Compensation Policy
All Wistron offices and plants across the globe provide salary and benefits that meet local laws and regulations. The salary is never lower than the legal minimum wage. All full-time employees are entitled to insurance and pension plans following legal requirements. Wistron has adopted a policy of equal pay for equal work and does not permit differences based on geography, race, ethnicity, background, social class, ancestry, religion, physical disability, gender, sexual orientation, pregnancy, marital status, union membership, political views, or age. The Company has created a compensation system based on the concept of total compensation, including salary, benefits, bonuses and compensations.
Selected as a constituent of the Taiwan High Compensation 100 Index
Wistron conducts a survey of industry salary each year and adjusts the salary based on changes from external environment, the Company's business operations, and individual performance to ensure that the salary meets market level and principles of fairness. In addition, the Company also improves operation efficiency to increase employees' income level. We require sites that hire short-term or part-time employees to provide insurance and benefits specified by related laws starting from the first day of employment. The salary levels of different regions are provided in the table below. The information of salary of full-time employees in Taiwan who are not in a managerial position over the years are available on the Market Observation Post System.
The remuneration for senior managers includes a combination of fixed items such as base salary, annual bonuses, and benefits, and variable items such as bonuses, compensation (cash/stock) and stock options, with the variable items being primarily considered. Insurance and pension plans prescribed by law are also available.
The fixed terms aim to maintain the company's competitiveness at a certain level while the variable items are considered based on the company's and the individual's performance. When the company and individual's performance is better, the ratio of the variable terms to the fixed terms will also be higher. The assessment standards are based on the extent to which the annual goals are achieved, which include annual financial targets (revenues, profits, etc.), market/customer, and the growth and development of the organization and personnel. In the beginning of each year, the Compensation Committee sets the assessment items, goals, and weight ratios, taking internal and external development into consideration. The compensation for the managers is assessed based on personal performance and the terms are evaluated before forwarding to the Board of Directors for approval.
We have also linked our CEO, portion of executives and business unit managers compensation to sustainability goals/metrics with short-term and long-term incentive program in which including carbon emissions (achieving the 1.5°C reduction target in accordance with the scientific-based goal initiative) and strategic objectives.
Ratio of Standard Entry-Level Wage Compared to Local Minimum Wage
| Region |
Taiwan |
Kunshan Plant |
Kunshan Opt Plant |
Taizhou Plant |
Zhongshan Plant |
Chongqing Plant |
Chengdu Plant |
Mexico Plant |
Czechia Plant |
Malaysia Plant |
| Ratio |
1.07 |
1.71 |
1.54 |
1.47 |
1.54 |
1.64 |
1.62 |
1.15 |
1.47 |
1.20 |
Note1: Reference Data for Local Minimum Wage by Region as of 2023/01/01
Note2: Wistron adopts the compensation policy of equal pay for equal work, and the compensation does not vary according to gender.
Ratio of Female / Male Salary to Remuneration
| Item |
Level |
2022 |
| Fixed Salary |
Executive level |
0.94：1 |
| Management level |
0.91：1 |
| Non-Management level |
1.00：1 |
| Annual Salary |
Executive level |
0.99：1 |
| Management level |
0.93：1 |
| Non-Management level |
1.01：1 |
Long-Term Incentives
| Measures |
Subjects and execution in 2022 |
| The Company has established the “employee stock ownership trust” plan. Employees can voluntarily participate according to the Shareholders’ Meeting Charter. Participating employees shall allocate a fixed amount every month according to their grade. The Company will match 100% of the amount every month and purchase the Company's stocks. The Company will commission a financial institution to purchase and manage the stock in the name of a stock ownership trust account. |
Full-time indirect employees who have been employed for one year can voluntarily participate. |
Employee Evaluation
All Wistron employees are required to accept the performance evaluation twice a year, and the evaluation results are used as the basis for rewards, assignments, promotions, and various personnel management. To achieve fairness, justice, and equity in performance management, each plant has been gradually implementing multi-dimensions assessment and introducing a new performance management system. The "Nominate Participants" feature has been activated, and in the first half of 2022, it was extended to include approximately 1,411 supervisors in Malaysia and India, in addition to indirect employee of Taiwan and China. During the performance assessment, employees can invite others to provide feedback on their work and competencies, offering a multi-faceted performance evaluation reference for their superiors. From 2023 onwards, the diversified assessment mechanism will be progressively implemented for indirect employees across all global plants to ensure consistency and fairness in the performance management system.
| Measures |
Party Involved |
Method |
| Management by objectives (MBO) |
All employees |
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, and direct managers communicate the goals to the employees to reach a consensus. During the implementation of the different levels of departmental goals and personal goals, two-way performance communication and feedback shall be maintained irregularly and periodically (interim/ending). Performance evaluations are conducted based on goal attainment and job performance during the interim and at the end of the period. |
| Multi-dimensions (180 to 360 is acceptable) |
- Managers in Taiwan (including expats)
- Specific professional personnel (e.g., key talent, STM, and digital professionals)
|
Apart from the annual goal and competency performance indicators, a diverse evaluation method is implemented for the performance of the following personnel:
- Managers in Taiwan (including expats): “360-degree feedback” is conducted by their subordinates, peers, and managers of other departments during the performance evaluation process.
- Specific professional personnel: “180-to-360-degree feedback” is conducted by the project managers and peers for the key talent critical to the organization.
|
| Ranking |
All employees |
Indirect employees: Managerial and non-managerial positions are evaluated separately according to goal attainment, job performance, and diverse assessment feedback. The evaluation grades are Outstanding, Very Satisfactory, Satisfactory, and Unsatisfactory. Furthermore, in order to understand the potential of the Company’s talent tiers, evaluations and rankings of potential are conducted according to the employees’ seniority. The scores are Top 5, Top 15, Top 30, and Average.
The performance of direct employees is directly tied to the Company’s manufacturing performance. Therefore, direct employees are evaluated annually by the supervisors of each plant according to the target production volume, professional skills, attendance, and reward and punishment records. The indicators mentioned above are combined and ranked for the annual performance evaluation conducted by the supervisor. |
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 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 reviewed and publicly published academic papers/journals (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 2021, 19,820 employees participated in the employee engagement survey and 17,547 employees provided a response. The response rate was 88.5% and the average degree of engagement survey was 67.5%.
The effective response rate target is set to above 80% for each survey in order to ensure the level of confidence and the reference value of the statistical analysis results. With the relevant survey and analysis plan, the Company can explore the gap between the current state and the target for employee engagement and satisfaction (short-term target is 70%) and implement improvement measures accordingly. Regarding the employee engagement enhancement solutions, such as the organization of transparent communication activities, the surveys of employees' thoughts on gender equity issues, the research on issues of sense of achievement, etc, the Company organizes inter-department/plant project meetings to review and track the improvement plans to demonstrate that the Company values the opinions of the employees and its commitment in creating a quality work environment. The Company also plans to conduct a follow-up survey on employee engagement in 2023 for global operations. In this way, the implementation effects of various improvement projects are tested, so the changes and development trends of our employees' recognition of the Company can be more accurately monitored.
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 year
| Year |
2019 |
2020 |
2021~2022 |
| Party involved (Indirect active employees whose trial period has expired when implementing the survey) |
Zhongshan Plant, China |
Enterprise Business Group, Hsinchu Plant in Taiwan, and Taizhou Plant in China. |
Taiwan, mainland China, Czechia, and Mexico |
| Issued questionnaire |
2,057 |
2,206 |
19,820 |
| Number of returned |
1,904 |
1,828 |
17,547 |
| Response rate |
92.7% |
82.9% |
88.5% |
Degree of employee engagement
| Degree of employee engagement |
2019 |
2020 |
2021~2022 |
| Degree of engagement |
72.8% |
72.0% |
67.5% |
| Percentage of employees participating in the engagement survey (coverage) |
9.9% |
9.3% |
94.0% |
| Gender |
Male |
N/A |
68.3% |
65.9% |
| Female |
N/A |
31.7% |
34.1% |
| Age |
Under 30 years old |
N/A |
29.7% |
31.9% |
| 30-50 years old |
N/A |
64.1% |
64.4% |
| 50 years old and above |
N/A |
6.2% |
3.8% |
| Region |
Taiwan |
N/A |
91.8% |
35.3% |
| China |
N/A |
8.2% |
45.6% |
| Czechia |
N/A |
N/A |
0.7% |
| Mexico |
N/A |
N/A |
18.4% |
Employee Resignation
The turnover rate of indirect labor was 14.26% in 2022, which was equal to an average monthly turnover rate of 1.19%. The rate was relatively stable and healthy compared to other companies in the same industry. In terms of direct employees, the seasonal orders due to industry characteristics and drastic changes to production capacity have affected the Company's overall labor allocation plan, causing irregular mass recruitment and resignation of direct employees. In addition, because direct employees are the majority in Wistron's labor structure (accounting for 62% of all employees at the end of 2022), the overall resignation rate of Wistron will be significantly affected by factors related to direct employees.
Number of new hires recruited globally: 84,044 people
Indirect employees turnover rate: 14.26%
Improvement of Employee Turnover Rate
Despite the difficulties in controlling factors in the industry, Wistron has dedicated to improving the turnover of direct labor and shifted the focus to their adaptability. According to the results of surveys for actual causes of turnover, direct labor's failure to adapt to work is mainly reflected in the misconceptions about the work conditions and environment. For instance, they often are not aware that they are required to stand for long hours at work, wear clean room suits, and work on shifts. Some could not successfully release the stress from work, learning, and production.
In response to these issues, Wistron's improvement plans focus on recruitment and hiring procedures and orientation training. The plans include amendment to new recruit interview procedures, amendment to new recruit productivity improvement plan, improvement of work/life conditions, and psychological consultation. The Company aims to create smooth bilateral communication and coordination and provide active care to employees so that employees can feel the continuous improvement of the work environment.
In addition to analyzing problems and implementing solutions from the perspective of employees, Wistron also plans and implements various improvement measures for issues including the management ability and quality improvement of frontline management leadership. These examples include the establishment of leader selection standards and evaluation procedures (such as adding interview procedures), the introduction of external professional training resources, the training of internal lecturers in the field of on-site management, and the exchange of on-site management practices after the training of trainees, etc. Front-line management leaders are given in-depth professional empowerment through three dimensions: management role recognition, employee communication management, and goal setting and management.
Starting from 2022, our operations in many places have started to launch employee career development plans to help employees gradually grow and develop during their work at Wistron to accumulate professional skills and management knowledge. It examines, compiles and optimizes various management and professional development paths. It also plans training programs for various positions to meet local talent needs, resulting in ensuring that every employee has the same opportunity to move towards self-realization. For example, Wistron's Zhongshan plant independently launched a nationally recognized vocational skill level certification course, resulting in a total of 191 people being certified to pass the certification in 2022. Kunshan plant plans a dual-track development system to provide more direct and substantive assistance to our employees who plan to study for a degree. In addition to the training programs ranging from the operating philosophy of top management to the professional skills of grassroots employees, it also offers several professional training programs.
Prediction of employee resignation risks
For indirect employees, Wistron has started actions to use data technology to improve the turnover rate. The relevant projects and results are summarised in the table below.
| Featured project |
Prediction of employee resignation risks |
| Purpose of the project |
The employee's inclination to resign is predicted through the integration and analysis of the Company's internal and external information; therefore, active retaining actions can be taken in advance. |
| Project benefits |
The Company predicts the inclination to resign of key talents; therefore, care and retaining actions can be taken early. Passive inactions are transformed into active actions to improve the overall turnover of talents in the Company. |
| Data collection |
70 personnel related data entries from within the company and 10 industry and overall economic environment data entries from external sources. |
| Project results |
- Since the introduction of the project in Taiwan in Q4 of 2018, around 1,200 high risk personnel have been reported, with an overall prediction rate of above 70%.
- As a result, the indirect employees voluntary turnover rate in Taiwan headquarter has been decreasing year over year (17.4% in 2018 → 16.1% in 2019 → 13.0% in 2020 → 10.9% in 2021 → 14.88% in 2022 [note]).
Note: The pandemic situation in Taiwan in 2022 was relatively severe. Therefore, a number of uncertain factors (not designed in the original model) were added to affect the prediction accuracy. In addition, the introduction of the remote working system prevented department heads from face-to-face meeting and communicating with high-risk employees frequently, resulting in a slight increase in the turnover rate compared to the previous year.
|
Resignation statistics and distribution
Total resignation rate
Voluntary resignation rate
| Resignation statistics and distribution |
2019 |
2020 |
2021 |
2022 |
| Total resignation rate (%) |
43.44% |
28.90% |
27.92% |
50.57% |
| Male |
39.84% |
28.47% |
26.46% |
54.35% |
| Female |
45.15% |
29.10% |
31.05% |
43.98% |
| Under 30 years old |
51.97% |
36.35% |
31.96% |
69.02% |
| 30-50 years old |
28.55% |
18.60% |
22.70% |
34.14% |
| 50 years old and above |
8.83% |
7.82% |
12.41% |
9.11% |
| Taiwan |
16.22% |
15.76% |
18.40% |
15.49% |
| China |
48.73% |
32.79% |
29.32% |
63.84% |
| Czechia |
16.61% |
6.82% |
48.32% |
23.90% |
| Mexico |
0.59% |
0.46% |
29.80% |
57.49% |
| Malaysia |
- |
- |
- |
42.99% |
| Direct employees |
53.21% |
34.24% |
31.55% |
71.77% |
| Indirect employees |
17.62% |
15.38% |
19.33% |
19.42% |
| Resignation statistics and distribution |
2019 |
2020 |
2021 |
2022 |
| Voluntary resignation rate (%) |
25.31% |
15.72% |
19.09% |
38.87% |
| Male |
22.24% |
15.07% |
19.24% |
41.51% |
| Female |
26.76% |
16.04% |
18.77% |
34.26% |
| Under 30 years old |
29.83% |
19.04% |
21.68% |
53.11% |
| 30-50 years old |
17.61% |
11.28% |
15.94% |
26.24% |
| 50 years old and above |
1.77% |
2.89% |
4.91% |
5.98% |
| Taiwan |
10.63% |
10.22% |
14.49% |
14.08% |
| China |
28.29% |
17.62% |
19.57% |
48.77% |
| Czechia |
0.00% |
0.00% |
32.65% |
3.41% |
| Mexico |
0.45% |
0.31% |
23.61% |
48.52% |
| Malaysia |
- |
- |
- |
23.09% |
| Direct employees |
29.54% |
17.66% |
19.76% |
55.61% |
| Indirect employees |
14.13% |
10.83% |
17.50% |
14.26% |
- Note: The above data does not include employees who have been employed for less than 3 months.
