Talent attraction, remuneration and benefitsTalent attraction, remuneration and benefits

Diverse Talent CompositionDiverse Talent Composition

With a corporate culture of continuous improvement, HFC continues to introduce diversified and customized services according to different distribution channels and customers. At the same time, through cultivating supplier channels, developing product policies, and improving service quality with specialized industry knowledge, we continue to expand business development and develop 4 investee companies under the Company. Additionally, in 2023, the Company ventured into the Southeast Asian market for the first time by investing in Cambodia’s renowned leasing company, LY HOUR LEASING PLC, accelerating its international market expansion. As the business grows, HFC’s workforce is also becoming increasingly diverse.With a corporate culture of continuous improvement, HFC continues to introduce diversified and customized services according to different distribution channels and customers. At the same time, through cultivating supplier channels, developing product policies, and improving service quality with specialized industry knowledge, we continue to expand business development and develop 4 investee companies under the Company. Additionally, in 2023, the Company ventured into the Southeast Asian market for the first time by investing in Cambodia’s renowned leasing company, LY HOUR LEASING PLC, accelerating its international market expansion. As the business grows, HFC’s workforce is also becoming increasingly diverse.

Hiring outstanding talentHiring outstanding talent

By the end of 2023, the total number of employees is 1,183, and there is no employee with working hours unguaranteed. By gender, there are 476 male employees and 707 female ones; by employment contracts, there are 1,144 permanent employees and 39 temp employees; by employment type, there are 1,183 full-time employees and zero part-time worker. Compared to 2022, the total number of employees increased by 8.2%. The increase in the number of employees is mainly due to business expansion. Also, there are two types of non-full-time employees at HFC, which are external IT personnel stationed in the Company and outsourced personnel responsible for company information bag inspection, information bag digital scanning, and customer information online setting, all of whom belong to contractors, totaling 23 people. The number of staff is 23 and there is no change in the number of staff as compared with last year. The ratio of employees to non-employees was 98.1%: 1.9%.By the end of 2023, the total number of employees is 1,183, and there is no employee with working hours unguaranteed. By gender, there are 476 male employees and 707 female ones; by employment contracts, there are 1,144 permanent employees and 39 temp employees; by employment type, there are 1,183 full-time employees and zero part-time worker. Compared to 2022, the total number of employees increased by 8.2%. The increase in the number of employees is mainly due to business expansion. Also, there are two types of non-full-time employees at HFC, which are external IT personnel stationed in the Company and outsourced personnel responsible for company information bag inspection, information bag digital scanning, and customer information online setting, all of whom belong to contractors, totaling 23 people. The number of staff is 23 and there is no change in the number of staff as compared with last year. The ratio of employees to non-employees was 98.1%: 1.9%.

In addition to creating a friendly work environment, HFC continues to recruit professionals in related fields through open channels to provide career development opportunities for employees and promote work-life balance. As of the end of 2023, the percentage of new employees was 29.5%, a decrease of 7.5% compared to the previous year, and the percentage of resigned employees was 21.9%, a decrease of 0.6% compared to the previous year. Although there were slight fluctuations overall due to factors such as changes in market demand for talent, employee headcount of HFC continued to grow steadily.In addition to creating a friendly work environment, HFC continues to recruit professionals in related fields through open channels to provide career development opportunities for employees and promote work-life balance. As of the end of 2023, the percentage of new employees was 29.5%, a decrease of 7.5% compared to the previous year, and the percentage of resigned employees was 21.9%, a decrease of 0.6% compared to the previous year. Although there were slight fluctuations overall due to factors such as changes in market demand for talent, employee headcount of HFC continued to grow steadily.

We spare no effort in recruiting talent through an open selection process and provide equal job opportunities regardless of gender, age, marital status, race, religion, and place of birth. Moreover, we actively implement gender equality in the workplace and provide employees with opportunities for fair competition and development regardless of gender, to promote gender equality and support workplace diversity. To protect the rights and interests of disadvantaged groups, we actively recruit disadvantaged groups, such as Indigenous people and people with disabilities, and provide them with the same job opportunities and wages and benefits as regular employees. By the end of 2023, we have employed a total of five employees with disabilities. We spare no effort in recruiting talent through an open selection process and provide equal job opportunities regardless of gender, age, marital status, race, religion, and place of birth. Moreover, we actively implement gender equality in the workplace and provide employees with opportunities for fair competition and development regardless of gender, to promote gender equality and support workplace diversity. To protect the rights and interests of disadvantaged groups, we actively recruit disadvantaged groups, such as Indigenous people and people with disabilities, and provide them with the same job opportunities and wages and benefits as regular employees. By the end of 2023, we have employed a total of five employees with disabilities.

Provide fair remunerationProvide fair remuneration

Whether salary and rewards are competitive is one of the key factors for attracting outstanding talents and motivating employees. We raise salary by 1%–3% every September based on the price index and individual performance. According to the information disclosed by the Market Observation Post System, the “average salary” of HFC’s full-time non-managerial employees of 2023 was $1.347 million, and the “median salary” thereof was $1.068 million. By industry, according to the information on the website of the Directorate General of Budget, Accounting and Statistics, Executive Yuan, the average salary of HFC is much higher than the average salary of employees employed in the same “support service industry”.With a further look at the relations between the highest individual annual salary of HFC and the median of all employees (excluding the highest individual annual salary), the difference is 12 times, and the difference in salary increase is 1.1 times. Whether salary and rewards are competitive is one of the key factors for attracting outstanding talents and motivating employees. We raise salary by 1%–3% every September based on the price index and individual performance. According to the information disclosed by the Market Observation Post System, the “average salary” of HFC’s full-time non-managerial employees of 2023 was $1.347 million, and the “median salary” thereof was $1.068 million. By industry, according to the information on the website of the Directorate General of Budget, Accounting and Statistics, Executive Yuan, the average salary of HFC is much higher than the average salary of employees employed in the same “support service industry”.With a further look at the relations between the highest individual annual salary of HFC and the median of all employees (excluding the highest individual annual salary), the difference is 12 times, and the difference in salary increase is 1.1 times.

As HFC pursues equal competition, salary and rewards are determined by the work performance rather than specific conditions; at the same time, we also determine salary adjustments based on the economy and individual performance, to enable employees' salary to be competitive, reasonable, and fair, thereby attracting outstanding talent to join or stay and creating better operating performance. As for the bonus and compensation of HFC’s employees by gender, the ratio of compensation for male managerial and non-managerial personnel to that for their female counterparts was more or less the same from 2020 to 2023. Although the remuneration to males was higher than that to females in 2023 for either managerial or non-managerial positions, the gap was not significant, indicating that there was no significant difference in the salary levels due to gender offered by HFC.As HFC pursues equal competition, salary and rewards are determined by the work performance rather than specific conditions; at the same time, we also determine salary adjustments based on the economy and individual performance, to enable employees' salary to be competitive, reasonable, and fair, thereby attracting outstanding talent to join or stay and creating better operating performance. As for the bonus and compensation of HFC’s employees by gender, the ratio of compensation for male managerial and non-managerial personnel to that for their female counterparts was more or less the same from 2020 to 2023. Although the remuneration to males was higher than that to females in 2023 for either managerial or non-managerial positions, the gap was not significant, indicating that there was no significant difference in the salary levels due to gender offered by HFC.

Provide good benefitsProvide good benefits

With labor shortage due to the pandemic, in addition to salary incentives, enterprises must pay more attention to employees’ benefits and physical and mental health and provide them with corresponding living and physical and mental support in each stage, allowing them to maintain work-life balance. HFC established the Employee Welfare Committee in 2008. The committee envisages employees’ needs and makes plans for providing a variety of employee benefit measures, ranging from a support mechanism, travel grant, purchase of refurbished products to paternity discounts, to take care of employees’ different needs at each stage of life, that is, thereby fulfilling our corporate social responsibility. With labor shortage due to the pandemic, in addition to salary incentives, enterprises must pay more attention to employees’ benefits and physical and mental health and provide them with corresponding living and physical and mental support in each stage, allowing them to maintain work-life balance. HFC established the Employee Welfare Committee in 2008. The committee envisages employees’ needs and makes plans for providing a variety of employee benefit measures, ranging from a support mechanism, travel grant, purchase of refurbished products to paternity discounts, to take care of employees’ different needs at each stage of life, that is, thereby fulfilling our corporate social responsibility.

Retirement System and Employee Stock Options in compliance with lawsRetirement System and Employee Stock Options in compliance with laws

In accordance with the “Labor Standards Act”, the “Labor Pension Act”, and the “Regulations for the Allocation and Management of the Workers' Retirement Reserve Funds”, the Company establishes the HFC retirement measures for its employees to ensure their retirement rights and benefits. In addition, Preferred shares were released in 2023. We reserved 10% (about 5,000 shares) for employees to subscribe, to share our operating performance with employees and enhance their commitment to working together to create a better future for the Company. Additionally, HFC initiated an employee stock ownership trust plan in 2023, which was officially approved on January 24, 2024, and implemented starting in May. For employees participating in the stock ownership trust plan, the company will match 100% of the employee's monthly contributions.In accordance with the “Labor Standards Act”, the “Labor Pension Act”, and the “Regulations for the Allocation and Management of the Workers' Retirement Reserve Funds”, the Company establishes the HFC retirement measures for its employees to ensure their retirement rights and benefits. In addition, Preferred shares were released in 2023. We reserved 10% (about 5,000 shares) for employees to subscribe, to share our operating performance with employees and enhance their commitment to working together to create a better future for the Company. Additionally, HFC initiated an employee stock ownership trust plan in 2023, which was officially approved on January 24, 2024, and implemented starting in May. For employees participating in the stock ownership trust plan, the company will match 100% of the employee's monthly contributions.

Provide medical checkups and travel subsidiesProvide medical checkups and travel subsidies

Employees’ health is important to the Company. To protect each employee’s health and create a healthy work environment, we regularly organize employee health checkups and provide medical subsidies for illnesses every year. The health checkup program covers general and special health checkups. In 2023, HFC subsidized 78 employees for health checkups at a total cost of NT$1,239,000. In addition, HFC provides annual travel subsidies to our employees, and for sales personnel who have achieved their goals in the competition; HFC also provides overseas trips for our employees and their families so that they can balance their lives and protect their most important physical and mental health while working hard. Employees’ health is important to the Company. To protect each employee’s health and create a healthy work environment, we regularly organize employee health checkups and provide medical subsidies for illnesses every year. The health checkup program covers general and special health checkups. In 2023, HFC subsidized 78 employees for health checkups at a total cost of NT$1,239,000. In addition, HFC provides annual travel subsidies to our employees, and for sales personnel who have achieved their goals in the competition; HFC also provides overseas trips for our employees and their families so that they can balance their lives and protect their most important physical and mental health while working hard.

Subsidized 78 employees for health checkups, totaling $1,239,000. Subsidized 78 employees for health checkups, totaling $1,239,000.

Family-friendly programs to promote workplace inclusionFamily-friendly programs to promote workplace inclusion

In 2020, in response to the special measures for the prevention of COVID-19, HFC also launched anti-pandemic care leave, which was available for those who needed to take care of children under 12 years old, so that employees could have the flexibility to take care of their families at the same time. From 2021, to respond to the special anti-pandemic measures, we provide vaccination leave to all employees who have been vaccinated after they submit supporting documents and an application for vaccination leave to the Company.In 2020, in response to the special measures for the prevention of COVID-19, HFC also launched anti-pandemic care leave, which was available for those who needed to take care of children under 12 years old, so that employees could have the flexibility to take care of their families at the same time. From 2021, to respond to the special anti-pandemic measures, we provide vaccination leave to all employees who have been vaccinated after they submit supporting documents and an application for vaccination leave to the Company.

Sustainable Family DaySustainable Family Day

To celebrate its 25th anniversary and enhance employee well-being and unity, HFC held ESG Family Day events simultaneously in Taipei, Taichung, and Kaohsiung. The events focused on promoting sustainable living, inviting employees and their families to join in a low-carbon walk, with over 1,500 participants. The Family Day events were held simultaneously across the three locations and encouraged participants to use public transportation or carpool to the venues, minimizing travel time, reducing carbon emissions, and promoting the concept of green commuting. The event was also entirely paperless, with a mobile digital passport used for entry, reducing paper usage and encouraging everyday environmental practices. Attendees were urged to bring reusable cups, and the event aimed to be plastic-free and leave no trace, reducing environmental impact. In line with the ESG theme, Hotai Finance gifted employees outdoor leisure hats made from recycled PET bottle fabric as a 25th-anniversary commemorative gift, reflecting the company's commitment to environmental sustainability. Before Family Day, two warm-up activities were organized: a low-carbon walk competition and a fitness challenge, encouraging employees to walk more in their daily lives, boost their health, and reduce carbon footprints. These activities further aimed to instill a regular exercise habit among employees, helping them relax amidst busy work schedules. The events were widely embraced, becoming a company-wide fitness initiative, with a total of 91.84 million steps walked, equivalent to 74 laps around Taiwan.To celebrate its 25th anniversary and enhance employee well-being and unity, HFC held ESG Family Day events simultaneously in Taipei, Taichung, and Kaohsiung. The events focused on promoting sustainable living, inviting employees and their families to join in a low-carbon walk, with over 1,500 participants. The Family Day events were held simultaneously across the three locations and encouraged participants to use public transportation or carpool to the venues, minimizing travel time, reducing carbon emissions, and promoting the concept of green commuting. The event was also entirely paperless, with a mobile digital passport used for entry, reducing paper usage and encouraging everyday environmental practices. Attendees were urged to bring reusable cups, and the event aimed to be plastic-free and leave no trace, reducing environmental impact. In line with the ESG theme, Hotai Finance gifted employees outdoor leisure hats made from recycled PET bottle fabric as a 25th-anniversary commemorative gift, reflecting the company's commitment to environmental sustainability. Before Family Day, two warm-up activities were organized: a low-carbon walk competition and a fitness challenge, encouraging employees to walk more in their daily lives, boost their health, and reduce carbon footprints. These activities further aimed to instill a regular exercise habit among employees, helping them relax amidst busy work schedules. The events were widely embraced, becoming a company-wide fitness initiative, with a total of 91.84 million steps walked, equivalent to 74 laps around Taiwan.

Foreign language study subsidyForeign language study subsidy

In addition to providing professional courses on the job, HFC also encourages employees to actively learn English and Japanese to improve their foreign language skills. Therefore, we have a comprehensive foreign language learning subsidy program and provide multiple learning channels and subsidies for further studies to train employees to become international talents. Additional bonuses are available for those who reach a certain threshold at exams. The number of people awarded increased by 9 times between 2021 and 2023; the total amount of bonuses distributed also increased by 7 times.In addition to providing professional courses on the job, HFC also encourages employees to actively learn English and Japanese to improve their foreign language skills. Therefore, we have a comprehensive foreign language learning subsidy program and provide multiple learning channels and subsidies for further studies to train employees to become international talents. Additional bonuses are available for those who reach a certain threshold at exams. The number of people awarded increased by 9 times between 2021 and 2023; the total amount of bonuses distributed also increased by 7 times.

Establish clubs to promote friendshipEstablish clubs to promote friendship

Employees communicate with each other at work. We also encourage them to network with each other in their spare time and facilitate emotional exchange between them across different departments on informal occasions. At present, the Company has established a total of 15 clubs, including yoga, singing, LOHAS, mountaineering, and film clubs, and has set up employee lounge rooms in the work environment to relieve their work pressure.Employees communicate with each other at work. We also encourage them to network with each other in their spare time and facilitate emotional exchange between them across different departments on informal occasions. At present, the Company has established a total of 15 clubs, including yoga, singing, LOHAS, mountaineering, and film clubs, and has set up employee lounge rooms in the work environment to relieve their work pressure.

Remuneration policyRemuneration policy

The remuneration paid by HFC to the directors is subject to the Articles of Incorporation based on the general level of the industry and is determined by the board of directors as authorized. In addition, we have a remuneration committee in place, and the director remuneration should be reviewed and approved by the committee before submitting it to the board of directors for resolution. The director remuneration is determined mainly based on the Company's operating performance (such as the achievement rates of revenue, pre-tax net income, and net income after tax) and the director performance evaluation results, including but not limited to each director's contribution to the Company and attendance. If the Company makes a profit each year, it shall allocate 1% as remuneration to employees. However, if the Company still has accumulated losses, it shall reserve an amount to offset the accumulated losses first. Remuneration to employees shall be made in the form of shares or in cash, and such remuneration shall be approved by a majority vote of the directors in attendance at a meeting of the Board of Directors with at least two-thirds of the total number of directors present. The remuneration paid by HFC to the directors is subject to the Articles of Incorporation based on the general level of the industry and is determined by the board of directors as authorized. In addition, we have a remuneration committee in place, and the director remuneration should be reviewed and approved by the committee before submitting it to the board of directors for resolution. The director remuneration is determined mainly based on the Company's operating performance (such as the achievement rates of revenue, pre-tax net income, and net income after tax) and the director performance evaluation results, including but not limited to each director's contribution to the Company and attendance. If the Company makes a profit each year, it shall allocate 1% as remuneration to employees. However, if the Company still has accumulated losses, it shall reserve an amount to offset the accumulated losses first. Remuneration to employees shall be made in the form of shares or in cash, and such remuneration shall be approved by a majority vote of the directors in attendance at a meeting of the Board of Directors with at least two-thirds of the total number of directors present.

Management Team Compensation Policy and Performance EvaluationManagement Team Compensation Policy and Performance Evaluation