Thaioil Group

Employee

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Human & Organization Development

Challenges, Risks, and Impacts

Over the past year, Thaioil Group encountered several challenges, including economic competitiveness, environmental and social impacts, stringent regulations, and rapid digital transformation. The Company is committed to its 3Vs business strategy, which emphasizes business expansion domestically and internationally. These challenges have driven the Company to strengthen its human resources management, enhance employee capacity, and adapt to evolving working styles. These actions are crucial for developing employees’ attitudes, behaviors, and capabilities to cope with the challenges and to support sustainable and stable business growth.

Furthermore, Thaioil Group recognizes the diversity among its employees, including gender, age, and working location. The Company has developed a human resource strategy and action plan that embraces diversity to respond to the needs of its employees in an inclusive and equitable manner.

Commitments and Targets

Thaioil Group recognizes that the core of the organization is the “People”. The Company places the greatest importance on employees with the ”People First” commitment. Henceforth, the human resources and organizational development strategy is included in the “5-Year Business Master Plan”, which propels the Company towards sustainable growth. The strategy focuses on three key dimensions as follows:

(1) People Capacity: Thaioil Group prioritizes strategic workforce planning and the recruitment of employees to support business strategy and expansion at each period and to maintain a competitive workforce compared to industry peers.

(2) People Capability: Thaioil Group focuses on employee development to drive business through employees' expertise and business knowledge. This aims to support career growth and promote internal knowledge management to retain organizational knowledge that adds business value to the Company.

(3) People Experience: Thaioil Group strives to enhance quality of life and create valuable work experiences in alignment with a new way of working to improve employee satisfaction and engagement. This contributes to Thaioil Group’s status as “The Best Employer.”

Furthermore, Thaioil Group has applied digital technologies throughout the organizational systems to enhance human resources and organizational development, enhance efficiency, and create positive employee experiences.

Targets

Indicator	Unit	2023 Target	2030 Long-term Target
Workforce Planning: Workforce productivity level in a comparison with industry peers	Quartile	1^St Quartile	1^St Quartile
Human Capital Development: Core competency level	%	94	94
Creating positive employee experiences: Employee engagement score	%	91	92
Human Capital Index (HCI)	Score	80	90

Management Approach and Performances

Management Approach

Thaioil Group analyzed its internal and external environments to address challenges, risks, and impacts, as well as human resources and organizational requirements. The Company established short-term and long-term strategic plans to ensure sustainable implementation of its strategies to achieve the set targets. The key performances of 2023 are outlined below:

Strategic Workforce Planning and Recruitment

Thaioil Group prioritizes strategic workforce planning in alignment with the Company’s business strategy and direction to maintain a competitive workforce compared to industry peers. The Company also emphasizes proactive recruitment and hiring through the “3R” strategy, which enhances workforce planning in three areas as follows:

1.Retool Recruitment in Action Transform the working approach of the recruitment team into a Strategic Partner and implement a proactive strategy to recruit highpotential new employees in a short period.

2.Reshape Recruitment Process Optimize the recruitment and selection processes by increasing its efficiency and promptness, while integrating digital systems to provide a good experience to targeted candidates.

3.Reimage Candidate Experience Raise awareness of the Company’s business and strategy among candidates, along with enhancing the organization’s image defining an Employer Value Proposition (EVP) to deliver values that align with the needs of both current employees and targeted candidates.

Strategic Workforce Planning and Talent Acquisition Performances 2023

Human Capital Development

Thaioil Group recognizes the importance of human capital development in driving the company’s core strategies and overcoming challenges. To foster continuous learning, Thaioil Group provides employees with self-learning opportunities through Thaioil Academy, the digital learning platform that allows employees to self-selected courses for work-related development, and encourages share and exchange knowledge through the platform.

Furthermore, the Company is committed to enhancing employee competency through the “People Capability Development for Growth” initiative, emphasizing knowledge exchange and practical experience based on the 70-20-10 principle. This initiative equips employees with in-depth knowledge and understanding, preparing them for work and fostering excellent performance, which results in value creation and business benefits.

Program	Development Approach	Description of program objective/ business benefits	Quantitative impact of business benefits (Business benefits in term of ROI: %)	Percentage of FTE⁽¹⁾ participating in the program
1.Core Competency 1.1 Innovation	Training, knowledge exchange with the experts, and practical experiences	To broaden the Company’s learning on innovation through the I-LEAD behavior framework. The framework helps nurture innovative ideas and equip employees with the necessary skills for SME Innovative Facilitators, who will lead the innovation within their function. The Company has arranged brainstorming sessions with employees in each division to generate new ideas and drive innovations to increase their work efficiency. In addition, the Company has organized Innovation Awards to encourage the employees to propose ideas that generate the Company’s benefits towards innovative organization.	369	7.35
2.Expert Development Enhancement	Knowledge exchange with experts and hands-on practical experience through projects and assigned on-site work	To strengthen and cultivate profound expertise in core knowledge for employees through diverse development programs, such as the Vacuum Distillation Workshop, Combustion Integrated System, and Statistical programs. These courses will empower employees to apply the acquired knowledge with their work experiences and create added value for the organization. These initiatives drive the business growth both domestically and internationally, and play a crucial role in preserving vital organizational knowledge, ensuring long-term competitiveness.	366	4.21
3.Business Explorer Development for Growth	Training, learning through simulations, knowledge exchange with experts, combined with practical hands-on experience	To equip employees with the fundamental knowledge, skills, and abilities to enhance the business's competitiveness and to seek out the business opportunities that can drive the three main strategies of Thaioil Group. This initiative allows the Company to create added value for the business and propel the organization towards sustainable growth.	388	0.83

Note: (1) FTE, or Full-Time Equivalent, represents the number of hours worked by a full-time employee per person per year.

Thaioil Group strives to develop leadership potential, which is essential to drive the organization and working team. The Company focuses on leaders' readiness to handle the forthcoming changes and manage the team efficiently in uncertain and rapidly changing situations.

Program	Objective	Target Employee
Management Outing Workshop	To foster leadership development skills by promoting self-awareness, cultivating 'Deep Listening' skills through reciprocal feedback, trust-building, and integrating 'Leader as a Service' leadership skills. Leaders are encouraged to understand the needs of their subordinates and provide support accordingly. The Company also develops the leaders as role models of I-LEAD behaviors to apply in the workplace and foster an innovative culture within departments and divisions.	Section Manager and above
Empathetic and Engaging Leadership Workshop	To develop integrated coaching & feedback skills involves reviewing these skills through real-life case studies and practical experiences. This equips Section Managers to apply these skills in managing their employees, contributing to greater understanding, happiness, and employee engagement.	Section Manager

As a result of continuous employee development in 2023, each full-time equivalent (FTE) received an average of 351 hours of development and training, representing a total investment of 349,984 million THB. This investment is in response to business expansion and preparation for future challenges.

Thaioil Group recognizes the importance of career development. The Company has developed career development plans for subject matter experts, technical experts (Technical Centre of Excellence), and sandbox explorers to equip employees with the knowledge, capabilities, and experiences necessary for their steady growth along their career paths.
Moreover, Thaioil Group is committed to enhancing its competitive capability and fostering business growth by transforming into a learning organization. The Company has developed a master plan (LO Roadmap) to promote continuous learning among employees. Also, the Company has encouraged the employees to leverage their knowledge to create innovations that add value to the business. Thaioil Group has defined the "5 Dimensions of a Learning Organization" as follows:
Thaioil Group encourages its employees to foster a learning culture (LEARN Behavior) as outlined in the master plan of the learning organization. This is accomplished through the I-LEAD behavior, which promotes "Learning, Experimenting, Proficiency, and Courage." The Company has established a committee and a team dedicated to managing the learning organization, in which the CEO is positioned as chairman and the senior executives are the members. The committee is responsible for formulating the Learning Organization Policy and providing direction for Thaioil Group to become a learning organization. Additionally, representatives from each department (LO Inspirers) have been appointed to spearhead and champion learning activities while facilitating the Company to collect and exchange essential knowledge.
Human Capital Development Performances 2023
Enhancing Positive Employee Experiences
Thaioil Group prioritizes employee opinions and suggestions from all communication channels, including direct communication with management executives, ongoing conversations between supervisors and employees, and an annual employee engagement survey. The findings are then subjected to in-depth analysis to support the development of employee well-being, satisfaction, and engagement from the first day of employment to retirement.

Through the “PEOPLE Model”, Thaioil Group continuously organizes activities at the organizational level to enhance employee engagement by encouraging supervisors to design activities that fit the needs of their teams. This enables Thaioil Group to respond to employee needs and expectations while prioritizing the well-being of its employees, who are integral part of the Company. Consequently, this approach fosters greater relationships and enhances employee engagement.
1. Furthermore, Thaioil Group promotes and supports communication for mutual understanding between supervisors and employees within their teams. The Company also enhances supervisors' understanding of the performance management system to ensure standardized practices with clear and transparent communication.
2. Enhancing Positive Employee Experiences Performances 2023
4. Key Highlighted Project
5. Thaioil Group places great importance on caring for employees from the first day to the last day of employment (Hire to Retire). The Company is committed to managing and developing excellent personnel and assisting them in achieving a high quality of life in all dimensions under the concept of “Happy Employee, Happy Company”. Thaioil Group also believes that delivering a great employee experience and happiness leads to increased productivity in their work. Therefore, the Company has implemented the SMILE Activity, which covers five dimensions to meet the different demands of employees across the organization.