Focus on people
We strive to accelerate the advancement of technology by empowering the makers of tomorrow, and we understand that our valued employees are the ones who drive this mission forward. Our people are therefore at the heart of everything we do as an organization, and we recognize that our collective efforts as a team contribute to the success and strength of the company.
At a strategic level, human capital management is overseen by our Board. Our HR Team is responsible for overseeing, managing and implementing staff development, retention and well-being programs on a routine basis. Within this department we have appointed dedicated individuals to focus on talent management, training and employee relations.
We ensure that our employees have freedom of association and collective bargaining rights, in accordance with applicable labor and employment laws, and we encourage them to read their Labor & Ethical Management Policy document for more information.
Employee training programs
We provide a wide range of training initiatives covering fundamental skills as well as more advanced competencies.
To facilitate a smooth transition for our new employees, we offer a comprehensive on-the-job training program. This places each new starter with a senior team member who serves as a dedicated trainer, guiding them through the onboarding process and supporting them during the initial phases of employment.
For our engineers, we provide tailored training courses focused on semiconductor research through partnerships with educational institutions which enable us to develop ‘future experts’ in our industry. And more generally, we offer training on non-technical competencies such as communication, teamwork and problem-solving skills, which helps our employees to achieve the most from their roles.
Training is provided through in-person workshops and seminars, as well as via our online learning platform. Employees are encouraged to use these resources to stay updated on industry trends and acquire new skills. We have a system in place to monitor and record participation and successful completion rates of our training.
Management and leadership training
We recognize the importance of management and leadership training programs as an essential component of talent development within Magnachip, and we offer training programs to nurture newly appointed team leaders as well as more experienced executives.
The specific programs and content vary based on our needs and objectives. In general, our leadership courses focus on effective communication, decision-making and team management, and take the form of workshops, weekly leader sessions and sync-up meetings for team managers.
Together, these initiatives contribute to building a strong leadership pipeline within our company, aligning leadership skills with our strategic objectives.
Continuing education
To encourage a culture of continuous learning and development, we allocate funds for employees seeking to enhance their skills through workshops, conferences and industry-specific courses. We are also preparing a new program to provide tuition reimbursement for employees who pursue further education courses or relevant professional certifications.
Mentorship programs
We are proud of our culture of mentorship, in which experienced professionals guide and support less experienced employees. Our mentoring program pairs employees with mentors or coaches to provide guidance and career advice, fostering a sense of professional support. This also has the benefit of transferring knowledge and skills throughout the organization.
Employee benefits
We understand that by creating a culture in which employees feel valued, supported and motivated, we are encouraging them to stay with Magnachip for the long term. Our HR Team remains current on employee benefits trends to ensure we are offering a well-rounded and competitive benefit package. The HR Team also conducts regular reviews of compensation levels and distribution methods to ensure fairness and equity.
Table 8: Magnachip company benefits
| Financial benefits | Non-financial benefits |
|---|---|
|
|
In addition to the above benefits, we run a number of employee retention initiatives including a regular CEO ‘Town Hall’ meeting, a recognition and awards program, and team-building and social activities.
Work-life balance
We operate a flexible work policy, which gives our employees some choice in terms of when they start and end their working days and allow employees to work from home and other remote locations when appropriate.
We have also implemented a pre-childbirth leave policy to support our employees during this important period. This gives employees the option to take a leave of absence before the birth of their child. We also offer additional Paid Time Off (PTO) for summer vacation.
Recruitment and talent pipeline
We have adopted a structured approach to identifying, training, mentoring and developing talent within Magnachip, aiming to secure a steady supply of skilled and competent employees. We view this as essential for attaining our strategic goals and enhancing long-term stockholder value.
Our recruitment strategy is designed to attract the best available talent in the industry and involves:
- Maintaining a strong online presence through our website and professional platforms
- Crafting job postings that emphasize the benefits of working at Magnachip
- Participation in industry events, job fairs and networking opportunities
- Establishing partnerships with higher education institutions to tap into emerging talent pools
- Prioritizing employee referrals, recognizing the value of recommendations
- Collaborating with recruitment agencies to access their networks
To ensure that we attract the best talent, we regularly review and update our recruitment processes, incorporating feedback from both candidates and hiring managers. This commitment to continuous improvement allows us to adapt to changing market dynamics and candidate expectations.
Graduate traineeship and apprenticeship program
Designed for recent university graduates, our traineeship program involves a combination of classroom training and on-the-job learning, where trainees work alongside experienced professionals to gain hands-on experience.
Since 2018, we have operated a scholarship program in partnership with a local university, as a means of developing and recruiting local talent for the semiconductor industry. Every year, several students are selected to receive a scholarship, the benefits of which include a monthly tuition subsidy during the school year and an offer to join us after graduation.
In 2023, more than 50% of our new hires were recent graduates or graduating seniors from universities based near to our operational sites. In addition to granting us access to top emerging talent, offering work-related training and employment opportunities for local students improves our reputation within the community and fosters stronger community connections.
Employee evaluation and career development
We evaluate all of our full-time and executive employees through an annual performance review, using the management by objectives (MBO) method. This approach involves setting goals collaboratively, continuous monitoring and regular feedback. It also allows us to set clear career paths for our employees and to uncover talent and potential for internal promotion.
Managers are encouraged to deliver informal feedback on an ongoing basis, to ensure employees are able to improve their performance and are aware of relevant training and development opportunities.
These initiatives help employees understand their strengths and identify areas for improvement. In this sense, we encourage a culture of personal and professional growth that aligns individual goals with organizational objectives.
Research and development reward program
To promote technical excellence, we have established a performance-based cash award program that rewards employees for special accomplishments, such as the achievement of certain research and development (R&D) targets or breakthrough innovations. Also, to ensure our R&D professionals continue to advance their skills and knowledge, our technology committee regularly attends seminars and conducts research in the semiconductors field.
Employee engagement and satisfaction
At least every two years, we conduct a satisfaction survey to gain insights into how employees feel about their jobs, working environment and the company as a whole. Topics include the opportunities for employee engagement, job satisfaction, communication, work-life balance and compensation. The results of this important ‘pulse check’ are communicated to our management team as well as our employees, and we develop action plans to address any areas identified as needing improvement.
To ensure the effectiveness of our surveys, we carefully track both the cadence of these assessments and the associated response rates.
As of December 31, 2023, our total global workforce (full- and part-time) numbered 891, with 857 of these individuals based in Korea. In 2023, our employee turnover rate was 14.2%.
Table 9: Human capital statistics
| Role type | Number of people |
|---|---|
| Sales, marketing, general, and administration | 201 |
| Research and development | 228 |
|
78 |
| Quality, reliability, and assurance | 40 |
| Manufacturing | 422 |
|
40 |
|
382 |
