Happy Workplace

Payroll Management

Employee remuneration includes the basic salary, i.e., the base salary, meal allowances, and allowances for special work environments or special maintenance, year-end bonuses, and production/sales profit bonuses. Employees are remunerated based on their duty, current market wage standards, and CSC's financial status and organizational structure. Pay is determined without gender-based differences, and the basic salary paid to women and men of the same position and level is the same. However, since salary is related to seniority, the pay ratios of the same position may vary due to differences in seniority and individual performance. For employees of the same position with the same seniority, the pay is the same regardless of the gender. In 2023, the average remuneration of regular full-time employees in non-managerial positions is NT$1.24million, and the median is NT$1.156 million.

Item 2021 2022 2023
Annual total compensation for the organization's highest paid-individual / Median annual total compensation for all of the organization's employees excluding the highest-paid individual 6.7%~13.5% 6.7%~10% 4.3%~8.7%
Percentage increase in annual total compensation for the organization's highest-paid individual / Median percentage increase in annual total compensation for all of the organization's employees excluding the highest-paid individual 1.9% 1.2~1.8% 0%

Pay-ratio by employee level

2024 Pay-ratio by employee level
Gender Female Male
Employee Level Average
Pay-ratio		 Average
seniority(year)		 Average
Pay-ratio		 Average
seniority(year)
Executive level (base salary only) Note 1 34
Executive level (base salary + other cash incentives)
Management level (base salary only) 1 14 0.96 17
Management level (base salary + other cash incentives) 1 0.94
Non-management level (base salary only) 1 9 1.02 14
Note 1: There were no female served as executive level in 2024, hence the pay-ratio is not applicable.
Note 2: The data above coverages 100% of FTEs.

Remuneration for New Recruits

Pay standards of new recruits are determined with reference to the supply and demand of workforce and remuneration standards on the market. The pay is to be superior to the basic salary/wage specified in the Labor Standards Act and according to the duty, education backgrounds, working experiences in related fields, market manpower demand, and the pay of current CSC employees holding the same positions and with equivalent seniority. In 2023, the starting salary of entry-level employees is NT$32,100, and that of professional-level employees is NT$42,600. Salaries will be adjusted after three months based on the employees' past work experience and evaluation.

Pay Raises Based on the Annual Evaluation of Job Performance

For about seven to twelve years after entering CSC and depending on the levels and individual performance, the salary adjustment opportunity is available every year. The range of salary increases is highly correlated with performance, and the adjustment rate is between 1% and 8%. Moreover, CSC will also carry out annual salary adjustments according to market salary dynamics and operating conditions. There was an average increase of 3% in the past ten years.

Event 2021 2022 2023
The average percentages of annual pay raises for regular employees 2.8% 4.5% 3.5%

Appraisal

The performance appraisals are conducted twice a year, at mid-year and year-end. Employees are evaluated by performance given a grade between A to E. The performance grade is linked to remuneration structure of employees and their compliance with codes of conduct. Such performance appraisal will affect the amount of rewards, bonus, and salary adjustment. Those receiving an E in the evaluation will be dismissed. Those receiving a D will receive no salary raise. In addition, the supervisor must interview these employees and submit a performance improvement plan. Supervisors are expected to monitor the performance of their subordinates on an ongoing basis and engage in periodic communication and discussions to assist them in achieving their performance goals. If an employee has concerns about the evaluation results, they can communicate their feedback through the administrative system. In 2023, 705 received A and none received E.

Type Description Frequency
The performance appraisal
(Management by objectives) 		Based on operation and development strategies, each department sets their departmental KPIs in line with their business characteristics and operational objectives. Employees set their KPIs according to departmental KPIs.
The performance appraisals are conducted twice a year, at mid-year and year-end. Employees are evaluated by performance given a grade between A to E. The performance grade is linked to remuneration structure of employees and their compliance with codes of conduct. Such performance appraisal will affect the amount of rewards, bonus, and salary adjustment. 		Twice a year
Multidimensional performance appraisal The performance appraisal of CSC's employees are not limited solely to one single source. For example, the performance appraisal of those duties related to general affairs, procurement, and information technology includes not only supervisors but also internal and external customers. On going
Team-based performance appraisal The employees receive the production and sales surplus bonuses that will be issued when there is a surplus in the month depending on their team-based performance factor and their own salary factor. Monthly
Agile conversation Supervisors are expected to monitor the performance of their subordinates on an ongoing basis and engage in periodic communication and discussions to assist them in achieving their performance goals. Ongoing
Event 2021 2022 2023
Numbers of employees evaluated at the end of the year 9,301 9,350 9,459
Numbers of employees with an A (the best) appraisal result 705 709 705
Ratios of employees evaluated 7.58% 7.58% 7.45%
Numbers of employees with an E (the worst) appraisal result 0 0 0

Executive committee members’ remuneration and clawback policy

The remuneration of executive committee members, including the CEO, is directly linked to the performance of corporate management. This remuneration is split into fixed and variable components, with the variable part being determined by considering indicators like ROE, ROA, ESG implementation, risk management, and other criteria.

The bonuses and compensation for the executive committee members of CSC are disbursed in cash. In order to safeguard corporate goodwill and maintain effective internal control, CSC‘s Rewards and Penalties Regulation states that if any employee, including the CEO and other executive committee members, found engaging in certain violation will have their approved annual bonus clawed back in accordance with relevant regulations.

Sustainable Performance Incentives

Each material issue is one of the important KPIof the Vice President and First Echelon Supervisor of the relevant department.KPI is the basis for executives' year-end performance evaluation. KPI evaluation results involve their bonuses and salary adjustments, including but not limited to the following items:

Position KPIs
Chief Operating Officer
(Vice President of the operating department) 		Carbon intensity
Business Unit Managers
(First Echelon Supervisors of the related department ) 		Carbon intensity,power-saving rate

Bonuses and Other Incentives

  • Production and sales surplus bonuses:Bonuses will be issued when there is a surplus in the month. The average full bonus for the whole year is 3.6 months' salary.
  • Incentive bonuses:Bonuses will be allocated when there is a surplus in the annual closing. The amount of an individual's bonus is related to the appraisal level of his/her performance. The multiple differences between different appraisal levels in performance are between 0.5 and 1.25 times.
  • Year-end bonuses:One month's basic salary will be given as a year-end bonus and paid in proportion to the actual number of working days that year.
  • Employee remuneration:If CSC makes a profit in the annual year-end closing, employee remuneration should be allocated. However, if there are still accumulated losses, the compensation amount should be reserved in advance.
  • Long-Term Incentives for Employees：
    1. Greenhouse Gas Reduction Incentives:
    CSC has established a program to encourage employees to participate in carbon reduction activities. When the total emission or emission intensity targets are achieved consecutively for three years, all employees within the related departments will be entitled to receive monetary awards (deferred cash bonuses).
    2. Patent Rights Incentive System:
    CSC has implemented a special incentive system to recognize employees who contribute to profitable improvements by assigning their patent rights to the company. This system operates on a long-term basis, considering the time and effort needed for patents to be implemented. Employees will receive a portion of the patent royalties in cash, based on their level of contribution, once the patents are implemented and generate benefits.

Internal Hiring Rate

CSC adopts a dual-track promotion system that takes into account both management and professionalism. Employees are promoted based on their competencies, job performance, and potential for leadership development, which offers suitable career development that is in line with CSC’s belief in putting the right talent in the right position.

Internal Hire Rate
2020 2021 2022 2023
56.95% 59.11% 49.76% 57.66%
Note：Internal Hire Rate=(Number of employees promoted) / (Number of employees promoted+ Number of new employees)

Talent Nurturing

Employees are CSC's important assets and partners who grow together. In addition to working together to create a safe work environment and ensuring employees' human rights, CSC has also enhanced its competitiveness by implementing career development and educational training for employees to upgrade their skills and increasing its human capital.In 2024, China Steel Corporation had 9,518 full-time employees with no contract employees. The percentage of full-time employees was 100%.

In response to the retirement of a large number of senior employees, the recruitment of younger generations, and the transition to smart production, the development of CSC's talent nurturing focuses on four major categories, namely common training, succession of professional and technical manpower, nurturing of AI talents, and forging an organic learning organization. The training courses are divided into five categories: Professional, Quality Control, Management, Language,and Environmental Health and Safety. The number of trainees is categorized by age and level as shown in the attached table. In 2024,The annual talent nurturing and training expenses amounted to 54,545 thousand NTD, the average annual training expense per employee was NT$5,731,and the average training hours per employee was 27.8 in 2024. New recruits are educated and trained immediately after they are hired. Moreover, organizational and personal needs are not only continuously explored by CSC during the talent development process but also reviewed at any time to gradually carry out various kinds of necessary training programs to enhance the knowledge and skills required for personal career development.

5 types of employee training courses & hours
Technical Training Quality Control Training Leadership & Management Training Foreign Language Training Environmental Safety Training
74,260 11,675 22,921 3,417 100,913
Note: Domestic further education and e-Learning Courses are excluded.
Total training hours
2022 2023 2024
258,431 265,609 264,685
Training hours per employee
2022 2023 2024
26.6 27.6 27.8
Note 1:
In order to comply with the epidemic prevention measures, the numbers of trainees were controlled in 2022.
Note 2:
In 2024, China Steel Corporation had 9,518 full-time employees with no contract employees. The percentage of full-time employees was 100%.
Total expenditure of employee training in TWD millions.
2022 2023 2024
49.2 46.2 54.5
Average training cost per employee/NTD
2022 2023 2024
5,065 4,798 5,731
Note: In order to comply with the epidemic prevention measures, the numbers of trainees were controlled in 2022.
Average training hours by management level for 2024
Item descriptions average training hours per person
Management Roles / Non-Management Roles Senior Level 18.19
Mid-Level 22.94
Junior Level 39.88
Non-Management 21.89
Average training hours by age group for 2024
Item descriptions average training hours per person
Age < 30 Years Old 39.04
Age 31~50 23.20
> 50 Years Old 14.03
Average training hours by gender for 2024
Item descriptions average training hours per person
Gender Male 27.33
Female 28.52
Average training hours by nationality for 2024
Item descriptions average training hours per person
Nationality Republic of China 27.8
Foreign nationalities* N/A
* All of the employees are from Republic of China, no foreign employees were hired.
Human Capital Return on Investment metric
Item/Year 2021 2022 2023 2024
Total Revenue (NTD)【a】 259,782,000,000 250,601,000,000 197,149,000,000 193,546,000,000
Total Operating Expenses (NTD)【b】 209,566,000,000 232,344,000,000 190,094,000,000 182,608,000,000
Total employee-related expenses(NTD)【c】Note 26,733,000,000 18,828,000,000 14,912,000,000 15,401,000,000
(HCROI) (=a- (b-c)) / c 2.88 1.97 1.47 1.71
Total Employees 9,794 9,711 9,621 9,518
Note：Total employee – related expenses(Thousand NTD)=’Operating costs’+’ Operating expenses’+’Others’

General training

  • According to the CSC Talent Nurturing Roadmap, CSC conducts general training for employees at all levels and provides various types of training, including on-the-job training, outsourcing training, knowledge management, and e-Learning.

Domestic and overseas studies

  • In order to enhance production, research and development, technology, management, and foreign language proficiency of employees and to meet the needs of diversification and international business strategies, CSC selects qualified employees and executives to study in domestic or foreign academic institutions every year. Those who have been selected for further studies can stay employed with pay, and CSC will pay for their tuition fees, necessary travel expenses, and meal and miscellaneous expenses. In 2024, a total of 6 employees were selected for the overseas training.

Succession of professional and technical manpower

  • In response to the wave of retirements, CSC has been continuously recruiting new employees in recent years. To help new employees integrate into CSC, it has implemented a "mentorship program" and knowledge management to help them become familiar with CSC. Various training programs have been conducted to enhance their professional competence, and interaction is promoted with activities. Knowledge management systems have been established to conduct systematic inventory, succession, and innovations of workforce. In addition, to prepare for the succession of senior talents, CSC regularly conducts an inventory of senior human resources in the CSC group. Each department identifies and takes stock of key professional abilities, carries out corresponding training programs, and plans and implements succession of technical manpower systematically.
  • Modes and Systems of the Succession of Professional and Technical Manpower
    Explicit Knowledge Basic Knowledge
    (Theories - Know What)     		e-HRD: the Competency Management System
    (Required Abilities and Training)
    KM: e-Learning and the Knowledge Document Management System
    (The Knowledge Map - Professional technology categories)     		Self-learning
    Actual Operating Procedures
    (Practice - Know How)     		KM: Knowledge Documents by processing
    (The Process Map - Operational process categories)
    Tacit Knowledge Impartation of Professional Technology
    (Experiencing - Know Why)     		Mentorship Programs
    e-HRD: the Training Management System
    (Curriculum Planning)
    KM: Experts and the Knowledge Community     		Face to Face Teaching

Creation of an Organic Learning Organization

  • Since the establishment of the Knowledge Management Committee in 2003, CSC has been promoting knowledge management and self-developed e-Learning materials to share and pass on knowledge among employees. In 2024, CSC had uploaded 3,671 knowledge documents, 1,242 process knowledge documents, 227 e-Learning courses, and 445 post-training assessment courses for e-Learning. Since the initiation of e-Learning, 76,217 knowledge documents, 9,852 process knowledge documents, and 2,212 e-Learning courses have been uploaded. CSC has also subscribed to online platforms of management magazines for executives to engage in self-directed learning and improve their management competence. Online English and Japanese language courses have also been purchased for employees to learn these languages online.

Employee Engagement Survey

CSC carried out the 2023 Employee Engagement Survey in collaboration with a professional global consulting firm to ensure unbiased and thorough analysis, with the goal of gaining insights into employees' workplace experiences, psychological safety, and identifying areas for enhancement within the company.
The survey was conducted using a questionnaire that addressed job satisfaction, clear purpose of job, happiness, working stress, and other relevant factors. The questionnaire was only issued to technicians, engineers, administrators, and management level who had been working at CSC for more than 6 months.
The survey covered 98% of all employees and achieved a 51% response rate. The overall engagement score stands at 80 points (meaning that 80% of the positive feedback is above 4 points on the 5-point scale), which is comparable to that of both Taiwanese industries and global heavy manufacturing industries, indicating that CSC holds an exceptional employee experience in categories such as fair rewards, diversity and inclusiveness, and capacity enhancement. However, there is still potential for enhancement in categories such as agile transformation, participation, and organizational efficiency.

Employee Engagement/ Engagement Survey Items
Survey Aspect Question Instructions
Job Satisfaction Are you satisfied with your current job?
Purpose Are you familiar with the overall goals of the company and your specific unit?
Happiness Do you strongly feel a sense of belonging and teamwork within China Steel Corporation?
Stress Do you believe you have been provided with sufficient information and resources to manage your work efficiently and handle stress effectively?

Six Sigma

  • Six Sigma activities can improve corporate production efficiency, reduce waste, enhance product quality, and thereby strengthen China Steel Corporation's (CSC) competitiveness.
  • Employees receiving Six Sigma training and participating in project execution have the following benefits:
    • Enhancing Professional Skills: Six Sigma training can enhance employees' professional knowledge and skills, enabling them to better understand and apply statistical tools and techniques.
    • Strengthening Problem-Solving Ability: By participating in Six Sigma projects, employees will learn how to effectively analyze problems, develop solutions, and implement improvement measures, thereby enhancing their problem-solving abilities.
    • Fostering Teamwork: Six Sigma projects usually require teamwork to complete, which helps cultivate employees' teamwork spirit and communication skills.
    • Creating Value: By participating in Six Sigma projects, employees have the opportunity to propose new ideas and solutions, thereby creating value and growth opportunities for the company.
    • There are already 1,351 engineers were trained,(achieving a 100% pass rate in the 2023 assessment) The percentage of full-time employees participating in Six Sigma projects is 14.04%
    • CSC has completed a total of 775 Six Sigma projects, primarily aimed at improving the quality of steel products on production lines and reducing equipment failure rates, resulting in a total benefit of approximately 2.844 billion NTD.In 2023 CSC established a total of 68 Six Sigma projects and completed 66 of them, resulting in tangible benefits of approximately 0.23 billion NTD.

The total benefit of six sigma is approximately 2.844 billion NTD.

AI Talent Nurturing

Process digitalization is a key policy focus for CSC at this stage. To strengthen AI talent development, CSC established the Smart Production and Marketing Committee (PMIC) in 2016 to build a hybrid cloud intelligence platform (Technology), plan and assist employee in AI training (Talent), and comprehensively promote intelligent solutions (Team). A series of AI talent training courses were also launched. In 2023, the PMIC committee was upgraded to the Digital Transformation Promotion Team, which set up five subgroups according to functionality, including Information and Digitization, Smart Manufacturing, Business Model Optimization, Digital Innovation Technology, and Education and Training. Since the first half of 2022, the AI Core Technology Training Course has been offered, teaching not only the Python programming language but also holding an AI project sharing and exchange meeting at the end of the term, attempting to apply what has been learned to solve actual problems on-site or find ways to reduce costs and improve efficiency. In 2023, the Data Processing and Visualization Course (Power BI) was introduced, aiming to use digital empowerment tools to help the company integrate data and interpret data characteristics more easily. So far, CSC has also invited external experts to conduct numerous seminars on digital trends (such as ChatGPT applications, AI smart manufacturing, AI trends, etc.), extensively absorbing domestic and foreign resources and the experiences of experts and scholars, cultivating awareness of digital transformation. Furthermore, CSC has adopted diversified methods to plan the overall AI training program. In terms of training targets, it is classified into categories such as data scientists, data engineers, domain experts, and business executives. Additionally, through the CSC Bi-Monthly, the Digital Transformation Promotion Team's work development is shared, aiming to cultivate colleagues' awareness and literacy in AI.

participate method Training methods
Data Scientist(researcher) Each year, several researchers are selected to visit renowned universities abroad for collaborative research International
Data Engineer/ experts Collaborating with domestic AI professors, we are organizing the 'AI Core Technology Training' course (approximately 120 hours per class), which will be conducted through project-based learning. At the end of the course, a project sharing and exchange meeting will be arranged to review the learning outcomes Domestic
Data Engineer/ experts To assist data engineers and domain experts in utilizing data analysis tools, we are launching the 'Practical Training Course on Data Processing and Visualization' with hands-on exercises using Company training
Supervisors and IT professionals Invite relevant supervisors to participate in the Taiwan AI Academy's 'Manager's Weekend Training Course' to cultivate managers with a comprehensive view of AI technology. Artificial Intelligence School
AI foundation training (Expert) Since 2018, we have launched the 'AI Expert Foundation Training' course, inviting experts from the National Center for High-Performance Computing to teach (National Center for High-performance Computing)
AI executive education (Business Executives) Occasionally inviting external experts to give lectures and share new knowledge Industry experts
CSC Dependents Sharing of AI Popular Science Short Articles CSC Semimonthly Journal

From 2018 to 2024, a total of 465 AI digital transformation projects were promoted, accumulating benefits of approximately 1,967,040 thousand NTD.
China Steel completed a total of 140 AI digital transformation projects aimed at increase production efficiency and quality through automation and data analysis, while simultaneously reducing costs and enhancing reliability, resulting in a total benefit of 414,670 thousand NTD in 2024.

Year Digital Transformation (AI)/case Digital Transformation (AI) benefits (Thousand NTD)
2018 5 105,230
2019 1 1,580
2020 13 51,400
2021 63 353,500
2022 133 148,930
2023 110 891,730
2024 140 414,670
Total 465 1,967,040

Development Plans for Individual Employees

Succession plans
The succession plan for each department's executives is reviewed every year. Based on the principle of selecting and placing talents appropriately for CSC, the retirement dates of the current executives in each department are comprehensively considered. The successor candidates' rotation experiences and work performance, such as cross-unit and external transfers to CSC's subsidiaries, are also considered. CSC adheres to the principle of putting the right person in the right position and plans relevant executive positions accordingly. In addition, when candidates for promotions to the middle manager or above in each department are submitted, the Human Resources Department will check the consistency with the original planned successor candidates to implement the goal of integrating talent selection, training, and employment.

Establishment of a System of Key Professional and Technical Capabilities for Key Positions
CSC has established a system of key professional and technical capabilities for key positions. The core competency and necessary professional knowledge and technical capabilities required for each position in each unit are defined and confirmed. According to the functional requirements of the tasks of the employees, internal training, external training, or e-Learning videos/teaching materials have been utilized to enable them to complete and enhance their necessary professional and technical capabilities. With the employees' performance appraisal results, executives have also arranged specific training and development activities for the employees to acquire the required functional competency.

Management Training
Employees with management potential will participate in "management training" and mid-level executive management talent appraisals so as to nurture their talents.

Local Talent Development
Cooperated with the local National Sun Yat-sen University (NSYSU) to offer the course "INTRODUCTION TO THE FACILITIES FOR STEEL MAKING PROCESS" in the second semester of the 112th academic year. Through the introduction of basic steelmaking processes, students can understand the design principles, fault diagnosis and maintenance of mechanical equipment used in steel-plant manufacturing. For those students who want to join in the Basic Iron and Steel Manufacturing in the future, they can establish knowledge in related fields in advance and understand its future industrial development.
This course consists of 18 classes, with a total of 78 students participating, and the average grade is A.

Local Employment Policy
As part of our dedication to fostering local talent and strengthening our community ties, CSC has implemented a recruitment policy that gives local residents bonus points in the written tests. The policy applies to applicants or their immediate family members who have maintained continuous residency in Siaogang District for an extended period.