ESG Report 2024

9.1.2 Talent Retention To align with the strategic development requirements of the Group, we have set up a selection mechanism that comprehensively considers employees' capabilities and performance. The career development paths for employees fully adhere to a multi-channel concept, broadening the development space for professional talent and meeting diverse development needs. Based on the nature of the positions and the scope of responsibilities, we have divided roles into five main sequences: management, R&D, professional, marketing, and operations. Among these, the R&D, professional, marketing, and operations sequences are collectively referred to as the "Professional Technical Sequence". Promotion requires a multi-faceted assessment through qualifications, professional technical abilities, interviews, etc. Management personnel are selected through organisational nominations, internal competitions, and external recruitment. We actively encourage employees to fully leverage their expertise while supporting them in expanding their skill sets to achieve mutually beneficial growth for both individuals and the Group. In addition, we have formulated the “Integration Plan for New Employees of Group Clinical Research Centres”. The program clearly defines the specific procedures and division of labor for each stage of the pre-employment, onboarding day and probationary period to ensure that new employees can quickly adapt to the work environment and integrate into the team culture. Through systematic guidance and support, new employees are helped to pass the probationary period smoothly and enhance their job satisfaction, thereby retaining more excellent talents for the Group. During the Year, the Group's employee turnover rate was 17.6%, an decreased by 0.2 percentage point compared to 17.8% in 2023. The average length of service of the Group's male employees for the year was 7 years, while the average length of service of the Group's female employees was 6 years. Principle of objectivity Principle of consistency Principle of development Principle of fairness Principle of open communication Principle of openness Principle of timeliness Principle of regularity Principle of impartiality Principles of Performance Appraisal 58 9.1.3 Employee Incentive In order to boost employees' motivation at work and facilitate employees' career development, the Group has established a comprehensive performance appraisal and promotion system. Under the performance appraisal system, the Group will regularly conduct comprehensive evaluations on employees' work performance, training records, personal qualities, etc. based on the nine principles of fairness, consistency and objectivity etc. The performance appraisal leading group is responsible for formulating performance management policies, handling related disputes and appeals, and monitoring the effectiveness of performance appraisals in accordance with the principles of performance appraisal. Employees' performance appraisal results will be used as the main reference basis for evaluating the employee's position competency, personal salary adjustment and job promotion, so as to offer employees rewards and promotion opportunities that they deserve. We also provide bonus to employees with outstanding performance or employees who have made special contributions to the Group to strengthen their enthusiasm for work. The Group is also implementing an employee share award scheme, providing the employees that have demonstrated excellent performance with benefits such as ownership in the company, financial rewards, retirement benefits, and tax incentives to motivate and reward employees for their contributions to the Group. During the reporting period, a total of 3,606,180 awarded shares were vested to the respective grantees on 13 November 2024, based on the terms of the 2023 Share Award Scheme and the achievement of the relevant performance targets. Environmental, Social and Governance Report 2024 The United Laboratories International Holdings Limited