaboratively established by the employees and their supervisors.

The Company is well aware of retaining the talents who are the driving force to help the Company grow sustainably. The Company, therefore, provides fair compensation and proper welfare based on their performance and rewards those who excel. The Company also participates in a credible institution’s salary and welfare survey in order to continuously benchmark with other companies in related industries, use the data for remuneration management that is in line with employees’ expectations and market competitiveness, and be able to recruit more capable and talented workers.

Performance Evaluation and Remuneration of Senior Executives

The Nomination and Remuneration Committee is responsible for evaluating the performance and compensation of the Chief Executive Officer as a guideline. Even if the current CEO declines to accept such compensation, performance indicators are determined through mutual agreement between the Board of Directors and the CEO. These indicators encompass operational activities to achieve business objectives, weighted at 70%, along with sustainability (ESG) goals, weighted at 30%. ESG indicators include various aspects such as reducing greenhouse gas emissions both directly and indirectly, the number of environmental law violations or significant fines, the number of fatalities from road accidents within industrial estates, customer and community satisfaction scores, incidents of corruption, and cybersecurity-related incidents such as data leaks or cyberattacks. In terms of compensation, a survey has been conducted to access salary adjustment rates and executives compensation benchmarks within the industry. The remuneration proposal is then reviewed by the Nomination and Remuneration Committee, which will be submitted to the Board of Directors for approval.

Performance Evaluation and Remuneration of Chief Executive Officer

The Nomination & Remuneration Committee will evaluate performance and the remuneration of the Chief Executive Officer (CEO). KPIs are based on a joint opinion between the Board of Directors and the CEO, covering the operations to achieve business goals as well as goals in social and environmental aspects. As for the remuneration and compensation rates of executives from other companies in the same industry were surveyed. The remuneration proposal will then be endorsed by the Nomination and Remuneration Committee who will submit to the Board of Directors for approval.

Learning and Development Strategic Roadmap 2023-2025

Learning and Development Strategic Goals

Enable success of strategic priorities 2023 through competencies development of successors and talents
Create long-term leadership pipeline to enhance competitiveness
Leverage technological advancement for personalized learning

Success Indicators

Continuous program to develop competencies required by successors and talents to implement Strategic Projects
Structured execution of Leadership Development Plan
Rotation according to Career Path
Implementation of HR Information System interface with digital learning platforms

Employee Development

The Company recognizes the importance of nurturing the potential, knowledge, and skills of its employees across diverse professions and roles. This preparation is essential for addressing future business opportunities and challenges and for steering toward a high-performance organization. To support this, the Company has introduced the "AMATA Learning Journey," a development framework based on the Company's core competencies. Additionally, "Learning Solutions" have been implemented to encourage self-development among employees at all levels, fostering behaviors that align with the Company's expectations.

In 2023, the Company provided a training course on 'How to Create Your Own Effective IDP (Individual Development Plan)' to employees at all levels, based on the 70:20:10 Learning Model. This involved guiding supervisors and subordinates in discussing and planning their development and addressing any skill gaps. As a result of the training, 45% of employees completed their IDPs. Additionally, the Company analyzed the data on employees' basic knowledge needs to determine the training requirements for the following year.

The Company has developed the "AMATA Leadership Development Program" for junior, mid-level, and senior-level managers. The program aims to cultivate future leaders with essential leadership qualities, knowledge, and skills. This initiative aligns with the criteria for key positions' successors, enabling the Company to maintain sustainable growth and a competitive edge. The Company expects the curriculum development to be completed in the first quarter of 2024 and to start development according to the goals. The main objectives of curriculum development are:

Foster understanding and awareness of business integration, the impact of each unit, and readiness for change.
Develop skills, concepts, utilization of management tools, technology, and efficient team management.
Cultivate attitudes to prepare for advancing to higher-level positions.

AMATA Leadership Development Program

Transformational Leader Program for Senior Management/Executive
The Great Leader Program for Middle Manager
Ready Together Program for First-line Manager

AMATA Rising Stars Project

The Company has initiated the 'Rising Star' program to pinpoint employees with outstanding abilities and high potential, intending to nurture them and cultivate new leaders for the Company's future expansion and sustainable growth. The Company has established selection criteria aligned with its business strategy, delineating five talent potential factors to serve as primary considerations in evaluating and screening future leadership prospects.

“AMATA Rising Stars” program was designed to identify and cultivate high-potential employees. This program aims to support employee development, mitigate the risk of talent shortage, and facilitate the Company's expansion plan. Rising stars were selected from targeted first-level managers or above and employees working in a position that is important to the Company's business. The Human Resources Management Committee will conduct a 360-degree assessment based on work performance to select 12 employees per year. Personalized development and career path planning will be prepared for each rising star employee, who will also be given priority to be considered for a succession plan. Since the inception of the Rising Star program in 2021, the Company has identified 3 additional employees as potential successors from the Rising Star employee group, bringing the total to 10 people.

Succession Plan

For business continuity and to be prepared for business expansion, the Company has recruited and developed successors to replace the high-level executive who is in a significant position and close to retirement or exposed to other risks that may cause the discontinuity of business. Priority is given to internal recruitment before external recruitment to increase the opportunity for job advancement for highly capable employees with consistently decent performance.

In 2023, a succession plan was developed, covering 65% of senior management positions and focusing on internal high-potential candidates. This plan aims to prepare individuals to take on leadership roles within the organization or assume managerial positions, replacing those executives set to retire within the next 1-3 years.

In 2023, the Company assigned strategic projects to two groups of employees: successor candidates and Rising Star employees. This allowed them to learn new skills and tasks beyond their regular responsibilities, with a cross-functional work approach. They were also enrolled in the Business & Leadership Development Boot Camp, Batch 1. These assignments aimed to enhance their knowledge, concepts, and skills in project management and business management tools that are essential for navigating a rapidly changing world and advancing toward sustainability.

The program was designed to develop leadership and team management skills in middle management which act as the Company’s strategic key drivers. The employees gained an understanding and utilization of data and digital tools in business operations, as well as practiced storytelling skills to build trust and confidence among stakeholders, which is crucial for achieving the Company's business objectives. A total of 37 employees were enrolled in the six-month program, which was scheduled to take place in early 2024. The Company aimed for at least 80% of employees to complete the training program, which included both digital learning and on-site workshops.

In 2023, the Company set a target for the average employee’s training hours of 18 hours per person per year. The Company developed onsite and online training courses in which 80.95% of all employees participated, for a total average of 20.56 training hours per person per year; the management level received an average of 36.85 training hours per person per year, and the operational staff received 17.77 training hours per person per year.

Employee Engagement

The Company conducts an annual employee engagement survey to measure the level of engagement among employees. This includes their interests, expectations, feedback, suggestions, and any complaints they may have. The Human Resources Management Committee is responsible for developing and enhancing employee care programs and initiatives. The results of these efforts are then reported to high-level management and company board meetings. The Company has informed the employees about the results of employee engagement survey and the progress of managing issues found in the previous year through quarterly staff meetings and communication through employee representatives in the welfare committee to further develop projects and take better care of employees.

In 2023, the survey results showed that the average employee engagement score was 67%, which was a decrease from the previous year and below the target of 74%. Career development initiatives are suggested by the employees, such as creating career paths to retain talented individuals in the long term, adjusting job values and salary structures to align with the Company's changing structure and job characteristics, and developing various systems for digital transformation. Plans were also made to enhance the employee experience to foster long-term satisfaction and positive experiences with the organization. The Company adjusted its employee care strategy for the years 2023-2025 and developed plans to better address employee concerns and interests.

The Company has set a target for the employee turnover rate not to exceed the industry average surveyed by the Personnel Management Association of Thailand, which is less than 10%. In 2023, the voluntary employee turnover rate decreased to 7.3%, meeting the target set and showing an improvement from 2022. Nevertheless, the Company will continue to develop employee care in all aspects, fostering greater participation and engagement to retain quality personnel as a vital asset for the Company's future.

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