Advantech Global Diversity and Equality Policy
To foster workplace diversity and equality, Advantech has long been proactively promoting gender equality in the global workplace. Measures implemented include a gender-neutral pay system, fair and impartial performance appraisal and promotion systems, flexible working hours to support women in management positions, and a strong emphasis on women's family care responsibilities. Advantech ensures that hiring conditions are not influenced by gender, race, religion, political stance, or marital status, nor are there disparities in salary or treatment.
Advantech has stipulated clear recruitment strategies globally to enhance employee diversity. Additionally, through internal diversity training and talent development channels, the Company has progressively mitigated fundamental differences that stem from physiological or psychological conditions affecting employees. Moreover, Advantech regularly reviews salary and remuneration- related indicators across different regions and job categories or job bands to ensure the creation of a diverse and equitable workplace.
Advantech formed the Diversity, Equity, Inclusion (DEI) team in 2023 and launched its DEI promotion strategy and blueprint.
Current Initiatives by Advantech's DEI Team
Proportion of Female Employees/Female Management
In Advantech‘s high-tech manufacturing industry, the proportion of female supervisors and executive-level supervisors has increased slightly over the past two years. In 2023, the global coverage was expanded to include the statistical regions. In 2022, the statistical regions were expanded to include Advantech’s six major regions (including Korea, Europe, and the U.S.), and the definition of supervisor is stricter than that in 2021. The level of entry-/management-level supervisors was adjusted from job band D (section manager/assistant manager) to job band E (manager level) and above.
Currently, female employees account for 41.8% of all Advantech employees. In particular, female supervisors account for 22.1% of Advantech’s supervisors. Advantech Taiwan expects to increase the percentage of female employees and supervisors to 42% and 24%, respectively by 2025.
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.
1 In 2021, Advantech disclosed information from three major regions: headquarters, China, and Japan. In 2022, Advantech expanded the disclosure to six major regions including Korea, Europe, and the United States. In 2023, disclosure was expanded to include all global operating locations.
2 Advantech conducted the Global Job Band alignment in 2022, where global job bands were divided into A to H. Entry-/management-level supervisors (manager level) were classified as Job Band E, while executive level supervisors (including Assistant Vice President level and above) were classified as Job Band F and above.
3 In 2023, the scope of data disclosure was expanded to include other regions (including Indonesia, Mexico, India, Czech Republic, Australia, Malaysia, Singapore, Thailand, Russia, Turkey, Brazil, United Arab Emirates, Vietnam, Canada, and Israel). In these newly disclosed regions, the employee structure shows a relatively higher proportion of males in STEM positions, impacting two indicators compared to 2022: the overall percentage of female employees and the proportion of female employees in STEM positions, both of which decreased in 2023. Optimization efforts will be implemented annually across all regions to address this trend.
Performance Appraisal System
Management by objectives: Advantech's annual performance appraisal is aligned with the organization’s annual strategy and guidelines. Performance appraisal is conducted biannually, at mid-year and year-end.
Multidimensional performance appraisal: The performance appraisal system includes diverse feedback questionnaires that supervisors can use to carry out performance appraisal. The feedback incorporates opinions from multiple parties and serves as a reference for the direct (evaluating) supervisor. By integrating the opinions of multiple parties, a more objective and fair performance appraisal outcome is expected.
Evaluation fairness: Implemented in 2023, the performance evaluation is re-subdivided by various job levels. The purpose of this change is to improve the fairness and accuracy of horizontal comparisons among groups within the same job band and to ensure that each group receives appropriate incentives and rewards.
Agile conversations: Supervisors conduct at least one performance evaluation with each employee annually. At year-end, after employees complete self-assessments, they engage in performance discussions with their supervisors to develop personal development plans. This process ensures that employees receive appropriate performance feedback, and that performance appraisal outcomes and personal development plans are adequately documented in the system. During the annual performance review cycle, supervisors are encouraged to communicate with employees at any time, regularly aligning directions and listening to employee feedback. By providing timely support, the goal is to achieve proper two-way communication and ensure that both parties have a mutual understanding of the performance appraisal results.
Team-based performance appraisal:
- Year-based: Advantech's performance appraisal not only focuses on individual job performance but also stresses the importance of teamwork. By setting KPIs and incentive systems that the team is jointly responsible for, the Company can uphold its core values of unleashing individual potential and teamwork. Advantech also sets group goals that applied to all employees and offered incentive bonuses. The group objectives were based on the performance of the respective business units and support units. The final evaluation determined the achievement rate and corresponding rewards were given to employees affiliated with those business units, motivating them to achieve the team’s common goals.
- Project-based: In response to the Company's material topics such as ESG projects and digital transformation projects, project team members not only set personal goals but also team goals and corresponding rewards. The management-level and executive level supervisor were also assigned common KPIs. In addition to the goals for their respective business units and support units, they were also responsible for the Company's strategic KPIs.
Performance Appraisal Acceptance Rates among Employees in Four Major Professional Categories
1. Calculation of the above performance appraisal ratio
a. The numerator and denominator are all full-time employees (excluding contract personnel and interns). b. The numerator is the total number of people who participated in the performance appraisal; China, Japan, Korea, and Europe were assessed annually, while the headquarters conducted both new employee performance appraisals and annual performance appraisals. c. The denominator includes those who were in the three-month probation period, on leave without pay and people who have left the Company during the performance appraisal period without completing the performance appraisal. 2. The participation rate of employees in the six major regions in 2023 was 100%
a. Headquarters: Some senior operating management is not required to participate in the annual performance appraisal, and the participation rate after deducting the said senior management was 100%. b. Advantech China: Colleagues on probation were not required to participate in the annual performance appraisal, and the participation rate after deducting the said colleagues was 100%. c. Advantech Korea: Colleagues on probation and those who have been full-time staff for less than six months were not required to participate in the annual performance appraisal, and the participation rate after deducting the said colleagues was 100%. d. Advantech Europe: Colleagues on probation were not required to participate in the annual performance appraisal, and the participation rate after deducting the said colleagues was 100%. 3. Advantech USA cannot disclose the information due to the lack of complete relevant statistics for 2023.
Employment of People with Disabilities
According to Taiwan's "People with Disabilities Rights Protection Act", the number of employees with disabilities with the capability to work in a company shall be no less than 1% of the total number of employees. If the weighted total value fails to meet the standard, the Company must regularly pay the “shortfall allowance” to the disabled employment fund of the labor competent authority. Advantech is legally required to hire 36 people with disabilities and it has achieved the target in late 2023, which accounts for 1% of the total number of employees in the Company. In order to sustainably maintain the 1% ratio of employees with disabilities, the Company continues to vigorously monitor the resumes of people with disabilities through government employment counseling agencies.
In addition, all employees with disabilities actively engage in the Company's operations. Before reporting to work, Advantech offers colleagues assistance regarding commuting routes, work processes, and other practical aspects based on their respective disabilities. After reporting to work, adequate assistance in terms of personnel, equipment, and workplace is provided to them to ensure they can work with peace of mind and unleash their skills.