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HD Hyundai Construction Equipment is committed to delivering greater value to all stakeholders and employees.
Promoting Value for Employees
HD Hyundai Construction Equipment is striving to deliver greater value to its stakeholders by respecting the human dignity and human rights of all stakeholders whom it directly or indirectly interacts with or affects.
Fostering Human Resources
HD Hyundai Construction Equipment is dedicated to fostering human resources so that the growth of its employees can lead to improved business performance and enhanced competitiveness.
Key Initiatives
Building an organizational culture based on core values
Systematically cultivating leaders to fulfill our vision
Building educational systems and infrastructure for sustainable growth
Core Values and Goals
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Innovation that leads the world
Goal
Leader
Fostering leaders who will lead the future of the Group
Main education and training programs
Cultivate leaders, executives, and others in positions of responsibility Foster all-round professionals Leadership improvement course
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Fearless undertakings
Goal
Professional
Fostering professionals who contribute to enhanced business performance
Main education and training programs
Develop and conduct on-the-job training (OJT) programs Establish personalized competency development support system Support job training for partners
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Respect for each other
Goal
Global talent
Foster individuals with global competence to lead overseas business operations
Main education and training programs
Operate internal and external language education support systems Operate language education programs for resident employees and their spouses
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Safety for all
Goal
All employees
Cultivate character to build a desirable corporate culture
Main education and training programs
Strengthen basic refinement programs
Competitive human resource development system
learning infrastructure Professional training program + Global leader training program
Talent Recruitment and Retention
HD Hyundai Construction Equipment does not discriminate on the basis of childbirth, family type or situation, race, skin color, ideology or political opinion, sexual orientation, educational background, medical history, etc., when it comes to recruitment, evaluation, or compensation, and this is specified in our ethical regulations.
Furthermore, we operate an internal job market to strengthen the circulation of human resources so that employees can proactively develop their competencies and careers while performing their desired job duties.
Voluntary Turnover Rate (Unit : %)
Education and Training
(Unit: KRW 1,000)
(Unit: hours)
Human Resources Development Enhancement System
- Strengthening job expertise
- Fostering global leaders
- Supporting self-directed growth
- Fostering all-round individuals
- Protecting employee diversity
- Providing training opportunities
- Retirement planning
Fair evaluations
Performance Evaluation System
We conduct personnel evaluations for all employees once in the first half of the year and once in the second half of the year, and use the results when deciding on promotions, compensation, training, and leadership selection. By managing performance throughout the year, we lay the foundation for evaluations and comprehensively review job performance and job competencies. All office and R&D staff are evaluated based on their achievement of individual goals according to the management by objectives (MBO) method.
Performance Evaluation Process
STEP 1
Establish management goals
Establish individual management goals (department heads and above)STEP 2
Select evaluators
Select evaluators for the first and second evaluations as well as the adjustment authoritySTEP 3
Self-evaluation
Conduct self-evaluationSTEP 4
First and second evaluations
Conduct individual evaluation of the evaluators for the first and second evaluationsSTEP 5
Determine the evaluation grade
Determine the evaluation grade based on the first and second evaluation resultsSTEP 6
First and final sessions
Discuss and adjust the evaluation gradesSTEP 7
Determine the evaluation grade
Promote fairness and transparency by disclosing the results and implementing an appeal systemCompensation
HD Hyundai Construction Equipment is committed to providing compensation based on fair and objective evaluation in order to create a working environment where employees are motivated to perform their duties and feel a sense of accomplishment.
We reflect the rate of inflation in wage increases to stabilize the livelihoods of our employees and have implemented a performance-based pay system to distribute bonuses within financial limits, such as our sales or operating income, at the end of each year based on quantified performance. In particular, to reward employees for their respective contributions, we operate a performance-based annual salary system for managers, heads, and above to provide differential bonuses in proportion to the individual and organizational performance evaluation results.
We apply the same salary standards to male and female employees to prevent gender discrimination.
Reward Programs
HD Hyundai Construction Equipment operates a reward system based on the principle of "Where there are achievements, there are rewards." We operate a variety of reward programs, including the HD Hyundai Production System (HDPS) Reward Program to motivate all employees to challenge themselves and receive bonuses and the Praise Point Reward Program to revitalize the organization and get employees to encourage and praise one another. In 2022, we awarded a total of 290 rewards and paid out KRW 61.3 million in reward money.
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Brilliant Construction Machinery Award
Performance-based reward for excellent performance, excellent achievements, technological development, etc.
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Praise Point Award
Top 3 of the highest point earners by headquarters/division
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Factory Improvement Award & Excellent Quality Award
Rewarding technical staff for contributing to the improvement of factories as safe and pleasant workplaces
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Risk Assessment Contest Awards
Risk reduction activities conducted by identifying and addressing risk factors
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HDPS Award
Quality indicators, results of improvement tasks selected due to the needs of the production site, etc.
Innovating the Organizational Culture
In order to build a creative and flexible organizational culture, we are diagnosing it, deriving improvement tasks and undertaking activities to change our corporate culture for the better. Through working-level and leader-centered changes and practices, we strive to create an environment where all employees can achieve personal growth and development with pride and dignity.
On the one hand, for change control, we have established an organization within the HR organization dedicated to managing the changes made to our organizational culture, and on the other hand, we have selected a change agent for each unit organization headed by an executive to co-work with working-level organizations such as divisions, identify issues requiring improvement within the organization and carry out improvement activities desired by employees.
| Hierarchy | Role | Lead | Check | Shared Service | Networking |
|---|---|---|---|---|---|
| People&Culture Team, HRD Part | Change agent | Set the direction of change for the organization Formulate and communicate strategies to change and improve the organization at the company-wide level | Diagnose the organization and review the results Align diagnosis and improvement activities | Integrated planning and operation of proposals that meet company-wide needs | Discovering good practice cases of leading domestic and overseas companies |
| C.A | Change management supporters (working-level staff) | Set the direction of change for the organization at the headquarters/division level Align with executives in charge to actively pursue changes at the headquarters/division | Monitor and encourage participation in activities aimed at changing the organization | Provide input on the needs of the headquarters/division | Provide benchmarking examples to the working-level staff |
| Working-level | Implementer of organizational changes | Actively participate in organizational change activities at the working level Raise issues and propose solutions during the organizational change process | |||
Key Activities to Improve the Organizational Culture (as of 2022)
| Organizational Culture | Human Resources | Working Level | Mid- to Long-Term Initiatives |
|---|---|---|---|
| Improve work processes and meeting and reporting culture Address organizational culture issues of each headquarters Grant executives, team leaders, etc. the freedom of dress | Strengthen communication through dialogues with the CEO and communication channels for new hires Improve the HR system and improve compensations Strengthen leadership training and publish leadership newsletters Use HR scorecards for leaders | Enhancement of Work Efficiency |
Create an environment where mid- to long-term development, instead of short-term results, is pursued Implement change initiatives Upgrade work processes Establish a job-based CDP system |
Win-Win Labor-Management Relationship
Since the spin-off in 2017, we have been renewing the collective bargaining agreement every two years to improve working conditions and conducting wage negotiations annually. We also hold labor-management council meetings each quarter to discuss how to improve working conditions and promote the welfare of employees on a regular basis, in addition to regular management status briefings for employees and labor unions. Through these efforts, we are able to form a consensus internally to overcome business crises and improve our competitiveness, while nurturing a sense of ownership among employees. Furthermore, we provide labor-management relations training to executives and employees so that they can recognize the importance of establishing labor-management relations and strengthen their ability to communication with each other.
Work-Life Balance
Based on the principle of "practical support for the diverse needs of employees," we support a healthy work-life balance for our employees based on our internal work culture to housing, family, leisure, and retirement support. In 2022, we successfully acquired the Family-friendly System Certification¹⁾.
¹⁾ Family-friendly System Certification: A certification scheme of the Ministry of Gender Equality and Family to recognize companies with exemplary family-friendly programs such as childbirth and childcare support and flextime systems
Major Welfare Programs
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Housing Support
- Financial assistance program for loan interests
- Support system for workers dispatched without family accompaniment -
Family Life Support
- Support program for family-related events ("congratulations and condolences" such as weddings and funerals)
- Encouragement of maternity and parental leaves
- Encouragement of family care leave and leave of absence
- Financial aid for children's education -
Support for Leisure Activities
- Operation of recreational facilities
- Leave system for personal development -
Medical Support
- Financial support for medical expenses
- Medical checkups of employees' families -
Support for Retirement Planning
- Education to support retirement planning
- Operation of a retirement pension plan
- Support for individual pension plans -
Improvement of Work Culture
- Computer shutdown Program
- Prohibition of workplace harassment
- Flextime system, selective work hour system, and remote work system
Family-friendly Business Management
We strictly comply with the company benefit systems required by law, such as parental leave and family care leave. We also run a number of employee benefit programs based on a family-friendly policy. For example, we provide pregnant employees with the Happy Mom Package consisting of essential supplies and gift certificates, and when a child is born, we provide maternity supplies worth approximately KRW 300,000 in combination with congratulatory money (including cases where the spouse gave birth). We also present congratulatory gifts of school supply sets to our employees' children entering elementary school. In 2023, a total of 68 children entering elementary school received gifts and congratulatory letters from the CEO.
To support our employees raising young kids, we operate an in-house daycare center. In addition to offering financial aid for high school and college tuition, we also offer KRW 500,000 per month per child aged 4 to 6 for education.
Respecting Human Rights
HD Hyundai Construction Equipment complies with the International Bill of Human Rights and the declarations of the International Labor Organization (ILO), and respects the human rights of not only its employees but also all stakeholders, including suppliers.
Furthermore, as a member of the United Nations Global Compact, we support the Ten Principles concerning human rights, labor, the environment, and anti-corruption. We do not tolerate inappropriate language or behavior such as verbal abuse, violence, and sexual harassment that violate the spirit of harmony, both within the company and in our relationships with our suppliers, and problematic behavior can be reported to the Internal Reporting Center.
In the event of an incident involving human rights violations, the Human Resources Committee takes prompt action in accordance with the regulations and provides education to prevent recurrence and raise awareness of human rights. We also provide labor-management relations education to executives and employees to improve communication.
Declaration of Human Rights Management
Greetings,
I'm Choi Cheol-gon, Chairman of the ESG Management Committee of HD Hyundai Construction Equipment.
To practice human rights management, HD Hyundai Construction Equipment will respect and uphold the values of human rights, labor, the environment, anti-corruption, etc. set forth in various international human rights standards, including the Universal Declaration of Human Rights (UDHR) and The UN Guiding Principles on Business and Human Rights (UNGHR), and will actively strive to implement them.
HD Hyundai Construction Equipment will dedicate its efforts to preventing human rights violations from occurring in all business operations that directly or indirectly affect the company, form a governance system in which the Board of Directors, Chief ESG Officer, and related organizations are connected at all times, and introduce and implement human rights management practices with the establishment of human rights management policies, operation of the Human Rights Management Committee, execution of human rights impact assessment, and remediation for human rights violations.
In recognition of the safety and health of employees at workplaces, coexistence and mutual growth with suppliers, and responsibilities and contributions to the environment and local communities as key human rights issues in light of the nature of our industry, we will manage and monitor the list of human rights with a focus on these issues.
We will take the lead in strengthening human rights management to ensure that this human rights policy of ours is applied and observed with respect to not only our employees, but also all stakeholders, including customers, shareholders, business partners, communities, and governments.
Thank you.
July 20, 2022
Choi Cheol-gon, President and CEO of HD Hyundai Construction Equipment
Human Rights Management Promotion System
In 2022, HD Hyundai Construction Equipment established the Human Rights Management Regulations and formed a dedicated organization for advanced human rights management. The executives and employees implement the Human Rights Management Declaration as a code of conduct and value judgment, while the dedicated organization develops and enforces policies to promote human rights, in addition to conducting training and human rights impact assessments.
Furthermore, the Human Rights Management Committee has been incepted under the ESG Management Committee, and the members meet twice a year to discuss the Human Rights Management Declaration, establishment and revision of internal regulations, and establishment of human rights management plans. Major deliberations on human rights are reported to the ESG Committee and the ESG Management Committee under the Board of Directors.
| Category | Operation | Key Roles |
|---|---|---|
| Human Rights Management Committee |
Chairperson: Human Resources Officer Members: Team leaders of related organizations Meeting held twice a year (ad hoc committee meeting held when necessary) |
1. Establishment of basic human rights management plan 2. Matters related to human rights impact assessment, human rights education, and recommendations for improvements 3. Remedy procedures in case of human rights violations and matters to promote human rights protection |
| Related organizations | Human Resources, Purchasing, Legal, etc. | 1. Establishment and implementation of annual human rights promotion plans |
Human Rights Education
In accordance with the Equal Employment Opportunity and Work-Family Balance Assistance Act and the Act on the Employment Promotion and Vocational Rehabilitation of Persons With Disabilities, we provide training to prevent sexual harassment in the workplace and improve disability awareness at least once a year for all employees, in addition to the mandatory training to prevent workplace harassment and human rights violations.
Human Rights Impact Assessment
At HD Hyundai Construction Equipment, we conduct human rights impact assessments to identify and prevent actual and potential human rights risks that may arise in connection with our business activities in advance. The Human Rights Management Committee was established to improve human rights management, and human rights impact assessments are conducted based on the standardized form of the National Human Rights Commission. In conducting human rights impact assessments, we take into consideration our stakeholders, including employees, customers, shareholders, business partners, local communities, and the government, and we have conducted human rights impact assessments at our business sites in Korea. In 2022, we conducted human rights impact assessment through self-diagnosis, but in order to improve upon it, we plan to develop human rights impact assessment indicators specifically tailored to our company and engage external experts for objectivity and substantiality.
Human Rights Impact Assessment Procedure
STEP 1
Identify and assess key human rights issues
STEP 2
Establish a mitigation and remediation plan
STEP 3
Implement violation mitigation measures for the list of human rights
STEP 4
Disclose the results externally
Operate grievance reporting channels and monitor human rights risks at all times
Human Rights Impact Assessment Results
Human Rights Grievance Channels and Processes
HD Hyundai Construction Equipment operates an internal grievance handling committee to prepare for and promptly respond to verbal and physical abuse including sexual harassment and workplace harassment. The committee consists of at least two members from labor and management each. Various online and offline channels are utilized to receive grievance reports, and if a risk of human rights violation is found among the grievance reports received, we work to protect the human rights of employees by pursuing improvement activities. The grievance reporting system guarantees confidentiality for the complainant, and our human rights regulations stipulate measures to ensure that the complainant does not suffer any reprisal for filing a report.
Grievance reporting channels
| Reporting channels | Organization representing the employees |
|---|---|
| Organization representing the employees | Wages and benefits, systems, organizational culture, working hours, infrastructure, environmental safety, etc. |
| Intranet | HR, compensation, education and training, general affairs, welfare, job duties, safety and health, computing, etc. |
| Hotline | Workplace harassment, etc. |
| Offline | Employee grievance handling status |
Grievance Handling Process
STEP 1
Receipt of a grievance report
STEP 2
Review of the grievance report
STEP 3
Notification of the review results
STEP 4
Grievance handling and continuous improvement
| Category | Details |
|---|---|
| Receipt of a grievance report | - Receive grievance reports concerning the company from employees, external stakeholders, etc. - Hierarchical meetings conducted at least once a quarter: Managers, Production Manager, Production Team Leader, non-managerial staff, etc. |
| Review of the grievance report | - Grievance report received and reviewed by the Grievance Handling Committee - Verify details and facts - Listen to the complainant's desired course of action |
| Notification of the review results | - Review the action plan if the complainant is dissatisfied with the outcome of the review *Review the action plan if the complainant is dissatisfied with the outcome of the review |
| Grievance | - Provide training, order disciplinary actions against the perpetrator(s), provide information and assistance, improve infrastructure, improve policies and procedures related to grievance handling, etc. depending on the matter - Establish improvement measures to prevent recurrence |