OUR PEOPLE WORKFORCE MANAGEMENT OUR BACKBONE FOR A SUSTAINABLE FUTURE

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1 OUR PEOPLE WORKFORCE MANAGEMENT OUR BACKBONE FOR A SUSTAINABLE FUTURE IHH believes that people are the greatest asset and are fundamental to the Group s winning edge. IHH currently employs more than 35,000 people worldwide, and this figure is expected to rise in the next decade. Our workforce management framework is supported by three overarching principles: Say, Stay, Strive. 97

2 Our Commitment to Responsible Practices SUSTAINABILITY STATEMENT The close collaboration between the Group s healthcare operations in various countries is key to providing growth opportunities for a wide assortment of healthcare professionals within the Group. Cross-referral activities and the sharing of human resource management best practices within the Group support this. This is depicted in Diagram 5 on the following page. Strategic cooperation among our healthcare businesses bolstered by our performance-based remuneration packages, continue to attract and retain high-performing talent. Our learning and development programmes are customised to ensure that our employees are able to achieve their full potential and are ready to face challenges in light of evolving business environments. Our employee engagement initiatives serve as important platforms for us to communicate our expectations to our employees and to better understand their expectations. We then use the engagement outcomes to determine the best way to align our employees career objectives with our strategic business goals. Material Matter Talent Retention, Attracting Talent of Relevant Competencies and Availability of Skilled Manpower Management of Material Matters Policies Action Plans Indicators 1. Competitive Compensation Framework Employee Welfare 1. Employee Engagement Policy & Procedures Training and Development 2. Employee Handbook 3. Staff Grievance Policy & Procedures 1. Learning & Development Framework 2. Performance Appraisal Framework 1. Competitive Compensation Packages 2. Awards and Recognition 1. Employee Engagement Survey 2. Townhall/Weekly Open- Door Engagement Session 3. Internal Publications (e.g. newsletters and magazines) 1. Management Associate Programme 2. Individual Development Plan 3. Employee Performance Appraisal 1. Attrition rate 1. Employee satisfaction rate 1. Percentage of successful internal talent placements Table 4: Managing Material Sustainability Matters - Workforce Management IHH Group Workforce Distribution across Home Markets (%) IHH Group Employee Gender Profile across Home Markets IMU 2% Malaysia operations of PPL 25% Male 33% Acibadem 57% Singapore operations of PPL 16% 67% 98 IHH Healthcare Berhad

3 Gender Profiles Age Profiles Malaysia Operations of PPL Singapore Operations of PPL Malaysia Operations of PPL Singapore Operations of PPL 12.8% 6.8% 81% 72% 6.5% 9.9% 24.1% 29.0% 18.7% 15.8% 30.9% 11.7% 14.1% 19.7% Acibadem IMU Acibadem IMU 3.6% 11.4% 21.9% 25.0% 12.3% 59% 61% 18.1% 14.6% 18.0% 13.7% 22.8% 16.0% 22.6% < 25 years old 26 to 30 years old 31 to 35 years old Diagram 5: IHH Group Employee Profile across Home Markets 36 to 40 years old 41 to 45 years old > 46 years old At IHH, the talent management strategy is constantly reviewed in accordance with the Group s agile approach in retaining our workforce and attracting new talent to our sterling team. This is vital for ensuring an effective employee retention strategy as well as maintaining job performance and productivity. Our talent retention strategy supports the Group s strategic objectives in delivering innovative healthcare solutions by leveraging on diverse sets of expertise, skill-sets and the experiences of our healthcare professionals from various countries. The Group also acknowledges that competitive compensation packages and recognition of good performance could foster a high performing workforce team. Competitive compensation IHH believes that providing a competitive compensation package is foundational to a strong talent management strategy. Our performance-linked compensation structure is formulated to ensure that the pay levels for various categories of jobs are competitive externally and equitable internally. This is a key enabler for boosting employee satisfaction and retaining top performers. IHH reviews the Group s total compensation and benefits packages on a regular basis based on the employees qualifications, expertise, experience and job levels. The review exercise is performed every year in Acibadem, every two years in PPL and every two to five years in IMU as well as on a need-to basis. 99

4 Our Commitment to Responsible Practices SUSTAINABILITY STATEMENT Awards and recognition IHH s annual Long Service and Golden Years Awards Ceremony is organised by PPL in recognition of those long-serving employees who stay with us to build our healthcare legacy. In 2016, a total of 538 dedicated employees in the Singapore operations of PPL were recognised in the Ceremony. Some 488 employees received Long Service Awards for serving between five to 30 years, while 50 employees received the Golden Years Award for serving beyond Singapore s official retirement age. In 2016, three nurses from Mount Elizabeth Hospital received the Ministry of Health s Courage Fund Healthcare Humanity Awards for their extraordinary commitment to service. They were the first from Mount Elizabeth to receive the Awards honouring their outstanding dedication to going the extra mile in caring for the sick and infirm. In Acibadem, a manager from the Acibadem Kozyatağı Hospital Nursing Services, was the first Turkish nurse who received the prestigious Ansell Cares H.E.R.O Nurse Service Award At IMU, the Long Service Award is organised to acknowledge employees contributions to the University over a 10, 15 or 20-year period. In 2016, a total of 29 employees received this award. Employees are also recognised and rewarded with Achievement Awards for those who excel under the following eight categories, i.e. Teaching Excellence, Research and Publications, Community Services, Individual Development, Business Process Improvement, IMU Core Values, e-learning and Development of New Programmes. In 2016, some 47 employees received these awards under the various categories. In 2016, the Group was recognised for its outstanding practices in human resources management: The Singapore operations of PPL received the Bronze award for best graduate programme from HR Magazine; The Singapore and Malaysia operations of PPL received the Gold Award for Excellence in Employee Healthcare in the HR Excellence Awards 2016; Acibadem received the Gold Award in the Brandon Hall Group HCM Excellence Awards 2015, for the Best Certification Category; Acibadem was awarded the winner in the Corporate University Best-in- Class (CUBIC) Awards 2015, under the Talent Development Category; Acibadem was awarded the Womenfriendly Company by Capital and Forbes Magazines; Acibadem was named the winner in the International E-Learning Awards 2015, under the Blended Learning Category; Acibadem was awarded the High Quality Private Hospital in Turkey and received the QUDAL Quality Certificate of Meal Quality, based on the online consumer survey conducted by the International Certification Association or ICERTIAS; and IMU received the Best Employer Award 2016 from the Employees Provident Fund Wilayah Persekutuan. IHH s employee engagement initiatives are aimed at strengthening our connection with our employees and collectively identifying mechanisms to set up the right working environment for them to give of their best each day. Our 100 IHH Healthcare Berhad

5 engagement initiatives also serve to ensure that our employees are committed and motivated to achieve their personal career development goals whilst meeting IHH s overall business goals and targets. Employee engagement is also an avenue for drawing on our employees knowledge and innovative ideas that are taken into account as and when decisions are made. By cultivating and maintaining cohesive relationships, we are able to draw a deeper commitment from our employees so that they become our best advocates to bring IHH s values to our patients and the community at large. The employee engagement approaches described in the section below have succeeded in reducing our attrition rate and attracting new talents to join our team by creating a culture that fosters engaged employees. Employee engagement surveys are organised periodically to receive direct feedback from employees. In PPL, the Employee Engagement Survey is conducted once every two years. Townhalls are conducted twice a year at each hospital facility within the respective operating divisions. This is to enable employees to provide direct feedback to their respective Chief Executive Officers ( CEOs ). At IMU, townhalls are conducted twice a year. This provides the opportunity for the President/Senior Management to discuss and reveal IMU s overall performance and future plans, as well as enable employees to share their concerns. In June 2016, IMU launched the Staff ibarometer Survey. The Survey will be conducted once every two years to gauge employee satisfaction and engagement levels. IMU shares its annual Engagement Calendar with all employees, detailing the engagement events that will be held every month. The range of programmes organised include employee wellness programmes, cultural celebration events and educational programmes. Monitoring and reporting of the professional employee turnover rate is carried out on a quarterly basis to the Senior Management and IMU Board of Directors. In Acibadem hospitals, weekly open-door engagement sessions are conducted to enable employees to provide feedback to top management. An employee engagement survey is conducted once a year, and the survey results are reviewed and communicated to the Senior Management to formulate subsequent improvement plans. 101

6 Our Commitment to Responsible Practices SUSTAINABILITY STATEMENT Internal publications such as newsletters and magazines provide updates to employees on the Group s progress. The Group has developed subsequent action plans to resolve issues which include the work environment, development opportunities, internal equity, compensation and workload. The progress and outcome of the initiatives will be reported to the Senior Management of the respective operations on a quarterly basis. The respective Head of Department and CEO will then communicate the improvements undertaken to our employees through townhalls and newsletters. The attrition rate is monitored and reported to the Senior Management of the respective operating entity on a monthly basis. IHH believes that individual employees need the reinforcement of knowing that their contributions are valued by management. Our performance management process serves as a bridging factor that clearly links our employees performance outcomes with rewards and their learning needs to cater for future career development and aspirations. Learning and development is a key priority in support of our commitment to quality care. IHH continues to invest in providing learning and development programmes to strengthen employees skills. Our learning and development programmes are designed to cater to all levels of the workforce within the industry. Internally, we have institutionalised a wide range of learning and development programmes based on employees requirements. The Management Associate Programme ( MAP ) and Individual Development Plan ( IDP ), as detailed in the next page are designed to provide on-the-job training and career development opportunities for young graduates, to senior professionals, right up to the leadership team. 102 IHH Healthcare Berhad

7 Employee performance management The Group conducts yearly feedback on employees performance. The results of the performance and appraisals are used to identify high potentials and to identify the specific training for respective employees through Learning Needs Analysis, an assessment to identify the gaps between employees actual performance levels and expected performance levels. Management Associate Programme ( MAP ) The MAP has been established to support PPL s leadership succession plans and attract promising graduates into the organisation. The MAP is a structured development programme which offers on-the-job training and multidisciplinary exposure in both management and hospital administration routes to young graduates. Every year PPL hires 10 to 15 Management Associates and absorbs them into the organisation. In Acibadem, the MAP has 26 participants on-board. The performance of the Management Associates will be evaluated through a 360 Degree Feedback process from supervisors and employees they interact with. The outcome of the Programme is periodically reported to the Management. Individual Development Plan ( IDP ) The IDP is established to aid individual employee s professional development by providing the necessary support to chart their career path with clear objectives and a timeline. Employees who have participated in this programme found the outcome to be useful and rewarding in terms of self and career development. 103