Employee Relations
To facilitate cordial labor-management relations, LITEON takes an active approach to listening to its employees and making a range of two-way communication channels available. Regular department meetings and a strictly confidential complaint channel form a comprehensive communication platform that ensures instant, transparent, and undisrupted communication between the company and its employees and protects the rights of every employee.
Intranets
To ensure all employees have instant access to and knowledge of the company and the Employee Welfare Committee, LITEON has created the "HR Portal" and the "LITEON Homestead". The "HR Portal" provides complete details on the company's rules and regulations as well as important announcements in order to enable employees to receive important information from the company in a timely manner. Meanwhile, the LITEON Homestead provides information on the benefits and subsidies offered by the Employee Welfare Committee in the current year as well as the rules and other special offers. The platform informs employees of the rights and benefits to which they are entitled. In addition, the LITEON Homestead contains an "Opinion Mailbox" that accepts suggestions and questions from employees and provides the necessary assistance and answers.
Two-way Communication Meeting
Every business unit at LITEON is required to conduct monthly management meetings and organize two-way communication meetings with employees on a regular basis. In addition to facilitating announcements of important news and business targets from the business units, these meetings enable management to communicate directly with employees regarding the company's vision and culture and hence develop common goals. Employees may also use this opportunity to provide feedback and suggestions, and hence maintain good employee relations. Furthermore, LITEON invites suggestions from employees, and presents said suggestions regularly in employer-employee meetings and to the union in order to improve employer-employee relations and protect employee rights.
Discrimination & Harassment Prevention in Workplace
LITEON prohibits all kinds of harassment and discrimination (sexaul and non-sexsual) within the workplace. LITEON is committed to ensuring that there is no harsh and inhumane treatment, including any sexual harassment, sexual abuse, corporal punishment, threatening, exploitation, mental or physical coercion, or verbal abuse of employees. Threats of violence, intimidation or possession, sale of weapons are not allowed.
The company has established related guidelines and policies, such as the Sexual Harassment Prevention Measures, Complaint and Sanctions Procedure. LITEON has also setup e-mail mailboxes and hotlines. There are strict confidentiality rules in place to protect the complainant's identity. In 2023, Taiwan and overseas plants received a total of 7 sexual harassment complaints, 2 of which were unsubstantiated, 5 cases have been closed, and the employees who behaved inappropriately were punished in different ways, including termination, depending on the severity of the case. Corrective or disciplinary action will be taken, which could include a warning, minor/demerit, major demerit, or even termination of employment, depending on the severity of the violation. The company announced the disciplinary measures taken for the substantiated case on its internal network, demonstrating its zero-tolerance attitude towards sexual harassment.
- Training for all employees on discrimination and harassment in the workplace
- Discrimination and harassment are included in RBA and Human Rights Policy Training Courses. Please refer to Human Capital Development.
- To ensure all employees have a good understanding of sexual harassment in the workplace and know their rights and how to respond and seek help, the internal training platform, the Learning Center, provides a scenario-based online course, "Say No to Sexual Harassment and Create a Better Workplace" for all employees. In addition, all new hires are required to complete the course.
- Zero tolerance policy for discrimination
LITEON is committed to recruiting, hiring, training, compensating, promoting, contracting, retiring, and providing other employment conditions without regard to race, color, religion, national origin, gender, sexual orientation, age, disability or other characteristic protected by law. LITEON is striving to become a workplace where workforce diversity and equal opportunity are respected and implemented.
Employee Satisfaction/Engagement Survey
To better understand what employees really think and make LITEON a good organization that helps employees grow and achieves a win-win situation, the Company conducted a global employee engagement and organizational health diagnostic survey through an external consultant team. A total of 5,537 people were randomly sampled worldwide, the effective response rate was 69%, the questionnaire covered three aspects: organization, work, and society, and we further discussed and continued to optimize 37 management measures in the health diagnostic survey.
Results of the employee engagement survey are as follows, we formulated the direction for improving organizational health in the organization and work engagement survey, including direct communication channels across regional borders, middle management leadership training "Pirates" that accept self-recommendations for the first time, and internal innovation contests that encourage ideas to be proposed and put into practice. LITEON plans to optimize different aspects through vision sharing, clear and transparent talent development channels, and bottom-up innovation.
Labor Unions
Each LITEON’s major plant in Taiwan and overseas is equipped with a union, of which 48% of the workers are union members in 2023. Union representatives are elected by employees, and represent the employees in regular engagement with the management. Meanwhile, the unions gather information, call regular meetings, discuss counter measures, and direct union activities, such as group travel and employee care programs. The unions also work to protect the rights of employees and maintain a stable employer-employee relationship.
Percentage of union membership
2017 2018 2019 2020 2021 2022 2023 66.9% 64.64% 59.29% 59.25% 57.98% 51% 48%
➤ For more information on employee welfare measures, please see the Human Resources section LOHAS at LITEON
Protection of Interests of Employment
To ensure the protection of employees’ interests, LITEON set up all of the relevant policies in accordance with the regulations and laws:
Lawful Hiring Practices
LITEON complies strictly with employment regulations by prohibiting the use of child labor aged below 15; meanwhile, employees aged below 18 are not allowed to perform dangerous work. All changes to terms of employment have been duly notified as required by law.
Fair Performance Assessment
LITEON designs performance management intending to improve the performance of individual employees and the organization as a whole. The company has instituted two-way communication and implemented an employee development plan. Performance assessments are fair and reasonable, so that assessment results can provide a basis for promotion, salary increments, remuneration, and employee training.
LITEON Performance Management System
Implementing OGSM Model
We implement OGSM to make communication more instant and efficient.
OGSM is based on LITEON's vision as the starting point (Objective), which is used to develop goals (Goal), along with corresponding strategies (Strategy) and measures (Measure). OGSM can assist companies in closely linking long-term vision and strategies with short-term goals, effectively providing a communication platform for team members to communicate specific actions and collaborate.
The Link Between Performance and Reward
The company implements the Expectancy Theory model to establish “Performance Management Procedure," “Compensation Management Procedure," and “Promotion Management Procedure.
If an employee is not competent to perform his or her work, LITEON will provide counseling or transfer the employee to a suitable position or affiliated enterprise. Suppose the employee still fails to fulfill the terms of the employer-employee relationship. In that case, the company will give the appropriate notice* and terminate the employee's contract with severance pay following relevant laws and regulations. The company will also provide relevant proof and documents required by law in order to facilitate the application for unemployment benefits or professional training grants for the employee and to protect the employee's employment rights.
The minimum notice periods for plants in Taiwan governed by the Labor Standards Act are as follows:
- Those employed for three months or more but less than one year should be given a ten-day notice.
- Those employed for one year or more but less than three years should be given a twenty-day notice.
- Those employed for three years or more should be given a thirty-day notice.
Performance review of Executive Managers
To strengthen corporate governance, the performance indicators of executive managers were revised as shown in the table below after the Compensation Committee resolution approved by the Board of Directors in 2020.
The CEO’s performance evaluation and compensation are overseen by the Compensation Committee. To enhance corporate governance, the performance indicators for the management team were revised in 2020 following the approval of a Compensation Committee resolution by the Board of Directors. These indicators are divided into 70% financial indicators (Net Income Contribution/Growth Rate/Budget Achieving Rate, Annual Revenue Growth Rate/Net Income Budget Achieving Rate) and 30% non-financial indicators. The non-financial indicators include 20% for sustainability (total quality management, internal control, training and succession, risk management and information security, customer satisfaction, employee satisfaction, and carbon reduction) and 10% for behavioral indicators (evaluating core functions based on the expected number and duration of behavioral indicators during the evaluation period). CEO compensation is structured to emphasize the link between performance and compensation, with annual incentives based on PAT, YoY growth, and annual plan achievement. Additionally, during quarterly Board of Directors meetings, directors (including Compensation Committee members) review ROE, ROA, and stock performance trends, comparing them with industry peers. These reference metrics support the Compensation Committee in measuring the CEO’s performance.
Performance Review of Indirect Labor
Performance Review of Direct Labor
There is a direct link between the performance of direct labor and the company's production performance. Therefore, for those in direct labor, the plants follow a monthly bonus system based on product characteristics. Employees are rewarded according to performance. Employees' overall performance will be scored in the annual performance review at the end of each year.
New Hire Review
When a new employee reaches the end of his/her trial period, the manager should conduct an interview and assessment regarding the employee's performance during the trial period. For those who fail to pass the review, the company may terminate the employment contract as permitted by law or, by mutual consent, extend the trial period. The extension should not exceed the original trial period.
➤ For more information, please go to the Human Resources "LIFE at LITEON" Learning and development section.
