Human Capital Development and Employee Care

Human Capital Development

Commitment and Goals

Modernform regards its people as the most important driving force in leading the organization towards sustainable success. The Company therefore places the utmost importance on comprehensively caring for and developing employees across all dimensions — both knowledge and capabilities in their work, and their quality of life and well-being in all aspects.

Human Capital Context

The majority of Modernform's employees are permanent staff (98%), comprising head office employees and operational employees (factory and showrooms), with a total of 1,085 employees in 2025. This reflects the Company's focus on employment stability as a foundation for sustainable organizational development.

Labor and Human Capital Management Goals

2025 Performance Results

*The Company focuses on building career stability; the majority of employees are permanent staff, and there is no use of daily temporary labor in order to maintain employee welfare and benefit standards. 

Diversity and Equality Management Approach

Modernform recognizes that a diverse workforce brings creativity and competitive capability. The Company has therefore implemented policies for equal opportunity and fair remuneration, focusing on creating a work environment where every employee can perform at their full potential, regardless of gender, age, nationality, or disability.

The Company implements a performance-based compensation policy strictly adhering to gender equality principles. Performance evaluations and merit-based salary increases for both male and female employees are based on work results under the same standards.

In 2025, the Company elevated its support for career opportunities for persons with disabilities, with a total of 14 employed, representing 1.29% of total employees.

The Company not only employs persons with disabilities but also focuses on arranging a suitable working environment to draw out their full capabilities and create sustainable careers.

1. Analysis of Employee Group Differences and Expectations

The Company has divided its employees into 2 main groups with different expectations and key factors, which form the foundation for designing differentiated Human Capital strategies to most effectively address each group.

Embracing differences is the driving force of innovation.


Modernform Self Learning

Strategic Performance Management System Transformation (PMS Transformation)

Commitment and Goals

Modernform Group Public Company Limited recognizes that the Performance Management System (PMS) is one of the key foundations for building a high-performance culture and elevating the organization's long-term sustainable competitiveness. Therefore, in 2025, the Company announced a PMS Transformation initiative to redesign the performance management system to be more modern, fair, transparent, and practical.

• Strategic Objective: Link organizational-level goals (Corporate KPIs) to individual levels in 100% alignment throughout the organization.
• Human Capital Development Objective: Elevate assessment standards using Competency-based evaluation as the foundation for designing employee development pathways.
• Confidence-Building Objective: Create a transparent and auditable compensation and promotion consideration process to build employee trust and organizational credibility.

PMS Transformation Journey 2025 – 5 Key Steps

Operational Guidelines

To achieve the objectives of the performance management system reform, the Company has defined a strategic operational approach 'PMS Transformation' based on 5 core areas as follows:

1. Structural and Strategic Framework Establishment

• Balanced Scorecard (BSC) Integration: Applying BSC to define key performance indicators across 4 important dimensions: Financial, Customer, Internal Process, and Learning & Growth, to ensure comprehensive and multi-dimensional performance measurement.
• Competency Model Design: Developing assessment criteria that comprehensively cover both Work Results (KPIs) and Work Behaviors (Competencies), to create a complete picture of each employee's capabilities.

2. Top-Down KPI Cascading: Implementing the Smart KPI Alignment process to ensure that departmental and individual-level goals are linked and consistent with organizational objectives at every level.
3. Career Path Transparency Elevation

• Promotion through Pitch Idea: Transforming the executive-level promotion consideration process from a committee-based decision to a process where candidates present their ideas, potential, and vision directly to evaluate leadership readiness and suitability in the context of real work.
• Fair Compensation Management: Reviewing job descriptions and improving the salary structure to more accurately reflect the job value of each position, to ensure competitive and fair compensation.

4. Leadership and Feedback Skill Enhancement

• Developing people management skills through the Leadership & Coaching course for supervisors, to transform the role from a task assigner to a Coach who guides employees toward sustainable performance improvement.

5. Participation and Two-Way Communication Building

• Using Town Hall activities as the primary platform for communicating organizational direction and new guidelines, to build broad understanding and genuine acceptance of the new PMS, while also providing employees with a channel to ask questions and provide feedback.

Performance Results

1. Fair Structure and Guidelines: The Company successfully completed the Job Description (JD) Review and implemented the Competency Assessment Framework, providing employees with a clear assessment framework and career development pathway.
2. Data-Driven Work Culture: Applied Balanced Scorecard principles to cascade organizational goals to individual levels, and used Power BI as a tool to build organizational data literacy for evidence-based decision-making.
3. Systematic Goal Cascading: Implemented the Smart KPI Alignment 2025 project for executives and managers, to align departmental KPIs with organizational-level goals, with 100% goal linkage.
4. Communication and Employee Acceptance: Organized a Town Hall activity under the theme 'ผูก' (Bond) to communicate organizational direction to employees across all levels, covering head office, showrooms, and factory.
5. Career Advancement Promotion: Elevated executive-level promotion standards through the Pitch Idea process to create a work culture focused on performance and vision. This process provides opportunities for employees to demonstrate their potential fully and equally. Furthermore, those who did not pass the assessment received Individual Development Plans (IDP) to prepare for the next round.
6. Next-Generation Leadership Readiness: Next-Generation Leadership Readiness: Enhanced people management skills for supervisors and managers through the Leadership & Coaching course, focusing on creating a culture of regular positive feedback to elevate employee engagement and operational efficiency."

Leadership/Coaching for Supervisor Training to Develop Competency

Cultivating a Learning Culture and Elevating Human Capital

Policy and Operational Guidelines

The Company believes that learning is a key mechanism for sustainably increasing competitive capability. Therefore, in 2025, the Company launched major human capital development projects that respond to organizational strategy across various dimensions, all of which are part of building a 'People-centric Learning Organization' as a foundation for the Company's long-term sustainable growth.

Key Human Capital Development Projects in 2025

The Company has implemented learning promotion projects that respond to organizational strategy across multiple dimensions as follows:

1. Next-Generation Leadership Building (Leadership Transformation Program)

To support the transition to the new Performance Management System (PMS Transformation), the Company implemented the Leadership & Coaching Transformation course for supervisory-level employees, with the objective of developing a management approach that builds sustainable employee capability, beyond task assignment.

Operations: Training was organized for supervisory employees covering 3 levels: Supervisor, Department Manager, and Section Manager, through in-house training in collaboration with expert external consultants.

2. Data-Driven Organization (Digital & AI Literacy – Power D Project)

The Company aims to build a data-driven decision-making culture to improve operational efficiency.

Operations: Developed 186 target employees through Basic & Advanced Power BI courses, with the objective of enabling executives and employees to create real-time dashboards for monitoring and analyzing performance in their own areas.

3. Embedding Responsibility at All Levels (ESG DNA)

The Company elevates sustainability knowledge to become part of the work culture, using the ESG DNA course from the Stock Exchange of Thailand (SET) as an ESG Mission Possible 2025 initiative to build awareness and sustainable business management understanding.

Performance: Successfully drove the Board of Directors, senior executives, and strategic employee groups to participate in the ESG DNA course, achieving 84% participation.

4. Self-Learning Culture & Compliance

Encouraging employees to develop skills according to their interests alongside building continuous business ethics awareness through the Modernform Online Self-Learning platform and mandatory courses.

• Digital Learning Innovation (L&D Cinema): The Company elevated the organizational knowledge-building process through an engaging short-video format (Micro-learning), integrating it into the mandatory courses that all employees must complete.
• External Platform Learning Support: The Company supports the accumulation of learning hours from external sources as part of the annual development plan, to promote lifelong learning and career self-development.

Performance Results

 
Note: Data calculated from permanent employees who worked a full year (Full-time Employee) in each fiscal year.

1. Future Goals

The Company revised the average training hours target to 15 hours per person per year, shifting the strategy from focusing solely on volume to quality and real-world applicability, while maintaining the principle of equitable access to learning opportunities for all employees, regardless of gender or age group.

2. Incident Management

In 2025, the Company received no complaints regarding access to human capital development welfare or discrimination in training opportunities.

Employee Engagement, Benefits, and Work-Life Balance

Modernform focuses on building a culture of listening and responsiveness, to create an excellent work-life balance for employees. The Company recognizes that genuine employee engagement is not merely about satisfaction surveys, but requires a concrete, systematic response to employee needs.

Goals and Commitment

Modernform is committed to building an organizational culture where employees are happy and have a high quality of life in all aspects. We aim to continuously elevate employee engagement scores by implementing a systematic feedback mechanism to improve welfare and the work environment in alignment with employee expectations and current economic conditions. Furthermore, the Company emphasizes creating an inclusive organization through Diversity, Equity, and Inclusion (DEI) policies, ensuring that all employee groups have equitable access to welfare and care. A wide range of welfare benefits is provided to meet the diverse needs of employees, including health insurance, provident fund, performance-based bonuses, per diem, travel expenses, medical expenses, accident insurance, and uniforms. Additionally, we offer benefits that address fundamental needs, such as various types of leave, including birthday leave and other categories. We also prioritize maintaining mental stability and job security for employees during crises to ensure a sustainable work-life balance.

Maternity and Childcare Leave Entitlements

The Company prioritizes caring for employees during significant family milestones. Female employees are entitled to maternity leave for a single pregnancy not exceeding 98 days. This period includes leave for prenatal check-ups and encompasses any holidays falling within the leave period. During maternity leave, the Company provides full wages for a period not exceeding 45 days as stipulated by law. In 2025, 13 female employees utilized their maternity leave and returned to work afterward, representing 1.01% of the total female workforce.

Operational Guidelines

The Company manages employee engagement through a Feedback-driven Culture strategy by conducting an annual organization-wide engagement survey to analyze key areas for improvement, particularly regarding welfare and career advancement. This is coupled with the "HAPPY 8" project (8 dimensions of happiness) to promote positive behaviors and reduce workplace stress. In terms of welfare, the Company has reformed its policies to be flexible and modern, such as adjusting financial assistance benefits to cover the Marriage Equality Act and implementing a Pro-rata leave policy for new employees. Furthermore, appropriate communication channels have been established for both office and production staff to ensure that every employee has equitable access to information and can participate in well-being activities.

Voice of Employees for Organizational Development

In 2025, the Company elevated its employee listening process systematically. A total of 929 employees (85.31%) participated in the engagement survey. The results showed an overall engagement score of 72.75%. The "Co-workers" factor received the highest score at 77.75%, reflecting a strong teamwork culture. When compared to the Thai Benchmark (74%), the Company’s score is considered to be at a high standard, close to leading organizations. The Company has utilized insights regarding "Welfare" and "Career Advancement" as a vital foundation for defining human resource strategies and accelerating policy improvements to ensure flexibility and truly address the work-life balance of employees.

2025 Annual Employee Engagement Survey Results (72.75%)
" Referenced from the average employee engagement index in Thailand by Culture Amp, January 2026."*

Response Measures and Employee Happiness Elevation (Strategic Actions)

To align with expectations and create a good work-life balance, the Company announced important measures in 2025 to respond to employee needs as follows:

• DEI & Marriage Equality: Elevated financial assistance for marriage and bereavement to cover all forms of diversity, in accordance with the Marriage Equality Act, to ensure all employees are treated equally and fairly.
• Modern Vacation Policy: Provided annual leave rights to new employees immediately upon passing probation, to promote Well-being and work-life balance from the first day of joining.
• Benefit Competitiveness: Increased marriage assistance and transportation allowances to align with the current economic conditions and employee expectations, ensuring competitive benefits.

Building a Culture of Sustainable Happiness (Happy Workplace)

Beyond improving basic welfare, the Company is also committed to driving the 'HAPPY 8' project (8 Components of Happiness), covering happiness dimensions of the body, heart, mind, finances, family, society, work, and environmental concerns.

• Activity Satisfaction: Employees expressed an average satisfaction with happiness-building activities of 82%, with an activity participation rate exceeding 85% on average.

Strategic Objectives

1. Enhance Engagement: Build a strong organizational culture and encourage employees to participate in various activities to build trust and organizational identity.
2. Address Priority Development Issues: Use activities as a tool to respond to issues with the lowest scores from the engagement survey, to continuously improve well-being.
3. Drive Core Values: Reinforce the values of 'Teamwork' and 'Sustainability' through various activities to make organizational values visible in daily work. 

Performance Results

The Company successfully organized diverse activities throughout 2025, with an average activity participation rate as high as 85%, reflecting employees' strong engagement with the Company's culture-building initiatives.

Employee Support Measures in Crisis Situations

The Company recognizes the need to promptly care for employees and families affected by disaster events, with concrete policies and financial assistance processes as follows:

Flood Assistance Policy

• Objective: Demonstrate the organization's responsibility to employees in crisis situations and build trust.
• Budget: Allocated a budget of 100,000 Baht for operations.
• Forms of Assistance
• Financial Assistance: Provide financial assistance of 10,000 Baht (homeowners) or 5,000 Baht (residents/tenants).
• Leave Rights: Provide 3 days of special leave to enable employees to return to care for their families and residences.
• Outcome: 7 employees were affected by southern Thailand floods in 2025, all of whom received approved assistance in accordance with the policy.

Sustainable Employee Engagement Roadmap for the Future (2026 Roadmap)

To ensure continuous employee engagement and responsiveness to changing needs, Modernform has defined a development roadmap for 2026 as follows:

1. Human Capital Transformation: Elevate human capital development plans by linking evaluation results from the new PMS system with Career Development Plans, to ensure that learning and development plans correspond more precisely to actual individual needs.
2. Digital & Inclusive Engagement: Increase effectiveness of employee reach through multi-channel communication, such as LINE OA, short videos, and interactive online activities, to ensure that all employee groups — regardless of workplace location — have equal access to information and participation.

3. Office Space Improvement Project for Quality of Life and Sustainability Promotion

Modernform is implementing an office space improvement project within the head office building to elevate the quality of work life for employees and promote the concepts of Diversity, Equity, and Inclusion (DEI) among the workforce, while creating organizational sustainability. The project focuses on designing workspaces that meet modern work styles in the dimensions of efficiency, flexibility, and user happiness.

Policy and Objectives

This project aims to create a workspace that reflects the concepts of sustainability and employee-centricity (People-Centric & Sustainable Workplace). It emphasizes flexible design that supports various work styles, allowing employees to choose areas based on their specific tasks. This is coupled with caring for employee physical and mental well-being, supporting Diversity, Equity, and Inclusion (DEI), and ensuring efficient resource utilization and environmental friendliness. Ultimately, the goal is to establish Modernform’s office space as a model for sustainable workplaces in the future.

Guidelines

• Plan office space utilization by studying current employee activities and space usage behaviors.

Survey space requirements that support work performance and employee well-being from both office and showroom employees.

• Develop spaces for health activities and diversity by allocating a health promotion area (Wellness Zone), such as exercise areas, relaxation corners, and meditation rooms, and facilities for diverse needs including lactation rooms and prayer rooms.
• Promote the use of environmentally friendly materials and decoration approaches, help conserve energy, and select Modernform furniture certified to environmental standards, to demonstrate the connection between product quality and sustainable well-being.
• Implement space improvements and install equipment and furniture as designed, adapting the space to suit each function's usage needs.
• Promote communication and participation by holding meetings to inform employees of project objectives so they understand and participate, along with providing feedback channels before, during, and after the project.

2025 Performance Results

In 2025, Modernform implemented office space improvements within the head office building, divided into 2 phases: the renovation of the 25th floor as a Co-working Space for head office employees and the new employee lounge.

Furthermore, it was developed into a Real-Life Work Showcase, or a live showroom of a modern working environment, to demonstrate Modernform's capabilities in designing workspaces that truly respond to real needs.

The 28th floor space was designed and renovated to be a multi-purpose area for central activities of the organization, including a seminar room, training facilities, and a recreational space, with furniture designed and selected by the Company to demonstrate design expertise that responds to the needs of modern users.

Creating Added Value and Employing Local Community Members

Goals and Commitment

Modernform recognizes the organization's role in being part of driving the grassroots economy, particularly in the Bang Phli area, Samut Prakan Province, where the main production facility is located. The Company therefore places great importance on creating employment opportunities for local community members as a tangible contribution to sustainable community development.

Operational Guidelines

The Company prioritizes access to local employment through transparent and equitable recruitment, publicizing vacancies via community networks and local agencies near the Bang Phli facility. Furthermore, we promote engagement through welfare that meets local lifestyle needs, reducing travel burdens and cost of living, while ensuring production stability and long-term retention of high-potential employees.

Performance Results

In 2025, the Company successfully drove the local economy with 49% of employees domiciled in Samut Prakan, exceeding our target. This generated an average of 2.7 million Baht per year in household income for the community. Additionally, having employees live near the facility reduced turnover and increased production flexibility, ensuring business continuity while creating tangible socio-economic value.

Labor Complaint and Dispute Rate

In 2025, the Company found no significant incidents or complaints regarding violations of labor standards. For cases of major labor disputes, no significant labor dispute cases were found throughout the year.


*Note: Significant labor disputes refer to legal disputes that impact the Company's business operations, such as collective labor lawsuits, mass work stoppages, or cases resulting in regulatory sanctions