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.
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.
The Company has well-established the Human Resource Management Committee as its strategic planning and monitoring mechanism, chaired by the Chief Executive Officer and consisting of 13 members, including the Chief Marketing Officer, Chief Investment Officer, Acting Chief Financial Officer, Acting Chief Engineering Officer, and Managing Directors of subsidiary companies. The Committee set guidelines for employee care according to the rules, regulations, local laws, and international standards relating to the business the Company operates, including the human rights principles. All employees are treated equally and fairly, while their rights are 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.
Hence, the Company emphasizes good, efficient human resource management that encompasses recruitment, care, retention, and human resource development in order to respond to employees’ needs and expectations and cultivate strong employees’ engagement. The Company has applied the principles of holistic care to the employees, both body and mind, for their good physical and mental health, resulting in a better quality of life that will enhance their work efficiency and help them grow together with the Company, which leads to sustainable business achievement accordingly.
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 2022, the Company targeted achieving at least 70% of its Recruitment and Employment Plan with the following strategies and performance:
1. Plan manpower and competency according to the corporate culture
2. Strengthen branding via on-line media to attract new generations
3. Encourage cross-function work to enhance staff competency and for the staff to work in the suitable function
In 2022, the Company had 57 job openings and was able to fill 41 of them, for a 72% success rate. As of 31 December 2022, the Company employed 277 people, with details as follows:
The Company has a Retirement Policy that allows retired employees to return to work voluntarily, in accordance with the policy. The Company recognizes that some retired employees are still healthy and capable of working efficiently, and can provide valuable experience and knowledge to the younger generation. Therefore, the Company offers re-employment opportunities to retired employees based on their suitability for the work requirements each year. The rehired employees will receive appropriate compensation and benefits comparable to those of full-time employees. In 2022, the Company had 4 retirees, and 13 retirees were rehired under the Retirement Policy.
The Company provides other welfare and benefits in addition to those required by law 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, loans, and various types of financial supports, 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 2022, the Company provided a COVID-19 insurance package and alternative vaccines to all executives, full-time employees, and contract employees (100%) to prevent severe symptoms and continue work with confidence.
The Company has clearly 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 with an aim to promote 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.
To promote long-term financial and retirement planning, the Company has established a provident fund, which has 157 members, accounting for 57% of the total number of employees. 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.
Employees are the key linchpins of a successful business operation. Keeping the employees safe and reducing the infection risk during the COVID-19 pandemic are the Company's first priorities. The Company, therefore, has implemented the following to support the health and safety of the employees:
In 2022, the Company allowed some employees to work from home to reduce the risk of infection at work. Works, meetings, workshops, and customer meetings were done online. It was found that working remotely from home was not only productive but also reduced meeting time without traveling to the office and made both employees and customers satisfied.
The Company has provided adequate protective equipment, such as face masks, hand sanitizers, gloves, etc., to the employees. In addition, the Company has allocated areas for local quarantine as recommended by the provincial public health office for the employees who are at high risk of infection, but it is not convenient to quarantine at their houses. Also, the Company has arranged for coronavirus insurance and vaccines against COVID-19 for all employees, both permanent and contract employees.
The Company has regularly organized online employee meetings in order to communicate the important preventive measures, knowledge about the disease, and self-protection by a medical professional, as well as the quarterly meeting of top management with employees.
The Company provides opportunities for each employee to be involved in determining their work plans and performance indicators with their supervisors to be consistent with the goals of the department and the Corporate KPIs. The performance evaluation will be conducted twice a year, i.e., mid-year and year-end. The Company encourages two-way communication between supervisors and their employees in order to improve work efficiency and drive the Company towards achieving the set goals, as well as to enhance good relations between supervisors and their employees, which will bring about employee engagement. In 2022, all employees and executives within the organization (100%) were evaluated based on three categories:
1) Performance evaluation based on Key Performance Indicators (KPI) as a driving mechanism in the performance management process whereby the targets were jointly determined by the employees and their supervisors.
2) Behavioral evaluation through AMATA DNA which is the core competency of the Company and the behavior that the Company expects with a belief that vision, mission and strategy will be achievable if the organization has the employees that express common characteristics.
3) Career development evaluation which identifies both strengths and areas that need further development of the employees. A 1-3-year employee development plan is also jointly 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.
The Company sets the performance evaluation for senior executives twice a year, and the evaluation result for each individual senior executive will be considered to determine their annual remuneration. The senior executives will be assessed on their achievement of their KPIs that are consistent with the Corporate KPIs covering the business, social, and environmental aspects, which are common goals for sustainable development of the Company. 75% of the allocation is given to the indicators that the executives in each field can achieve the Company’s goal and relay it to the subordinates to achieve the sustainability goals. A 25% allocation is given to the behavioral assessment through AMATA DNA.
This year, the Company has improved the KPIs of senior executives to become more clearly defined and aligned with business directions and the 3-year strategic plan (2021-2023)
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.
The Company recognizes the importance of employee development in terms of their potential, knowledge, and competency in diverse professions and positions to prepare for future business opportunities and challenges, and to drive towards a high-performance organization. The Company has launched a Core Competencies Development Program, which was communicated to employees by the Chairman and Acting Chief Executive Officer. Internal coaches educate other staff and all new hires (100%) on this program. Moreover, a Leadership Competency Program has also been initiated to develop future leaders and search for 'AMATA Rising Stars,' who are high-potential employees. These efforts aim to promote employee progress and reduce the company's risk of talent shortages, enabling the Company to expand its business according to its planned trajectory.
The Company has launched the Rising Star Project, with the goal of identifying and nurturing high-talent performers who have the potential to become future leaders, driving business expansion and sustainable growth. The Company has aligned the selection criteria with the business strategy and identified five potential factors that could indicate a rising star. These factors have been adopted as the key considerations in the selection process for evaluating the leadership potential of individuals for future roles.
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 a priority to be considered for a 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 discontinuity of business. Priority is given to internal recruitment before external recruitment to increase the opportunity of job advancement for highly capable employees with consistently decent performance.
In addition to developing core competency, the Company has defined leadership competency in order to develop future leaders. In 2022, a list of successors for 20% of senior management positions was prepared, with a priority given to the Company’s high-potential employees in order to prepare individual development plans (IDP) for them, aiming to replace executives who will retire in the next 1-3 years.
In 2022, 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 95.02% of all employees participated, for a total average of 20.38 training hours per person per year; the management level received an average of 30.91 training hours per person per year, and the operational staff received 18.79 training hours per person per year.
The Company conducts an employee engagement survey every year to collect employees’ opinions, suggestions, and complaints for further management and consideration by the Human Resource Committee.
The Company has informed the employees about the employee engagement survey results 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 2022, the average score of employee engagement with the organization was 69%, up from the previous year but below the target of 70%. The urgent matters that employees suggested were career path development for talent retention, salary structure improvement to be more market competitive, and more digital transformation.
The Company has set a target that the employee turnover rate does not exceed the industry average surveyed by the Personnel Management Association of Thailand, which is less than 10 percent. In 2022, the employee turnover rate was 10.5%, which was close to the rate in 2021 but still exceeded the target. The Company will analyze the problems, employees’ needs, and expectations to better manage them in the future.