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Home / Sustainability / 2017 Sustainability Report / Creating and Sharing the Value of Growth for a Sustainable Future Limitless Opportunities for ThaiBev’s Employees
GRI 103-2, GRI 401-1, GRI 403-2, GRI 404-1, GRI 404-2, GRI 443-3

Dr. Agapol Na Songkhla
Executive Vice President, Thai Beverage Public Company Limited

ThaiBev believes that our employees are the power that will drive our organization toward Vision 2020. We aim to become an excellent employer in ASEAN. This is why ThaiBev places importance on human capital management: to build a workforce that is strong and full of potential, knowledge and capacity, in an organizational culture that fosters employees’ limitless growth, and with respect for labor rights, leading to sustainable growth.

Because… ThaiBev believes in human potential for greatness
Because… ThaiBev believes that challenges make people grow
Because… ThaiBev believes that once employees help others grow, they grow themselves
At ThaiBev “opportunities… are limitless” for every employee.

As a Thai company with global aspirations, ThaiBev attaches great importance to helping our employees to grow in their careers. We are committed to giving challenging opportunities to all employees through various development programs to improve their skills and capacities.

ThaiBev places importance on building a network of relationships, collaborating within and outside the organization, promoting friendship and good relationships among employees, which help in knowledge and experience sharing, as well as organizing different activities and connecting with stakeholders outside the organization and society as a whole.

ThaiBev attaches importance to bringing about benefits to the community, society and economy by giving opportunities for every employee to positively benefit the lives and happiness of others through different initiatives, including support for governmental agencies and public benefit projects in many areas of the country, in order to improve the society in a sustainable manner.

ThaiBev has 7 strategies in human capital management, with the objectives of strengthening employees for continuous business growth, creating solidarity in the organization, and preparing employees for changes.

Strategy 1: Clear Structure and Roles

ThaiBev places importance on appropriate structures within the organization, with the aim clearly laying down the responsibilities of each employee and efficiently connecting individuals, teams, and sections. In addition, our organizational structure is also a mechanism to serve the strategic plans of each line of work, which will lead to constant improvement and business competitiveness.

ThaiBev is committed to Product Group and Strategic Support Group structures, which encompass businesses within Thailand and abroad.

For human capital management, the Company has established the Human Capital Steering Committee to oversee the overall management of all ThaiBev employees. The structure has 3 elements as follows:

Organization Development and Group Capabilities as the center of excellence for human capital management. It is responsible for designing, developing and making policies and procedures relating to overall human capital management.

Human Capital Business Partnering to enable the expansion of related businesses and providing the right advice and services to each field to achieve the Company’s goals.

Human Capital Operations and Services as the focal point for the efficient operation of human capital management and the provision of services for employees.

ThaiBev is committed to being ready as a stable and sustainable leading organization in ASEAN by laying down a structural and positioning framework to guide efficient business development.

Strategy 2: Market-oriented Compensation and Benefits

ThaiBev manages compensation equitably and can be benchmarked with other companies in the same industry. We provide benefits for the welfare of employees, such as medical expense support, annual health check up, accident insurance and life insurance.

In putting in place a system for compensation, ThaiBev has worked with a world leading company in designing the method for providing compensation and benefits which are comparable to the appropriate market reference point and in line with the business of the Company. We appropriately combine fixed compensation and performance-based variable compensation, with an increasing proportion of variable compensation supporting the goal of becoming a high performance organization.

Moreover, ThaiBev and its subsidiaries have put in place a job evaluation system consistent with international standards and our organization structure. In 2017, job evaluation has covered positions within and outside Thailand.

ThaiBev recognizes that creating incentives for committed employees is crucial. For the Company’s sustainability, we created a Long Term Incentive Plan (LTIP) by engaging the management with business ownership through the Company’s shares as a reward for their continuous dedication and to maintain valuable human resources in the Company in the long term, which contributes to good business operation.

Strategy 3: Recognition-based Performance Management

ThaiBev places emphasis on clarity in work objectives, believing in the “Power of Clarity” which will make a difference in the efficiency of teams and the organization in the long run.

In terms of managing outcomes, ThaiBev has developed guidelines for goal setting and performance assessment in a systematic and concrete manner. We are prepared to support our employees as they pursue “limitless opportunities” within the organization.

In Goal Setting, the supervisors and their employees create clarity by setting targets under the SMART principle (Specific, Measurable, Attainable, Relevant and Time-bound). Communication between both sides as well as to the whole team enable the indicators and goals that have been set to be cascaded from the organization level to the individual level. This is to ensure coherence and focuses on the organization’s strategies. Clearly connecting the goals in this top- down manner is important in fully and comprehensively achieving the organization’s objectives and leads to value creation in the long term.

Performance Assessment is an important opportunity for the supervisors and their employees to review the clarity of their goals, outcomes of work and employees’ capability development. The review takes place twice yearly, i.e. in the middle of the year and at the end of the year. The mid-year review is an opportunity to discuss the progress of the goal under the “coaching” principle, the possibility of goal achievement, changing circumstances (if they exist) and the support required from the supervisors in terms of skills that need development. This is to ensure that the expectations of both sides are aligned with goals that they are heading towards, fostering relationships between the employees and their bosses, as well as engagement between the employees and the organization. The year-end review is for reviewing the outcome from the past 12 months of the employees by evaluating the concrete outcomes according to the SMART KPI and behaviors that are in accordance with the Company’s culture.

In addition, employee will have an individual development plan (IDP) which is agreed between the employee and his or her superior and based on performance and career goals. The IDP is connected to the employee’s career aspiration and the organization goal in order to create clarity in the roles, responsibilities and opportunities for the future of the employee and the success of the organization, which will contribute to sustainable human capital management.

Moreover, to create coherence in policies, ThaiBev requires that management, from the middle level upward, have goals in sustainability and people development, each weighted 10%, and will affect the assessment of employees’ compensation. These goals are to be cascaded to employees, which emphasizes that each employee has a role in making the organization sustainable.

Strategy 4: Holistic High Performer Development

Continuous capability development is an important factor in redoubling the drive in business growth. ThaiBev wants employees to believe in the opportunity for limitless growth within the organization. Therefore, we support capability development through individual development planning (IDP) under the 70: 20:10 principle.

70% is learning by doing, such as by undertaking new responsibilities, special projects and learning through real practices

20% is learning from others, such as through coaching, being taught by experts, participating in clubs, hearing opinions, receiving advice from others, and learning from the executives

10% is learning through formal trainings such as attending training courses, taking e-learning or short-term courses

This 70 :20 :10 principle of capability development leads to a more efficient learning process than mere classroom learning and contributes to a workforce that has increased knowledge, capacity and skills.

In 2017, ThaiBev’s capability development programs can be categorized in 4 types as follows:

Leadership Competency Development which is available for all levels of employees in accordance with the 5 levels of leadership namely
- Responsibility
- Relationships
- Result
- Regeneration
- Respect

Core Competency Development which is for the development in the area of necessary management skills with the aim of improving the capacity of employees in core areas such as communication, collaboration and creation.

General Skills Development which is a program for improving the skills of employees at all levels and fields, such as computer skills and English language skills.

Functional Competency Development which is available for employees in each business and units to learn specifically in relation to their own agency and business.

The Company trains its employees in business ethics on a regular basis to create understanding among employees and communicate the organization’s policies via online training.

ThaiBev has applied its training evaluation from the Kirk Patrick Model by evaluating employees’ satisfaction and the knowledge gained from the courses in order to develop new training programs in the future. Moreover, the Company has evaluated the benefits from the application of knowledge learned by employees and found that in 2017 employees have been able to generate profits from such application in various ways.

This program has the objectives of creating leaders that are well-prepared and have global business acumen, and of promoting mindset and behavior development. The plan to develop leadership has 5 levels and is intended for employees at the senior level onwards. In 2017, 124 outstanding employees have participated in the program through the following courses:

ThaiBev has developed the program in collaboration with the National University of Singapore (NUS) under the concept of ThaiBev–NUS Global Executive Leaders Program “Realizing Vision 2020: Strategies for Sustainable ASEAN Leadership”. In 2017, the aim to develop the capabilities of 24 executives from every business unit of ThaiBev in Thailand, Singapore and Malaysia, to prepare them for leadership in regional and international businesses and follow the ThaiBev Vision 2020. The program was carried out through action-based learning and emphasizes the need to build relationships between participants from the different units in order to foster seamless cooperation in the future.

is a collaboration between ThaiBev and C asean to broaden the horizons of executives by sharing experiences across cultures and discovering opportunities in expanding the business to ASEAN markets. This is the first time that 60 executives from ThaiBev and its subsidiaries both in Thailand and Malaysia have come together to learn, share experiences and perspectives, understand different languages and cultures, and explore markets, sales channels and business opportunities in ASEAN markets, particularly in Cambodia, Myanmar, Laos and Vietnam. The program also involves presentations to the CEOs of projects that can provide opportunities for business growth in the ASEAN markets.

is a collaboration with Sasin Graduate Institute of Business Administration, Chulalongkorn University, which has been running for 3 years since 2015. In 2017, 40 middle-level executives have participated in the program with the aim of creating understanding in principles of administration and leadership skills to prepare them to become high potential top executives. Participants give presentations to CEOs and teaching employees for their assessment and recommendations, so they are ready to put what they have learned into action.

Every program has a learning process which emphasizes communication and collaboration within ThaiBev groups, which consist of employees from various agencies and areas in Thailand and overseas. The programs also place importance on new creation and the widening of perspectives so that participants can adapt to changes and be responsive to the organization’s future growth.

Example of Value Gained from Capability Development
ThaiBev monitors and measures benefits from training courses to evaluate their effectiveness. In 2017, the Company expanded the utilization of the 4DX program, which began in 2015 with the objective of improving efficiency in the working process, to cover all sections of Thai Beverage Logistics (TBL), a subsidiary of ThaiBev. Over 4,200 practitioners and supporting employees participate in the program, which involves coaching skills to enable the supervisors to transfer and build capacity among the practitioners efficiently and adjust the employees’ behavior in a way that human capital and work development is enhanced. In 2017, the 4DX program reduced the cost of operations by more than 23.1 million Baht.

Additionally, the Company has also gained a return from investing in the Total Productive Maintenance (TPM) training course. With the cooperation of the Science and Technology Research Institute of King Mongkut’s University of Technology North Bangkok, the Company has organized knowledge-sharing activities among employees from the alcoholic beverages companies who take turns to present about their achievements in reducing energy waste, costs of raw materials and costs relating to employees, in order to develop human resources, continue the learning process and increase effectiveness in terms of production in a sustainable manner. This saved over 52 million Baht in production cost in 2017.

ThaiBev has provided the Coaching & Technique for Breakthrough Results (CTBR) training course for the executives by leading coach Dr. Peter Chee. The purpose is to create understanding of the importance of coaching, and discovering answers through creating inspiration. The job of the coach is to harness the team’s potential and provide advice that allows coachees to find solutions themselves. In 2017, 5 senior executives obtained the Master Coach and Train The Trainer levels, and are certified to train coaches within the organization. At present, 550 employees have been trained. By encouraging internal executives to be master coaches, the Company has saved the cost of hiring external lecturers by over 8.8 million Baht. The Company is in the process of communicating with and training the supervisors to be able to transfer what they have learned from the coaching course to their colleages and intends to set this as a KPI.

ThaiBev created the Coaching Club in 2017 to provide an opportunity for those passed the CTBR course to share experiences of the application of coaching in their work. Employees who are certified coaches have shared their knowledge and helped create coaching culture in a tangible way.

In addition, the Company invited Dr. Marshall Goldsmith, the world’s number 1 coach, and other internationally renowned coaches to speak to employees. To date, 890 employees have been trained.

Building on the success in the collaboration in logistics training course in 2015, which led to continuous improvement in the working process and the reduction of production cost by over 32.7 million Baht, ThaiBev continued the cooperation with Khon Khaen University in 2016 in organizing a course on logistics in 27 small programs. The programs engaged over 3,600 practitioners in regional distribution hubs in Nakhon Ratchasima, Khon Khaen, Udon Thani and Lampang, and helped adjust work procedures to be more efficient, in terms of transport fuel, storage space and pallet renting, with the total of 11 million Baht during the reporting year. Employees will share their practical knowledge to expand the benefits to other areas.

Mr. Kawinsak Kesornthong
(Assistant Director, Customer Management, Sales Channels Management Group)

Mr. Kawinsak Kesornthong was a participant in the Asean Management Development (AMD) course. “This course has broadened my horizons in the areas of the economies, politics, society, and cultures in ASEAN countries, as well as the principles and ideas which are necessary for executive positions. Such knowledge can be applied in expanding the markets in ASEAN. The course also provided opportunities for participants to share their professional expertise in classes and through group work activities, which helped improve many of our skills, such as leadership, communication and cooperation, and management with limited employees.”

Ms. Wipaporn Wongsumpanwech
(Assistant Manager, Information Technology Office)

Ms. Wipaporn Wongsumpanwech was a scholarship recipient to study a Master’s degree in business administration (MBA) at the Australian National University in Australia in 2015. “This is a digital age where technology plays quite a big role in our works. My intention is to use the knowledge and skills I have gained from my study to improve the IT works and contribute to the development of the organization.”

Strategy 5: Proactive Succession and Workforce Planning

For the purpose of smooth succession of senior executives who are close to retirement, ThaiBev has drawn up a Succession Plan to continue the vision and commitment of the Company to all stakeholders, customers and society, and maintain a good management culture. The succession plan consists of

Specifying key positions

Iidentifying the selection criteria which include leadership characteristics suitable for key positions

Assessing the readiness of the executives to be promoted and

Creating individual development plans, and regular monitoring. The succession plan not only takes into consideration the organization’s current needs, but also future requirements

Strategy 6: Talent Acquisition and Onboarding

Recruiting employees with potential and work experience is important to the organization in order to support long-term growth and its goal of becoming ASEAN’s leading employer by 2020. ThaiBev has taken various approaches in recruiting employees, such as organizing Job Fair activities in over 30 government and university premises around the country in 2017.

Moreover, ThaiBev has reviewed its hiring procedure regularly to recruit applicants with abilities and experience that match the Company’s needs. The Company also trains the interviewers to be able to create a positive image for the Company and have good relations with the interviewees. At the same time, ThaiBev encourages current employees to recommend qualified applicants for available positions under the “Puen Chaun Puen” or “Friends Inviting Friends” project. Applicants will go through a normal and transparent hiring procedure and the employee who makes the recommendation will be rewarded once the recommended applicant has been hired and worked with the Company for 6 months. In 2017, 306 new employees were hired through recommendations, which accounts for 6.7 % of ThaiBev group new employees.

ThaiBev also has an Internal Job Posting channel for employees to apply for internal vacancies. This provides the opportunity for employees to advance and to develop capabilities in other areas of interest to them. In 2017, over 15% of internal vacancies were filled by ThaiBev’s employees.

Strategy 7: Engaging Corporate Culture

The Company does a survey on employee engagement annually. The Company began to follow the evaluation method pioneered by Aon Hewitt in 2016 to evaluate factors affecting employee engagement in 6 areas, namely the Company’s operation, basic benefits, work context, leadership, outcome of human capital management, and the Company’s reputation and image. In 2017, results show that employee engagement is higher than the target. The results have gone through an in-depth analysis for the purpose of creating a work plan on improving human resources management and foster greater engagement. The Company has set a target of 80% employee engagement in 2020.

Additionally, ThaiBev’s executives have joined in assessing the importance of work improvement in order to increase the level of employee engagement, by highlighting key factors, namely employees’ benefits, working conditions, remuneration, roles in the organization and recognition for their work.

At the same time, the Company has organized activities to promote employee engagement, such as by having senior executives emphasising the importance of the employees in our monthly magazine or by organizing events for different occasions. Moreover, the Company cares for its senior employees by organizing Mentor Training courses, which have taken place for 2 consecutive years, to enable senior employees to share knowledge and experiences with new employees who are ready to learn and maintain that knowledge within the organization. In addition, the Company also provides the opportunity for retired employees to continue working with the Company as consultants and give advice and guidelines, resulting in knowledge and experience transfer from generation to generation. ThaiBev also attaches importance to the family lives of its employees by organizing activities across the country, such as Kids’ Day, to foster relationship between the employees and their children. The activities involve sermons by monks in the morning and field trips in the afternoon.

Moreover, ThaiBev has been giving out scholarships to employees’ children for 8 years. In 2017, the Company provided a total of 1,123 scholarships amounting to 6.9 million Baht. Since 2010, 8,169 scholarships have been provid

To promote engagement, the Company has created over 10 clubs, which provide opportunities for the employees to do activities together during free time, depending on their skills and interest, such as a health club, bicycle club, photography club, bowling club and football club. The Company also encourages employees to use exercise facilities and fitness centers. At present, there are 9 fitness centers and over 73 sport grounds. Moreover, the Company also pays attention to employee mental health by providing information on stress management via the organization’s magazines, and internal website, as well as activities to create a work-life balance.

The number of employees attending ThaiBev’s health activities has increased by

6.7%

in 2017 compared with 2016

ThaiBev treats its employees with respect and in a non-discriminatory manner. The Company aims to follow its human rights policy adopted in 2016 and avoid all forms of human rights infringements. It also does not discriminate between employees of different gender, religion, or other differences. The policy encompasses all activities in the operation of the Company and all relevant stakeholders.

In 2017, human rights risk self-assessment including risk mapping and risk assessment was conducted to all operations in Thailand for 4 areas of the business value chain: procurement and supply chain, production, marketing and sales, and distribution covering all groups of stakeholders from children, indigenous people, migrant labor, third-party contracted labor, local communities and the disabled.

ThaiBev has designed a tool for evaluating risks relating to human rights for all its business groups at the practitioner level in order to monitor risks involved in each process of the business, such as the production process, and the sales and procurement process.

Production: such as the risks in terms of employee’s occupational health from injuries during work or the community’s health from the smell from alcohol distillation process

Procurement and supply chain: such as the risk in terms of contractors’ occupational health

Distribution: such as the risks of child labor use by ThaiBev’s partners, or the road safety in the Company’s transportation.

Marketing and sales: such as the risk of shops in the community selling alcoholic beverages to the underage, which the Company has constantly come up with preventative plans to address.

Moreover, the Company also creates a good work environment and equal opportunities for all, as well as allowing capable employees to grow in the organization without discriminating against genders, religions, beliefs and other factors. ThaiBev promotes equalities among its staff. Female staff amounts are 32% of potential successors for key positions.

ThaiBev complies strictly with labor law. Welfare committees are established in all subsidiaries, consisting of representatives from the employee side and company executive. The committees discuss topics of welfare and labor rights regularly in order to promote relations and understanding between the Company and its employees, as well as to give encouragement to employees. The Company also trains those on the committees to help them understand the roles and process of communication through peaceful consultation and agreement.

ThaiBev 2017 Sustainability

ThaiBev
2017 Sustainability