Employer-employee Relationship and Diverse and Inclusive Workplaces

Advantech Global Diversity and Equality Policy

Advantech has been actively promoting gender equality in the global workplace for a long time to promote diversity in the workplace and equality at work. It includes: a salary system without gender differences, a fair and just performance appraisal and promotion system, flexible working hours to support women in management positions, and family care for women, etc.
When hiring, we ensure that gender, race, religion, political affiliation, marital status do not affect the employment conditions, or have differential treatment in terms of salary. Advantech has established a clear recruitment strategy around the world to strengthen the diversity of employees. Also, internal multiple training and talent development channels are used to gradually eliminate the impact of employees‘ basic differences resulting from physical or psychological conditions. Moreover, the relevant indicators of salaries and rewards between districts, types of work and ranks are regularly reviewed to ensure that a diverse and equal workplace environment is implemented and created.

Proportion of Female Employees/Female Management

Advantech is a manufacturer in an industry dominated by high tech. In the past 2 years, the proportion of female employees in Advantech headquarters has increased slightly. The regions counted in 2022 have been expanded to Advantech's six major regions, where the proportion of female senior executives has grown to 13%. There are two main reasons for the decrease in the proportion of female executives in 2022 and the proportion of female executives in profit-oriented units. In addition to the fact that the disclosed regions have been expanded from the three regions of headquarters, China, and Japan to the six regions (Korea, Europe, and the United States have been additionally included), the definition of supervisors was also stricter than in 2021 due to grass-roots/manager-level supervisors were adjusted from grade D (division supervisor/assistant manager) to E (manager-level) or above. It is estimated that in 2025, the proportion of female employees in Advantech Taiwan will remain between 40% and 45%; and the proportion of female supervisors will remain between 20% and 26%.

More than one-fifth of Advantech's global headquarters management team is made up of female executives (Executive Team - Advantech). In 2017, Ms. Linda Tsai was promoted to President of Industrial-IoT Group, becoming the top female executive among the three co-governing presidents. This reflects the generational heritage and gender equality among our professional managers.

Proportion of Female Employees/Female Management
1. Advantech has calibrated the Global Job Band in 2022. Job grades are graded globally from A to H. basic/management level supervisors (manager level) are grade E, while senior management (including director level and above) are grade F (inclusive) or above.
2. Advantech has disclosed the three major regions of headquarters, China, and Japan in 2021, and has expanded the disclosure to the six major regions additionally including Korea, Europe, and the United States in 2022.

Performance Appraisal System

Management by objectives: The goal of Advantech's annual performance evaluation is the organizational strategy. Performance evaluations are held twice a year at the middle and end of the year.

Multidimensional performance appraisal: The performance evaluation system includes multiple feedback questionnaires, which are used in supervisor performance evaluation. Feedback from multiple parties was included as a reference for the immediate (evaluation) supervisor. Through the integrate opinions from multiple parties, more objective and fair assessment results is obtained.

Agile conversations: Supervisors conduct performance evaluation with employees at least once a year. At the end of the year, employees and supervisors conduct performance talks and formulate personal development plans after self-assessment. In this way, our colleagues are ensured to receive appropriate performance feedback. Also, performance evaluation results and personal development plans are properly recorded in the system. The performance review cycle throughout the year encourages our supervisors to communicate with our employees at any time. The focusing of the direction is performed periodically. Employee feedback is processed. Timely support is given. The purpose of sufficient two-way communication and mutual understanding of the assessment results is achieved.

Team-based performance appraisal:

  • Annual type: Advantech's performance evaluation not only focuses on individual work performance, but also emphasizes teamwork. The key performance indicators and incentive system that the team is jointly responsible for are set up to implement the core values of the ability to fully demonstrate and teamwork. Advantech’s group goals are set to apply to all employees. Also, incentive bonuses are offered. Benchmarks for group goals are set through affiliated business units and back office units. Colleagues belonging to the business unit are given corresponding rewards based on the achievement rate of final assessment. In this way, our colleagues are motivated to achieve the team's common goals
  • Project type: The project plans of the Company's material issues include ESG projects, digital transformation projects, etc. In addition to the individual responsibility goals of the task force members, common group goals are set, and corresponding rewards are provided. In addition to the goals of their respective business units and back office units, senior executives at the management level have common key performance indicators. They also have to be responsible for key performance indicators at the corporate strategic level.

Performance Appraisal Acceptance Rates among Employees in Four Major Professional Categories

Performance Appraisal Acceptance Rates among Employees in Four Major Professional Categories
1. The above performance appraisal acceptance rates are calculated based on the total number of individuals actually participating in the appraisals (excluding those who do not complete the three-month probationary period or the numbers of individuals who resigned and did not complete the assessment during the assessment period), divided by the total number of individuals in 2021.
2. Advantech's Japan and Advantech Korea comprise mostly direct labor employees, who are not included in the evaluation statistics.
3.No disclosure on the data of Advantech USA and Advantech Europe due to personal data protection.

Employment of People with Disabilities

According to Taiwan's People with Disabilities Rights Protection Act, the number of persons with disabilities employed by an enterprise shall not be less than 1% of the total number of employees. If the weighted total value does not meet the standard, the Company is required to make regular "difference subsidy” payments into the employment fund for people with disabilities overseen by the competent labor authority.

Advantech applied for employment of 35 persons with disabilities according to law, and by the end of 2022 employed 29 persons with disabilities. The employment weighted ratio has not yet reached 1% of the total headcount ratio. The main reason for undertaking a manpower policy review is that resume conditions do not meet vacancy requirements, and the difference subsidy has been paid according to law. Furthermore, we will continue to actively pay attention to the resumes of people with disabilities through government employment counseling agencies, and expected that the required number will be filled in the first half of 2023. In addition, all employees with disabilities are employees who actually participate in the Company's work and business. Before onboarding, Advantech focuses on an individual's physical or mental disabilities to assist colleagues in understanding actual conditions such as commuting lines, work flow, and so on. Furthermore, we provide appropriate personnel, equipment, and working environment assistance after their onboarding so that these colleagues may work with peace of mind.