Hence, the Company emphasizes the importance of efficient human resource management that encompasses recruitment, caring and retention, and human resource development in order to respond to the employees’ needs and expectations and also cultivate strong employee 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 which will enhance their work efficiency and help them grow together with the Company, which leads to sustainable business achievement accordingly.
Ineffective human resource management and treating employees poorly or with no regard to the human rights principles, especially in areas of equality and respect for employee rights, may put the Company at risk of losing talent and affect its business continuity or competitiveness in the future.. Moreover, if the Company’s does not provide new skills and knowledge development for employees to enhance their ability in responding to the rapidly changing business environment and customer needs, it will be at risk of losing business opportunities or unable to deliver beneficial products and services that meet customer needs.
If the Company has effective human resource management, treats employees equally and fairly, protects and respects employee rights, promote employee development, employees will perform happily and efficiently and will be more engaged with the Company resulting in the better quality of the products and services which allow it to achieve 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, consisting of 13 members, including 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 caring according to the rules, regulation, local laws and international standards relating to 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.
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 for the right candidates with suitable qualifications from both within the group and outside based on equitability, transparency, and non-discrimination principle. In 2021, the Company targeted to achieve 70% of 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 2021, the Company had 36 positions of job openings and was able to fill in 27 positions or 75% recruitment succession rate. As on 31 December 2021, the Company had 265 employees with the following details:
The Company provides the opportunities for each employee to involve 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 the employees which will bring about employee engagement. In 2021, 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 according to their performance and awards those outstanding performers to attract, retain and groom them to be future leaders. The Company has participated in the salary and welfare survey arranged by the credible institution in order to continuously benchmark among comparable industries and considered the compensation management in accordance with the needs of the new generation in order to be competitive in the market and able to recruit more talents to join the Company.
The Company sets the performance evaluation for senior executives twice a year and the evaluation result of 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% 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 goals on sustainability. 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 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 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 welfares 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 grant, etc.
In 2021, 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 clearly informs the employees of the available welfare and benefits provided since the first day of employment. The employees are also allowed to participate in the welfare program to improve and create additional activities for the benefit of the public. The Company has appointed the Welfare Committee consisting 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 at work which would enhance the employees’ performance accordingly as well as to be one of the channels for receiving opinion, suggestion and complaint from the employees.
To promote long-term financial and retirement planning, the Company has established a provident fund, which has 140 members, accounting for 53% 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.
The Company has set the Retirement Policy which allows voluntary re-employment of the retired employee. As the Company is well aware that certain retired employees are still healthy and able to work efficiently and provide value to the Company by passing on work experience to the younger generation, the Company then provides an opportunity for re-employments of the retired employee taking into consideration qualification of the retired employee and appropriateness of work requirement in each year. The re-employed employee will receive proper compensation according to the policy and will also receive benefit close to full-time employees. There were 3 retirees in 2021 and the total number of retired employees hired was four persons.
Employees are not only the key linchpins of successful business operation, but also the important force in driving the Company's business sustainably. 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 followings to support the health and safety of the employees:
In 2021, the Company allowed some employees to work from home to reduce the risk of infection at work. Works, meetings, workshops, and customer meetings were all 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 supported adequate protective equipment such as face masks, hand sanitizers, gloves, etc. to the employees. In addition, the Company has allocated the areas for local quarantine as recommended by the Provincial Public Health Office for the employees who are at the high risk of infection but not convenient to quarantine at their houses. Also, the Company has arranged the coronavirus insurances and vaccines against COVID-19 for all employees, both permanent and contract employees.
The Company has regularly organized the online employee meetings in order to communicate the important preventive measures, the knowledge about the disease and self-protection by a medical professional as well as the quarterly meeting of top management with employees.
The Company has set the turnover rate target to not exceed the industry average which surveyed by the Personnel Management Association of Thailand. In 2021, the set turnover rate target was not more than 10%. However, the actual voluntary turnover rate was 10.2% which was similar to that in 2020 but slightly higher than the target. The Company has conducted study the need and expectation of the employee in order to further respond appropriately.
The Company recognizes the importance of employee development in potential, knowledge, and competency in diverse professions and positions in order to accommodate future business opportunities and challenges and drive towards a high-performance organization. In 2021, the Chairman of the Board and Acting Chief Executive Officer established and announced a set of core competency, and communicated by internal speakers to all existing and new employees (100%). In addition, the Leadership Competency Program was introduced to build future leaders and search for AMATA rising stars.
In 2021, the average training hour per employee was targeted at 18 hours. The Company has developed training course in both off-line and on-line format in which 92% of all management and employee attended the training. The total average training hour per employee in 2021 was 25.72 hours while the management level was trained average at 20.43 hours and operation level was trained average at 26.81 hours.
The Company has initiated the Rising Start Project aiming to find high and talented performers called the Rising Star in order to develop and groom them to become future leaders for driving business expansion and creating sustainable growth. In 2021, the Company revised the selection criteria to be more aligned with the business strategy and defined five potential factors of rising stars concluded from the views of top management.
Rising stars were be 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 executives who are reaching their retirement or exposing to other risks which may cause discontinuity of business. The priority is given to internal recruitment before external recruitment to increase the opportunity of job advancement to highly capable employees with continuously decent performance.
Beside the core competency, the Company has defined leadership competency in developing future leaders. In 2021, a list of successors was prepared for 26.3% of senior management positions with a priority given to internal recruitment in order to formulate individual development plans (IDP) for them aiming to replace executives who are about to retire in the next 1-3 years.
The Company has conducted the employee engagement survey every year to collect opinion, suggestion and complaints from employee for further management and consideration by the Human Resource Committee.
The Company communicated the result of employee engagement survey with employee and informed the progress of actions taken according to the issues from the previous years survey results as well as suggestions from employees in 2021 on regular basis at the quarterly employee meeting as well as through the employee representatives in the Welfare Committee in order to further improve the employee care programs accordingly.
In 2021, the employee engagement score was 59%, which was declined from the previous year and failed to meet the target. Career path development to retain talent and improvement of salary structure to reflect the current situation suggested by employees are the urgent issues that the Company is working on.