Human Capital Management
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 | Training Hours | |
|---|---|---|
| 2023 | 2024 | |
| Technical Training | 85,661 | 74,260 |
| Quality Control Training | 11,259 | 11,675 |
| Leadership & Management Training | 24,757 | 22,921 |
| Foreign Language Training | 232 | 3,417 |
| Environmental Safety Training | 98,933 | 100,913 |
- Note: Domestic further education and e-Learning Courses are excluded.
| Average Training Hours/Amount in Annual Year | |||
|---|---|---|---|
| Item | 2022 | 2023 | 2024 |
| Total Employees | 9,668 | 9,621 | 9,518 |
| Total expenditure of employee training in TWD millions. | 49.2 | 46.2 | 54.5 |
| Average training cost per employee/NTD | 5,088 | 4,798 | 5,731 |
| Total training hours | 258,431 | 265,609 | 264,685 |
| Training hours per employee | 26.7 | 27.6 | 27.8 |
- Note I：In order to comply with the epidemic prevention measures, the numbers of trainees were controlled in 2022.
- Note II：In 2024, China Steel Corporation had 9,518 full-time employees with no contract employees. The percentage of full-time employees was 100%.
| 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】 | 259,782,471,000 | 250,600,629,000 | 197,149,158,000 | 193,545,508,000 |
| 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 | 9,668 | 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
- To strengthen the capabilities in production, research and development, technology, management, and foreign languages, and in line with the diversified and international business strategy, CSC selects eligible employees, including those at senior and managerial levels, to pursue further studies at domestic and international academic institutions every year. Those selected for further education are allowed to retain their positions while on paid leave, with the company covering their tuition fees, necessary travel expenses, and living allowances. In 2024, 6 employees were sent abroad for training. Upon their return, they are required to share their cross-cultural life experiences and the results of their studies. In addition to sharing their academic outcomes, these life experience help other employees better understand and respect different cultures.
Expatriates training
- According to the CSC Talent Development Framework, CSC periodically organizes expatriate training, which includes local life experience exchanges. The shared experiences are then uploaded to CSC's Knowledge Management System as e-Learning courses (e.g., "Cultural and Living Considerations in India"). This allows employees to gain an understanding of the culture of the host country before their deployment.
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 CommunityFace 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 plans to conduct employee survey every two years. The most recent one is the 2023 employee engagement survey, with the next one scheduled for 2025. In the interim year (2024), the company will focus on implementing improvement plans based on the findings from the 2023 survey.
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.
In the future, with the continuous goal of improving the response rate, we will promote through diverse channels (such as electronic bulletins, meetings, etc.) and clearly explain that individual responses will be kept confidential and directly provided to a professional global consulting firm. Additionally, we will continue to provide concrete responses to employee feedback and develop improvement plans, such as organizing cross-generational leadership and communication skills courses to enhance managers' communication and management capabilities. These efforts aim to facilitate more effective dialogue with employees, respond to employee voices, and optimize the work environment, ultimately creating a sustainable and happy enterprise.
| 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? |
AI Talent Nurturing
Process digitalization is a key policy focus for CSC at this stage. To strengthen AI talent development, CSC established the Digital Transformation Promotion Team in 2023. A series of AI talent training courses were also launched. In addition to continuously offering AI core technology training programs to date, we have not only taught the Python programming language but also introduced Data Processing and Visualization Course (Power BI) starting in 2023. These initiatives aim 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 |
|---|---|
| Data Scientist(researcher) | Each year, several researchers are selected to visit renowned universities abroad for collaborative research |
| 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 |
| 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 |
| Expert | Since 2018, we have launched the 'AI Expert Foundation Training' course, inviting experts from the National Center for High-Performance Computing to teach |
| AI executive education (Business Executives) | Occasionally inviting external experts to give lectures and share new knowledge |
| 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
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.
Executive Management Training Program is designed to cultivate the thinking and problem-solving abilities of senior executives, strengthen successors with new perspectives on business growth and performance enhancement, and provide the latest insights into industry management concepts and technological developments.
| Succession Planning Outcomes – Executive Management Training Program | ||||
|---|---|---|---|---|
| Category | Purpose | Training method | Target | Number of trainees in 2024 |
| Executive Management Class | To cultivate senior executives' ability to think critically and solve problems, enhancing participants' new perspectives on business growth and performance improvement, while introducing the latest management concepts and technological advancements in the industry. | Internal Course | General Managers and General Managers Successor | 42 |
| Cross-Industry Visit | Observe and learn about the latest technology applications through company visits, engaging in discussions and exchanges with senior executives. | External Course | ||
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.
Employees with management potential will participate in "management training" and mid-level executive management talent appraisals so as to nurture their talents.
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 2024 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 80 students participating, and the average grade is A.
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.
