IRPC commits to manage human resource marked by clarity, transparency, fairness, and uniformity. The management regards human resource development, career progress, fair compensation and incentives as specified in IRPC Corporate Handbook.
IRPC defines HR Excellence policy in order to accelerate organizations faster and more effectively with a goal “To be Top Quartile OHI (Organization Health Index) by 2020.
2. Management System/Process
Good Labor Practices
Human Capital Development
Training & Development
IRPC aims to develop employee potential at all levels and all functions to improve capability of its human resource to get ready for the challenge that come with opportunity for business growth. IRPC always improves organizational structure to be in line with business strategy which also defines a new Technical Competency Criteria and established a unit to improve technical competence of the employees in the production line to meet the Company’s requirements. Leadership programs for all employee levels (Executives, Middle-Managers, and Senior Officers) are arranged and foreseen for preventing interruption in the future operations. Standard of leadership roles is defined by best practice that can be used by employees as a behavioral guideline for a leader as expected by the Company. Activities are conducted to build leadership among its leaders via executive development program, executives coaching by world class consultant, and training courses in LEAD program. Furthermore, IRPC performed assessment of knowledge and competence of its employees to determine suitability to their job and responsibility and the result from the assessment is used to develop an Individual Development Plan for each employee.
Human Capital Return on Investment
IRPC considers that Human Capital Return on Investment provides a means of measuring our company’s profitability in relation to total employee costs. It is derived by removing non-employee costs from overall operating costs and deriving the resulting operating profitability.
Return on Employee Development Investment
In order to make decisions about where to invest our valuable training and development budgets, IRPC applies the calculation of return on employee development investment which is cost and benefit ratio. The ratio measures value for money of the programs, in which IRPC had invested in employee development and the monetary benefits, IRPC had received in return as a result of the training programs. The higher the ratio signifies the return on investment generated by the program.
IRPC aims to develop employee potential at all level and all functions to improve capability of its human resource to get ready for the challenge that come with opportunity for business growth. In 2018, IRPC had measured the objective performance on knowledge application from human development program in terms of return on investment. Average training hours per employee in 2018 was 48.00 hours per person per year which exceeded the target of 40.00 hours per person per year. The Key Performance Indicators (KPIs) for the average training hours per employee is shown below:
Talent Attraction and Retention
Individual Performance Appraisal
At IRPC, we determine to implement a comprehensive human capital development, by assessing employees’ potential in order to set up the progressive plan. Performance assessment consists of the following 4 stages
- Set strategy and define top management KPI
- Cascade KPI to Individual Including target setting
- Plan and manage performance
- Evaluate performance and reward
IRPC employs various types of performance appraisal. We define Leading and Lagging Indicators and used Value Tree and KPI Cascading Tool that can display a graphical representation that show the relationship between each KPI of the employees at all level to be able to analyze and define key indicators which can actually measure the performance. The performance assessment was also conducted twice a year using 360 degree appraisal. IRPC also conducts performance evaluation on each function to identify employees who have excellent performance through high level management round table process.
Round Table session aims to discuss on
1) Group Evaluation and Performance Calibration;
2) Behavioral Gap Discussion;
3) Talent Management.
The criterion for performance evaluation consists of KPI Score, Behavior Score, 180 Assessment Results, Career Estimated Potential Potential (CEP) Score, Personal Profile Information, and Personality.
The company has surveyed 6 aspects of the relationship between the employees and the organization, including Leadership, Performance (how to accomplish the work), Brand (how to create the organizational brand), the Work (factors relating to the assigned tasks), the Basic (basic factors which the organization provides to the employees), the Company Practice (how the company treats the employees) through the indicators “Say” (the employees say positively about the organization to their colleagues, prospective employees and client), “Stay”, “Strive” (the employees’ willingness to dedicate themselves and work beyond the company’s expectations for successful business). The employee engagement survey is conducted by 6-point scale.
In addition to engagement survey, IRPC has committed our own target “Organizational Health Index”. The index is measured from 9 elements to reflect the organizational capability through
3 aspects as follows:
1) Align: through strategic target and corporate culture in line with corporate’s target
2) Execution: through functional accountability, strong collaboration, organizational capability building, and employees’ motivation
3) Adapt to Change: through the business adaptation and innovation The key linkage to organization capability development is leadership that is capable of policy setting, operational control, and business competency.
Trend of Employee Engagement Score