Social (S)

Hyundai is committed to delivering greater value to all stakeholders and employees.

Promoting Value for Employees

Hyundai 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

Hyundai 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

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

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

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

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

Hyundai 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

Average education and training cost per employee  (Unit: KRW 1,000)

Average training hours per employee (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

Compensation

Hyundai 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

Hyundai 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.

Brilliant Construction Machinery Award

Performance-based reward for excellent performance, excellent achievements, technological development, etc.

Praise Point Award

Top 3 of the highest point earners by headquarters/division

Factory Improvement Award & Excellent Quality Award

Rewarding technical staff for contributing to the improvement of factories as safe and pleasant workplaces

Risk Assessment Contest Awards

Risk reduction activities conducted by identifying and addressing risk factors

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 - Introduced an executive evaluation system that simultaneously evaluate short-term and long-term performance Implement change initiatives - Identify and implement mid- to long-term tasks for strengthening organizational capabilities Upgrade work processes - Calculate the right number of employees based on job analysis and streamline the workforce Establish a job-based CDP system - Promote the functional competency in all functions

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
- Introduced an executive evaluation system that simultaneously evaluate short-term and long-term performance
Implement change initiatives
- Identify and implement mid- to long-term tasks for strengthening organizational capabilities
Upgrade work processes
- Calculate the right number of employees based on job analysis and streamline the workforce
Establish a job-based CDP system
- Promote the functional competency in all functions

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

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.