The country's workforce lacks commitment to its work, the chairman of the nation's leading chipmaker said yesterday, citing the high number of new employees that leave after less than a year.
"Society lacks commitment," said Morris Chang (
"That is why I made commitment part of our company culture," he said.
Last year TSMC lost 9.7 percent of its employees, but the vast majority of those leaving are new-comers, Chang said.
A turnover of around 10 percent is normal for companies in Silicon Valley, Chang said.
US-based high-tech employment research firm Culpepper and Associates Inc places the figure much higher.
Twenty percent of technical staff left high-tech firms in the US last year, the firm reported in January. The figure for marketing staff within the high-tech industry last year was as high as 38 percent.
While money is important in increasing employee commitment, Chang said, industry leaders need to think about a company's culture, and how employees and employers can share goals.
"That is why TSMC always focuses on its vision," he said.
TSMC offers generous incentives to hold onto its employees, including a profit-sharing bonus paid annually in the form of shares in the company.
The controversial bonus scheme may change this year as both the US and Taiwan stock exchanges are debating whether to book the bonus as an expense, a move that would cancel out profits at many domestic tech companies where the practice is standard.
"If the governments decide to book the stock options as an expense, we will have to review our policy," Chang said.
The TSMC chief's speech yesterday was intended to give corporate hopefuls and entrepreneurs tips on how to run a successful corporation.
In the past two decades, Chang built TSMC into the world's largest maker of made-to-order computer chips.
The three pillars of integrity, customer orientation and innovation are the corporate culture upon which TSMC's success has been built, he said.
Recently he added a fourth pillar of commitment in response to changing attitudes toward work.
Other pointers include dynamic leadership with a hands-on approach. Bosses can not "preside" over their companies, Chang said.
The importance of accountability is also vital for a successful company -- Chang made it clear he doesn't like to hear executives pass the buck in board meetings.
In addition, TSMC has a mentor system to develop its employees' skills.
Both employees and employers need to engage in "constant self-renewal," Chang said.
More transparent and effective corporate governance is the key to a company's health, Chang said.
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