Talent Attraction and Retention

Talent is crucial for the sustainable development of an enterprise.HIWIN adheres to the principles of “Professional Excellence”, “Working Enthusiasm”, “Ethics & Responsibility” in its management philosophy.The Company fosters a diverse, inclusive, respectful, and supportive work environment that promotes employee self-improvement. This approach attracts talented individuals from various disciplines who align with HIWIN's organizational culture and values.

HIWIN's talent policy centers on cultivating expertise in the precision machinery field as the primary strategy for recruitment and retention. Starting in 2023, the Company will conduct biennial employee opinion surveys. These surveys will be designed based on the three dimensions of the management philosophy, with the aim of assessing the extent to which employees implement and adhere to the Company's principles.

(1) Professional Excellence

Every employee is expected to maintain a professional excellence in all assigned tasks, whether they are daily operations or project work, and to consistently deliver world-class quality and service. HIWIN is deeply committed to providing training and development opportunities to enhance the professional knowledge and skills of its employees.

(2) Working Enthusiasm

HIWIN expects its employees to approach their responsibilities with a strong sense of accountability. This means not only completing tasks, but also striving to excel and create value for customers. Employees should possess high spirits and work with wholehearted enthusiasm to achieve true accountability. HIWIN provides a platform for employee development, assisting them in their growth. The Company also offers reward mechanisms to encourage employees to sustain their enthusiasm for both work and learning.

(3) Ethics & Responsibility

The Company's management is committed to creating a safe, clean, and pleasant working environment that allows employees to work without worry. We treat all employees fairly and adhere to local labor laws and international human rights standards. Our compensation package exceeds industry norms. We also expect employees to approach their work and interactions with honesty, maintain the confidentiality of company and client information, and provide the highest quality service to our customers.To establish international competitiveness and uphold the principles of integrity and honesty, these values are implemented throughout the Company. We strictly prohibit any corrupt activities, both within and outside the organization, to ensure a corruption-free environment.

All human resources systems and workplace planning at HIWIN are designed and executed based on these principles. New employees receive orientation training on their first day to clearly communicate the Company's business philosophy. Additionally, we regularly remind employees to adhere to these principles through employee identification cards, monthly meetings,training sessions, and on-the-job training.We hope that employees genuinely embrace and identify with the Company's business philosophy, and that they can work at HIWIN with peace of mind,continuously learning and growing.

Talent Acquisition Strategy

Since its establishment, HIWIN has consistently expanded its performance and has always considered the hiring of personnel based on the organization's future development needs. All employees are directly hired,and there is no practice of employing temporary staff through dispatching.HIWIN also strictly prohibits the employment of child labor and only accepts applicants aged 16 and above. For workers aged 16 to 18, the Company provides free transportation services to and from work or accommodation arrangements. Employees who are hired through a rigorous interview process are required to provide complete reporting information for verification. This double-checking process ensures that there are no omissions or oversights. Additionally, the Company has dedicated onsite nurses and occupational physicians who regularly provide medical services to ensure the physical and mental health, as well as the safety, of the employees. Through regular workplace environment inspections and operational process audits, employees can work with peace of mind.

In addition to recruiting talent through online recruitment channels and regularly participating in job fairs at major universities and colleges across Taiwan, HIWIN also actively recruits outstanding individuals from various ethnic groups through platforms such as job matching events for overseas and foreign students seeking employment in Taiwan. To foster a diverse and inclusive workplace, in recent years, HIWIN has been actively recruiting foreign professionals in various fields such as business, research and development, information technology, and manufacturing. This initiative promotes an innovative culture within the organization and provides a stable source of talent. These foreign professionals also serve as valuable assets to expand the Company's presence in the global market.

Adapting to the post-pandemic era, HIWIN has integrated virtual and real-world approaches by combining sustainability and digital recruitment strategies. This includes initiatives such as online job fairs for fresh graduates, a digital recruitment platform on Line@, an online resume system, and remote video interviews. These measures enable job seekers to have access to real-time, diverse, and convenient job application channels without geographical or time constraints.

Simultaneously, HIWIN actively engages in campus recruitment, participating in various campus job fairs and informational sessions across Taiwan. The Company offers assistance to students in conducting resume checks and provides career consultations, ensuring a smooth transition into the workforce upon graduation and the pursuit of their dream careers. Additionally, HIWIN collaborates with government resources by participating in the Ministry of Labor's flagship employment project and connecting with trainees from the Skill Development Training Programs organized by the Workforce Development Agency. This initiative aims to provide youth with employment opportunities and bridge the gap between their academic knowledge and practical skills.

HIWIN adheres to a fair, just, and transparent selection process when choosing suitable talent. In 2022, among the new recruits, 77% were male, and 23% were female. The majority of new employees were under the age of 30. The Company is actively integrating smart automation and continuously advancing its production technology. The development goal is to achieve digitization, prediction, and human-machine collaboration in the global industrial supply chain. In line with the Company's vision and development direction, the recruitment criteria were adjusted in 2022 to attract a more diverse pool of talent, particularly young and innovative individuals, to serve as a strong foundation for future growth.

Competitive Salary & Benefits

HIWIN determines salary and benefits based on employees' education,experience, and the position they are applying for, without any gender or ethnic disparities. Both female and male employees receive equal starting salaries and equal pay for equal work, which surpass the minimum wage mandated by law. Additionally, HIWIN distributes quarterly bonuses that are contingent upon the Company's performance and employees' individual accomplishments. Furthermore, employees are entitled to annual remuneration and year-end bonuses. For instance, engineers receive a monthly salary that is more than double the basic wage. In 2022, the hiring rate for research and development engineers reached 70%.

(1) HIWIN offers its employees an annual salary that exceeds the industry average, as indicated by the disclosed average employee salary costs on the Public Information Observation Platform. The salaries of new employees in Taiwan and various global locations are higher than the local minimum wage in those regions. We adhere to the principle of equal pay for equal work and evaluate all employees, except those on unpaid leave. We encourage and reward outstanding employees through various assessments, including new employee assessments, quarterly assessments, and year-end assessments. Our compensation design emphasizes performance-based rewards, where employees receive different bonuses and incentives based on merit. One notable feature is the Lifetime Royalty System, which provides periodic bonuses equivalent to licensing fees to employees whose research and development of new technology generate profits for the Company, allowing them to share in the results for a lifetime.

(2) To strengthen our recruitment advantages and enhance talent retention,we have adjusted the employee salary structure starting from April 2022. Part of the variable compensation will be converted into fixed compensation, resulting in an average increase of approximately 6% to 16% in monthly disposable fixed income for employees. Additionally, the calculation basis for overtime pay has been increased, and retirement benefits, under both the new and old schemes, have been enhanced.These changes aim to provide employees with a more stable salary package, fostering long-term competitiveness in attracting and retaining talent.

(3) Regarding retirement benefits, HIWIN has a robust financial system and follows the Employee Retirement Regulations based on the Labor Standards Act and Labor Pension Act. We have established a stable retirement fund allocation system and payment plan to ensure secure retirement benefits for our employees. Actuaries are appointed to conduct regular actuarial calculations and provide retirement pension reports, ensuring adequate provisions and safeguarding employees' rights to receive retirement benefits in the future.

(4) HIWIN Technology is committed to sustainable operation and provides comprehensive employee benefits, ensuring that every employee can work with peace of mind and dedication. In addition to legally mandated leaves, we have implemented a special leave prepayment system, allowing employees to enjoy 10 days of special leave from their first year of employment. Starting from March 2022, we have introduced a new leave category called “Parenting Education Leave.” This leave can be utilized for participating in children's school activities, encouraging employees to increase interactions with their children and maintain a healthy family relationship. (Refer to the 2022 Annual Report for more details.)

(5) Benefits Policy
HIWIN carefully plans a range of welfare policies,including Employee Assistance Programs (EAP),insurance/healthcare coverage, comprehensive insurance plans, epidemic leave, childcare subsidies, meal allowances, wedding and funeral subsidies, and employee dormitories. These policies are designed to provide comprehensive care for our employees,allowing them to focus on their work without any concerns.

(6) Employee Assistance Programs (EAP)
Since 2022, HIWIN has implemented Employee Assistance Programs (EAP) to address organizational and personal issues that may impact employee productivity. Through systematic professional services, HIWIN offers four main services under the EAP: psychological counseling, healthcare and medical support, legal consultation, and tax advisory. These services ensure that employees can focus on their work with a healthy body and mind. To ensure employees are aware of the EAP services and how to access them, various promotional activities have been conducted in 2022. These activities include factory-wide quiz competitions with prizes and distributing EAP caring cards. The goal of these initiatives is to provide employees with easy access to professional resources and assistance during critical moments in life.

HIWIN also takes care of retired employees by involving department supervisors and HR in understanding their retirement plans. They assess the possibility of offering part-time options to retain their expertise within the Company. HIWIN conducts interviews with departing employees to understand their interest in internal transfers and post-employment plans. In cases of involuntary departure, the Company provides comprehensive explanations of severance pay calculations and procedures for applying for unemployment benefits.HIWIN strives to assist employees in transitioning to their new unemployed situation.

Furthermore, if employees have any legal, health,financial, or psychological counseling needs during their employment, they can seek assistance through the Employee Assistance Programs (EAP).

To better customize the services offered by EAP to meet employees' needs, individuals who utilize psychological counseling services have the option to provide feedback following their sessions. This feedback will serve as a reference for future service adjustments. In the surveys conducted in 2022, employees expressed that after utilizing the psychological counseling service, they felt supported, encouraged, and experienced an increase in problem-solving confidence. Additionally, two employees who had more than three counseling sessions reported that the counseling had a positive impact on reducing the effects of personal and workrelated issues.

(7) One Stop Contact and Optimizing Employee Care
HIWIN is committed to creating a secure and supportive work environment,actively assisting employees facing attendance issues, medical leaves,and major illnesses. Since 2022, we have implemented a new initiative called “Employee Care Reporting.” This initiative involves a care team consisting of department supervisors, occupational health nurses, and human resources personnel. The team conducts comprehensive analyses of employees' working conditions, workplace environment, and past health records. Based on individual needs, the team arranges services such as visitations, occupational health consultations, return-to-work plans, and psychological counseling. Additionally, they assist employees in applying for various welfare subsidies and insurance claims, prioritizing the physical and mental well-being of our employees and facilitating their early recovery and return to work. In 2022, a total of 19 employees, including 5 foreign employees, received follow-up services from the care team until their cases were closed.

Since 2013, HIWIN has been promoting the “Childcare Support” policy to enhance Taiwan's birth rate. This policy encourages employees to have children and share the burden of childcare expenses. HIWIN provides a subsidy of US$5,861 per child for a duration of three years. In the case of twins, the subsidy is doubled. If an employee needs to apply for parental leave without pay during the subsidy period, they are not required to return the received subsidy and can continue to receive it after resuming work.By the end of 2022, a total of 1,381 employees have applied for childcare support under our Company's welfare and support promotion. In 2022,the ratio of employees who applied for paternity leave and returned to their original positions after maternity leave reached a record high of 91%, a 2% increase compared to 2021. Our employees can return to the workplace with peace of mind and fulfill their value. In 2022, there were a total of 31 applicants for parental leave, with an anticipated return rate of 24. However, only 12 employees actually resumed their duties, resulting in a return rate of 50%. Regarding employee retention upon returning to work, out of the 14 employees who resumed their duties in 2021, 9 were still employed by the end of 2022, resulting in a retention rate of 64%. The main reasons for those who did not return to work or did not stay in their positions were influenced by the pandemic, personal childcare responsibilities, or job opportunities in their hometowns. Some employees chose to seek assistance from relatives in nearby areas to care for their children, leading them to submit resignation requests. The fact that half of the total parental leave applicants are male colleagues demonstrates their commitment to both their work and family responsibilities, highlighting our dedication to gender equality in the workplace.

Retention Rate

HIWIN is committed to providing comprehensive training resources and ensuring that employees are placed in roles that align with their talents and abilities. This approach enables employees to thrive in suitable positions and grow alongside the Company. HIWIN upholds principles of fairness and objectivity in all aspects of talent acquisition, employment, development, and retention. HIWIN offers equal opportunities and resources to all employees, regardless of gender, race, religion, political stance, marital status, or educational background. Through retention policies such as competitive compensation and benefits, training and development opportunities, employee health management,effective communication, and family-oriented activities, HIWIN ensures that every employee can work with peace of mind, unleash their potential,and experience continuous career growth.

The HR department at HIWIN follows the PDCA management approach, which involves setting goals at the beginning of the year, conducting mid-year (quarterly) reviews and adjustments,and performing year-end evaluations and feedback. This creates a positive cycle of continuous improvement. In 2022, HIWIN implemented key talent retention measures to retain valuable employees. Through interviews,we identified potential factors that could contribute to employee attrition and proactively addressed them to retain high-potential individuals. As a result of these efforts, the key talent retention rate reached 88.2% in 2022.

(1) Organic Personnel Mobility
When an employee submits a resignation request, both the supervisor and the HR department conduct exit interviews to understand the true reasons for the employee's departure. The retention and transfer mechanism is immediately activated, and relevant data is regularly collected to analyze the reasons for attrition and develop countermeasures. In 2022, the success rate of transfers and reassignments was 50%. By implementing measures such as adjusting salaries appropriately and enhancing transparency in promotions, the attrition rate in 2022 decreased to 17.4%,the lowest in nearly four years. HIWIN firmly believes in maintaining a continuous influx of new talent and promoting organizational renewal.Therefore, we encourage appropriate personnel mobility to continually welcome like-minded partners to join our Company. HIWIN strictly adheres to the regulations of the Labor Standards Act when handling cases involving employees deemed unfit for their roles, violations of Article 12 of the Labor Standards Act, or termination of employment contracts due to organizational operational changes.