Recruitment and Employee Turnover [GRI401-1]

The Company conducts recruitment exercises from time to time as required in the development of its business, including professional pharmacists to support each Watsons store. The selection process that has been established by the Company is based solely on the qualification and competency of the candidate and suitability to the relevant position under the principle of equality and there is no child and forced labour, so that there are no incidents of discrimination within the Company. (POJK51-F.18)(POJK51-F.19)[GRI406-1][GRI408-1] [GRI409-1]

The following is information related to employee recruitment during 2023:

In 2023, the number of employees who resigned was quite low. This can be seen by the low employee turnover rate as follows:

Training and Development (POJK51-F.22)[GRI404-1]

To improve the competency of its employees, the Company is committed to competency development through training that is designed for the transfer of knowledge and skills. Every new employee must undergo an orientation period, whereby new employees are introduced to other employees and activities related to the business of the Company. The transfer of technical skills is carried out internally through HR development programmes prepared by the HR Department.

In 2023, the Company continued to focus its HR development efforts on training for pharmacists, product knowledge, store development skills, personal improvement, functional training, store leaders’ sharing and information technology competency.

Through various training programmes, the Company strived to enhance the efficiency and information technology competency of its HR Department to optimise the performance of its O+O platforms, including the official Watsons eCommerce platform.

The Company has continued to use the Mobile Learning – Pocket U application as one of the methods to cater more effectively for the wide range of training needs of its growing number of employees.

During 2023, DAYA has conducted 71 training exercises, which included 68 in-house traninigs attended by 10,783 participants and 3 external trainings attended by 64 participants.

Remuneration, Benefits and Performance Appraisal of Employees

Committed to the sustainable development of HR, the Company strives to maintain employee welfare. This effort begins with the provision of competitive remuneration packages pursuant to prevailing laws and regulations while taking into account the compensation level of other companies in similar industries. In accordance with applicable regulations, the Company registers all staff members into the Social Security program for Employment (BPJS Ketenagakerjaan) and Social Security program on Health (BPJS Kesehatan). To encourage optimal performance from its employees, including directors of the Company, the Company also awards both long-term and short-term incentives and bonuses in accordance with its internal policy that clearly establishes criteria based on individual key performance indices.

In determining the remuneration packages for its employees, the Company adheres to applicable regional government regulations which determine the minimum wage requirement for the relevant provinces and/or cities where its employees work.

The wages of entry level employee is above the range of the RMW in Indonesia. There is no discrimination by the Company in the determination of an employee’s wage amount by gender, race, ethnicity or religion, so that there is no difference in the wage ratio of all employees based on this. (POJK51-F.20) [GRI405-2]

The Company is committed to guaranteeing a safe and decent work environment that is given to all employees, including the provision of employee health insurance, the provision of safe, clean and comfortable work facilities such as toilets, dining rooms, availability of breastfeeding rooms, childcare, smoke detection devices and fire extinguishing facilities, place of worship and vehicle parking space. (POJK51-F.21)

The Company is of the view that that employees are invaluable assets of the Company. The Company offers attractive benefits for its employees. This aims to ensure that workers get the best remuneration for their dedication to the Company. Thus, employees are enthusiastic about their work and are committed to the Company.

Creating Harmonious Industrial Relations

In formulating company regulations and policies, DAYA involves employees to ensure that their rights and obligations are fulfilled. The Company is also active in disseminating regulations and policies, including policies related to the current and future developments of the Company’s operations, such as the process of merging, taking over or moving production, these three things are carried out no later than 3 (three) months after the policy is enacted. This policy information is communicated through electronic mail, intranet, socialisation meetings, company performance monitoring meetings and other communication media, this is not specifically regulated in the Company’s policies. [GRI402-1]

By building harmonious industrial relations based on Pancasila, all parties involved and interested will be more aware of their roles and responsibilities so that partnerships and cooperation to achieve common goals will be formed.