Viewing employees as an important asset, Nova Tech is obligated to provide every employee a safe and comfortable work environment and well-established personnel systems that contain competitive compensation packages.
Employee Salary
Nova Tech has set up "Employee Salary Management Regulations", "Employee Appraisal Management Regulations" and "Employee Reward and Punishment Regulations" in accordance with the relevant government regulations. We have a transparent, open, and clear management system to calculate the bonus according to the annual budget and the performance of the individual. In addition, we regularly review the salary level of the employment market every year and provide reasonable salary compensation to our employee partners.
In 2023, Nova Tech's average employee payroll cost is NT$1,514,000, representing a growth of approximately 9.55% from 2022. The total salary of full-time employees in non-supervisory positions in 2023 is NT$192,482,000. The average salary for full-time employees in non-supervisory positions was NT$1,327,000 and the median salary was NT$1,127,000. Compared with 2022, the average salary of full-time employees in non-supervisory positions was NT$1,274,000 (an increase of 4.16% in 2023) and the median salary of full-time employees was NT$1,054,000 (an increase of 6.93% in 2023).
Salary Information of Full-Time Staff in Non-Supervisory Roles
Nova Tech offers different salaries to its employees according to their positions, qualifications and work experience. There is no difference in the basic salary between male and female at the basiclevel.
Ratio of salaries to statutory basic wage (Note 1) for different ranks of staff in 2023 (in multipliers)
Executive Remuneration Policy
Remuneration of Direc
Nova Tech calculates director's compensation based on the "Regulations Governing the Payment of Directors' and Functional Committees' Compensation", which includes: travelling expenses and attendance fees for attending board meetings. Directors are required to receive feedback on the performance of the Company's governance and operations, as well as the results of its social responsibilities at Board meetings, in order to fulfil the Company's spirit of honest governance and its commitment to sustainable development.
Pursuant to Article 19-1 of the Company's Articles of Incorporation, the Company shall apply the annual pre-tax profit (before deduction of the profit before distribution of employees' and directors' remuneration) to cover the accumulated losses first, and then set aside no more than 5% of the net profit before tax, excluding the distribution of employees' and directors' remuneration, as directors' remuneration. Directors' remuneration is also determined with reference to the Company's operating results. Directors' remuneration shall be reviewed and approved by the Compensation Committee and the Board of Directors. Independent directors do not participate in the distribution of director's
remuneration.
In accordance with the "Regulations Governing the Payment of Remuneration to Directors and Functional Committees", the independent directors receive a fixed monthly remuneration and travelling and attendance fees for attending board meetings. If an independent director is appointed by the Board as a member of a functional committee, he or she is entitled to additional committee remuneration, travelling expenses and operating expenses.
Evaluation of the Board Performance
To implement corporate governance and enhance the functioning of the Board of Directors, this Company has established a "Board of Directors Performance Evaluation Method", which stipulates that the procedures of each functional committee should be included in the internal performance evaluation of the committee at least once a year.
Within this Company, the Nomination Committee is the executive unit for board performance evaluation. The scope of evaluation includes the performance of the entire Board of Directors, individual Board members and functional committees, and incorporates corporate sustainability indicators such as "corporate governance", "risk management", "compliance" and "corporate sustainability responsibility" to implement corporate governance and enhance the effectiveness of this Company's Board of Directors' operations.
The performance evaluation of the Board of Directors of this Company shall be conducted at least once every three years by an external professional independent Organization or a team of external experts and scholars. On 27 December 2023, the Taiwan Institute of Ethical Business was appointed to carry out the performance evaluation, and it is expected that another external evaluation will be carried out in 2026.
Manager's Compensation and Performance
The performance evaluation items include: company-wide performance indicators (e.g. turnover achievement rate, net profit achievement rate, shareholders' equity return rate) and individual performance indicators (e.g. annual target items set with the supervisor, specific performance and achievement of talent introduction or promotion, technology exchange and new innovation industry development). Compensation is determined according to the position held, responsibilities assumed, contribution to this Company, and industry standards, and is reviewed by the Compensation Committee and the Board of Directors. The compensation system will be reviewed from time to time in light of the actual operating conditions and relevant laws and regulations in order to strike a balance between the Company's sustainable operation and risk control.
The compensation of the General Manager and Vice President consists of salary, bonuses, employee compensation, and compensation received for serving as a director or supervisor of a subsidiary. The annual compensation of managers consists of salaries, bonuses and bonuses to employees. Employee bonuses are paid in accordance with the Company's Articles of Incorporation, which stipulates that no less than 3% of the annual earnings shall be paid after deducting 10% of the legal reserve. For the sustainable development of the Company, this Company has added the technical exchange and innovation development related to environmental protection equipment and materials to the personal performance index of senior managers, which accounts for 10% of the overall assessment. This performance is also linked to the principle of annual compensation for managers to encourage them to continuously improve the performance of ESG-related business.
Note 1: The proportion and amount of employees' remuneration to be distributed were reported in the shareholders' meeting.
Note 2: This Company did not engage another compensation consultant in 2023.
Note 3: This Company's stakeholders did not participate in the voting of remuneration policies or proposals in 2023.
Disclosure of Remuneration Information
At Nova Tech, the ratio of the annual total compensation of the highest paid individual to the median annual total compensation of the rest of the Organization (excluding the
highest paid individual) is 10.74:1. In 2023, the ratio of the percentage increase in the annual total compensation of the highest-paid individual to the median percentage
increase in the average annual total compensation of the other employees of the Organization (excluding the highest-paid individual) will be 3.04:1.
Employee Benefits
Employee benefits are the incentives that motivate employees to excel. Nova Tech provides various insurance benefits and pension contributions in accordance with government regulations, and provides better protection for employees’ work and life with group insurance that is superior to that required by law. Nova Tech also encourages employees to get married and have children by providing maternity leave, paternity leave, family care leave, wedding leave, wedding bonus and maternity bonus.
In 2023, the total employee benefits expense was $14,908,217, an increase of 10.16% from the total employee benefits expense of $13,533,604 in 2022.
The average employee benefits expense in 2023 is $1,771,000, an increase of 21.14% from the average employee benefits expense of $1,462,000 in 2022. This demonstrates Nova Tech's commitment to the concept of taking care of its employees and to the sustainable management of the company.
Parental Leave
Nova Tech regards its employees as important partners and actively protects their rights and freedoms. For employees who have babies, the company will give them parental leave in accordance with the Labor Standards Act. After one year of employment, employees may apply for parental leave without pay before the child reaches the age of three (up to a maximum of two years) in accordance with the ‘Gender Equality in Employment Act’ and ‘Regulations for Implementing Unpaid Parental Leave for Raising Children’ (up to a maximum of 2 years). Upon the expiration of the period of leave without pay for baby-sitting, we will arrange for employees to return to work in accordance with the vacancy situation and the employees’ wishes, so as to protect and emphasise the career development of the employees.
Communication Channels
Nova Tech attaches great importance to two-way communication with its employees, and therefore has established the Communication Management Procedure to create a positive, positive, open and transparent communication environment, and to grasp the suggestions and voices of each employee partner, so as to deal with them immediately and appropriately and respond to them. Employees can submit their opinions through the ‘Internal/External Opinion Form’ and ‘Employee Mailbox’. The Management Department and related departments collect internal opinions and respond to them, so that the relevant stakeholders can reduce their concerns and worries in the channels of providing opinions, communication and consultation, and maintain a smooth communication mode. In 2023, we did not receive any unusual internal or external communication or employee mailbox comments.
To create a work environment that is free of sexual harassment, the Company has formulated the“Regulations Governing Prevention of Sexual Harassment.” Employees who have been subjected to such behaviour or incidents can file a complaint through the Complaint Hotline (03-6676868 ext. 1301) or the Complaint Mailbox (nova885@novatech.com.tw), and the relevant unit will handle the case appropriately after receiving the complaint. As a result of these measures and the establishment of various channels, there were no cases of sexual harassment related complaints against this Company in 2023.
Labour and Management Communication
Nova Tech values the rights and interests of each and every employee and is committed to providing a safe and comfortable working environment. In order to communicate with our colleagues immediately, we exchange opinions through various channels and internal meetings, and set up employee suggestion boxes to receive feedback from employees. We have set up relevant management rules and complaint channels to care for our employees through multiple channels, build up their sense of identity with the company, promote labour harmony, discuss labour conditions and benefits, and improve work efficiency. These efforts help employees and the company to reach a consensus on various labour issues. In the event of a significant change in operations, employees with three or more years of service will be notified 30 days in advance. Employees who have worked for one year or more but less than three years will be notified 20 days in advance. Employees who have worked for three months or more but less than one year will be notified 10 days in advance. The Company will also inform employees through labour meetings. In 2023, the main communication issues were employee welfare items, including employee trips, the company’s annual closing activities, encouraging walking campaigns, and the project manager’s performance bonus system.
In 2023, in regular meetings and supervisors’ management meetings, in addition to stepping up efforts to reduce unnecessary overtime work, we also communicated, discussed, and formulated activities related to the promotion of health, in order to improve the work-life balance of all employees. In addition, representatives of employers and employees discuss the suggestions and opinions provided by employees in satisfaction surveys in labour-management meetings, and announce and implement resolutions to express their concern for employees’ ideas and continuous improvement.
Employee Satisfaction Survey
Employee satisfaction is the level of employee satisfaction with their employer and is a key indicator of a happy Organization. The ability to meet employee needs, feedback and suggestions is a key factor in satisfaction. Employee satisfaction is also reflected in the quality of customer service. The higher the level of employee recognition, the more you can reduce operating costs and strengthen your brand image.
In 2023, the company conducted an anonymous employee satisfaction survey. Nova Tech’s satisfaction survey consists of six components: Satisfaction with Organizational Communication, Satisfaction with Work Environment, Satisfaction with Work Content, Satisfaction with Company System, Satisfaction with Self-Worth, and Satisfaction with Organizational Recognition. A total of 144 questionnaires were sent out and 138 questionnaires were returned in 2023. The response rate was 95.83%. The results of the survey are as follows:
The survey results show that employees are relatively satisfied with Organizational communication, working environment and Organizational identification, with an overall score of 79.41 (out of 100), indicating that this Company’s efforts in providing a good working environment and effective communication are recognised by employees. However, the ratings of job content, company system and self-worth are relatively low, with the difference between the lowest and highest scores not more than 3.5 marks. In order to improve this situation, from 2023 onwards, the Company will implement compensatory measures to reduce unnecessary overtime work by providing monthly guidance to department heads. In 2023, the number of overtime hours reached the maximum, but was still 42.11% lower than in 2022. In 2023, the total number of overtime hours worked decreased by 33.68%
compared to 2022. All of this demonstrates the importance we place on work-life balance for our employees, and our continued commitment to creating a healthy, positive work environment.
Human Rights Protection
In 2018, Nova Tech announced and implemented the Nova Tech Human Rights Policy with reference to various international standards, including the International Bill of Human Rights, the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights (UNGPs), and the United Nations Global Compact’s Code of Conduct for Responsible Business Associations (RBA), which declares that this Company upholds the principle of equal opportunity and treats people of all races, classes, languages, ideologies, religions, party affiliations, genders, marriages, physical and mental disabilities, nationalities, and political affiliations equally and fairly. Child labour and forced labour are strictly prohibited. All these efforts will help create a friendly and diversified working environment.
This Company is committed to implementing diversity in the workplace to ensure that employees are not subjected to discrimination, harassment or unfair treatment, and follows the relevant laws and regulations to set relevant standards to ensure that employees are not subjected to differential treatment on the basis of gender, race, age, marriage, religion, political affiliation, etc. in terms of appointment, promotion, performance, and salary system. In addition, the Company has formulated the ‘Regulations Governing Prevention of Sexual Harassment and the Guidelines for Prevention of Wrongful Infringement in the Performance of Duties’, which aims to prevent sexual harassment, maintain gender equality at work, and provide a work environment free from sexual harassment.
To implement this policy, the Chairman of the Board of Directors has also signed and approved the‘Nova Tech Human Rights Policy’ and committed to all employees that the Company supports and recognizes the spirit of the internationally recognized human rights treaties, and will not tolerate any acts of disregard for human rights. To enhance human rights awareness of internal colleagues and stakeholders and to reduce the risk of human rights abuse, the President has also approved the company’s‘Human Rights Policy Management Plan’ to implement the ‘Nova Tech Human Rights Policy’ and ‘Integrity Management’ for all employees.
The scope of this Company’s human rights policy extends to Nova Tech and its affiliates, and the Company applies the same standards to expect suppliers, business partners, and customers to comply with the spirit and basic principles of this policy. At the same time, the Company also requires suppliers to sign a‘third party commitment’ prior to cooperation, which stipulates that suppliers must comply with corporate social responsibility guidelines on labour rights, conflict minerals management and environmental protection.
Implementation of Human Rights
We identify important human rights issues in our industry and plan and organize responses to these issues in advance.
Human Rights Due Diligence and Remedies
In order to implement our human rights policy, we have established a human rights due diligence process to enable Nova Tech to comprehensively assess the risks posed by the company’s activities to human rights. Through risk identification and assessment of human rights issues, Nova Tech plans management measures and risk mitigation measures, and carries out improvement and followup review and evaluation of relevant actions to effectively reduce the impact and influence of human rights risks and protect the rights of employees and stakeholders.
Below are the risk issues and mitigation and compensation measures for each stakeholder.
Human Rights Due Diligence and Process
Channels for Complaints about Human Rights Issues
To ensure a better working environment and to protect employees’rights and interests, the Company has established a communication channel for stakeholders and allows employees to freely contribute and maintain confidentiality through channels such as quarterly meetings, labour council meetings, employee welfare committee meetings and employee satisfaction surveys. At the same time, the company has set up an internal audit mechanism to review the implementation of the human rights policy in a comprehensive manner through on-site audits, document reviews and employee interviews, and even to protect personal information and enhance labour rights. If there is any violation of human rights, employees can reflect it through the company’s internal complaint channel. Nova Tech has not experienced any discrimination or human rights incidents in 2023.
Human Rights Training
Since 2018, Nova Tech has continued to organize human rights advocacy, education and training, and has made human rights-related topics a mandatory E-learning course for all employees, and regularly releases information on the course to promote employees’ understanding of the importance of human rights. In 2023, Nova Tech instructed the General Manager to announce and explain the company’s human rights policy during the regular quarterly meetings and all-employee meetings, in order to implement the business
philosophy of human rights protection. In 2023, Nova Tech incorporated the ‘Human Rights Policy Management System’ into the company’s learning platform, E-learning, for online education and training, and tracked the completion rate of the training. All employees have participated in human rights policy education and training. The total number of training hours is 75.5, and the percentage of trained employees reaches 100%.
