Employee / Superior updates goals progress
Employee completes goals update and provide self-rating and behavioural evidence
Calibration session(s) to take place between GHOD / HOF with Head of Team
Superior communicates the final calibrated rating to employee and acknowledges the Final Calibrated Rating
Employee acknowledges the Final Calibrated Rating
Performance Review Complete
Based on the performance moderation and calibrated results, we offer competitive performance rewards for all of our employees. Our Performance Management System is structurally linked to various compensation and rewards, which incorporates both short and long term components. Employees enjoy performance incentives (PI), annual increment (AI)/ market adjustment (MA), Employee Share Option Scheme (ESOS) or Employee Share Grant Plan (ESGP), as well as contributions to a Private Retirement Scheme (PRS) Fund.
In appreciation for the work and dedication of our employees, the Company pays attractive performance incentive in every January. The quantum payable to each employee is tied to the employee’s performance and Company’s financial performance. It is well worth mentioning on how we have done it differently since 2018. While maintaining the traditional approach of paying cash for annual bonus, we introduced probably the first and only in the market, which is to offer eligible employees the alternatives to convert 50% or 100% of their performance incentives into employee stock option scheme (ESOS) for long term benefits.
Our employees also receive annual increases in their pay with a performance-based percentage raise to remain competitive with the market. We constantly look for ways to innovate our reward strategies to help connecting people to Company’s purpose. Purpose drives people and people drive business results.
Around middle of the year, Top Glove also offers performance-based share scheme entitlement, such as Employee Stock Option Scheme (ESOS) and Employee Share Grant Plan (ESGP) as long-term rewards to retain performing staff. All staff are given opportunities to acquire ownership to shares of the Company based on performance. Notably, our shares price rocketed spectacularly high in 2020 and became the second-most valuable stock on Malaysia’s equities benchmark. This has proudly helped created millionaires among employees. We strongly believe that by letting our employees share in the success of the Company, they will return the investment with greater loyalty and higher productivity. While shares scheme option is not available for the foreign workers and local workers at the lower level, ex gratia, which is more applicable to workers, is awarded to them in order to drive retention and productivity.
Over and above the mandatory Employee Provident Fund (EPF), we also offer private retirement scheme for our high achievers as an additional retirement investment scheme. The Company will contribute additional percentage on top of employee’s monthly salary with vesting period to help employees accumulate PRS savings and better prepare for retirement. It serves as a reward for retention of key talents to stay and contribute along with the Company’s growth.
In summary, one of the Key Performance Indicators (KPI) of Group Human Resources sets the target to reduce regrettable staff turnover rate every year. As a result of our ongoing performance management initiatives throughout the years, our regrettable turnover rate has shown positive improvement and reducing trend, recording at 5.5% FY2019, 4.7% in FY2020, and 4% in FY2021. The remarkable achievement is the sound success of how our total rewards strategies meaningfully connected our employees to the company’s goals.