“Becoming a corporate model for joint development of staff and the Corporation” is one of the three visions of Baosteel. Baosteel has firmly upheld the philosophy that talents are the primary resource. Over the years, Baosteel has continuously increased employee investment and actively fostered a healthy growth environment under which talents are assigned to the most appropriate positions, constantly improved the employee growth and development system, consistently engaged in research and evaluation of employee satisfaction and employee dedication and has been committed to standing the employees’ test, and thus incorporated employee development into the objectives of corporate development planning with the aim to maximize corporate value, realize comprehensive development of talents and therefore promote the joint development of both staff and the Corporation.

In 2012, Baosteel continued to strengthen the development of the assessment-driven mechanism to stand employees’ test and satisfy employees’ experiences and promote the Baosteel HR assessment-driven mechanism integrating four main components of the employee development reporting system, employee devotion survey, evaluation of credibility in selection and appointment of talents and HR system appraisal. The Corporation has fostered an “Employee-Oriented” institutional environment and cultural atmosphere based on the actual needs of employee development and embodied the concepts of “common development of staff and the Corporation” advocated by the Corporation.

Experiences and Examed by the Staff

In 2012, Baosteel continued to strengthen the development of the assessment-driven mechanism to stand employees’ test and satisfy employees’ experiences and promote the Baosteel HR assessment-driven mechanism integrating four main components of the employee development reporting system, employee devotion survey, evaluation of credibility in selection and appointment of talents and HR system appraisal. The Corporation has fostered an “Employee-Oriented” institutional environment and cultural atmosphere based on the actual needs of employee development and embodied the concepts of “common development of staff and the Corporation” advocated by the Corporation.

Employee Development Satisfaction Assessment

Baosteel has opened up to opinions and suggestions through research and survey, assessment of the satisfaction of employees, in particular field employees, at all positions and all levels on employee development efforts, on-site releases at all entities and face-to-face dialogue between HR management staffs and employees. The employee development efforts at all entities have been constantly improved in light of the voice of the end human resource “users”.

In 2012, the employee development satisfaction assessment was conducted for 12 subsidiaries and 3 secondary entities of Baosteel. The assessment covered six basic work modules, namely employee structure, employee capability, employee motivation, employee spirit, employee health and employee services, and a continuous improvement module.

Employee Devotion Assessment

Employee devotion assessment measures the level of dedication to work of employees. The driving factors behind employee devotion and the order of priority of such factors are identified through involvement of randomly selected employees in third-party independent assessment and thorough statistical analyses to reveal the driving factors that are most likely to boost level of devotion and channel attention and actions to driving factors that may pose threats to employee devotion.

In 2012, the employee devotion survey was conducted for the Group headquarter, overseas employees and 12 affiliated entities and reasonably assessed employee devotion status through 16 driving factors in six aspects, namely “Personnel, Work, Opportunity, Quality of Life, Regulations and Total Remuneration”. Based on the survey results, improvement and enhancement strategies have been systematically drawn up with focuses on prioritized driving factors, such as resources, salary and benefits, career development path, performance and fairness. After three years of continuous implementation, milestone achievements have been realized: employee devotion have been significantly enhanced. After continuous efforts, the employee devotion level of Baosteel has increased from 46% in 2010 to 52% in 2012.

Talent Reserve

Training Future Management Elites for Baosteel– Management Trainees

In 2012, Baosteel selected 11 outstanding graduates from top universities across China with extraordinary capacities in learning and creativity, strong curiosity and excellent cooperation capabilities, inter-person influence and presentation skills as the inaugural “Management Trainees” of Baosteel. The plan is to enable the management trainees to make smooth career transition, quickly accumulate capabilities and grow into future management elites for Baosteel through a five-year cultivation period that offers experiences on multiple positions, expansion of global perspectives, responsibilities in major projects, continued training and development and the two-mentor mechanism.

Strengthening International Capacity Development of Employees

In face of the accelerated internationalization process, Baosteel has grown an increasingly appetite for international talents. In addition to continued implementation of regular programs, such as attraction of high-end overseas talents, foreign language aptitude enhancement trainings and mutual visits with strategic partners, Baosteel officially launched its overseas key training program in May 2012 and made the first attempt in open selection of talents and engaged in fruitful exploration and practices in areas such as innovative talent selection models. The selection process upholds the principles of “Open and Fair, Clean and Transparent and Integration of Cultivation with Appointment” and ensures that the scarce quality resources are provided to the most appropriate ones so as to cultivate a team of backbone talents with global concepts and perspectives, familiarity with international rules and the ability to expand the international businesses. After many rounds of selections and interviews, 26 employees were eventually selected to pursue advanced study at renowned international universities, such as Harvard Business School and Stanford University.

Talent Training System

21 Golden Apple candidates, 41 members of Daily Progress Training Camp, 250 Green Apple candidates and 24 Baosteel Worker Inventors

Operation and Management Talents

The Daily Progress Future Entrepreneur Training Camp supports Baosteel’s development of new industries, new businesses and new products with the training and reserve of a group of entrepreneurial talents with both entrepreneurial spirits and capabilities. For the purpose of strengthening the cultivation of international entrepreneurial talents, the “Daily Progress Phase II Project” was launched in 2012 on the foundation of Phase I Project and 20 younger trainees with great potentials were selected and included in the program. The number of “Daily Progress” trainees later increased to 41. A series of entrepreneurial capability study and self-study activities were conducted in 2012 during which the trainees read classic Chinese literatures such as Book of Changes, The Analects and History As A Mirror and absorb the wisdom and humanistic spirits from traditional Chinese culture. The trainees visited Wanxiang Group, SANY Group and Geely Automobile to engage in discussions with and learn experiences from famous entrepreneurs. They also traveled overseas to the U.S. Harvard Business School, the United States Military Academy at West Point, Yale University and Boston City Hall to draw wisdom and strengthen from the western management theories.

Launched Pilot Program for Leader “Office Term System” In order to further inspire the entrepreneurial initiative and operation initiative of the corporate operation and management staffs, Baosteel, as Party A, signed the Operators and Operating Teams Office Term Contract and Office Term Performance Responsibility Pledge of Party Group Leaders with pilot entities (Baosteel Resources and Baosteel Metal), as Party B and commenced a two-year office term pilot program, which served as the breakthrough point in the escalated reform in corporate management personnel system and corporate management.

The Baosteel Management Personnel Office Term Pilot Program highlighted that appointment of management personnel should comply with the operation plan, adhered to the thorough integration of Party's governance of the management personnel and the appointment of such personnel by the operators in pursuance of laws, emphasized the guiding responsibility of the operators, requested for simple and straight-forward office term performance indicators, stressed management expectations, encouraged challenges and sought the inspire initiatives and talent achievement.

Since the Term Office Pilot Program started two years ago, the management teams and the entire workforce of the two pilot entities, namely Baosteel Resources and Baosteel Metal, have made concerted efforts to actively cope with the difficult market climate, focused on the development of the internal motivation transmission mechanisms and continuously improved their soft strengths, achieving not only satisfactory operating performances but also desirable changes in the management approaches and morale of the management teams as well as the congeniality among employees.

Technical Talents

The “Golden Apple Program - The aim of the program is to bring up leading technological innovation talents with international influence who can create proprietary innovative technologies that leave Baosteel’s mark in the development history of the world iron and steel industry in 8-10 years. Work in 2012 focused mainly on reinforcing and promoting the “Golden Apple” Program, establishing internal communication platform, founding the “Golden Apple” professional academic seminar, setting up learning rooms and conducting 15 special learning sessions. The “Star Specialists’ Classroom” chose topics in close connection with the work objectives and actual needs of the “Golden Apple” team and invited renowned experts from home and abroad to introduce the most cutting-edge technologies in their respective fields. The “Specialized Learning Session” focused closely on the technical difficulties faced by Baosteel in site practices. Over the past three years, the “Golden Apple” Program has developed a series of advanced technologies and proprietary new products, was granted over 100 invention patents and applied for 10 overseas patents.

The “Green Apple Program”. After 4 years of continuous implementation, Baosteel has selected over 200 high-potential youths over 4 rounds for trainings under the Green Apple Program. The program has yielded preliminary results as the trainees are gradually growing into key figures in the technical operations of their respective jobs, among which 16 has made to management positions. A series of management and innovation learning sessions on five core competences, namely “Moral Ethics”, “Strategic Thinking Capability”, “Creativity”, “Influence” and “International Capacity” were held in 2012. 10 trainees were sent to Taiwan on a research visit to study the differences and similarities between the corporate management and development models of Mainland and Taiwan enterprises.

The “Professional Partner Program”. The program is a typical example of the application of action-based learning in Baosteel’s trainings. The program, with the aim to resolve problems at production sites and cultivate backup technical experts for the Corporation, is a comprehensive learning program jointly organized and implemented by all concerned departments and involved professional technical staffs from the same profession and work process but different geographic regions engaging in theoretical studies and practical exchanges on core technologies in the production processes to jointly explore solutions to problems at production sites. A series of learning activities, including the “Energy-efficiency Power Plant Partners Program”, “Induction Power Partners Program”, “Shanguan Blast Furnace Partners Program” and “Waste Heat Recovery Partners Program”, were conducted in 2012.

The “TOP10 Learning Sessions”. The program is a series of themed learning activities planned and conducted for chief engineers, head engineers and technical backup staffs from technological areas and production units of Baosteel and adequately leverages the overall strengths of the Corporation in knowledge resources to address 10 most typical issues with product quality and difficulties in production technology and discover the root causes of such issues through learning and discussion and therefore identify solutions, create synergy among departments, actively facilitate the elimination of isolated technological island, enhance the technical staffs’ ability to solve real issues and therefore constantly satisfy the requirements of  the production sites and production operations of the Corporation. In 2012, the “TOP10" Learning Sessions were held 9 times with 254 participants.

Operation and Maintenance Talents

Released policies to support employee innovation. In 2012, Baosteel formulated two fundamental institutional regulations for on-the-job employee innovation, namely the Administrative Rules for Employee Economic and Technological Innovation Activities and Opinions on Implementation of Baosteel Employee Innovation Studio Standardization Developmentto provide more standardized institutional support for on-the-job innovation activities.

Continued to increase input into training resource for skilled talents. Baosteel has made constant efforts to develop and optimize the “Technician Training Centre” and “Occupational Skill Testing Centre”, conducted training and certification of technicians and intermediate and senior skilled talents; actively utilized external resources in the development of 1 State-Level Skill Master Studio and 4 Shanghai Skill Master Studio; and established over 100 employee innovation studios with help from skilled experts. In 2012, totally 2 Baosteel employees were awarded the title of National Technical Expert, 1 awarded the title of Shanghai Outstanding Technical Expert, 4 awarded the title of Shanghai Technical Expert. Baosteel Talent Development Institute was awarded the 2012 Shanghai “Outstanding Contribution Award for Training of Skilled Talents”.

Training of Master-level Senior Skilled Talents at OTM Training Camp. Baosteel Co., Ltd. planned and implemented the Operator of the Top Masters (OTM) Training Camp Program for Senior Skilled Talents. The trainees are high-end operation and maintenance staffs with rich working experiences at site and relatively strong innovation capabilities. Skilled experts and key trainers are invited to form the mentor team and centralized trainings are combined with practical trainings on teaching topics and star trainer’s guidance with expanded communications to guide trainings throughout practical trainings on teaching topics. The program consolidates foundations while also enhances capabilities and stresses the cultivation of master-level skilled talents with innovative thinking, superb skills and attention to inheritance.

The first group of OTM trainees submitted several applications for advanced operation methods, technical secrets and patents during the course of their training and realized economic gains of over RMB 4.5 million. Among such, the “Wireless Smart Doll Car for Monitoring Status of Belt Conveyor” Project came in first runner-up under the “Factory” Category of the 2012 Phoenix xplore New Automation Award.

On-the-Job Innovation Achievements

In 2012, Baosteel employees proposed a total of over 320,000 suggestions for rationalization and over 220,000 such suggestions were implemented, generating a total gain of RMB 2.6 billion. Totally 1,660 employee economic and technological innovation groups and 119 employee innovation studios were established. Altogether 8,170 JK achievements were obtained and 1,530 patent applications (including 366 applications for invention patents) arose from on-the-job innovation activities, representing a year-on-year increase of 30.8% from 2011.

In 2012, Baosteel elected and commended the third group of 9 Baosteel Worker Inventors. So far, 24 front-line staffs have been awarded the title of “Baosteel Worker Inventor”. As the innovation leaders in their respective regions and professions, these award winners are playing an increasingly significant exemplary and guiding role in on-the-job innovation, career development and achievements among technical staffs.

In 2012, Baosteel Group collectively took part in the 111th Paris International Invention Exhibition with 9 participating projects, which won 3 gold, 4 silver and 2 bronze awards. Among these, 5 inventions came from front-line workers. The Group also collectively took part in the 7th International Exhibition of Inventions (Kunshan) and the 129 participating projects won 29 gold, 28 silver and 42 bronze awards.

Learning Online

The Baosteel Learning Management System was established with the help of information technology. The Corporation and the affiliated entities realized individual-specific training requirements and online execution and implementation of training programs. Based on the corporate development strategy, position-specific capability requirements and employee career development needs and in connection with the annual performance appraisal results and feedbacks of the employees, the Corporation and its subsidiaries set forth level-specific and category-specific training programs every year to ensure that appropriate trainings are available to employees in their respective career development stages.

E-Learning System

In 2012, Baosteel e-Learning System offered 4,484 lesson-hours of online courses on 382 subjects and 6 main categories of Party Development and Corporate Culture, Leadership and Management, Specialized Technologies and Skills, Language and Tool Methods, Baosteel Humanistic Wisdom Lecture Series and Baosteel Safety Hazard Case Analyses. Every Baosteel employee has an individual account and can access the needed courses at any time or location via the intranet and extranet of the Corporation. In the year we had 141,900 person-times of employee online learning and 42.5% of the training programs at the Talent Development Institute were implemented wholly or partially through e-Learning.

In 2012, Baosteel’s total employee remuneration continued to increase and the total remuneration paid was RMB 11.52 billion for the year.

There are a total of 155 independent entities under Baosteel Group participating in the Baosteel annuity plan, covering 124,887 employees. Baosteel annuity officially commenced investment operations on March 25th, 2009 under the guidance of the reasonable and prudent investment strategy of the annuity management organization. As of December 31st, 2012, the cumulative rate of return was 19.63%, outperforming Thomson Reuters China Pension Index and the cumulative interest rate of resident personal deposit over the same period and thus ensuring reasonable returns for the employee annuity investment.

In 2012, Baosteel set up a master framework for guiding the implementation of flexible benefit plan by subsidiaries under the Group. The plan, covering family members and a dozen of items, emphasizes autonomous decisions and will bring about greater convenience in the life and learning of employees and better sharing of the development accomplishments of the Corporation.

Health Care Programme

As at the end of 2012, the Baosteel “Employee Health Plan” has been implemented by 12 entities and covered 62,967 employees. The number of gymnasium facilities in Shanghai offering fitness services to Baosteel employees increased by 9 from 2011 to 34. These fitness centers cover sports disciplines such as swimming, basketball, football, badminton, table tennis, tennis, billiards and body building.

Cultural & Sports Activities

In June 2012, a Baosteel delegation participated in the five-month First Shanghai Citizen Sports Meeting. Over 160 employees from various field units competed in 15 sports and achieved remarkable results in all competitions, taking home 10 champions, 6 first runner-ups and 14 second runner-ups. On the closing ceremony of the Citizen Sports Games, Baosteel was also honored with the top award in the organization category – the gold cup of “Citizen Well-being Award”.

Before the National Day celebration, Baosteel organized the “Ode to the Motherland” Employee Chorus Contest; launched the “Journey of Culture” to the Grass-root Campaign with the theme of “An Amazing Baosteel and Its Vigorous Employees”; and also held the “Amazing Employees” Seventh Baosteel Work Group Talent Contest.

Baosteel, adhering to the guiding philosophy to “Reflect Humanistic Care of the Corporation, Realize Employees’ Physical and Mental Health, Enrich Employees’ After-work Life, Relieve Employees’ Work Pressure and Optimize Employees’ Quality of Life”, has organized 84 after-work training classes for employees, including Tai Chi, the 9th Radio Exercises, badminton, swimming, Yoga, the game of go, table tennis, tennis, billiards, diabolo, Egyptian dance, Jazz dance, hosting, vocal music and instrumental music, and 4 lectures on painting and calligraphy, photography, tea art and ballet, attracting 3,200 person-times of participants.

Happy Life after Retirement

Set-Up of University for the Elderly

In 2012, Baosteel’s University for the Elderly launched 40 curricula and 136 classes and enrolled 5,072 person-times of students. The University, in light of the thirtieth anniversary of the promulgation of the Cadre Retirement Regulations and the 18th National Congress of CPC, staged the “Embrace the 18th National Congress and Achieve Greater Glory Together” educational result reporting performances and organized a series of solicitations for articles, paintings and photography works. The works of six students from the print-painting class of the university for elder cadres were selected to take part in the “10th Shanghai Print-Painting Exhibition” sponsored by Shanghai Artists Association and the works of 10 print-painting students were exhibited at the “First Shanghai-style Culture Festival – Southern China Style Shanghai Contemporary Folks’ Painting Exhibition” held in Taipei, Taiwan to showcase the artistic talents of Baosteel's retired elderly to the Taiwan Island.

Enriched the Life of the Elderly

Baosteel Songtao Chorus won the silver prize in the 14th “Forever Glorious” National Elderly Choral Festival competition. The chorus was also invited by Shanghai Municipal CPPCC and Shanghai Huaxia Culture and Economy Promotion Association to travel abroad for the first time and take part in the 2012 Bushan International Choral Festival. Baosteel's elderly sports delegation competed in the 9th Shanghai Elderly Sports Meeting and won 6 collective first prizes, 65 person-times of individual first-prizes and 82 person-times of second prizes. There are 12 elderly sports associations at the activity centre and the venue is always open to the retired employees free of charge.