Innovative research and development capability and stable production capacity are at the core of our operations, with human resources being the key element that sustains these two competitive advantages. Therefore, how to effectively map out the human resource development framework and create a friendly work environment to attract and retain talents is an integral part of our journey towards sustainable development.
Economic:
Reducing the turnover rate of human resources facilitates the transfer of professional knowledge and experience, further enhancing research and development capabilities, and maintaining stable production line operations.
Social:
Providing career plans that offer growth opportunities helps employees gain a sense of accomplishment, thereby maintaining stable psychological states.
Economic:
Enhancing the overall quality of personnel can create a solid foundation for improving operational performance within the Company.
Social:
Friendly labor relations and working conditions indirectly cultivate harmonious relationships among people.
We establish management rules in the spirit of RBA, and provide comprehensive remuneration and benefits in compliance with all human rights and labor regulations to further attract and retain talents. Besides, we map out employee skills training, establish fair and diverse career development paths, and cultivate a workplace culture of continuous improvement to enhance the overall research and development capabilities of Taiflex and strengthen our market competitiveness.
Employees are the crucial partners in the sustainable operation of Taiflex as well as the key drive to maintain production and innovative research and development. To stabilize our human resources and strengthen corporate resilience, we are committed to cultivating an organizational culture of mutual support, friendliness, discipline, honesty, and hard work. We offer competitive compensation policy and provide multiple benefit programs to build employee loyalty and retain outstanding talents, hoping that a stable partnership will bring employees to grow together with the Company.
By establishing a workplace that attracts and retains talented individuals, we have successfully reduced the employee turnover rate over the years. The decrease in the percentage of new recruits in 2023 compared to the previous year was attributed to the global labor shortage and uncertainties within relevant industries. Moreover, our adoption of smart manufacturing system to address these challenges also led to a drop in the number of new recruits. In 2023, we achieved 100% return and retention rates for employees returning from parental leave. Please refer to Appendix I ESG Information - Social Data of this report for detailed information.
| Year | 2021 | 2022 | 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gender | Male | Female | Male | Female | Male | Female | ||||||
| Age/Item | No. of New Recruits | % of New Recruits | No. of New Recruits | % of New Recruits | No. of New Recruits | % of New Recruits | No. of New Recruits | % of New Recruits | No. of New Recruits | % of New Recruits | No. of New Recruits | % of New Recruits |
| Under 30 | 128 | 14.75% | 42 | 4.84% | 58 | 6.78% | 25 | 2.92% | 27 | 3.36% | 11 | 1.37% |
| 30-50 years old | 87 | 10.02% | 32 | 3.69% | 51 | 5.96% | 26 | 3.04% | 30 | 3.74% | 21 | 2.62% |
| Over 51 | 2 | 0.23% | 1 | 0.12% | 3 | 0.35% | 1 | 0.12% | 3 | 0.37% | 1 | 0.12% |
| Total no. of new recruits | 292 | 164 | 93 | |||||||||
| Total no. of employees | 868 | 856 | 803 | |||||||||
| Percentage of new recruits | 33.64% | 19.16% | 3.36% | |||||||||
| Year | 2021 | 2022 | 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gender | Male | Female | Male | Female | Male | Female | ||||||
| Age/Item | No. of Employees | Turnover Rate | No. of Employees | Turnover Rate | No. of Employees | Turnover Rate | No. of Employees | Turnover Rate | No. of Employees | Turnover Rate | No. of Employees | Turnover Rate |
| Under 30 | 72 | 8.29% | 14 | 1.61% | 56 | 6.54% | 21 | 2.45% | 35 | 4.36% | 11 | 1.37% |
| 30-50 years old | 81 | 9.33% | 20 | 2.30% | 64 | 7.48% | 33 | 3.86% | 74 | 9.22% | 21 | 2.62% |
| Over 51 | 4 | 0.46% | 1 | 0.12% | 2 | 0.23% | 2 | 0.23% | 4 | 0.50% | 3 | 0.37% |
| Total no. of terminated employees | 192 | 178 | 148 | |||||||||
| Total no. of employees | 868 | 856 | 803 | |||||||||
| Turnover rate | 22.12% | 20.79% | 18.43% | |||||||||
Employee compensation contains both fixed and variable salaries with subitems including base salary, allowance, bonus and employee stock ownership trust. Salary standards take into account the position, ranking, education, work experience and seniority of employees, and the amount is determined in accordance with the Company's salary scale regardless of gender.
To further attract and retain talents. we have established an employee stock ownership plan in 2020. The Company matches 50% of employees’ contributions and deposits the amount into employees’ individual trust accounts. Besides, we modified our compensation policy in 2022. On top of variable bonus, local regular employees are entitled to holiday bonus totaled 1.5 month of salary to maintain a certain level of annual package. This year, the ratios of average standard salary to statutory minimum salary for male and female entry-level employees were 1.02:1 and 1.01:1, respectively; and the ratios after including allowances were 1:1.09 and 1:1.04, respectively.
In 2023, the ratio of the annual total compensation of the Company's highest-paid individual to the median annual total compensation of the remaining employees was 12.26. Despite an increase in the minimum wage in 2023, as entry-level employees only accounted for 20% of our total employees, the ratio of the percentage increase in annual total compensation of the Company’s highest-paid individual to the median percentage increase in annual total compensation of the remaining employees was zero. Please refer to Appendix I ESG Information - Social Data of this report for detailed information on employee compensation.
| Salary Ratio by Ranking | Number of People | Annual Salary (NT$) | Salary Ratio | |||
|---|---|---|---|---|---|---|
| Female | Male | Female | Male | Female | Male | |
| Managerial Personnel | 26 | 175 | 47,820,846 | 241,278,006 | 1.00 | 0.75 |
| Non-managerial Personnel | 173 | 429 | 114,536,687 | 291,249,579 | 1.00 | 1.03 |
| Direct Personnel | 60 | 368 | 35,302,744 | 232,831,845 | 1.00 | 1.08 |
| Indirect Personne | 139 | 236 | 127,054,789 | 299,695,740 | 1.00 | 1.39 |
To create a happy workplace, Taiflex offers a wide range of benefits and has established the “Employee Welfare Committee” (EWC) for the planning and execution of various welfare measures in order to enhance employees’ sense of belonging to the Company.
Employees are covered by labor insurance, national health insurance and occupational accident insurance as required by law. We also provide group insurance (including the period of leave without pay), which covers life insurance, accident insurance, medical insurance, cancer insurance, critical illness insurance, overseas travel insurance, etc., so that our employees can be fully protected. Family members of employees are entitled to join the group insurance, extending our care to employees’ families.
To provide a solid retirement system, Taiflex draws up its employee pension policy to appropriate pension contributions and payments in accordance with the Labor Standards Act and the Labor Pension Act. We also engage professional accounting consultants to conduct annual actuarial calculations of the retirement reserve to ensure that sufficient amount has been contributed to safeguard employee rights and benefits.
We make a contribution equals to 6% (2.93% under the old pension system) of employees’ salaries to the Labor Pension Fund Supervisory Committee which would deposit the money in the Committee's name at the designated account with the Bank of Taiwan. As of the end of 2023, the fair value of plan assets amounted to NT$64,736 thousand. In accordance with the aforementioned rules, Taiflex recognized expenses of NT$8,097 thousand in 2023. Regulatory contributions for future periods are accounted for as accrued pension liabilities, which equaled to NT$132,642 thousand as of December 31, 2023, and the contributions had been made in 2024.
We place great importance on safeguarding employee rights and interests, and have established the “Measures for Prevention of Rights Violation during Performance of Duties” to prevent employees from being forced to perform duties beyond those prescribed by the law. Also, we manage overtime hours by setting risk alerts through the human resources management system. Moreover, the Company has one day off for indigenous rituals and ceremonies in accordance with Article 4 of the Implementation Regulations on Memorial Days and Holidays published by the Ministry of the Interior in respect for the indigenous culture. In 2023, the Company did not have incidents of child labor, forced labor, discrimination, violation of aboriginal rights, or sexual harassment.
To uphold our commitment to human rights-related policies, and strengthen the oversight mechanisms to ensure the protection of employee rights, we have established the “Sexual Harassment Prevention and Complaints Committee” and the “Workplace Violence Prevention and Disciplinary Committee” in accordance with the “Rules of Sexual Harassment Preventive Measures, Complaints and Disciplinary Actions” and the “Measures for Prevention of Rights Violation during Performance of Duties,” as well as the internal complaint channels. We encourage the reporting of sexual harassment, workplace bullying, and other unfair treatments through internet or the hotline in order to protect the personal rights of employees and workplace safety. We ensure the confidentiality of whistleblowers to protect them from retaliation by the accused party.
| Category | Contact Number | Complaint Mailbox |
|---|---|---|
| Employee health care | (07)813-9989#70580 | Joan_Chen@taiflex.com.tw |
| Workplace violence | (07)813-9989#70555 | 80995@taiflex.com.tw |
| Sexual harassment prevention | (07)813-9989#70995 | help70995@taiflex.com.tw |
Taiflex stipulates within its contracts that vendors must adhere to relevant regulations under the Labor Standards Act and the Occupational Safety and Health Act to protect the personal rights and safety of non-employees (on-site and security personnel) within the Company. We have also formulated the “Rules Governing Duties of Security Personnel” where the security personnel shall, pursuant to the Occupational Safety and Health Act and the Private Security Service Act, undergo training every year on courses including disaster prevention and rescue, security-related practical training, etc. They are also required to receive education and training on topics including laws and regulations concerning personal rights, freedom of employment, wages, working hours, leave, ban on discrimination, and freedom of assembly, with human rights-related cases and measures presented at the security meetings from time to time to ensure their compliance with the social norms and to avoid violations of employees’ or visitors’ rights. In 2023, 14 security personnel underwent the training and 100% of them had received human rights or procedures training.
We attach great importance to two-way communication with our employees. In addition to quarterly labor-management meetings, we have established multiple communication channels for both parties to exchange opinions and discuss issues in a harmonious and honest manner. Through effective communication, concerns of employees can be heard and we can adjust our personnel management policies promptly to create a friendly workplace and achieve a win-win situation for both management and employees. In the event of a significant operational change, notices would be given to employees 10 to 30 days in advance depending on their seniorities pursuant to Article 16 of the Labor Standards Act.
We wish to grow and thrive together with our employees. We respect employees’ right to freedom of association and collective bargaining. Although we have not established a labor union, we organize sports events while the EWC regularly holds various activities such as factory celebration, annual family day, and thanksgiving events for employees to identify with the Company. The EWC has also established a wide range of clubs, including the jogging club and yoga club, where employees can interact more with each other at the clubs, strengthening their sense of identification and enhancing their physical and mental health. There were family day, two basketball events and various club activities in 2023 with about 1,500 participants.
Taiflex upholds the training philosophy of “diverse learning to improve professional skills, internalization to prompt company-wide growth, learning transfer to enhance performance, and continuous improvement for developments.” We design talent cultivation blueprint in line with the five core values of “enthusiasm, responsibility, integrity, creativity and execution.” There is also the “Education and Training Guidelines” integrating external and internal resources and formulating systematic training courses for employees to improve their competence in all aspects along with suitability. The spirit of continuous learning prompts mutual growth of employees and the Company.
In recent years, we have actively implemented the mentoring program, utilizing job rotations and coaching to enrich employees’ learning experiences and shorten their learning curves. This approach allows successful experiences to be effectively passed down and shared among employees. To further cultivate a learning culture, promote knowledge sharing and pass on techniques, we have established a comprehensive internal lecturer training system for our path to Taiflex knowledge academy. Over the years, we have trained 260 formally certified internal lecturers. They would be paid a lecturer fee on top of their salaries and be recognized publicly in seminars and morning meetings for their contributions in passing on their experience.
Taiflex recognizes the uniqueness of each employee and therefore provides diverse learning channels and development resources to strengthen competence needed by individuals, allowing employees to fully realize their personal value. The human resources unit also assists employees with mapping out their “Individual Development Plans” (IDP) based on job requirements, performance assessment outcomes and career developments. The plan is divided into three sections: On-Job Training, Off-Job Training and Self Development, with corresponding training blueprints. On-Job Training is the core of training, as this section has a direct and definite impact on whether the Company can function normally and effectively.
In 2023, there were 8,840 trainees with a total of 17,572 training hours. The training expenses amounted to NT$1,032,474 with a satisfaction rate of 93%. Please refer to Appendix I ESG Information - Social Data of this report for detailed information.
Employee performance evaluations contribute to the soundness of the Company's human resources system. They not only assess annual job performance but also serve as a positive incentive, motivating employees to realize their potential and development. Therefore, new recruits are required to undergo an annual performance evaluation three months after joining the Company. Evaluation criteria remain consistent across all employees regardless of differences in gender, religion and race. We also have an internal recommendation system in place as a mean for promotion of competent employees and retention of quality employees, achieving the objective of having the right person for the right job.
The purpose of the evaluation system extends beyond establishing consensus on job targets between employees and management and encompasses the two main functions of assessment and development. Through the mechanism of “employee development supplemented by performance assessment,” we cultivate employees’ personal capabilities for them to acquire proficient business skills and become valuable support to supervisors as well as driving forces behind the Company's continuous advancement, thereby enhancing the Company's competitiveness and the overall organizational effectiveness. In 2023, 100% of our employees underwent the annual performance evaluation.
