Social Pillar

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Social Dimension

Summary of operational performance on social dimension
Number of employees 10,328 persons
HC ROI 3.34
Training hours per employee 3.3 hours
Training expenses per employee 248 baht
Satisfaction assessment results 96.63 percent
Social investment costs in “New Home Project” (Community Investment) 4,600,0000 baht (4 child development centers in Kanchanburi, Prajuab Kirikhan, Nakhon Phanom, and Nakhon Sawan)
Blood volume from the donation of employees in “Muangthai Ruam Jai for Blood Donation Project” for the Thai Red Cross Society 7,121 employees donated blood (300 cc per person) for totaling 2,492,350 cc.
Costs for distributing survival bags during the spread of Covid-19 disease 60 million baht (200,000 survival bags) together with the personal money of the Petaumpai Family

Financial service business is a business that focuses on building relationships between service providers having the employees as the main resource to the service users or the customers. Therefore, the Company places great importance on taking care of its employees to be able to perform their work happily, receive compensation including appropriate benefits to attract and retain potential personnel to drive the organization and grow with the organization over the long term. This can create the strong “corporate culture” and a center of employees and executives at all levels.

The Company believes that happy employees will be able to forward happiness to our customers as the Company’s slogan that is “Intimate services like closed family members”. In 2020, the Company did not change the employee’s policy and guideline from the previous year. In addition, the Company has not had social development goal as this is in the historical data collection process. However, the Company expects to set the goal within 2021.

Policy of Recruitment and Allocation of Human Resources

The Company focuses on recruiting suitable personnel for the performance of each duty by adhering to the human rights policy which was disclosed in the Company’s website in the investor relations section and accepting diversity in personnel selection. This includes treating all stakeholders of the Company with fairness and equality no matter what difference in physical features, sex, race, religion, social status, or political attitudes. It has to take into account the ability, limit and risk in performance as well. Thus, the personnel of the Company consist of employees who come from different places with multicultural bases of knowledge, ability and experiences. Since the company operates in Thailand, thus, 100% of employees holds Thai nationality. However, there is no distinctive policies to discriminate against other nationalities in the recruiting process and hire employees from country-wide especially local residence. Hence, ethnic minorities are included.

Additionally; to encourage a motivational and safe working environment; the Company will not accept any action that violates the rights of freedom of the persons or any group of people both directly and indirectly including physical harassment, verbal abuse, persecution, intimidation, embarrassment, sexual harassment, disdain, etc. The Company will not use and will not support all forms of illegal labor.

The Company has provided the whistleblowing channels for human right violations through complaints and whistleblowing channels as detailed and disclosed on the Company’s website in the “Contact Us” section. In 2020, the Company had not received any of such complaints.

Statistics of diversity of employee

Ratio of female employees to the total number of employees: 10.90%

Ratio of female employees to the number of employees (in the head office): 39.38%

Ratio of female in all management positions, including junior, middle and top management: 17.64%

Ratio of female in executives committee: 23.08%

Ratio of female in junior management positions: 16.67%

Ratio of female in management positions in revenue-generating functions: 33.33%

Hiring local employees: From 74 provinces nationwide (except 3 southern border provinces; without concentration in any particular areas)

Hiring employees with incapacity or disabilities: 3 employees

Graduate traineeship program

As a part of promoting and providing opportunity for Thai local youths, MTC is open for paid-internship program for treasury position at branches with monthly compensation.

Human resource development policy

The Company encourages employees to develop skills and the knowledge necessary to perform the work for maximum efficiency and effectiveness through training and an internal learning exchange platform called “MTC University”.

Training

Training plan for developing skills and knowledge of employees is divided into two main categories; expectation on performance and expectation on effectiveness:

  1. Performance training consists of different courses for different development objectives of employees at different levels such as new employee orientation training, excellent service training, training on debt acceleration techniques by telephone and on site, management technique training for executives, etc. These can be summarized as follows:
    Courses 2 Courses which are new employee orientation and management training
    Attendance 2,036 employees
    Training hours 30
  2. Training in effectiveness consists of compulsory courses intended to enable employees to perform their duties and to clearly measure the results after the training. The results of the Company’s performance were measured after the brokerage training course and the insurance renewal course.
    Courses Brokerage training for new brokers and existing brokers to receive the insurance broker license
    Attendance 2,610 persons (25.27% of total employees)
    Training hours 152 hours
    Training costs 1.88 million baht
    Return on Employee Development Investment 25.96%

    Note: In 2020, the Company gain insurance revenue from selling the insurance through Muangthai Leasing Insurance Broker Company Limited totaling 48.93 million baht.

Internal learning exchange platform (“MTC University”)

It is a digital platform that can be applied to manage various matters in the organization including connections and sharing knowledge Company’s information, market data, various databases including knowledge in various fields which is in the interest of employees and executives. In other words, it acts like a library which all employees can access.

The objective of such digital platform is to create a learning culture of the organization to develop personnel and to extend the potential of personnel to not stand still and keep up with current competition. In addition, the knowledge that has been collected in the digital platform is also a tool to help transferring knowledge to new employees as well.

Policy of compensation and welfares Long-term returns

360 Degree Assessment

Teamwork is one of the Company’s core cultures, the Company, therefore, pays more attention to 360-degree assessments as it is more effective than top-down assessments. It also reflects the true potential of the staff, both in terms of individuals and being able to work as a team. Such an assessment also helps to guide the direction of self-development of the employees. To conduct a 360-degree assessment, the HR department and the internal audit department also have a role in risk assessment of employees such as the risk of fraud etc. However, both departments will operate independently.

Compensation for individual employees will vary upon their performance from the assessment. Apart from the regular salary and remuneration depending on the performance, the employees also receive remuneration from the revenue sharing of the Company. This type of compensation sharing gives employees a sense of involvement in the ownership of the Company. This sense of involvement has a clear positive impact on the business operation continuously.

Compensation for non-officers and non-sale employees

The company offers a variable pay as an incentive for non-officers and non-sale employees as follows:

  • Accountants and treasury officers operating at branches are eligible to receive 50% of the commission rate according to the performance.
  • New employees during probation period in the positions of accountants and treasury officers operating at branches are eligible to receive 25% of the commission rate according to the performance.

Benefits in the form of contributions

The Company provides benefits in the form of contributions for various occasions such as marriage allowance, financial support in case of childbirth. The Company and employees have established the Fund to help fellow employees in case of death in the family, etc.

Moreover, the company also provides other welfares and insurance as follows:

  • The Company provides health insurance, life insurance and accident insurance to facilitate the medical treatment as well as creating stability for the employees and their families. In addition, the Company also provides special welfare as annual medical expenses for employees at all levels.
  • The Company allows employees to buy Motorcycle Act and personal cars at a price for employees.

Accommodation for employees

To reduce the cost of living for employees, the Company provides accommodation for employees by allowing employees to stay at the branch building if necessary. Besides, the employees stationed at the Head Office will be allowed to stay at the dormitory of the Company which is located near the Head Office building in Bang Phlat, Bangkok.

Gym Facility in the Head Office building

The Company provides a fitness facility in the Head Office building which includes standard fitness equipment. It is the space for employees and executives at all levels including shower rooms with all necessary amenities.

Relationship building activities

As working in team is considered the core of the operation to achieve success and the most effective and it is the main organizational culture of the Company, the Company has organized activities to connect relations between employees including New Year party activities, sporting events within the area nationwide, Company’s annual tourism activities, marathon competitions organized by external organizations (through sponsors) including social activities (CSR). The employees are given the opportunity to contribute to society and the communities in which they are involved.

Employees’ Satisfaction Survey 2020

The company has annually conducted a survey to assess employees’ satisfaction. The questions on the survey include the level of satisfaction on these following topics: suitable working environment, appropriate compensation and benefits, relationship between supervisors and subordinates, corporate working system, advancement in career path, work-life balance, and attitude towards organization. As of 2020, the number of employees engaged in the survey was 9,721 out of the total number of employees of 10,328. The overall level of satisfaction was 98.15%.

Source: Company’s survey

Safety and environmental policy in the work of employees

  • Motorcycle helmets Due to the duties and responsibilities, most operational employees need to use motorcycle as vehicle to perform duties. Therefore, the Company provides helmets to employees according to the Company’s safety policy. The employees are required to comply with laws that force motorcyclists to wear helmets every time for the safety of employees themselves and relieve the severity from unexpected accidents that may occur.
  • The unplanned leave rate of employees and the rate of accidents during the work of employees in 2020 is as follows:

Unplanned leave rate of employees

2020 2019
Unplanned leave days 6,109 5,975
Total working days 2,546,762 2,224,478
Unplanned leave days rate (percent) 0.24 0.27

Note: Number of hours to calculate the unplanned leave rate of employees exclude the working hours from employees from G4S Secure Solutions (Thailand) Company Limited total of 9 persons which is in Outsource Company.

Rate of accidents during the work of employees

2020 2019
Injured from work (cases) 97 109
Hour Worked 19,614,752 17,392,596
Injured rate from work (percent) 0.99 1.25

The accident occurred caused by vehicles ride especially motorcycles.

Note: For the employees’ death cases in 2020 total of 14 persons, the accident did not occur during working hours (during 08.30 -17.00)

Succession Plan Policy

To make the operations of the Company grow continuously and efficiently, the Company has a planning policy on the succession of the Company not to specify only senior management positions, the recruitment of candidates who will be able to perform replacement jobs in key positions is in accordance with the following steps.

The Board of Directors has prepared the succession planning program by identifying successors for the position of managing director, senior executives and heads of core functions/department, based on the performance, potential and readiness of each individual.

Designing the training and development programs for the selected successors to enhance their knowledge, ability and skills required for the position so that they are prepared to take over the work of the managing director or other key position in case some executive cannot perform his/her duty.

The Successors who are assigned to succeed the positions must not only be the persons with the qualifications and experience of working in the appropriate fields but they must also be transferred of knowledge and experience by Job Rotation and must attend training courses as necessary to ensure smooth and continuous work.

Chairman of the Executive Committee shall arrange job rotation for the qualified executives and shall assign managers in next level to join the executive committee meeting to educate them, to expand their experiences and to prepare them for the higher management positions in the future.

Performance of Social Projects

The company has operated the Corporate Social Responsibility (CSR) program since 2011

On giving and creating opportunities for communities and society under the concept of “Responsible Lending”. The Company conducted the project “Muangthai Mai Ting Kan” to stand alongside the community in 3 important areas; education, public health, and religion and culture, which are the foundations of the community strength.

The Company believes that such activities can create Social Investment and Community Engagement between the Company’s employees and the communities where the Company’s branches are located. Apart from the Well-being development to the grass root people, it can also create Brand Awareness by telling them about the Snowball Effect. Thus, the project operation of “Muangthai Mai Ting Kan” gives the Company’s stakeholders both employees and customers to participate in various activities as well.

In education

The Company implements the project of child development centers under the name of “My New Home (Ban Mai Kong Noo)” which has been continually operated for more than 8 years. Each year, personnel stationed in different sub-districts will study and survey the area together with the Sub-district Administrative Organization or other relevant local partners before presenting to management. Once the area has been considered, the Company will contact the Sub-district Administrative Organization in the selected area to set an area for the construction of a child development center with a construction budget of approximately 1 - 1.2 million baht per building of a child development center.

For the building construction, the Company has referred to the design from the Department of Health, Ministry of Public Health, setting the standard building design for safety and reduction of congestion for early childhood importantly. The Company has built 16 child development centers nationwide under the project. In 2020, the Company has built 4 more child development centers in 4 provinces including Nakhon Sawan, Nakhon Phanom, Kanchanaburi, and Prachuap Khiri Khan with more than 133 primary children being the direct beneficiaries.

In addition, the Company also regularly monitors the activities of the Child Development Centers in order to be in line with the Company’s intentions. The number of early childhood children who were given opportunities to access safe areas was inquired. The Sub-district Administrative Organization of each area is responsible for this mission.

Moreover, to raise awareness in the importance of personal finance, the company implemented “Muangthai for Sustainable Thai”, a community Investment in cooperation with educational institution where the company sponsored educational institutions to educate local community once a year.

As of 2020, the company had contributed 4,899,510 THB to charity. 4.6 million of which was in contribution to Social investment costs in “New Home Project” (Community Investment) and the rest are contributed to other charity projects.

In public health

The employees of the Company have consistently supported the blood donation program “Muangthai join in blood donation” to Thai Red Cross. Each year the Company’s employees have blood donation at various hospitals and the Thai Red Cross nationwide with the target of employee participation no less than 60% of each department. In the year 2020, the Company had 7,121 blood donors (300 cc per person), totaling 2,492,350 cc of blood calculated as 71.80% of the total number of employees.

To calculate the implied value of employee volunteering during paid hours, the company used the following formula to reflect the monetary contribution:

Time: employee volunteering during paid working hours is calculated by the number of hours employees spent on blood donation x average salary per hour x number of employees participated in blood donation = 3 hours x 155 THB/hour x 7,121 employees = 3,311,265 THB

In religion and culture

The temple is still considered a center of the mind of the people in the community. Therefore, participating in the Kathin ceremony of the temple by rotating around the communities with the objective of preserving cultural traditions is to build good relationships and be a part of the community.

However, due to the 2020 Covid-19 epidemic, the Board of Directors resolved that such activities should be temporarily suspended as most people have suffered financially. This is also to avoid organizing crowded activities by following the guidelines of the Department of Disease Control, Ministry of Public Health.