Human Capital and Development - Employee Care and Social Engagement

EMPLOYEE CARE HIGHLIGHTS PERFORMANCEEmployee Care Highlight

Ratio of pay for
females to males

Ratio of pay for females to males in 2019 across all ranks was between 0.95 to 1.21

Outstanding Store Manager Award

In 2019, Hsin Tung Yang's store managers participated in 22nd TCFA Outstanding Store Manager Award and received 1 Special Prize, 1 Outstanding Store Manager Award, and 5 Quality Store Manager Awards

HUMAN RESOURCES AND CULTIVATIONHuman Capital and Development

The nurturing and development of human capital is a critical part of sustainable business development. Through recruitment, employment, and talent development strategies, Hsin Tung Yang enables every employee to work in a worry-free environment, to continuously realize their potentials, and to grow with the organization, thereby achieving mutual-win for both long-term employee development and sustainable business development.

Selection

Recruit suitable talents based on the Company's management strategies and objectives; understanding trends in labor market to strengthen promotions of Hsin Tung Yang as an employer brand and employ middle-age to senior citizens

Placement

Respect employees' diversity and human rights; ensure fairness and equality in talent selection and remuneration system; implement performance management system correlated with work objectives and publicly award outstanding employees.

Training

Plan educational training based on functions and departmental needs; utilize rotational system and subsidies for continuing studies to help employees discover their potentials. Refer store managers to participate in Outstanding Store Manager Competition to interact with other industries and broaden employees' horizons.

Talent Recruitment and Structure

Hsin Tung Yang's recruitment is aligned with the Company's management strategies for the year. Contemporary trends in the labor market including lower birth rate, aging population and consolidation of universities and colleges, have led to a decline in the number of available workforce. To this means, Hsin Tung Yang is striving to implement two strategies, "employer brand promotions," or to attract outstanding talents through performing well as an employer; and "recruitment of middle-aged and senior citizens," - by designing customized roles and functions, we can build a more friendly work environment. The total number of Hsin Tung Yang's employees in 2019 was 925 persons, and 66% of which were females. In 2019, we had 213 new employees, and turnover ratios for males and females were 0.18 and 0.21 respectively, which did not show a significant gender imbalance.

Employee Demographics		2017			2018			2019
Employee Demographics		Male	Female	Total	Male	Female	Total	Male	Female	Total
By Type of Employment Contract	Non-fixed term contract	299	612	911	303	621	924	315	610	925
By Type of Employment Contract	Fixed-term contract	0	0	0	0	0	0	0	0	0
By Type of Employment	Full-time employee	225	485	710	230	496	726	224	463	707
	Part-time employee	74	127	201	73	125	198	71	147	218
	Total	299	612	911	303	621	924	315	610	925

Employee Diversity (%)		2017			2018			2019
Employee Diversity (%)		Managerial	Non-managerial	Total	Managerial	Non-managerial	Total	Managerial	Non-managerial	Total
Gender	Female	70%	66%	67%	71%	66%	67%	71%	64%	66%
Gender	Male	30%	34%	33%	29%	34%	33%	29%	36%	34%
Age	Under 30	19%	40%	35%	17%	40%	34%	13%	40%	33%
	30~50	56%	42%	46%	57%	43%	46%	57%	42%	46%
	Over 50	24%	17%	19%	26%	17%	19%	31%	18%	21%
Other	People with disabilities	0.9%	0.9%	1.2%	0.9%	1.6%	1.4%	0.9%	1.9%	1.6%

Employee Demographics

2017
-		Male	Female	Total
By Type of Employment Contract	Non-fixed term contract	299	612	911
By Type of Employment Contract	Fixed-term contract	0	0	0
By Type of Employment	Full-time employee	225	485	710
	Part-time employee	74	127	201
	Total	299	612	911

2018
-		Male	Female	Total
By Type of Employment Contract	Non-fixed term contract	303	621	924
By Type of Employment Contract	Fixed-term contract	0	0	0
By Type of Employment	Full-time employee	230	496	726
	Part-time employee	73	125	198
	Total	303	621	924

2019
-		Male	Female	Total
By Type of Employment Contract	Non-fixed term contract	315	610	925
By Type of Employment Contract	Fixed-term contract	0	0	0
By Type of Employment	Full-time employee	224	463	707
	Part-time employee	71	147	218
	Total	315	610	925

Employee Diversity (%)

2017
-		Managerial	Non-managerial	Total
Gender	Female	70%	66%	67%
Gender	Male	30%	34%	33%
Age	Under 30	19%	40%	35%
	30~50	56%	42%	46%
	Over 50	24%	17%	19%
Other	People with disabilities	0.9%	0.9%	1.2%

2018
-		Managerial	Non-managerial	Total
Gender	Female	71%	66%	67%
Gender	Male	29%	34%	33%
Age	Under 30	17%	40%	34%
	30~50	57%	43%	46%
	Over 50	26%	17%	19%
Other	People with disabilities	0.9%	1.6%	1.4%

2019
-		Managerial	Non-managerial	Total
Gender	Female	71%	64%	66%
Gender	Male	29%	36%	34%
Age	Under 30	13%	40%	33%
	30~50	57%	42%	46%
	Over 50	31%	18%	21%
Other	People with disabilities	0.9%	1.9%	1.6%

Performance Evaluation and Management

Performance evaluation and behavioral management are strategic, comprehensive management methods designed to bring continuous success to an enterprise through enhancing employees' work performance, individual development, and teamwork abilities. Hsin Tung Yang's performance evaluation is founded on the basis of aligning goals, knowledge, skills, work status and individual career development objectives. Our organization has identified the following aspects, "individual goals, departmental goals, business goals, and overall goals". In the future, we will plan to establish "Work Rules" and "occupational assessment," which will be designed to cover the framework for required goals, standards and competencies, thereby allowing employees to better comprehend and implement management conduct.

Publicly Reward Excellent and Senior Employees

To reward high-performing employees, thereby creating positive internal competition, we provide cash bonuses or gold coins to high-performing staff who have either received TCFA Outstanding or Quality Store Manager Award, senior employees, or the Best Services Award from Taiwan Chain Stores and Franchise Association. In addition, the aforementioned high-performing employees are also publicly awarded by the by the President at the spring party in each year. Recipients of the Outstanding Store Manager Award can also receive overseas internship opportunities. In 2019, we publicly awarded 1 recipient of Outstanding Store Manager Award, 5 recipients of the Quality Store Manager Awards, and 71 senior employees.

Employee Diversity and Human Rights

Hsin Tung Yang respects and supports the Act of Gender Equality in Employment and the Employment Service Act, and has also established the following human rights policy:

We support and respect human rights protection and ensure that our business partners and suppliers do the same.
We ensure that child labor, prison, or forced labor, and physical punishment are never permitted in any operation of Hsin Tung Yang or or business partners or suppliers.
We are inclusive of all diverse traits and characteristics of all employees, and do not discriminate against any legally protected employee or job-seeker based on any trait or characteristic. Such characteristic may include gender, skin color, race, ethnicity, nationality, belief, age, marital status, sexual orientation, gender identity and expression, disability, pregnancy, veteran status, and political stance.
We abide by the occupational safety and health policy and will correct or report on any possible threat in a timely manner.
No rude, antagonistic, violent, intimidating, threatening, or harassing conduct may be carried out.
We strive to formulate a work environment free from harassment and bullying. We refuse to accept or tolerate any sexual harassment and workplace bullying.
We protect the personal information of all current and former employees, members of the Board of Directors, customers, job-seekers, and business partners. The acquisition and use of personal information is strictly limited to legal commercial use.

We advocate for a corporate culture of gender equality in promotional opportunities. The ratio of females in our management level accounts for 71%, which is higher than the 66% of females in total employees. In terms of equal pay, the ratio of female to male compensations is gradually approaching 1, and the ratio of pay for females to males in 2019 across all ranks was between 0.95 to 1.21, which demonstrates that Hsin Tung Yang does not distinguish between genders for pay or promotional opportunities.

Educational Training and Development

Hsin Tung Yang is committed to employees' occupational development, and has planned an educational training system based on possible challenges that each rank may face and the skills needed by each department. The training system is further classified into training for new employees, core competences, professional skills, and management functions. An annual training program is drafted for each department, and the ratio of external training hours is approximately 82%. Moreover, opportunities for internal employee and manager rotation, in which employees can rotate between functions to meet career goals or personal plans are also provided, so that employees can realize their potential at the most suitable positions as their careers progress, and to make sure that employees do not have to pause their work in response to personal or family plans. Additionally, we also encourage employees to self-study and provide incentives for continuing studies and for receiving foreign language certificates.

Hsin Tung Yang's Educational Training System
Rank	New employees	Core competences	Professional Skills		Management function	Rotation	Self-study
Senior managers and reserve managers	Orientation training	Creativity and Innovation Integrity Customer-oriented service Quality management & Instructor training	Based on annual training program for each department	【General knowledge courses】 Time management Communications Project management Teamwork Management by objectives (MBO) Core competences： Market positioning and product-orientation Time management Communications	Crisis management Change management Business Management Strategic planning	Personnel and supervisor rotational plan	Foreign language certification incentive program	Changes to academic background of current employees
Mid-level and reserve managers					Leadership Planning skills Mentorship Problem analysis and responsiveness Conflict resolution
Entry-level and reserve managers					MTP manager training
Regular employees

Hours of Educational Training for the Past Three Years
Employee educational training			2017	2018	2019
Employee educational training	Managerial (store manager/deputy manager, divisional head or above)	Hours of training	958	428	711.5
		Number of participants at end of year	290	282	267
		Average hours	3.30	1.52	2.70
	Non-managerial	Hours of training	156.5	341.5	160.0
		Number of participants at end of year	633	656	674
		Average hours	0.25	0.52	0.24
By functional role	Operations management (store manager/deputy manager)	Hours of training	368.0	208.0	484.5
		Number of participants at end of year	460	448	426
		Average hours	0.8	0.5	1.1
	Administrative management (administration/professional training)	Hours of training	746.5	561.5	387.0
		Number of participants at end of year	463	490	512
		Average hours	1.61	1.15	0.76
Hours of training			1114.5	769.5	871.5
Number of participants at end of year			923	938	938
Average hours			1.21	0.82	0.93

Hours of Educational Training for the Past Three Years

2017
By rank
Managerial(store manager/deputy manager, divisional head or above)		Non-managerial
Hours of training	958	Hours of training	156.5
Number of participants at end of year	290	Number of participants at end of year	633
Average hours	3.30	Average hours	0.25
By functional role
Operations management (store manager/deputy manager)		Administrative management
Hours of training	368.0	Hours of training	746.5
Number of participants at end of year	460	Number of participants at end of year	463
Average hours	0.8	Average hours	1.61
Hours of training		1114.5
Number of participants at end of year		923
Average hours		1.21

2018
By rank
Managerial(store manager/deputy manager, divisional head or above)		Non-managerial
Hours of training	428	Hours of training	341.5
Number of participants at end of year	282	Number of participants at end of year	656
Average hours	1.52	Average hours	0.52
By functional role
Operations management (store manager/deputy manager)		Administrative management
Hours of training	208.0	Hours of training	463
Number of participants at end of year	448	Number of participants at end of year	490
Average hours	0.5	Average hours	1.15
Hours of training		769.5
Number of participants at end of year		938
Average hours		0.82

2019
By rank
Managerial(store manager/deputy manager, divisional head or above)		Non-managerial
Hours of training	711.5	Hours of training	160.0
Number of participants at end of year	267	Number of participants at end of year	674
Average hours	2.70	Average hours	0.24
By functional role
Operations management (store manager/deputy manager)		Administrative management
Hours of training	484.5	Hours of training	387.0
Number of participants at end of year	426	Number of participants at end of year	512
Average hours	387.0	Average hours	0.76
Hours of training		871.5
Number of participants at end of year		938
Average hours		0.93

On top of our internal mechanisms, we also assist store supervisors from our channels to participate in external interactions and corporate visits. High-performing store supervisors are also nominated in each year to participate in the TCFA Outstanding Store Manager Awards. We are committed to training and development of channels, which are not only responsible for selling our products, but also act as the front-line in understanding customers' opinions. On top of encouraging and rewarding our hard-working store managers, the competition also helps to broaden their horizons by interacting with competitors and other industries.

TCFA Outstanding Store Manager Awards

The Outstanding Store Manager Awards is organized by the Taiwan Chain Stores and Franchise Association (TFCA) in each year to provide a platform for store managers to recognize their own accomplishments and to realize any gaps in their management skills and competencies and to improve accordingly; to build team cohesion; to learn and to interact with other industries; and to enhance the brand image of all attending companies. Hsin Tung Yang has been submitting 6 store managers to this competition in each year since 2007, and our goal is to receive two Outstanding Store Manager Awards in any year. The competition lasts for six months and includes a three-phased written qualification review (store task management, creative ideas, and community cleanup), mystery shopper audit, and social activity engagement. The winning company and store manager can receive a chance to meet the President of R.O.C. at the Presidential Office. A professional consulting simulation training is implemented during the competition, which also enhances the management and logical thinking skills, and communications skills of store managers.

Good Evaluation and Training

Are Crucial to Hsin Tung Yang