Compensation Policy
In order to pursue and carry out Wistron's six ESG sustainability strategies, which include creating a “Labor Welfare” and achieving the Commitment to Living Wage (2023), Wistron provides compensation and benefits in accordance with local regulatory requirements and ensure we always exceed minimum wage. Wistron also actively participates in salary surveys on a regular basis, reviews and adjusts salary accordingly, ensuring that employee salaries not only comply with legal requirements but are also competitive in the industry.
Wistron is committed to pay equity across geographical location, race, ethnicity, socioeconomic background, social class, lineage, religion, physical disability, gender, sexual orientation, pregnancy, marital status, union membership, political affiliation, and age. Rewards and bonuses are comprehensively considered in the total package for employees, which includes salary, benefits, bonuses, and remunerations.
Selected as a constituent of the Taiwan High Compensation 100 Index
Wistron aims to enhance operational efficiency and increase employee income levels. For regions employing temporary or part-time staff, we have made it mandatory to provide insurance and benefits required by local laws from the first day of their employment. The salary conditions at major Wistron regions are detailed in the following table. The number, average salary, and median salary for non-executive full-time employees in Taiwan can be found on the Market Observation Post System.
In terms of general employee compensation, the fixed components (salary, annual bonuses, and benefits, etc.) are set in line with the competitive salary levels in regions with a major Wistron presence. The variable components (bonuses, remuneration, etc.) are determined based on a comprehensive assessment of both company and individual performance. The higher the company's operational achievements and individual performance evaluation results, the higher the proportion of variable compensation in the overall salary structure. The performance evaluation criteria are based on the attainment of comprehensive goals such as annual financial performance (revenue, profit, etc.), market/customer targets, and organizational and personnel growth/development. These criteria are reviewed and determined at the beginning of each year in consideration of both internal business conditions and external market landscapes.
Entry-Level Wage to Local Minimum Wage
| Region |
Taiwan |
Kunshan Plant |
Vietnam Plant |
Zhongshan Plant |
Chongqing Plant |
Chengdu Plant |
Mexico Plant |
Czechia Plant |
Malaysia Plant |
| Ratio |
1.07 |
1.71 |
1.71 |
1.71 |
1.71 |
1.71 |
1.71 |
1.71 |
1.71 |
Note 1: Local Minimum Wage taken from local minimum wage regulations on January 1, 2024
Note 2: Wistron adopts an equal pay policy, where salaries are not differentiated based on gender
Note 3: Salary of entry-level staff refers to the monthly fixed salary of employees at the lowest level in each region
Compensation by Gender
| Item |
Level |
2023 (Femal : Male) |
| Fixed Salary |
Executive level |
0.96：1 |
| Management level |
0.94：1 |
| Non-Management level |
1.03：1 |
| Annual Salary |
Executive level |
0.95：1 |
| Management level |
0.94：1 |
| Non-Management level |
1.04：1 |
Long-Term Incentives
| Measures |
Eligibility |
| Wistron offers an " Employee Stock Ownership Trust” (ESOT) program. Under the provisions of the Shareholders' Meeting Charter, employees may join the program and contribute a fixed amount each month based on their job level. The Company will match the employee’s contribution every month, and the contributions will be used to purchase Wistron stocks that will be held and managed by a financial institution in the stock ownership trust account. |
All full-time indirect employees in Taiwan who have completed one year of employment at Wistron are eligible to join the program. |
Restricted Stock Awards (RSAs)
In order to attract and retain business professionals, motivate employees and enhance solidarity, to further the combined interests of the Company and its shareholders, Wistron issued Restricted Stock Awards to key employees in 2020. In the event of significant risk incidents, internal mismanagement, or personnel misconduct that severely impacts the company’s reputation or results in substantial losses, the disbursement of the CEO’s bonus may be affected. Measures such as clawback, reduction, or non-disbursement of the bonus will be implemented as appropriate.
Employee Evaluation
Each year, all Wistron employees undergo two performance evaluations, and the results are used as the basis for rewards, assignments, promotions, and various aspects of personnel management. In order to achieve fair, just, and reasonable performance management, Wistron implements a phased approach globally to promote diversified assessments. We also introduced a new performance management system. During performance evaluations, other individuals may be invited to provide feedback on the employee's work and competencies, offering the supervisor multi-dimensional reference for their assessment.
The new performance management system was launched in Taiwan, Malaysia, and India in 2022 and expanded to sites in China, Japan, the Philippines, Vietnam, Singapore, Turkey, the United States, Mexico, and Brazil in 2023, covering a total of 18,858 indirect employees worldwide. Starting from 2024, the sites in Czech Republic will also be included, and at that time, Wistron's global locations will be using a unified performance management system platform, ensuring a fairer and more consistent management system.
| Measures |
Frequency |
Method |
| Management by objectives (MBO) |
Twice a year |
At the end of every year, Wistron organizes an annual kick off meeting to explain the operational goals of the company for the next year to all managers. Direct managers then communicate the goals to the employees to reach a consensus. The goal is therefore developed top-down to all units and individuals.
While working toward goals, two-way performance communication and feedback are maintained regularly (mid-term/year-end) and when necessary. Performance evaluations are based on goal attainment and job performance during the mid-term and year-end formal appraisal. |
| Multi-dimensions |
At least yearly |
The following personnel are evaluated through multi-dimensional methods during performance evaluation in addition to the annual goal and competency performance indicators:
- Global Section Managers & Above: “360-degree feedback” from subordinates, peers, and cross-department managers according to the 360-degree evaluation process.
- Specific professionals: " 180-to-360 Degree Feedback" on Wistron’s key talents from project managers and peers
|
| Team-based performance appraisal |
Twice a year |
- During the annual performance appraisal, the Company president will approve performance rating quotas for each business group based on its achievement rate. Groups with a high operational achievement rate will be awarded a higher ratio of Outstanding and Exceeds Expectations to incentivize team performance.
- Supervisors evaluate the performance of their staffs based on their team’s performance, the performance as a team member in the project team, and the individual results of each employee.
|
| Agility assessment |
ongoing |
In the agile development team, "OKRs" (Objective Key Result) are set toward goals. Depending on project needs, the team will conduct daily progress reports and frequent weekly project progress check-ups during the project period.
Supervisors also maintain a continuous understanding of employees' work status through regular and sporadic communication and meetings. They engage in ongoing discussions with their staffs, enabling them to stay updated on their work performance. Additionally, supervisors conduct regular communication sessions with their team members during the annual goal-setting period and two performance appraisal periods. These interactions allow supervisors to stay informed about their staffs' work performance and achieve agile management. |
Global Employee Engagement Survey
Wistron upholds a business philosophy of caring for employees and valuing employees' feedback and opinions. Wistron has started to survey all employees around the world to collect their opinions and feedback with 100% coverage and a frequency of every 1 to 2 years since 2021. The goals and results of the survey analysis will be publicly disclosed. To ensure that the survey and analysis results can be compared horizontally (between plants / departments) and vertically (between years), the structure, questions, and analysis methods of the survey shall be consistent for all plants across the world. The questions are designed based on rigorous theoretical models (Please refer to the description of the supplementary table). We also compare the differences between different groups to improve the effectiveness of the survey. In 2023, 17,590 employees participated in the employee engagement survey and 16,350 employees provided a response. The response rate was 93.0% and the average degree of engagement survey was 77.3%.
In order to ensure the reliability and referability of the statistical analysis results, the effective questionnaire response rate target for each survey is set at more than 80%. Through relevant survey plans, we can explore current employee engagement and gap from target value (the short- and medium-term target value is set at 70%). After the survey is completed, rigorous statistical analysis tools and methods are used to mark the groups and departments with significantly low engagement levels. The responsible departments are then required to continue collecting qualitative data (such as through focus groups, workshops, etc.) to learn more about their engagement gaps and pain points. After confirming the focus of the issue, the responsible departments will need to formulate improvement plans and performance indicators, regularly report on the implementation progress of relevant projects, and evaluate the overall effectiveness of these plans through the results of the next engagement survey.
Based on the 2023 engagement survey results, Wistron has established several improvement directions for the Company as a whole, including the expansion of transparent communication activities, the shaping of a diverse and inclusive culture, and the formulation of employer brand strategies, etc. Regular reviews and follow-ups are conducted in the form of cross-department/site project meetings to demonstrate the Company's emphasis on employees' opinions and our determination to create a high-quality working environment.
Survey content
The survey includes the 6 employee perception items of "company practice, opportunities, people, work, total rewards, and quality of life," and 1 employee behavior item of "Say + Stay + Strive".
Questionnaire scale
They are: strongly disagree, disagree, slightly disagree, slightly agree, agree, and strongly agree. Those who answered "agree" and "strongly agree" were counted as "agree" with the description of the item. If 70 out of 100 people answer "agree" or "strongly agree", it means that 70% of the people agree with the description of the item.
Survey result - 2023
| Employee type |
Number of people participating in the survey |
Responses |
Response rate |
Survey results |
Remark |
| Indirect employee |
17,590 |
16,350 |
93.0% |
77.3% |
Engagement |
| Direct employee |
20,515 |
19,322 |
94.2% |
52.4% |
Satisfaction |
| Total of 2023 |
38,105 |
35,672 |
93.6% |
63.8% |
|
Survey result- 2021 ~ 2023
| Year |
Number of people participating in the survey |
Responses |
Response rate |
Survey results |
| 2023 |
38,105 |
35,672 |
93.6% |
63.8% |
| 2022 |
45,048 |
41,053 |
91.1% |
62.4% |
| 2021 |
44,232 |
38,929 |
88.0% |
63.1% |
Employee Resignation
In 2023, the turnover rate for Wistron's indirect employees was 9.91%, which translates to an average monthly turnover rate of 0.83%. Compared to our industry peers, this turnover rate indicates stability and a healthy work environment.
For direct employees, the nature of the industry, characterized by seasonal orders and fluctuating production capacity, has significant implications on workforce planning such as periodic large-scale recruitment and turnover of direct employees. Additionally, direct employees account for a significant portion of Wistron's workforce structure, comprising approximately 57% of the total employee count at the end of 2023. Consequently, the overall turnover rate for Wistron is significantly influenced by the turnover of direct employees. For more detailed statistics on employee turnover in 2023 and 2022, please refer to the attached appendix.
Number of new hires globally in 2023: 36,095 people
Indirect employees turnover rate of 2023: 9.91%
Improvement of Employee Turnover Rate
In the current competitive talent landscape, retaining excellent employees and improving employee retention rates are crucial for the sustainable development of a company. To ensure talent retention, Wistron remains committed to increasing employee satisfaction, engagement, and fostering a sense of belonging. The company has designed a series of retention programs based on these principles.
For indirect employees, Wistron introduced the "Astronaut Program," aiming to create a culture of self-learning that enhances employee engagement and fulfilment. This program not only establishes effective channels for technical sharing and exchange but also encourages employees to propose optimizations, solutions, and new functions. Through this process, employees not only improve their teamwork skills but also enhance their professional abilities through knowledge sharing, helping them find fulfilment in their work.
Additionally, Wistron organizes "Employee Support Skills" courses, teaching supervisors how to communicate with employees. It also assists in monitoring communication between supervisors and colleagues. Through regular care and effective communication, Wistron aims to listen to employees' voices, understand their needs and challenges, help them develop personal development plans, and provide support and guidance. This proactive approach – transparent career development process and showing that employees' voices are valued – enhance their development goals and improve their job satisfaction.
For direct employees, Wistron focused on optimizing the employee onboarding experience in Chengdu and Chongqing. Activities such as factory visits, shared lunches, introduction of learning programs, comprehensive digital employee guides, and anniversary greetings are organized to ensure our new employees feel secure, facilitate their integration into the company's culture and work environment, and show appreciation and care for existing employees on their work anniversaries. These small activities aim to increase new employees' engagement, strengthen team cohesion, and foster a sense of belonging.
Wistron utilizes various activities and initiatives to enhance employee engagement and satisfaction. The company believes that these measures will help reduce employee turnover, maintain team stability, and lay a solid foundation for the company's long-term development. Moving forward, Wistron will continue to optimize these programs to ensure that employees have more opportunities for growth and development within the company.
Prediction of employee resignation risks
For indirect employees, Wistron has begun to use data technology to improve turnover rates. The relevant project content and summary of results are shown in the table below.
| Featured project |
Prediction of employee resignation risks |
| Purpose |
Through the integration and analysis of various internal data, we can predict employees' turnover intention and proactively take retention actions in advance. |
| Benefits |
Predict the turnover intention of key talents and take early care and retention actions to turn passivity into proactiveness and improve the Company's overall employee turnover situation. |
| Data collected |
70 items of personnel-related data within the Company. |
| Results |
- Since its introduction at Taiwan headquarters in 2018/Q4, approximately 1,300 high-risk personnel lists have been reported, with the accuracy reaching over 70%.
- The voluntary turnover rate of indirect employees at Taiwan headquarters dropped from 13% (2020) to 10.55% (2023), showing a trend of improvement year by year. (13.00% in 2020 → 10.90% in 2021 → 14.88% in 2022 [Note] → 10.55% in 2023).
- Note: The epidemic in Taiwan was relatively serious in 2022, and a number of new uncertainties (not designed in the original model) affected the accuracy of the forecast; coupled with the introduction of the remote working system, department heads were not able to frequently meet and communicate with high-risk employees in person, resulting in a slight increase in the turnover rate compared with the previous year.
|
Resignation statistics and distribution
Total turnover rate
Voluntary turnover rate
| Resignation statistics and distribution |
2020 |
2021 |
2022 |
2023 |
| Total turnover rate (%) |
28.90% |
27.92% |
50.57% |
35.25% |
| Male |
28.47% |
26.46% |
54.35% |
35.79% |
| Female |
29.10% |
31.05% |
43.98% |
34.32% |
| Under 30 years old |
36.35% |
31.96% |
69.02% |
51.38% |
| 30-50 years old |
18.60% |
22.70% |
34.14% |
24.35% |
| 50 years old and above |
7.82% |
12.41% |
9.11% |
15.89% |
| Taiwan |
15.76% |
18.40% |
15.49% |
14.98% |
| China |
32.79% |
29.32% |
63.84% |
44.12% |
| Asia |
- |
- |
- |
41.00% |
| Europe |
6.82% |
48.32% |
23.90% |
13.29% |
| America |
0.46% |
29.80% |
57.49% |
47.21% |
| Direct employees |
34.24% |
31.55% |
71.77% |
49.46% |
| Indirect employees |
15.38% |
19.33% |
19.42% |
16.20% |
| Resignation statistics and distribution |
2020 |
2021 |
2022 |
2023 |
| Voluntary turnover rate (%) |
15.72% |
19.09% |
38.87% |
27.27% |
| Male |
15.07% |
19.24% |
41.51% |
28.19% |
| Female |
16.04% |
18.77% |
34.26% |
25.70% |
| Under 30 years old |
19.04% |
21.68% |
53.11% |
41.56% |
| 30-50 years old |
11.28% |
15.94% |
26.24% |
17.94% |
| 50 years old and above |
2.89% |
4.91% |
5.98% |
5.17% |
| Taiwan |
10.22% |
14.49% |
14.08% |
9.39% |
| China |
17.62% |
19.57% |
48.77% |
36.11% |
| Asia |
- |
- |
- |
23.72% |
| Europe |
0.00% |
32.65% |
3.41% |
3.15% |
| America |
0.31% |
23.61% |
48.52% |
43.77% |
| Direct employees |
17.66% |
19.76% |
55.61% |
40.23% |
| Indirect employees |
10.83% |
17.50% |
14.26% |
9.91% |
- Note: The above data does not include employees who have been employed for less than 3 months.
