Talent Retention

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Email: ESG@wistron.com

Talent Retention

Talent Retention

Hiring and Compensation

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 enjoy 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, rewards, and bonuses.

All Wistron employees complete two performance evaluations each year. The results of evaluations are used as the basis for remuneration, assignments, promotions, and various personnel management items. There were no disputes or violations of laws related to salary and benefits in 2021.

Selected as a constituent of the Taiwan High Compensation 100 Index

Employee Evaluation
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)
  1. Managers in Taiwan (including expats)
  2. 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:

  1. Managers in Taiwan (including expats): “360-degree feedback” is conducted by their subordinates, peers, and managers of other departments during the performance evaluation process.
  2. 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.

Wistron conducts a survey of industry salary each year and adjusts the salary based on changes in the external environment, the Company's business operations, and personal performance to ensure that the salary meets market standards 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.

Ratio of Male / Female Salary to Remuneration
Item Level 2021
Fixed Salary Division level and above 1:1
Department level 1:0.91
Section level 1:0.98
Non-managerial employees 1:0.87
Annual Salary Division level and above 1:1.07
Department level 1:0.92
Section level 1:0.97
Non-managerial employees 1:0.86
  • Note1: The above information is the rate for full year 2021 salaries
  • Note2: Professionals at Wistron mostly fall into male-dominated functions such as R&D and engineering categories. Furthermore, the salaries for these types of jobs tend to be higher than average market levels, which is why the overall remuneration of male employees at Wistron is higher than that of female employees.

Ratio of Standard Entry-Level Wage Compared to Local Minimum Wage
Taiwan Kunshan Plant Kunshan Opt Plant Taizhou Plant Zhongshan Plant Chongqing Plant Chengdu Plant Mexico Plant Czechia Plant
1.00 1.01 1.00 1.00 1.12 1.18 1.34 1.03 1.32

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.

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.

Long-Term Incentives
Measures Subjects and execution in 2021
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 employees who have been employed for one year can voluntarily participate.

Global Employee Engagement Survey

Wistron upholds a business philosophy of caring for employees and valuing employees' feedback and opinions. Wistron surveys employees around the world to collect their opinions and feedback with 100% coverage and a frequency of every 2 years, starting in 2021. The goals and results of the survey and 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. 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 was 67.5%.

  • 19,820 employees participated

The effective response rate target is set to above 80% for each survey, in order to ensure the level of reliability and the reference value of the statistical analysis results. With this 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 improvement solutions, the Company will organize 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.

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 answer “agree” or “strongly agree” are deemed as agreeing with the description of the question. If 70 people out of 100 answers “agree” or “strongly agree”, it means 70% of people agree with the description in the question.

Survey year
Year 2019 2020 2021
Party involved Indirect employees of Zhongshan Plant, China Indirect employees of Enterprise Business Group, Hsinchu Plant in Taiwan, and Taizhou Plant in China. Taiwan, China, Czechia, and Mexico
Issued questionnaire 2,057 2,206 19,820
Number of returned questionnaires 1,904 1,828 17,547
Response rate 92.66% 82.9% 88.5%

Degree of employee engagement
Degree of employee engagement 2019 2020 2021
Degree of engagement 72.8% 72% 67.5%
Percentage of employees participating in the engagement survey (coverage) 9.9% 9.3% 94%
Gender Male N/A 68.3% 65.9%
Female N/A 31.7% 34.1%
Age Under 30 N/A 29.7% 31.9%
Age 30-50 N/A 64.1% 64.4%
Older than 50 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 employees was 16.1% in 2021, which is equal to an average monthly turnover rate of 1.3%. The rate is relatively stable and healthy compared to other companies in the same industry. In terms of direct employees, the industrial characteristics of seasonal orders and production capacity changing drastically have affected the Company’s overall labor allocation plan and caused irregular mass recruitment and resignation of direct employees. In addition, because direct employees are the majority in Wistron’s labor structure (accounting for 70.3% of all employees at the end of 2021), the overall resignation rate of Wistron will be significantly affected by factors related to direct employees.

Number of new hires across the globe: 155,226 people

Indirect employees turnover rate: 16.1%

Improvement of Employee Turnover Rate

Despite the difficulties in controlling factors of the environment, Wistron has dedicated to improving the turnover of direct employees and shifted the focus to their adaptability. According to the results of surveys for actual causes of turnover, direct employees' 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 in 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.

For indirect employees, Wistron has started to use data technology to improve the turnover rate. The relevant projects and results are summarised in the table and chart below.

Prediction of employee resignation risks
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, so that active retaining actions can be taken in advance.
Project benefits Various internal and external data of the Company is used for analysis and calculations to predict the inclination to resign of key talents, so that 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 turnover rate in Taiwan has been decreasing year over year (17.4% in 2018 → 16.1% in 2019 → 13.0% in 2020 → 10.9% in 2021).
The resignation rate of indirect employees in Taiwan

Resignation statistics and distribution
Total resignation rate
Voluntary resignation rate
Resignation statistics and distribution 2018 2019 2020 2021
Total resignation rate (%) 39.70% 43.44% 28.90% 27.92%
Male 36.47% 39.84% 28.47% 26.46%
Female 41.19% 45.15% 29.10% 31.05%
Under 30 45.71% 51.97% 36.35% 31.96%
Age 30-50 25.95% 28.55% 18.60% 22.70%
Older than 50 8.97% 8.83% 7.82% 12.41%
Taiwan 15.63% 16.22% 15.76% 18.40%
China 43.23% 48.73% 32.79% 29.32%
Czechia 14.28% 16.61% 6.82% 48.32%
Mexico 0.80% 0.59% 0.46% 29.80%
Direct employees 44.76% 53.21% 34.24% 31.55%
Indirect employees 23.85% 17.62% 15.38% 19.33%
Resignation statistics and distribution 2018 2019 2020 2021
Voluntary resignation rate (%) 25.34% 25.31% 15.72% 19.09%
Male 22.80% 22.24% 15.07% 19.24%
Female 26.52% 26.76% 16.04% 18.77%
Under 30 28.52% 29.83% 19.04% 21.68%
Age 30-50 18.30% 17.61% 11.28% 15.94%
Older than 50 2.49% 1.77% 2.89% 4.91%
Taiwan 10.91% 10.63% 10.22% 14.49%
China 27.54% 28.29% 17.62% 19.57%
Czechia 0.00% 0.00% 0.00% 32.65%
Mexico 0.68% 0.45% 0.31% 23.61%
Direct employees 27.09% 29.54% 17.66% 19.76%
Indirect employees 19.86% 14.13% 10.83% 17.50%
  • Note: The above data does not include employees who have been employed for less than 3 months.