Positive and Negative Impacts

PTT has changed our corporate vision to “Powering Life with Future Energy and Beyond,” bringing focus to an energy business of the future and the increasing variety of business operations while we expand and diversify into new business landscapes that extend beyond just energy. As we evolve, it is imperative we evaluate our business drivers and core capabilities, along with the skillsets, knowledge, abilities, experiences and characteristics of our personnel in all roles. This lays the framework to plan and develop personnel at all organizational levels, including executive management, and fosters a corporate culture of continuous learning, strong ethics, and positive behavior. Through our SPIRIT values, we build a workforce that is not only equipped with the necessary tools to succeed but also able to uphold high ethical standards, in line with PTT’s direction and future business goals. These factors drive us forward and enable our business to grow sustainably.

In the onset of COVID-19 over the past three years, PTT has adopted more flexible working arrangements, such as the “Work from Home” policy when cases were on the rise and the “Work from Anywhere” policy as the new normal when conditions improved. The change was made on a foundation of Trust and Respect, where PTT has continued to establish a strong working culture under guidance from our SPIRIT values. Other examples include workplace digitalization, the conversion of classroom to online training, and virtual classrooms. In addition, to protect our employees and their families from COVID-19, we have been trying to expedite procuring vaccines as well as instituting various screening and preventative measures. These efforts build confidence and trust that PTT will be able to return safely to business as usual in the new normal.

Objectives / Goals

The Human Resource division and the Organization Development division have set goals for collaboration and the company's development in order to respond quickly to various scenarios. Employee happiness is given special consideration in order to ensure timely and high-quality delivery of work and services. There are three key drivers: employee potential, effective work processes, and the incorporation of advanced technology in the workplace. The key drivers are required to strengthen the company's competitive advantage in the present and the future. In 2022, the divisions established a Human Resource and Organization Development strategy, incorporating 4L's strategy (Lean, Learn, Leverage, and Lead). The final 'L' stands for Lead The Change, expressing the prominence of concrete operations.

The Establishment of Strategic Objectives and Management Approaches

Management Approach

PTT’s Human Resource Management Policies

During the COVID-19 pandemic was still ongoing in 2022, along with , the organization is facing a new challenge as a result of a generational transition period, with a combined proportion of Gen Y and Z employees exceeding 60%, PTT implemented a work-from-home policy to ensure that work could continue. As a result, business practices must be revised to meet new challenges, such as revising effective recruitment guidelines, promoting the strength of corporate values, and focusing on communication between the organization and its employees, among other things.

The Chief Executive Officer and President, as well as Chief Officer executives and Senior Executive Vice President, attended an annual meeting with employees to highlight the communication of strategies and visions at least once a year via the online town hall to convey the direction for the company's operations and boost employee morale. When the situation at COVID-19 began to improve in late 2022, PTT organized an on-site town hall meeting and established operational policies that allowed some employees to resume operations. The work-from-home policy was renamed "Work from Anywhere," and it is still in effect today.

Human Resource Management Supervisory Structure  

PTT's human resource management structure consists of the following committees:

Human Resource Management Process

PTT places importance on investments to enhance the potential of all PTT Group employees, realizing that employees with potential, determination, competence, and commitment to the organization are The main success factor that drives business operations to achieve goals according to the vision and mission of the organization. Throughout the past years, PTT has focused on building a learning society (Knowledge-based society) as well as promoted leadership opportunities through develop employees at all levels to be good, talented people and work professionally. They are also ready to learn continuously throughout their working life and encourage employees and to assist PTT to take care of society and the environment while driving the organization toward sustainable growth.

Recruitment

PTT is always ready to offer opportunities to potential candidates, who are ready to embark on the challenges involved in promoting the growth and development of our company in a steady and sustainable manner. As we are guided by our vision of "Powering Life with Future Energy and Beyond”, we are dedicated to our employees' professional development and collaborative innovation, including the use of digital technologies. This will help us position ourselves better as time passes and circumstances change. Our management strategy places a strong emphasis on developing our employees' potential so they can sustainably grow with our company while also enjoying a work-life balance and equal employment opportunities. PTT has hired more than 70% of its employees from the area in which it operates (data as of December 6, 2022).

PTT has a strong recruitment and selection system. Job vacancies are broadcasted through multiple channels that cater to new-generation recruits in order to attract a large and diverse talent pool with the qualifications PTT seeks. Our online application site and the @PTT Career official Line account are two examples of such channels. Furthermore, PTT has been establishing networks within universities by organizing activities and initiatives with faculty and students on an annual basis. These engagements provide a forum for universities and our employees to exchange and share ideas and experiences, facilitating knowledge transfer and a clear understanding of our operations. Potential candidates will be able to prepare effectively as they start the application process. Furthermore, PTT has established relationships with private sector organizations associated with Thai students studying abroad. One of PTT's target groups that will eventually become a pool of potential candidates. A Human Resources department at a business level collaborates with a business unit. Together, both identify and analyze the demands, skillpower, and capacity requirements prior to formulating a human resource plan to recruit and select applications that meet our business needs.

Diversity Empowerment

PTT prioritizes the preservation and promotion of employee diversity. This includes ethnicity, religion, age, economic, social and economic backgrounds, as well as political interests. People with disabilities are also welcome at PTT. PTT aspires to have diverse human capital that responds to a wide range of work needs and customer preferences, as well as a diverse range of domestic and international business. This allows for the exchange of ideas, cultures, points of view, and experiences, enabling creativity and innovation for the benefit of both business and the general public. Furthermore, PTT prioritizes raising awareness of human rights, diversity in the workplace, and good business ethics through classroom training and E-learning courses such as "Good Corporate Governance and anti-corruption and corruption (CG E-Learning)", “Human Right”, “Innovation Leadership and Diversity Management”, and “Workforce Diversity Generation Management”, to all employees and executives.

PTT elevates the quality of life development for people with disabilities and encourage people with disabilities to have the opportunity to show their abilities which generates income and self-reliant, especially those with disabilities in the working-age group. According to the Persons with Disabilities Promotion and Development Act B.E. 2550 and its amendments, the objective is to determine key measures related to occupational promotion and to protect the employment of persons with disabilities. In 2022, PTT has operated according to Section 35 of the Act to hire 39 persons with disabilities/caregivers for service contracts, which is a ratio between persons with disabilities with normal employees at 1 per 100 people as required by law.

PTT establishes standards of conduct and disciplinary actions and communicates them to all employees. If anyone fails to comply, a supervisor must issue a warning. A more serious case of misconduct will be considered a disciplinary action violation. The employee involved will be punished in accordance with the nature of the offense and the circumstances of the case.

Employees can file complaints about unfair treatment at work or any other inappropriate practice without revealing their identities. Complaints can be made through a variety of channels, including through the direct supervisor or the labor complaint system on the PTT intranet. PTT seeks to resolve issues before they grow into major issues in order to maintain positive relationships between the organization and its employees.

Any actions or inaction that discriminate against, sexual and non-sexual harassment, obstruct, or restrict any advantage, directly or indirectly, without cause, because the person is male or female, or expresses themselves differently than their natural gender, or because of their origin, age, language, race, religion, disability, physical issues, or other factors are regarded as discipline crimes (HR Section 20, Standards of Conduct and Disciplinary Acts, Article 3.8). The aforementioned behavior is regarded as a moderate offense in accordance with PTT's disciplinary policies. There is a penalty of abstaining from a salary increase for no more than six months in the following year (Article 2 of the table is attached. Guidelines for disciplinary hearings and penalty deductions).

Employee Rights

PTT’s approach to human resource management is committed to sustainability and adheres to the UN "Protect, Respect and Remedy" Framework, the International Labour Organization (ILO), and the OECD Guidelines for Multinational Enterprises, where human rights, labor rights, and fair treatment in the workplace are all valued. PTT strives to provide a healthy work-life balance by promoting the quality of employees’ working life through job security, safety, and positivity in the work environment. PTT clearly defines objectives and key performance indicators to provide direction and an effective assessment of results, in case any aspect of the workplace needs to be improved. Employees can also gain access to information about the company's human resource management through a variety of channels. These include corporate policies, regulations and requirements, news updates related to labor relations, personnel changes, employee benefits and privileges, activities to strengthen employee engagement, crisis management, and other relevant internal communication through the internet, email, or relayed by management and team leaders.

PTT encourages its employees to join the State Enterprise Employees Union of PTT Public Company Limited, which was formed with specific goals and roles in the investigation and resolution of complaints. The union plays an important role in giving an overview of the effective improvement of the regulations and practices of the organization, while highlighting fairness of employees as much as possible. Its goals include overseeing the minimum standards of employment conditions in state enterprises in line with laws and regulations; promoting good relations between employees and employers and between employees themselves; and providing welfare to union members. PTT has supported the role of the PTT Union through various channels, such as the Relations Affairs Committee. Notably, PTT has no policy to discourage employees from joining the PTT Union through intimidation, harassment, retaliation, or any other form of violence.

Living Wage^{GRI102-37,GRI202-1,GRI401-2}

In determining remuneration, PTT's uses the living wage as the minimum baseline. This entails earning enough for employees and their families to cover basic human needs, maintain a reasonable standard of living and quality of life, and contribute appropriately to savings. PTT reviews employee compensation and remuneration plans on a regular basis. The State Enterprise Employee Union of PTT Public Company Limited handles negotiations, with a designated Labor Relations Committee addressing complaints, claims, or employee expectations. The Committee meets once a month and publishes meeting minutes that are available to all employees. Among other things, the meeting discusses the results of the annual employee engagement and satisfaction survey to see if any changes to current remuneration structures or compensation levels are needed. PTT's remuneration components are as follows:

1. Salary

Employees should be able to cover their living expenses, provide adequately for themselves and their families, and have enough left over to save. Multiple other factors influence how financial compensation is determined. The salary benchmarking process ensures PTT’s offer is comparable to other leading Thai businesses, particularly in the oil and gas industry. The pay structure then reflects the different and additional qualifications and responsibilities that come with the incremental progression of each job level, beginning with an employee's starting salary. Every year, PTT conducts a comprehensive review of total compensation and remuneration. If it is determined to be inadequate and a raise is required, PTT will submit a proposal to the Board of Directors recommending that compensation be re-evaluated so that it remains competitive and fair to all employees. Payouts are made on the 28th of each month, and raises are given once a year. The annual pay increase is subject to approval by the Board of Directors after taking into account overall business performance, cues from competitors and other top Thai companies, and general economic conditions that may affect the cost of living. Aside from these factors, raises are also linked to performance. What each employee receives is determined on an individual basis, and it is intended to reflect each person's hard work, level of responsibility, and ability to execute duties. Regardless, the minimum wage increase will always outpace inflation in order to increase employees' purchasing power and ability to spend each year. Finally, when promoted, employees will receive a salary increase (promotion increase), as a reward for the additional responsibilities and duties that a more senior position entails.

2.Welfare and Benefits

In addition to salaries, PTT also provides other welfare benefits to employees with the objective of enhancing the security of their lives and those of their families, which most employees are unable to earn by their own salaries and for which the state has not provided adequate assistance. The welfare benefits are considered a form of welfare that covers basic human needs and is comparable to the welfare and benefits of Oil & Gas business groups, and what other leading business groups have provided to their employees, including medical welfare benefits. Both are included in health insurance and PTT's benefits package for employees.
As part of our commitment to the well-being and livelihood of our people and their families, PTT provides other employee welfare benefits in addition to monetary compensation. Unfortunately, we recognize that salary alone is insufficient for the majority of employees, as a result of inadequate government support. PTT's employee benefits go beyond basic human needs and are on par with those offered by other companies in the Oil & Gas industry as well as other leading companies in the country. These include medical benefits such as health insurance and PTT initiatives such as a free onsite workplace clinic for employees and family members, vaccination support, and annual physical exams. In addition to medical assistance, PTT provides financial assistance through loan programs and savings plans. Employees are encouraged to contribute to their retirement and emergency savings accounts. To that end, PTT contributes to provident funds and savings and credit cooperatives, which offer a variety of savings plans and programs tailored to each employee's needs.

Employees who are relocated to another province will receive additional compensation to account for the associated financial and non-financial costs, such as moving expenses and difficulties, lodging, the higher cost of living in the new location, and being away from family. While PTT corporate housing is available in some areas, employees will be reimbursed for rent in areas where this option is not available. Employees who work offshore are also eligible for additional compensation. Employees relocated abroad are provided with welfare and benefits based on the country's terrain, weather, society, environment, and cost of living, among other factors, so that they and their families can maintain a good quality of life. Compensation increases are based on the cost-of-living adjustment index (COLA Index), which varies by country. Employees who are relocated will thus have enough to maintain their standard of living, cover housing costs, and support family members who also move and stay. Furthermore, PTT will assist with the costs of the foreign country's public services and utilities to alleviate some of the financial burden, as they differ from those in Thailand, as well as subsidize the employee's child or children's education. The aforementioned compensation and benefit programs have been derived by PTT from survey results conducted by the world's leading consulting firms. As a result, PTT's relocation services are universal and comparable to those offered by other leading companies.

PTT compensates employees who perform tasks outside of their normal scope of work. These include employees who are asked to work overtime or during a holiday; hourly employees whose nature of work requires long continuous shifts otherwise damage may result if stopped; employees working offshore to compensate and motivate since they are working in hazardous and inconvenient sites; and employees on standby, including those who has maintenance responsibilities and those required to be present in on-duty areas so they are ready when called upon in urgent situations The additional compensation is intended to encourage employees to participate in these special activities as well as to compensate for the change in their daily rest time and the loss of the chance to enjoy a break during a regular holiday.

3. Bonus

Annual bonuses are given to employees as a form of motivation and to show appreciation for their dedication and hard work. The amount is determined by PTT's overall success during the year, subject to approval by the Board of Directors, and is paid out in January of the following year. Because the bonus is intended to reflect individual performance, the amount received by each employee may differ.

Talent Attraction^{GRI202-1,GRI404-2}

The following are PTT's strategies and policies to foster employee motivation in terms of remuneration, career path, and so on:

• Standard criteria on appointment and promotion to help promote the career paths of employees who have good performance and capacity and are distinctive from other employee groups, as appropriate.
• Salary increases for employees who are promoted. This is a principle comparable to top management. Employee salaries can be kept competitive with the market in the long run and in a fair manner. The adjustment reflects employees' experience, work proficiency, or greater responsibilities.
• Compensation links to individual performance. Employees at all levels must set goals and performance indicators that are aligned with the company's goals and strategy. They must be unbiased in their assessment of employees' performance.
• Remuneration is linked to individual performance, requiring employees at all levels to set individual goals and targets. Goals and targets must be aligned with business goals and strategy while accurately reflecting employee performance results.
• Career path management that prepares employees for promotion and advancement within the organization. Individual career development plans are developed for high-performing employees to ensure their eligibility as candidates for internal vacant positions. The committees will consider the promotion in a transparent and fair manner.
• Flexible working hours to effectively promote employees’ work-life management. Employees can choose their working hours on a working day according to their lifestyle from 7:00 a.m. to 10:00 a.m., counting the working hours until 8 hours (excluding 1 hour break), for example, working time 07:10, leaving work at 4:10 p.m. or entering time. 10:00 a.m., finish work, 7:00 p.m., etc. Employees can choose their own working hours each day. PTT also implements a "Work from Anywhere" policy for its employees.
• PTT's welfare and other benefits exceed legal requirements and are tailored to all age groups. Each employee can choose the benefit package that best meets his or her needs and situation, such as alternative welfare or family medical treatment.

• Employee who is during pregnancy has paid parental leave in not excess of 90 days and can continuously use parental leave in not excess of 150 days without pay.
• Employee (male) who is legitimate has paid parental leave in not excess of 15 days.
• Provide lactation facilities at PTT Medical Service during 08.00 – 17.00
• Organize a place for child care at work (PTT Day Care) to facilitate PTT Group employees in using the service. Reduce travel time to pick up and drop off children. PTT Day Care is a place designed for children's safety. Supervise the development of children physically, socially, emotionally, etc. by personnel trained in caring for infants and young children that meet standards.
• Organize workplace stress management projects such as Happy Jaidee Project to provide psychiatric counseling services mental health promotion Increase the concept of work for employees. Including family members in various matters that may affect work efficiency including anxiety stress at work conflict at work Anxieties about finances, legal issues, concerns about family relationships. Personally concerned about the environment in work or other matters. This is something that can happen to PTT employees in work and life. It's not about having a mental disability or being mentally ill for mental health promotion counseling. And during the past COVID-19 situation, a mental health care program was organized for employees who had to work under lock-up measures. PTT employees and their families were able to seek advice from psychiatrists and psychologists via channel 24/7 Hotline, Face to Face, Line Chat. As well as organizing various training seminars such as Stress & Burnout Management Workshop, a course on how to gain the hearts of subordinates and colleagues. Organize training and educate supervisors to enhance leadership skills to understand how to take care of the mental health of the team. as well as providing knowledge and practicing stress relief for employees.
• Organize sport & health initiatives, for example, organize sports clubs such as tennis clubs, petaque, badminton, golf, etc. Organize a health promotion center (Fitness Center), including a Thai massage room, swimming pool for employees and their families. Each year, various health promotion activities are organized, for example, in 2023, WALK & RUN FUN & FIT was held every last Wednesday of the month.

Performance Assessment

Performance Management System (PMS) has been used in the performance management process of employees to support ongoing good performance. Individual KPIs must be set by management and all employees in accordance with business objectives in five aspects, which include:

• Resilience
• Restart
• Reimagination
• Reform
• Business as usual

The KPIs is align with business strategy and enhance engagement through 6 aspects according to the balance scorecard as follows:

• Product & Service Outcomes 
• Customer-Focused Outcomes
• Financial & Market Outcomes 
• Workforce-Focused Outcomes
• Process Effectiveness Outcomes 
• Leadership Outcomes 

In addition to the organization's strategic planning, PTT has established key performance indicators (KPIs) at the strategic level, which are then cascaded down to all operational levels. These KPIs are implemented at the organizational level and further disseminated to individual units. The objective and targets of these KPIs align with the responsibilities of each employee within their respective units, including other assigned tasks, such as participation in project teams beyond regular responsibilities, which can involve both team-based KPIs and individual KPIs. Employees are responsible for setting individual KPIs through the COACH system, which undergoes evaluation and approval by superiors at each level. Progress is monitored at least twice a year, with mid-year progress reviewed in the second quarter and annual performance evaluated in the fourth quarter through a process known as "Two Way" (agile conversations). These conversations involve discussions between superiors and subordinates throughout the year, covering planning, progress monitoring, collaborative problem-solving, and competency development. These discussions serve as a foundation for evaluating employee performance, following the Multidimensional performance appraisal principle. The aim is to ensure that employees can work towards their defined goals, achieve individual, unit, and organizational targets, and align with the vision, mission, values, and strategies of the organization. This approach follows the principles of Management By Objective.

In 2022, all PTT employees participated in Two Way conversations, reaching a 100% completion rate.

Human Capital Development^GRI404-2 

At PTT, career development works in tandem with knowledge management to build employee capacity and the skills needed to increase business competitiveness in the present and future. Career management is used as a mechanism for career advancement in each position, and it covers employee competency, knowledge, experience, and personal attributes to ensure that employees have a clearly defined career path and are motivated to pursue individual development by specifying individual development plans. PTT encourages its employees to apply new skills and knowledge gained from training by employing the 10/20/70 principle, which is closely related to the career management system. Through the system, an employee will gain 10% of knowledge and skills through a formal learning process, 20% through coaching and feedback from supervisors or mentors, and the remaining 70% through project assignments or on-the-job-training (OJT), as well as through sharing of knowledge and skills with others.

The Career Management System is a system for planning employee development in terms of capability development, technical skills, and career advancement. The Career Advisor and Human Resource Committee manage this at the employee level, while the Human Resource Group Alignment and Coordination Management Committee and the PTT Management Committee manage it at the executive level. Individual Development Plans (IDPs) are created collaboratively by supervisors and employees to ensure employee growth and career advancement.

In terms of executive and leadership succession planning, PTT divides candidates into two pools: potential directors (SEVP Pool, EVP Pool, and VP Pool) and potential employees (DM Pool), which are overseen by the following committees:

• SEVP Pool by PTT Human Resource Management
• EVP Pool by PTT Human Resource Management
• VP Pool by Career Advisor Committee
• DM Pool by Career Advisor Committee

PTT assessed the Group's needs over a 5-year period and chose employees with high capacity accordingly. PTT develops an individual development plan and establishes targets and goals. This improves their readiness before being appointed to key positions. Furthermore, scholarships are available to employees whose interests align with PTT's strategy.

PTT prioritizes human capital development at all levels through the PTT Leadership and Learning Institute (PLLI). Leadership development and employee learning are supported by core courses, including the Leadership Development Program and the Core Program, as well as technical training through the Functional Program. These programs currently serve as pillars of our business and will continue to do so by focusing on the integration of various learning approaches and strategies appropriate for learners based on adult learning principles. Finally, we hope to create an environment that promotes learning and experience sharing, such as through intergenerational knowledge transfers, hands-on practice, and case-based learning.

PPLI makes use of digital tools to help employees continue their learning journey outside of the classroom. In 2021, as the outbreak of COVID19 was ongoing, PPLI shifted the model of human capital development towards a form of hybrid learning, including classroom training and virtual classrooms, to support the learning of employees in a real-time manner. Through VDO Conference platforms such as Microsoft Teams, Webex, Zoom, and others, employees can share their knowledge, ideas, and experiences with other training participants and lecturers. The PTT Learning Management System (LMS) was used to organize the trainings, and the feature playlist was refined and updated by categorizing training courses. This enables management and staff to more effectively search for courses based on new core competencies. As a result, supervisors and staff employees' IDPs are promoted. Furthermore, Experiential Learning was incorporated as an approach where individuals learn through online Role Play activities. With Board Games, employees are immersed in a fun and interesting atmosphere while having the opportunity for practical application. As a result, staff has a better understanding of our business and operations.

Another form of digital learning and communication such as E-Learning was also implemented to respond to PLLI objectives to promote learning that is accessible anywhere and any time, as well as supporting lifelong learning. The E-Learning provides content related to organizational knowledge, rules and regulations, requirements, and policies. PTT's online learning platform includes more than 300 PTT E-Library courses along with externally sourced courses in Business, Technology, Soft Skills, and Lifestyles (E-Book, E-Magazine, Magazine, Book). Employees can use the system to search for, reserve, borrow, and return books and magazines. For employees' self-development, general books are also available through other channels, such as Podcasts and online collections of audio programs that provide knowledge in a variety of fields. The model is consistent with our business goals and organizational strategies while also providing the greatest benefits in employee development and modern management. This outside-the-classroom learning system was used by 3,402 people in 2022, accounting for 96% of the total workforce.

PTT Leadership and Learning Institute Curriculum Structure

• Employee development through the Leadership Development Program, which is a training course for top executives. For example, LDP1 is a training course for employees in the VP Pool group focusing on enhancing entrepreneurship, strategic direction, business acumen, analysis and decision-making, and delegation empower. Action-based learning, as well as networking activities, are implemented. Last year, 30 employees (0.85 % of FTEs) were promoted to the VP pool, which can replace the vacancy rate at 100%. This program also enhance employee’s skills as shown in competencies gap improvement which were increasing by 11% (after training program 3 months) from supervisor evaluation.  And reduces the cost of external hiring by approximately 18.5 million Baht  or an ROI 243%
• Employee development through the Young People to Globalize (YP2G) program. The objective of this program is to develop employees’ readiness for difficult and challenging tasks, including new important projects according to PTT's strategy. YP2G employees will be assigned to take on challenging tasks through 4 main functions, namely strategy & planning, business development, commercial & marketing, and engineering & operation. This will allow employees to learn and gain experience from working On the Job Training (OJT). In 2022, 10 employees (0.28 % of FTEs) were assigned tasks for a new business line, or a new S-curve of PTT. 5 Talented individuals completed the YP2G program and 2 were placed in Arun Plus Co., Ltd.,  2 in Mekha V and  1 in NRPT. Which is new companies as a key business driver to create new growth and broaden diversification in order to enhance competitiveness, efficiency, productivity and new revenue generator. This Program reduces the cost of external hiring by approximately 1.84 million Baht or an ROI  203%

Knowledge Management

PTT's knowledge management (KM) helps us become a "Learning Organization" by enabling learning at multiple levels, from personal and small-group levels to communities of practice. The PTT Group Core Values and Knowledge Alignment Committees drive this effort forward through our people, processes, and technology as we constantly strive to improve and share best practices in order to create synergies and excel in a competitive environment. The committees will provide KM progress updates to the PTT Group Management Committee (PTTGMC) on an annual basis, allowing the PTTGMC to recommend improvements to better support our people as they build on and apply their knowledge.

The Chief Executive Officer and Managing Director of PTT assigns the Core Values and KM Alignment Committees to develop requirements and guidelines to achieve the company’s goals. The vision and goals of the Committee are re-evaluated at least annually to ensure that KM remains a tool that fosters a culture of knowledge-sharing and exchange. Our commitment to assisting our people in transforming knowledge into action, through creativity and taking the initiative to produce and deliver value-added innovations, is reflected in three primary mechanisms:

• People: Train employees to make learning and self-improvement a habit.
• Process: developing knowledge management processes that efficiently facilitate the exchange, storage, application, and extension of knowledge and promote the use of digitization to accommodate future changes and respond to the needs of all stakeholder groups
• Technology: Encourage the use of information technology in data storage and search to improve accessibility, effectiveness, and speed; updates were made to improve the user responsiveness of our knowledge storage system, the PTT Group KM Space.

In 2021, the following operations will be carried out via the three primary mechanisms:

Corporate Values
PTT Group Core Values

SPIRIT defines our core values and shapes our people's behaviors and ways of working at PTT. SPIRIT stands for Synergy, Performance Excellence, Innovation, Responsibility for Society, Integrity & Ethics, and Trust & Respect. We believe that SPIRIT's six values will serve as the foundation for inspiring management and employees to be good and conscientious citizens who uphold the standards of both the company and society as a whole.  

 as well as position ourselves to respond to future challenges. PTT Group employees will be the driving force that propels Thailand through change toward a new future, guided by the values that comprise SPIRIT:

• Synergy:Knowledge sharing and collaboration happens robustly among employees within and beyond the organization.
• Performance Excellence: Employees are well-prepared and can quickly adapt to changes. They are hardworking individuals who go above and beyond to create and deliver maximum value to stakeholders.
• Innovation:With a positive outlook, employees are constantly looking for new opportunities and ideas and are not afraid to think outside the box. They can use and apply new digital technologies to improve work efficiency while continuing their learning and self-development journey.
• Responsibility for Society:Employees act with social awareness and understand the impacts on stakeholders, thereby making contributions to sustainable business development with environmental responsibility. They are volunteers who assist the public, community, society, and nation.
• Integrity & Ethics:Employees exhibit admirable personal attributes and work ethics. They maintain the organization's moral and ethical standards while remaining open and honest.
• Trust & Respect:Employees collaborate on the basis of confidence and trust. They believe in the potential of others and accept and respect diversity with an open mind.

Employee Engagement

PTT reviews and develops key factors that influence employee engagement and satisfaction in both quantitative and qualitative aspects every year. To better understand the needs expectations and experiences of our diverse pools of personnel, our company uses field research and data collection, small group meetings with employees, and employee engagement and satisfaction surveys. The questions cover issues of satisfaction, happiness, and clear goals of working at PTT. The assessment results are then analyzed to improve our approach to building engagement and satisfaction, which leads to key business outcomes.

In 2022, PTT reviewed the PTT Engagement Model and included two additional questions relating to manager and career development. Our survey highlights the support and motivation for best practices, as well as the importance of providing career opportunities for employees with outstanding performance. The data is applied to the effective development and implementation of Human resources policies. In addition, we consistently conduct a survey on corporate culture and employee engagement. 

Complaint and Grievance Mechanisms^GRI102-41

PTT has a transparent and systematic employee grievance management system, as well as mechanisms that maintain confidentiality and respect human rights. In the Company's requirements and guidelines, we clearly define the processes, definitions, and responsibilities of relevant departments. We emphasize confidentiality and human rights principles, as well as communicating with employees at all levels, to ensure that complainants are protected without affecting operations or safety. Our objective is to create an environment of understanding among employees as well as between employees and the organization. A Grievance Committee is formed to review and investigate incidents on a case-by-case basis, with representatives from Internal Audit, Legal, Corporate Governance, and Human Resources serving as committee members. Employees can submit formal complaints to their own supervisor or manager, their business unit’s human resources division, the Employee Relations complaint system, the Labor Relations Committee, the Joint Consultation Committee (JCC), or the State Enterprise Employees Union of PTT Public Company Limited.

Key Indicators, Performances, and Awards

Performance in Human Resource Management

PTT’s effective Human Resource management is reflected on the Human Capital Index (HCI) at PTT through three drivers:

1. human capital and talent development
2. employee engagement
3. practical learning opportunities and diverse working experiences

Human Capital Index (HCI)

Performance in Recruitment

In 2018, PTT completely redesigned our e-Recruit system, from managing candidate data to extending and signing the formal employment offer. Consequentially, the recruiting and selection processes became much faster and more efficient. It also provides us with sufficient data to further analyze and identify areas for improvement. Our updated Onboarding Program has aided new hires in quickly acclimating to our corporate culture and meeting work expectations in response to PTT's business needs.

In 2019, PTT further refined and improved the efficiency of our e-Recruit system based on user feedback, by streamlining the process and fully connecting it to the applicant database. In July of the same year, we also launched the PTT Game-Based Aptitude Test, or a pre-employment test capable of evaluating a candidate from a variety of perspectives, including intelligence, competency, and technological literacy.

In 2020, as we continued to monitor our testing system’s performance, we made further improvements based on user experience. We implemented system development plans with the goal of improving test score accuracy while also developing data warehouses and operating systems to allow teams to work more efficiently.

In 2021, in line with our vision, we have been advertising job postings through various new channels that target the new generation of applicants, such as our PTT and online job application websites, as well as our official Line account. We have also networked with universities and organized conferences where our employees could share their experiences and ideas. This not only increases brand awareness, but also provides potential candidates with a better understanding of PTT's business and operations, allowing them to prepare accordingly prior to  the application process. Furthermore, the PTT job application page (www.pttplc.com) has been updated to improve applicant accessibility and compliance with the Personal Data Protection Act (PDPA).

In 2022, PTT promoted activities to expand candidate recruitment channels, build networks with organizations and institutions both inside and outside the country, and exchange knowledge and working processes in recruitment and selection to find potential candidates who meet the organization's business guidelines. The Network Recruitment Partnership event was organized to build a network with both domestic and international professional and student associations. University networking activities were also organized to assist students in developing university networks and to provide special lectures on corporate information, job preparation, and advice from faculty alumni, such as resume writing and interview preparation. PTT's objectives were to raise brand awareness, which would lead to students' interest in applying for PTT jobs. In addition, the company organized a student internship program twice a year (the cooperative internship and the summer internship) to promote opportunities for students to learn and gain experience from actual work. PTT has strengthened academic cooperation with universities by drafting an academic cooperation memorandum of understanding (MOU). Furthermore, PTT hired local employees and interns residing in Rayong, Chonburi, and Nakhon Si Thammarat, to work and learn in the area with PTT's business operations.

Recruitment (Percentage)

Internal Hire Rate (Open positions filled by internal candidates)
(Percentage)

Employee Turnover Rate (Percentage)

Total Employee Turnover Rate (Percentage)

Total Employee Turnover Rate by Age (Percentage)

Voluntary Employee Turnover Rate (Percentage)

Voluntary Employee Turnover Rate by Gender (Percentage)

Voluntary Employee Turnover Rate by Age (Percentage)

Diversity^{GRI202-1, GRI405-2}

Representation of Women (Percentage)

Average Men and Women’s Salary (baht)

Workforce Breakdown by Religion

Local Employment

Performance in Talent Attraction
Activities to create Talent Attraction in 2021 are as follows:

Performance Assessment

PTT employees are required to identify and enter their individual performance indicators into the performance evaluation system once a year. The indicators should be based on the targets of each employee's respective business line as well as the organization's goals. Managers are assigned to check in with their team members at least bi-annually, and to use a two-way communication approach to track and provide any needed support to ensure that targets are met as planned. Based on their evaluation, the managers determined that all employees had met their goals.

Employees who Receive Performance Evaluation

Performance in Human Capital Development

Each employee will receive evaluation on the job expectations and develop an Individual Development Plan (IDP) that identifies developmental opportunities in the areas of training (10), teaching (20), and practical application (70). The PTT Leadership and Learning Institute (PLLI) established the IDP to guide employee growth and development at all levels, from entry to management, and offers a variety of courses such as new hire orientations, core curriculum courses, management and training courses, and courses aligned to organizational strategy and direction. In 2021, PTT's high potential pool in management and staff-level employees have all (100%) developed IDPs as part of their career development process. IDPs ensure that PTT has a sufficient supply of trained manpower to meet organizational demands at the management level, with a current target ratio of Demand 1: Supply 3.

PTT’s Management and Staff Training Expense (Baht per person)

Human Capital Return on Investment (Times)

Performance in Employee Engagement

PTT has identified employee engagement and satisfaction as one of our Corporate KPIs, which has been distributed to all business line managers. As a follow-up, we have developed an improvement strategy and monitored the performance of each business line.

Employee engagement in 2019 was 79%, a 1% decrease from the previous year. According to detailed analysis, 2019 engagement differed from 2018 engagement by 0.2%. Employee engagement with the organization remained higher than the 74% overall engagement for the Asia-Pacific Oil & Gas business. 

Employee Engagement (Percentage)

Labour Practices^GRI102-41 

Employees who became a member of the PTT Union

Complaints and Grievances

PTT provides channels for employees to complain about work-related issues or unfair practices discrimination Sexual harassment or harassment under criminal law. This can be done through the PTT-specified channels, such as submitting a written complaint to the accused employee's supervisor. (The accused employee may choose to remain anonymous) or file a complaint via the labor relations complaints system on the PTT intranet for PTT to consider relevant relationship-building actions. between the company and its employees.

Furthermore, PTT has established a channel through which employees can file complaints if they believe their supervisors abused their authority to treat them unfairly. or failing to treat employees properly according to rules, regulations, requirements, orders related to work The aforementioned frustrating issues can be discussed with the supervisors in hierarchical order.

PTT has established standards of conduct and disciplinary actions, which consider acts of sexual harassment or harassment under criminal law as a violation of discipline. If any employee commits such an act, PTT will initiate an investigation process, conduct inquiries, and impose penalties. If the investigation reveals a substantiated violation of discipline, which is considered a relatively serious offense, PTT will enforce appropriate disciplinary measures, such as termination with or without compensation, depending on the circumstances.

The alignment of our internal human resource policies, requirements, and practices with applicable labor laws and regulations demonstrates PTT's strict adherence to labor laws and regulations at all times. As a result, no labor-related complaints or legal cases were filed, and PTT's compliance actually contributes to good relationship-building within the organization.

Corruption Incidents (Cases)

Business Ethics Violation Incidents (Code of Conduct Violation) (Cases)

In 2022, there were no offenses that involved insider information, conflicts of interest, fraud and corruptions.

Employee disciplinary misconduct (Cases)

	2022
Complaints about violations of the Code of Conduct that have been investigated/completely investigated	1
Non-compliance	1
Corruption	0
Privacy violation	0
Bribery	0
Discrimination	0
Sexual harassmen	0
Harassment	0
Others	0
Punishment as a result of unfair treatment complaints	0
Verbal warning	0
Notification letter	0
Suspension	0
Dismissal	0
Others	1

Performance in Commitment to Corporate Values

PTT has implemented various actions under an overall framework that ensures our organization successfully drives forward through our SPIRIT values in parallel with the new vision, "Powering Life with Future Energy and Beyond." The framework is made up of three major components, which are as follows:

People: PTT's personnel development efforts focus on corporate values, both in terms of creating an understanding of the values and reinforcing positive behaviors through a variety of approaches applicable to all levels of employment. Among these efforts are the incorporation of the SPIRIT values into activities during new hire orientations, including interns, and training courses for managers and staff that promote the SPIRIT values. The goal is to help employees develop skills that will allow them to use corporate values to propel their teams, such as becoming a leadership influencer and having managers convey their experiences as role models whose actions at work represent the SPIRIT values. 

Mechanism: To ensure that behaviors derived from the SPIRIT values are sustainable, PTT has ingrained these values into all human resource management mechanisms and processes — from recruitment to performance evaluations. Each business line is also encouraged to promote and push for the SPIRIT values in a concrete way by completing their respective SPIRIT Action Plan.

Reinforcement: In terms of reinforcement, PTT establishes a Tone from the Top based on what senior management believes is important in terms of business transparency. The communication is relayed through video clips and Leadership Messages, with regular communications on Governance Risk Compliance (GRC) in both video and infographic formats. To encourage sustainable behaviors in Integrity & Ethics, relavent lessons have been incorporated into the GRC Lesson Learned for employees to absorb and potentially reduce the number of mistakes that may occur in the future. Furthermore, the SPIRIT Tagline, which was created to communicate work or organizational activities related to the SPIRIT values, assists employees in understanding that actions motivated by these values are something that is close to them and within reach at work.

Under the project "PTT INNOVATION BOOST CAMP," we have organized a series of activities to promote our corporate SPIRIT values while also improving the working environment. The goal is also to encourage employee collective behaviors in innovation by developing necessary knowledge and skills for the modern workplace. Participation is open to all business lines, and over 120 people have presented their innovative ideas, including 15 roadmaps in the form of project plans and prototype product details divided into three categories: (1) innovative ideas; (2) innovations for increasing work efficiency; and (3) innovations for business expansion. The business line will build on these contributions in order to be consistent with PTT's new vision and respond to business expansion strategies.

Commitment to SPIRIT Values Score (Percentage)

Knowledge Management

In 2022, PTT announced the first implementation of the Learning Organization Master Plan, which resulted in the use of the PTT LO Maturity Assessment to align with the Master Plan. The 2022 score serves as the baseline for reporting the strength of knowledge management the following year.

Knowledge Management Assessment Score (Percentage)