Sustainability

Sustainable Human Resource Management

Sustainability

Sustainable Human Resource Management

Management Approach

Sustainable Human Resource Management

PTT recognizes and values the importance of human capital development in enhancing knowledge and competencies, as it is a key factor in driving business competitiveness towards the organization's vision and mission. PTT focuses on building a Knowledge-based Society to build leadership and develop employees into ethical and talented professionals, promoting leadership-enhancing opportunities, fostering employees to become ethical and talented profession, with readiness for lifelong learning at PTT. PTT supports employees’ capacity in caring for societies, communities, and the environment; and to drive the organization towards sustainability. 


Human Resource Management

Employees play a vital role in moving the organization's vision, mission, and strategy on the path of success. Based on this understanding, PTT has identified the following strategic objectives and approaches to manage human resources:

Strategic ObjectiveManagement Approach 
Sufficient potential director pool to support business growth  Analyze success profiles in positions as required by businesses; develop management's leadership skills as appropriate to both current and future position requirements; monitor results, and build robust succession plans for all important strategic positions.
Sufficient potential employee pool to achieve business direction  Select talent pool of capable employees, and enhance employees' skills for future executive positions through the career management program and regular monitoring for improvement.
High potential employees  Develop employees to support business expansion in core and new capabilities, which include that of PTT's Leadership and Learning Institute, as well as Functional Academy for each career path. Functional Academy is responsible for designing, developing and driving the effort for employees’ knowledge, capacity, and professional excellence. This is according to vision and mission of human capital development directions in line with CCT business line. There are also 3-5 years roadmap developed to facilitate the vision, as well as support plans to build business line-specific expertise. This allows them to become internal lecturers of PTT Group, in order to become an organization of sustainable learning.
Highly engaged employees  Focus on enhancing workforce engagement by analyzing engagement survey results and setting up plans for Corporate Policy Focus and work line. This comprises supporting directors’ human capital development, as well as process and system improvement, to ensure they suit the needs and expectations of employees in each business line and their diverse age range. 
Highly capable HR and effective service delivery Build the capabilities of executives and HR officers to effectively respond to short- and long-term business requirements.

Remark: Potential director group refers to manager-level employees who are VP Pool, as well as potential employee group, which are senior-level employees in division pool. 


Structure and Management System

PTT's human resources management structure consists of respective committees, as follows. 

  • Professional Consultants stipulating guideline for employees' professional development
  • Human Resource Business Group Committee (HRBG) examines human resources management
  • Human Resource Committee (HRC) proposes policy and provides guidance on human resource management.
  • PTT Human Resource Management considers and approves principles and guidelines of PTT's principles and management approach
  • Structure, Remuneration and Manpower Committee approves structure, positions and work rates, as well as manpower
  • Human Resource Group Alignment with Coordination Management Committee (HRAC) manages human resource matters to systematically align with PTT's strategy and direction
  • PTT Management Committee advising and providing recommendations to the Chief Executive Officer and the Management Director, facilitating key decisions regarding strategy, business directions, long term operations, performance, investment plan, and budget.
  • Human Resource and Educational Scholarship Committee focuses on international scholarships, trainings, and development programs for employees from level ten downwards. The aim is to prepare for respective readiness in becoming executives
  • PTT Union Relations provides opinions, fosters and promotes union relations to address internal conflicts within PTT, including adjustment of regulations, addressing grievances, or ameliorate employment conditions

PTT integrates the concept of a Learning Organization into the design of PTT's human resource management and organization development systems, and uses information technologies in everyday operations. For example, the Systems Applications and Products (SAP), which stores employee information, and the COACH Application, which maintains employee records and information on their competencies, derived from work analyses and success profiles. The COACH Application also stores information on KPIs used for standardized employee performance assessments. 


Recruitment

PTT's recruitment system prioritizes internal candidates with suitable qualifications, knowledge, and experience to fill job vacancies. This internal recruitment system provides opportunities for PTT employees for promotion and to develop their potential for a diverse career path along with the sustainable business. The recruitment system reflects PTT's awareness of work life balance and equal opportunities for all employees.

PTT has a systematic recruitment and selection system, communicating job vacancies through various channels both domestic and international. This ensures diverse applicants. There are human resource department at a business level, working with a business unit, and together identify needs, manpower and capacity required. A human resource plan is then developed to attract and select applicants with capability suitable to the business needs.


Diversity

PTT prioritizes the maintenance and promotion of employee diversity. This includes ethnicity, religion, age, economic, social and economic backgrounds, and political interests. PTT also welcomes those with disabilities. PTT aims to have diverse human capital, responsive to different work needs and customers’ preferences, variety of business both domestic and international. This allows exchange of ideas, cultures, point of views and experiences – enabling for creativity and innovation for both business and the public’s benefits. 

Attraction 

PTT's strategies and policies to foster employees' motivation in-term of remuneration, career path and etc. are as follows: 

  • Improve criteria on position and appointment to be standardized throughout PTT, ensuring employees have good performance and capacity. This helps promote advancement that is distinctive from other employee groups
  • Annual benchmarking research of leading companies' remuneration practices, ensuring competitive remuneration of employees. There is adjustment reflecting employees' experience, work proficiency or greater responsibilities
  • Compensation links to individual performance. Employees at all levels must set targets and performance indicators consistent to business targets and strategy. They must be indiscriminately reflective of employees’ performance.
  • Remuneration is linked to individual performance, stipulating for employees of all levels to set goals and targets at an individual level. The goals and targets must be aligned with business goals and strategy, while justly reflecting the different performance results among employees.
  • Career path management that creates employee readiness for promotion and moving up in the organization. The individual career development plan is prepared for high performance and development of employees that ensure their eligibility as candidates for internal vacancies. The promotion will be considered by the committees in a transparent and fair way
  • Welfare and other benefits offered by PTT are higher than legal requirements and are tailored to suit all age ranges. Each employee is able to employee is able to select the benefit package that best suits his or her needs and situation, such as alternative welfare, or medical treatment of family

Age RangeWelfare and Benefits
Employees Flexible benefits to suits the different needs of employees based on age group. There are also welfare and benefits for family members, such as medical care and scholarships
Near-Retirement Employees  Pre-Retirement Training Programs, such as training on senior citizen laws, the inheritance law, and healthcare for senior citizens. All trainings provided free-of-charge.
Retirees Farewell sessions for retirees providing knowledge on different issues, such as healthcare, financial planning and management, welfare and benefits, types of tax payments, etc. There is also Organizational Support Program for staff in difficult circumstances, such as those facing health issues etc.

Performance Assessment

Performance Management System: PMS has been used in employees' performance management process to support ongoing good performance. Management and all employee level have to set individual KPIs that 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

After setting corporate strategy plan, PTT assesses individual and business unit performance using the COACH application at least twice a year. A mid-year performance review is conducted during the 2nd quarter, and during the 4th quarter; an annual performance assessment is carried out covering issues of planning, progress monitoring and employee development to ensure that employees can achieve their targets in line with the vision, mission, and corporate strategy of the organization. 

Human Capital Development

Career development is carried out in conjunction with knowledge management at PTT, in order to develop employee capacity and build the necessary skills to increase business competitiveness for the present and future. Career management is utilized as a mechanism for career advancement in each position, and covers the areas of employee competency, knowledge, experience, and personal attributes, to ensure that employees have a clearly defined career path and are motivated to continue pursuing individual development by specifying the individual development plans. PTT encourages its employees to apply new skills and knowledge derived from training using the principle of 10/20/70, which is closely linked to the career management system. Through this system an employee will gain 10% of knowledge and skills from a formal learning process, 20% from coaching and feedback from supervisors or mentors, and the remaining 70% from project assignment or on-the-job-training (OJT), as well as through sharing of knowledge and skills with others

The Career Management System is a system used for planning employee development in terms of building capabilities, technical skills, and career growth. At the employee level, this is managed by the Career Advisor and Human Resource Committee, while the Executive level is managed by the Human Resource Group Alignment and Coordination Management Committee, and PTT Management Committee. Supervisors and employees are jointly responsible for preparing Individual Development Plans (IDPs) to ensure employee growth and career advancement.

In terms of succession planning for executives and leadership, PTT divides Leadership Pools in three groups, supervised by the following committees:  

  • SEVP Pool by PTTMC
  • EVP Pool by HRAC
  • VP Pool by HRC

PTT analysed the Group's needs in a 5-year timeframe, and selects employees with high capacity accordingly. PTT creates an individual development plan, sets targets and goals. This facilitates their readiness prior to being appointed in key positions. Furthermore, there are scholarships provided to employees whose interests aligned with PTT's strategy.

PTT prioritizes human capital development at all levels through PTT Leadership and Learning Institute (PLLI, promoting individual development and learning through core courses. These comprise Leadership Development Program and Core Program, including knowledge and capacity training through Functional Program. The arrangement supports PTT's business, both presently and forthcoming, by focusing on integrating various learning forms suitable to the learners according to Adult Learning. This helps creates an environment that facilitates Learning and Sharing Experience. This includes generational knowledge transition, hands-on practice, and case study-based learning. Presently, PLLI also utilizes digital tools to support employees’ learning outside the classrooms continuously. In the previous year, there were as many as 3,267 learning system users. This makes up to 91.31% of all employees (3,578 employees as of 31 December 2019)

Curriculum Structure of the PTT Leadership and Learning Institute



Employee Engagement

PTT is concerned with employees' expectation. Hence, the annual employee engagement and satisfaction survey is part of PTT's commitment to meet employee expectations, through both quantitative and qualitative means. The survey methods include field research, in-depth interviews with executives, meetings with employee groups on various human resource issues, including turnover rate and grievances. This ascertains understanding and expectation of diverse employees in each group. Assessment results is then analysed to improve engagement and satisfaction approach for crucial business results.

In 2019, PTT reviewed PTT Engagement Model and adjust questions from 90 questions to 33 questions. The new questions highlights on ‘differentiators’ of employees’ engagement score. This was the dataset which has the most diverse and available comparisons available. The reasons being that majority of companies use satisfaction measurement in surveys and analysis. PTT thus develops work plan to elevate employees’ engagement and satisfaction on relevant factors, as well as improving human capital development process. PTT reviews PTT Engagement Model regularly to ensure responsiveness with the changing social context and preserve effectiveness. Furthermore, SPIRIT Survey also combines with Engagement Survey to survey corporate culture in one-go. This is because corporate culture is another factor important to employees’ engagement.


Employees’ Rights 

PTT has a human resource management policy in place that respects human rights, labor rights and fair treatment in accordance with the UN "Protect, Respect and Remedy" Framework for Business and Human Rights 2011, the International Labor Organization (ILO), and the OECD Guidelines for Multinational Enterprises. Emphasis is given to work life balance, by promoting employees’ quality of life at work for security, safety, and good work environment. There are clear objectives and key performance indicators to improve various factors in the working environment in a tangibly manner. PTT provides various communication channels within which employee have the rights to access company's human resource management information including policy, rules and regulations, labour announcement, changes in organization, benefits, privileges, employee relationship promoting activities, crisis guideline, and other relevant information via internet, email, or being informed by managers. Furthermore, there are also systematic and transparency grievance mechanisms. This provides an open channel for grievance, and communicate to all level of employees to ensure that the complainants are protected against reconciliation, threaten or affected negatively at work. PTT has also developed mitigation measures and mechanism to prevent recurrence 

Grievances and Complaints 

PTT has a transparent and systematic employee grievance management mechanism which ensures confidentiality and respects human rights, with the goal of establishing appropriate understanding among employees as well as between employees and the organization. A Grievance Resolution Committee is established to deal with incidents on a case-by-case basis, with a representative from the HR department serving as one of the committee's members. Employees are able to file formal complaints to the human resources department of each business unit; directly to the employee relations division of the human resource department by internet or phone; through a Joint Consultant Committee (JCC) representative; or the State Enterprise Employees Union of PTT Public Company Limited.

PTT complies to the Royal Decree on State Enterprise (2543 B.E), setting up PTT State Enterprise Union comprising of chief executive officer and director (as PTT's Board), serving as president, follows by 9 employer and 9 employee representatives. This totals to 19 people. They are responsible in conducting monthly review of employment conditions, benefits, and complaints presented by employee representatives. These complaints will be monitored until they are resolved

In addition, PTT has appointed consultation committees for each PTT's operations located in different regions, such as gas separation unit at Rayong province, Khanom gas separation unit at Nakohn Ratchasima province, and natural gas pipeline contribution service center at Chonburi province. The members of the committee consist of the director of that operation site as chairman and employee representatives to co-consider on offers, requests, and complaints of every administrative and employee to maintain employees' life quality standard in compliance with labor law and PTT's regulation.

The Enterprise Employees Union of PTT Public Company Limited is an independent entity that plays an important role in verifying and investigating grievances with the JCC, whose responsibility is to provide an overview and ensure that the policies and guidelines are up-to-date and benefit employees. The Union's goal is to ensure that employment conditions do not fall below the minimum standard required by laws and state enterprise requirements. PTT encourages and provides opportunities for active employee participation in the Union.

Corporate Value

PTT has set SPIRIT values to establish behaviours and collaborative working approach of PTT Group. The SPIRIT comprises of S: Synergy, P: Performance Excellence, I: Innovation, R: Responsibility for Society, I: Integrity & Ethics, T: Trust & Respect. The 6 SPIRIT values is the crucial foundation that reinforces PTT Group’s Management and employees to be ethical, talented and responsible – both for PTT and for external society.

Since 2018, PTT has adopted D (Digitalization) representing ‘Digitalization’ to add into SPIRIT value to strengthen it. This ascertains the formation of corporate culture ready for changes, promotion of personnel’s usage of digital technology for effective work, and driving forth technology and innovation to become SPIRIT+D.

To ensure employees are behaving according to SPIRIT+D, in alignment to PTT Group’s strategic directions, focusing on innovation, transparent business operations, and digitalization, PTT develops approaches to promote the values. PTT leaders are SPIRIT+D Role Model for employees, such as

  1. Develop work guideline according to SPIRIT value with collaboration of all level of employees and Management. It serves as a guideline for employees to apply in different circumstances. 
  2. Develop SPIRIT Gamification system to improve communication channel and encourage employees, particularly Generation Y (Gen Y), to demonstrate actions according to the values. There is also data collection on how employees’ adhere to SPIRIT value. 
  3. 3. Promote innovation and digitalization by modifying Innovation Award and Tech Savvy so that employees can present concepts addressing business unit’s strategy. Employees are also enabled to drive forward commercial innovation with more efficiency. 
  4. Promote Integrity & Ethics values in line with driving GRC continuously, such as trainings/workshop, Charnsin camp, or Envsioning our Future Program, to name a few. 
Furthermore, PTT has also instilled corporate value for PTT Group’s employees to ensure consistent actions. This was achieved through PTT Group’s management approach, which allows PTT Group’s business directions, strategy, decisions and management to be consistent. It results in PTT Group achieving sustainable growth and success in building responsible and ethical talents. 



Knowledge Management

At PTT, knowledge management covers various learning aspects such as personal learning, small group learning, and community of practice for practical wisdom of organization. PTT Group KM Committee is responsible for impelling knowledge management though people process and technology management and upgrading and sharing best practices for PTT Group's competitive excellence. The committee will update progress of knowledge management to the PTT Group management committee every year for obtaining feedbacks, comments, and advices. The suggestions are used in implementing and supporting PTT's employees to able apply the knowledge and further development properly for business development.

PTT ChiefExecutive Office and Managing Director provide the policies to the KM Committee for achieving targets and advise of vision and targets that are revised at least once a year. Knowledge management is a tool for creating culture of sharing and exchanging knowledge amongst PTT Group's employees which enable further knowledge and creativity in every department. This tool is truly about creating innovation and adding to PTT Group. Knowledge management is organized through 3 main mechanisms, as follows.

• People: Develop personnel for continuous self-learning and knowledge exchange habit
• Process: Develop knowledge management system to build systematic process in exchange, storing, applying and extrapolating knowledge. There are PTT Group’s reviews of Knowledge Theme to ensure alignment with strategy and business operations, both present (Do Now) and future (Decide Now / Design Now). The latter includes New-S Curve and promotion of digitalization to support important changing circumstances, as well as responding expectations of all stakeholder groups.

Technology: Support the use of information technology in storage
and seeking information to increase efficiency in knowledge access, promptly and conveniently. This was achieved through improvement of PTT Group Knowledge Management Space or PTT Group KM SPACE so that it is more modern and more responsive to users.





Performance

Progress Against Plan 2019

2018 Targets2018 Performance 2019 Targets2019 Performance
Recruit employees by 72% against plan  94% 80% 70%
Prepare succession plans for 75% of the succession rate by considering demand and supply period of five year 100% 95% 100%

Recruitment

In 2018, PTT has improved e-Recruitment to enhance efficiency of database management and candidates' profile storage. The improvements include monitoring the progress of each requested position, expansion capacity to carry PTT Group companies and notifications system for applications to view their application status. PTT also improved the process of Onboarding Program resulting in new employee's quick adjustment on organization culture and response to PTT expectations.

In 2019, PTT further developed e-Recruit system to enhance efficiency. There have been adjustments per users’ suggestions to facilitate the process and connect the information with users’ database.



Attraction

2019 Performance on Attraction, as follows:

TopicProgress
Standardization of criteria for appointment and promotion throughout PTT Employee Engagement score as of 2019, in Career Opportunity. The score increased by 11% (from 57% to 68%)
Adjustment of pay rise policy for promoted employees Employee Engagement score as of 2019, in Rewards & Recognition. The score increased by 12% (from 56% to 68%)

Performance Assessment

PTT's employees employee needs to identify individual performance indicator annually in the performance evaluation system. The indicators should relate to organization goals and objectives. PTT assigned managers to monitor employees' performance for at least 3 times per year and communicate with employee constantly to ensure the progress and targets are achieved. Based on manager's evaluation, all employees have achieved their goals and plans

Topic2017 Performance
(%employees who are required for a performance evaluation)
2018 Performance
(%employees who are required for a performance evaluation)
2019 Performance
(%employees who are required for a performance evaluation)
Indicator Identification 100% 100% 100%
Performance Evaluation 100% 100% 100%

Employee Capacity Development 

All employees must assess their success profiles and develop their Individual Development Plans (IDP), consisting of training (10), teaching (20), and application (70). The IDP, established by the PTT Leadership and Learning Institute (PLLI), guides employee growth and capacity development at all levels – from entry to management, and provides courses including Orientation, Core Courses, management training courses, and courses that align with the company's strategy. In 2018, 84% of employees developed IDPs, which are also a part of the career management process. At the management level, IDPs enable PTT to have a sufficient supply of qualified management staff to meet organizational demand with a current target ratio is Demand 1: Supply 3.

In 2019, 91% of PTT employees developed Individual Development Plan


Employee Engagement

PTT has set a target for Employee Engagement and made it Corporate KPI, which has been deployed to all top managers. After earnestly improving and monitoring the progress on employee engagement, the employee engagement score in 2018 was 71%, which was 1% more than last year, while the overall employee engagement score in global and Asia-Pacific remains at only 65%. In 2019, employees’ engagement is at 78%, meaning an increase from last year by 7%. In contrast, employee engagement at global-scale and Asia-Pacific is at 77%.   


Labour Practices

In 2019, a total of 2,268 employees became part of PTT Union; this is 63.2% of all employees (3,587 employees)

Diversity

PTT offers equal opportunities to everyone regardless of race, religion, gender, age, social status, and educational background in order to recruit diverse human capital corresponding to the needs of the organization and of different customers. PTT benefits from its staff's diversified cultural perspectives and the variety of employees' capabilities, which serve to broaden the knowledge and perspectives of staff in the teams and foster creativity to the benefits of PTT and wider society.


Remarks: Management refer to function management or equivalence onwards. 

Average Female/Male Remuneration Ratio
Employee LevelRatio
Executive level (base salary only) 0.9725
Management level (base salary only) 1.0710
Management level (base salary + other cash incentives) 1.0710
Non-management level 1.0973

Complaints and Grievances

PTT strictly adheres to relevant labor laws and regulations in its governance and operations, as evidenced by the alignment between PTT's internal regulations, requirements, and practice approaches related to human resources, to such laws and regulations. This not only supports good organizational relations, but also results in zero complaints and legal cases on labor issues.

Corruption Cases


Breaches in Business Compliance


Note:

There are 2 breaches of business ethics in 2019, caused by negligence or carelessness. This resulted in damages to PTT, as well as violation or failure to comply with policy, laws, regulations, labor contracts, PTT’s announcement and instructions from executives. PTT has processed and addressed the breaches. 


SPIRIT Commitment Score 

*Top Quartile of Asia Pacific’s Commitment Score on average for 5 years 

Knowledge Management 

PTT Group’s knowledge management policy and operations in all areas, whether internal or external of PTT and subsidiaries, is achieved through 3 main mechanisms. 

3-Mechanism Approach 
PeopleProcessTechnology
  • Change Agents Discovery workshop
  • Knowledge Capturing in action
  • Change Agents site visit
  • Change Agents Visual Thinking
  • KM Award
  • Retrospect workshop
  • KM Way of Conduct
  • Committee meeting & progress report
  • KM maturity assessment review
  • Core knowledge revisit
  • KM SPACE


Furthermore, Corporate Development function has recently developed a tool, refers to as PTT Group’s KM Maturity Assessment Survey, to assess capacity in knowledge management across different dimensions and enhance efficiency. The tool enables the use of knowledge in business operations and elevate competitiveness sustainably, facilitating PTT to become the organization of knowledge by 2020. 


Knowledge Management (KM) Assessment Score