Employee Management

Key Stakeholder: Shareholders/ customers and Consumers/ Employees/ Government and civil society sectors

Mitr Phol regards its employees as valuable assets and key drivers of the organization's objectives. Therefore, the Company prioritizes preparing the employees to respond promptly and effectively to various situations. In light of rapid and continuous social change, Mitr Phol has adopted an Agile Organization approach to adapt to these changes. It is crucial that employees possess the knowledge, skills, and alignment with MITR beyond's working style to foster sustainable growth for the organization (Cultivating for All).

In addition, maintaining a focus on social and environmental aspects within the workplace is a major factor in the organization's growth and progress. Embracing diversity and fostering mutual respect among employees encourage the contribution of creative ideas, enabling them to deliver results and create value for all stakeholders.

2023 Target and Performance

	Target	Performance
Level of employee engagement	4/5 (Equivalent to 80%)	4.38/5 (Equivalent to 87.6%)
The percentage of labor costs to total costs.	6.01% (decreases or is equivalent to that in 2022)	5.82%

See more details of Human Capital Return on Investment

Management Approach

Employee Management Strategy

Mitr Phol has developed employee management strategies aimed at enhancing work efficiency and adaptability to drive the organization’s success in line with predefined goals. The Company has adopted an Agile Organization approach to ensure timely responses at work and has implemented this approach through various activities. Additionally, it educates employees to understand and embrace an Agile Mindset, enabling them to apply it in their work according to 4 main principles:

Encouraging collaboration in the workplace

Prioritizing practical outcomes

Striving to meet customer needs.

Recognizing and adapting to changes

An Agile team has been set up in each business unit to develop insights and create understanding about Agile working through practical applications and experience shared among project members. They also use Objective and Key Results (OKRs) tools to link business objectives to project outcomes to achieve the following outcomes:

Improve working methods and processes to streamline steps and improve production efficiency for better outcomes.
Develop new products and services to create opportunities and increase competitiveness for Mitr Phol Group.
Reduce production loss and waste to lower overall costs.
Seek new business opportunities for Mitr Phol Group.

In 2023, the employees participating in the program accounted for 9.55% of the total number of employees. Additionally, agile projects across all business groups totaled 73, resulting in a cost reduction of 149 million baht and an increase in revenue by 2,072 million baht.

Employee Capacity Development Plan

MITR beyond Reskill-Upskill-Future Skill Program

The Company provides a variety of skill development programs, focusing on leadership skills, digital technology proficiency, personal data protection laws, and sustainability. The programs are tailored to employees and executives at all levels within Mitr Phol. Accessible via the Mitr Phol Learning Digital Platform, these courses are assessed through examinations, lesson summaries, practical application of acquired knowledge in work operations, and knowledge sharing within the Learning Community.

Mitr Phol Transformational Leadership Program (MTLP) 2023

The MTLP programs offer real-life experiences through practical applications, aiming to unleash the potential of future leaders according to Mitr Phol's Leadership Competency framework and to cultivate a growth mindset for effective change management. The programs also develop leaders' mindsets and approaches to drive sustainable change, supporting economic, social, and environmental collaborations with stakeholders in alignment with Mitr Phol’s strategy. They are delivered through a Blended Learning approach, featuring three learning styles that enable employees to gain deep insights and hands-on experience, empowering them to become true leaders.

MTLP Programs by Target Group

People Capability Development Program 2023

The leadership skills development program caters to leaders at each level, aiming to provide required competencies and promote collaboration and a positive work environment to improve individual and organizational performance, leading to efficient resource and team management. The programs offered are as follows:

MITR beyond Innovation Awards 2023

Mitr Phol organizes the Mitr Beyond Innovation Awards to foster the development of innovation, a core value of MITR Beyond Culture. This contest encourages employees to dare to develop, innovate, and put their ideas into action. In 2023, Mitr Phol’s employees submitted a total of 478 innovations from all business groups. The contest consisted of 2 rounds: Transformation Idea and Champ of the Champs. Awards are given to innovations that significantly improve work processes, create new products and services, and develop new business ventures within Mitr Phol to create value and sustainable growth for the organization.

Management of Diversity, Equity, and Inclusion

Mitr Phol prioritizes diversity, equity, and inclusion in its treatment of employees. This commitment is outlined in the Code of Conduct, which stipulates equal treatment of employees, and the Diversity, Equity, Inclusion, and Belonging (DEI&B) Policy, which applies to the Board of Directors, executives, and employees. Mitr Phol’s employees are entitled to equal treatment and respect for their human rights and dignity, regardless of ethnicity, religion, beliefs, gender, age, background, status, disability, education, or any other status unrelated to their ability to perform their duties. The Company will not tolerate any form of physical or emotional violation or harassment, ensuring that all employees are happy at work and proud to be part of Mitr Phol.

Support for Persons with Disabilities

Mitr Phol places a high value on the well-being of persons with disabilities living in the communities surrounding its factories. The Company hires local people to work in its factories at a fair wage in accordance with labor laws, thereby creating jobs and careers, improving the quality of life for local residents, and building positive relationships with the communities. Through the “Strengthening Communities: Empowering Persons with Disabilities” program, Mitr Phol employs people with disabilities, enabling them to work close to home and earn an income to support themselves. Additionally, Mitr Phol supports the establishment of disability clubs to promote career development for people with disabilities in sub-districts. In 2023, Mitr Phol employed a total of 64 people with disabilities, with 18 working within its factories and 46 in the communities.

In 2023, Mitr Phol received the "Excellence" award in the category of Organizations that support Persons with Disabilities

from the Department of Empowerment of Persons with Disabilities, the Ministry of Social Development and Human Security. The award recognizes organizations that consistently support the well-being of persons with disabilities.

Welfare Arrangement

Mitr Phol is committed to improve the quality of life of its employees to ensure work-life balance. Hence, the Company has established the Labor Welfare Committee comprising elected employee representatives who serve as intermediaries to communicate the welfare needs of employees to the Company. These representatives also propose, monitor, and oversee the Company’s welfare programs, which provide welfare and benefits beyond the basic requirements mandated by law, ensuring all employees receive these benefits without discrimination. The programs include:

Financial Support

Allowances, such as scholarships for children of employees, housing allowances, wedding aid and funeral allowances

Funds including the social security fund, the compensation fund, the pension fund, and the loan fund

Employee card benefits, such as discounts on accommodations at hotels specified by the Company

Healthcare Support

Annual health check-ups and provision of medical care in the workplace

Reimbursement of medical expenses for outpatient and inpatient care, with additional support for the treatment of serious illnesses

Reimbursement for dental care and essential vaccinations, such as hepatitis B and seasonal flu vaccinations

Support for various forms of physical activity, including a fitness center at the head office and a sports field at the factory for employees

Employee card benefits: discounts for outpatient and inpatient care and dental care at designated hospitals to reduce employee healthcare costs

Family Benefits

Pregnant employees can take 98 days of maternity leave, with full pay for 45 days, and access to a lactation room.

Reimbursement of outpatient care expenses for employees’ family members.

Transportation service for employees' children between school and home.

Subsidies for the tuition fees of employees' children at the primary, secondary, vocational, higher vocational/undergraduate diploma, and university levels.

Leave provisions to allow employees to take care of and be present during important family moments, such as marriage leave (regardless of gender), leave to care for a spouse during childbirth, and leave for funeral arrangements.

Other Benefits

Employees can manage flexible work arrangements, such as working from home, part-time working, and flexible working hours. They can choose their start time between 7:30 AM and 9:30 AM. Employees can discuss and seek approval from their supervisors, who will consider and approve based on suitability.

Retirement benefits include:

Training on financial planning for retirement to ensure a happy retirement.
Mental and social care, with meetings and social events organized at appropriate times.
Two years of continuous health care support from the retirement date.
Life insurance and accident insurance coverage for two more years from the retirement date.

Review and adjustment of the salary structure and starting rate, and provision of a cost-of-living allowance, to ensure that workers have a sufficient living wage to cover necessary expenses.

11 subsidiaries of Mitr Phol have received the Thailand Labour Management Excellence Awards 2023,

organized by the Department of Labour Protection and Welfare, the Ministry of Labour. This award is granted to organizations that have an excellent system of labor relations and welfare to motivate the improvement of labor relations in the workplace.

Health Promotion Activities for Employees

The "ZUMBA CLASS" promotes dance cardio workouts led by instructors from the Live in Motion Group. The class is not only fun but also helps employees relax and relieve work-related stress.
The "Mitr Phol People's Three Health-Promotion Stations: Awareness and Prevention of NCDs" activity provided training on non-communicable chronic diseases, with expert doctors sharing their healthcare experiences. This activity supported employees in taking better care of their health.
The "Understanding Depression Before It Hits" activity trained employees on how to deal with Burnout Syndrome and lead a happy life, guided by an experienced psychiatrist.
Collaborating with hospitals to offer employees flu and hepatitis B vaccinations at a special price
Providing information about dental care through electronic channels

Compensation Management

Remuneration for executives: The Company has established clear and effective frameworks, criteria, methods, and processes to ensure transparent performance appraisal and compensation determination for executives linked to short-term and long-term objectives as well as individual performance. The Corporate Development and Remuneration Committee oversees the determination of remuneration for Senior Executive Vice Presidents and above.
Remuneration for employees: The Company fairly compensates employees based on their performance. The HR Department and the Corporate Development and Remuneration Committee oversee compensation policies to ensure they are incentive-driven and competitive within the industry. The Company regularly adjusts salaries and benefits, taking into account business results, the economy, the living wage, and individual performance. This ensures that employees are reasonably compensated, motivated, and that talented personnel are retained. In 2023, the Company reviewed and revised its salary structure and starting salaries to remain competitive in the labor market, keep pace with the rising cost of living, and alleviate employees’ financial burdens.

Additionally, to ensure that the business strategy takes into account environmental, social, and governance factors, the company has established metrics to evaluate the annual performance of senior executives and relevant employees. This helps reflect the sustainable performance of the organization. Compensation is linked to two main types of Key Performance Indicator (KPIs):

Value Creation Performance : This is used to measure performance linked to the organization’s current year goals.
Key Future Value Drivers : This is used to measure performance linked to the sustainable growth of the business in the future. The weight of each goal varies according to the roles and responsibilities of each business unit and department.

Employee Engagement Activities

Mitr Phol regards its employees as valuable assets, thus placing a strong emphasis on creating a positive workplace experience and fostering engagement. The Company regularly conducts an annual employee engagement survey to analyze, develop, and improve methods for taking care of employees in line with today's working conditions. Employee engagement questions consist of 4 categories:

The employee engagement activities carried out in 2023 are as follows:

Communicating the Company's strategy and direction through the CEO Town Hall activity to ensure that employees clearly understand and align with the Company's goals
Promoting Performance Feedback and Recognition to improve performance and cultivate good team spirit
Enhancing knowledge and understanding and promoting performance feedback through Conversation Feedback and Recognition (CFR) Employees were encouraged to use CFR to enhance performance and ensure the achievement of objectives and key results (OKRs).
The “Productivity Hacks Sharing” activity provided tips for working efficiently and living happily. In this activity, employees learned about different perspectives and approaches to working, self-improvement, goal-setting, and designing a successful life.

The Results of the 2023 Employee Engagement Survey

Employee Performance Management

Performance management is a crucial process that enables individuals, departments, and the organization to achieve shared goals. This process includes setting goals, monitoring performance, as well as reviewing and evaluating and performance. Mitr Phol has implemented the Digital & Technology System to facilitate performance management, evaluate performance, develop skills, and plan career development for employees through collaboration between managers and employees. The goal is to align each employee's performance achievements with the objectives of the department and the Company in accordance with these guidelines.

Goal Setting

Goal setting begins with corporate goals, which cascade into departmental strategies and goals, and ultimately into employee goals and key performance indicators (KPIs). At the beginning of the year, managers at all levels are responsible for communicating the organization's goals, vision, and strategy, as well as those of their specific departments, to employees. Together, they establish work objectives that align with the department's and organization's goals. In addition, they define work plans, employee responsibilities, expected performance, and explicit work behaviors.

Performance Monitoring

To ensure that performance is consistent and aligned with corporate and departmental goals, managers should continuously and regularly monitor employee performance. This includes discussions, follow-ups, guidance or feedback, and plan reviews to ensure activities remain aligned with the goals. Managers should also set up regular weekly check-in meetings where employees provide updates on work progress and seek support as needed. The aim is to ensure that employees feel confident in performing their jobs.

Performance Review and Evaluation

Management by Objectives

The Management by Objectives appraisal is conducted twice annually against mutually agreed-upon key performance indicators (KPIs) with the team leader, who measures individual success in alignment with the team's strategic plans. Additionally, in the first half of the year, the Company assesses employees' competencies against the behaviors that align with the corporate culture "MITR Beyond," which stands for Mastery, Innovation, Trustworthiness, and Resilience. These behaviors, adhered to by Mitr Phol, lead to operational efficiency and goal achievement.

Team-based performance appraisal

The team-based performance appraisal evaluates each employee as part of the team rather than individually. This approach is implemented twice annually against predefined key performance indicators (KPIs) that measure the team's success, aligning with the team's and organization's strategic plans. Thus, team-based performance appraisals help team members understand expectations and mark progress toward individual, team, and organization-level goals.

360-degree feedback

The 360-degree feedback is conducted annually to collect input from multiple sources regarding performance and areas for improvement. This method enables individuals to receive feedback from team members, colleagues, direct reports, supervisors, and managers. It helps employees gain insight into their strengths and weaknesses from diverse perspectives.

Agile conversations between a team leader and team members

This assessment involves various forms of continuous evaluation, such as one-to-one discussions, team meetings, etc., which helps team members continuously learn and improve. The team leader provides feedback on the performance and behavior of employees over the past year and compares these results against the goals. This appraisal prioritizes precise and constructive communication, mutual respect, and the opportunity for employees to express their opinions and exchange positive views with each other to enhance performance.

Related Policy and Statements

Diversity, Equity, Inclusion,and Belonging Policy (DEI&B)

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