Human Resource Management
Importance
Human resource management faces challenges in retaining and developing employees in line with rapid market changes and digital technology advancements. This requires continuous upskilling and the creation of an inclusive work environment that embraces cultural and generational diversity to maintain service quality and reduce human rights–related risks that could affect Central Retail’s reputation.
Nevertheless, these factors also present opportunities to enhance Central Retail’s competitiveness through investments in technology, such as adopting artificial intelligence (AI) to improve operational efficiency, developing internal career pathways to increase employee motivation and engagement, promoting multicultural understanding to elevate service quality, and providing comprehensive benefits that support employee health and work–life balance. These initiatives help reduce employee turnover and improve overall productivity. Central Retail focuses on comprehensive development of digital and AI capabilities, while continuing to prioritize the creation of a safe working environment that covers contract and part-time employees. This approach serves as a critical foundation for long-term stability and sustainable growth.
Management Approach
Central Retail is committed to a holistic human resource management approach to ensure that employees are equipped with the skills, support, and motivation necessary for both personal and professional growth. By aligning human resource strategies with business objectives, Central Retail emphasizes improving operational efficiency, strengthening employee engagement, and building a flexible workforce that is ready to adapt to change. With a strong commitment to continuous employee development, Central Retail has established a strategic framework that supports skill development, capability enhancement, and career progression. This includes hands-on work experience, comprehensive training opportunities, identification of skill gaps, and strengthening relationships between management and employees. In addition, Central Retail places importance on promoting effective communication and collaboration to foster a positive organizational culture that is open and inclusive for all. Through career development initiatives and employee well-being programs, Central Retail ensures that employees gain the necessary skills, work flexibility, and motivation to drive long-term success and support sustainable business growth.
Employee training and development are structured into three key areas:
- New Employee Development (Onboarding Program): Enhancing the capabilities of new employees to enable them to adapt and integrate effectively into the organization.
- Functional Skill Development (Functional Program): Developing role-specific and specialized skills required for job functions.
- Core Competency and Leadership Development (Core & Leadership Program): Strengthening essential competencies and leadership skills for employees at all levels.
Preparing new employees from their first day is a cornerstone of talent development. Central Retail has designed an Onboarding Program focused on continuous learning and skill enhancement during the first 180 days. This program covers organizational knowledge, essential work skills, and career development, aiming to reduce adjustment periods, boost employee confidence, and foster engagement and a sense of belonging from the outset. By enhancing work efficiency and empowering employees to excel, the program enables Central Retail to build a high-performing team committed to long-term success. The Onboarding Program is not merely a welcome process, it is a strategic investment that underscores Central Retail's dedication to sustainable and continuous human resource development.
Central Retail places strong emphasis on developing capabilities and leadership skills at all levels of employees. Accordingly, a gap analysis has been conducted to identify the skills and competencies required for employees, ensuring alignment with Central Retail’s business strategy. A comprehensive employee capability development strategy has been established through 10 key training programs. These training programs are delivered by CRC Academy through both classroom-based sessions and self-directed learning via Central Retail’s online learning platform. This approach enables holistic development and strengthens essential skills among employees, supporting the long-term success of the organization.
In addition to leadership training and the comprehensive development of social and competency-based skills (soft skills), Central Retail places strong emphasis on developing diverse, function-specific skills across the organization. To ensure comprehensive training coverage for employees working in six key functions consist of Operations, Procurement, Marketing, Omnichannel, Technology, and Property. Central Retail has developed structured training plans that consolidate targeted training courses, group activities, on-the-job training, and coaching, as appropriate for each function. Clear objectives and measurable key performance indicators (KPIs) are subsequently defined to evaluate the effectiveness of the training plans.
Currently, Central Retail has created more than 200 training courses focused on cross-functional collaboration. The training roadmap was launched in 2023 and has been continuously implemented, with its scope expanded and course diversity enhanced to comprehensively address all dimensions of the business group.
To further support these training programs and strengthen collaboration, Central Retail has established cross–business unit employee networks focused on capability development, ranging from artificial intelligence to human resource management. These networks not only foster social connections among employees but also encourage strategic thinking and cross-business insights, while enhancing leadership capabilities. For example, the development of human resource knowledge through collaboration among HR teams from different business units helps cultivate shared learning and cooperation, increase strategic value, and develop future-ready HR leaders.
Central Retail also provides cultural learning programs to enhance awareness and broaden perspectives among employees working in multicultural and multigenerational environments through Cross-Cultural and Multi-Generational Training. Participants engage in facilitated training sessions to explore cultural and generational diversity, particularly differences in values, perspectives, and mindsets, to increase awareness and reduce misunderstandings. Together, they develop communication strategies, teamwork approaches, and ways of working and coexisting that effectively address differences in communication styles, work values, and motivational drivers. These initiatives strengthen relationships, inclusivity, and engagement, while driving long-term effectiveness. In addition, foreign employees developed Cross-Cultural Training to support successful adaptation to new cultural contexts by enhancing understanding of local norms and overcoming cultural challenges.
Strategic Actions and Impact Management
Central Retail has established I-CARE core values, which encompass operations that reflect a corporate culture promoting unity. These include: 1) Instilling and expanding the organization’s core values into policies and business strategies. 2) Nurturing and developing expertise to enhance employee capacity-building programs. and 3) Increasing awareness and understanding to integrate diversity, equity, and inclusion into work processes.
Central Retail focuses on creating measurable positive impacts while mitigating potential adverse effects. The comprehensive initiatives range from promoting gender equality and empowering individuals with disabilities to supporting LGBTQ+ rights through awareness campaigns and inclusive employment practices. While specific employment programs for senior citizens and people with disabilities provide meaningful opportunities and enhance workforce diversity.
Diversity, Equity, and Inclusion (DEI)
Fostering Diversity, Equity, and Inclusion (DEI) within an organization enhances productivity and drives new innovation. Employees with diverse perspectives and experience can improve business strategies with greater respond to customer needs. Additionally, cultivating an inclusive corporate culture fosters a sense of belonging among employees, increases employee engagement, reduces turnover rates, and attracts top talent. Adhering to DEI principles also mitigates legal risks and complaints while promoting human rights practices. Moreover, it expands business opportunities by accessing new markets, strengthening relationships with customers and business partners, and enhancing Central Retail's reputation and long-term sustainability.
Central Retail is committed to fostering a work environment and embedding values that embrace diversity, equity, and inclusion as integral parts of its culture and corporate strategy. This commitment extends to protecting human rights and labor rights for all employees and business partners. Central Retail prioritizes the prevention and protection of all employees and stakeholders, maintaining zero tolerance for discrimination, sexual harassment, and non-sexual harassment in all circumstances. The Human Rights policy and well-defined remediation measures are in place to ensure justice and appropriate remedies for affected individuals. This policy serves as a cornerstone of DEI, safeguarding the rights and dignity of every individual within the organization.
Central Retail aims to become a leading workplace recognized as A Great Place to Work, continuously advancing through programs and initiatives that promote understanding and meaningful inclusion among employees. These efforts align with Central Retail’s vision of being “Central to Life”, supporting and elevating diversity and inclusion at all levels of the organization.
Stakeholder Engagement and Creating Shared Values
Central Retail believes that achieving sustainable success requires close collaboration with all stakeholders. Transparent communication channels enable Central Retail to inform and engage stakeholders comprehensively. Feedback gathered through these channels helps Central Retail continuously refine our operations to meet community needs and enhance social responsibility. In addition, Central Retail conducts an annual employee engagement survey using a 7-point Likert scale questionnaire. The survey covers various aspects of employee well-being, including the following areas:
| Employee Well-being | Example Questions |
|---|---|
| Job Satisfaction | “I would not hesitate to recommend Central Retail to friends who are looking for a job.” |
| Purpose | “Central Retail’s mission is meaningful to me.” |
| Happiness | “Central Retail inspires me to do my best work every day.” |
| Stress Management | “I am able to manage my work and personal life with flexibility.” |
Employee Performance Management
Central Retail places strong emphasis on enhancing employee capabilities and success through a well-structured performance management system. This process applies to all employees and is conducted on an annual basis. At the beginning of each performance cycle, employees are required to set individual goals that are aligned with team objectives and Central Retail’s overall strategic direction. At mid-year, supervisors hold one-on-one discussions with employees to review progress, identify support needs, and discuss career development opportunities. The year-end performance evaluation provides a comprehensive assessment of individual achievements and areas for improvement, ensuring that employees receive detailed and constructive feedback. This performance management process is carried out continuously throughout the year with objectives to address emerging challenges and create opportunities for career growth. As a result, employees receive performance reviews at least twice a year, following a clearly structured approach in each cycle that promotes continuous improvement and alignment with organizational objectives.
| Objective-based Appraisal: | Objective-based key performance indicators (KPIs) are set for each employee, in line with the broader corporate and business unit objectives and KPIs. This approach ensures that supervisors and employees are aware of their responsibilities in achieving the organization’s objectives related to key areas, including financial performance, customer satisfaction, operational efficiency, sustainability, and people management. |
| Team-based Performance: | Individual employees are assessed based on team-based key performance objectives and targets. This approach emphasizes the importance of every employee to the overall success of the team, while recognizing personal achievements and increasing awareness of corporate objectives. |
| Multidimensional Appraisal: | To provide a comprehensive assessment, feedback on each employee is gathered from various sources, such as colleagues, direct supervisors, and customers. This approach takes into account multiple aspects of the employees’ contributions. |
| Agile conversations: | Central Retail actively encourages year-round coaching and feedback exchanges between supervisors and employees, facilitating opportunities for regular personal development. |
To develop effective people development training programs, Central Retail needs to conduct a thorough analysis of employee performance to identify skill gaps that may hinder the achievement of organizational goals. In addition, the program’s objectives and performance indicators should be clearly defined to ensure that the effectiveness and value of the training can be measured in a concrete and measurable manner.
An additional approach to providing individualized guidance to enhance employee performance is the provision of coaching and mentoring opportunities. Central Retail prioritizes strengthening leadership, coaching, and mentoring capabilities among senior employees in managerial roles. This is achieved through coaching and mentoring simulations, knowledge-sharing activities, and ongoing leadership exchanges, as well as by integrating coaching and mentoring scenarios that emphasize sustainability topics in alignment with Central Retail’s long-term objectives. Following completion of these programs, senior employees are paired with younger employees to facilitate the transfer of knowledge, skills, and career development experience. This is supported through skill-based matching, individualized learning plans, workshops and seminars, as well as regular feedback sessions.
Personnel Development Policy
Employee Well-Being
Central Retail is dedicated to creating a workplace that prioritizes employee well-being, employee engagement, and a supportive environment where employees can thrive. To ensure a balanced and inclusive work atmosphere, Central Retail has established a Welfare Committee made up of representatives from both employees and employers, ensuring that welfare programs are fair, inclusive, and aligned with employees’ needs. Acknowledging that well-being goes beyond physical health, Central Retail adopts a holistic approach that integrates mental, emotional, financial, and employee well-being into its corporate culture. By prioritizing employee well-being, Central Retail ensures that employees feel valued, motivated, and empowered, which in turn leads to increased employee engagement, productivity, and long-term business sustainability.
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Flexible Working
Employees are given flexible working arrangements, as appropriate when necessary or on a case-by-case basis with supervisor approval. This flexibility enhances employees’ ability to manage their work effectively and responds to the needs of the modern workforce.
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Part-Time Working Options
Central Retail offers opportunities for new employees seeking part-time work and for individuals who wish to work with Central Retail while managing other personal responsibilities. Current employees approaching retirement can also opt to transition to part-time work voluntarily.
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Family Benefits
Central Retail has enhanced family benefits to support employees at all life stages. These include a dedicated nursing room designed for safe and comfortable breastfeeding, play areas for child skill development, and scholarships for employees’ children from low-income families, with conditions that encourage good behavior and academic performance. Paid parental leave is available for both male and female employees, with 60 days for primary caregivers and 15 days for non-primary caregivers, promoting work-life balance. This benefit helps support and retain employees during key life transitions.
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Provision of Support Facilities for Employee Care
Central Retail has established dedicated spaces to support employee well-being, including prayer rooms across office buildings and shopping centers. This initiative aims to foster religious and cultural diversity, ensuring all employees can conveniently practice their faith.
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Sports and Wellness Programs
Central Retail provides on-site fitness facilities equipped with modern exercise equipment at its offices, as well as yoga and Zumba classes designed to support both physical and mental well-being. In addition, regular health education sessions are offered on topics such as eye and ear care, prevention of office syndrome, physical and mental health management, healthy nutrition, and stress reduction.
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Mental Health Support
Central Retail continues the iSTRONG to provide mental health consultations. Employees can conveniently access support through online channels, including a 24-hour mental health hotline, psychological assessments, and a comprehensive learning center for mental well-being.
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Financial Benefits
Central Retail places strong importance on employee well-being and provides a variety of financial support programs, such as financial assistance for home or property repairs due to disasters, emergency loans for employees affected by disasters, membership in the Central Department Store Savings Cooperative, and special low-interest loan programs. These initiatives are designed to support employees’ livelihoods and promote long-term financial stability.
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Sustainable Life Planning Before Retirement
Central Retail is committed to helping employees prepare for their future through financial and life planning education. This initiative emphasizes the importance of budgeting, investment, and retirement preparation. Activities include expert-led financial seminars, one-on-one financial counseling, and experience-sharing sessions from individuals who have successfully planned for retirement.
Project Highlights
Artificial Intelligence Skills Development Institute (AI Academy)
Amid the rapid advancement of digital technology, Central Retail has recognized the urgent need to equip its workforce with future-ready capabilities. As a result, Central Retail established the Artificial Intelligence Skills Development Institute (AI Academy) as a central learning hub for employees at all levels. The AI Academy aims to foster an AI-driven organizational culture and promote the practical application of technology to enhance operational efficiency.
The AI Academy is built upon three interconnected pillars. The first pillar focuses on awareness building, providing all employees with foundational knowledge of artificial intelligence to ensure accurate understanding and readiness to adapt to emerging technologies. The second pillar emphasizes practical AI adoption through a wide range of training programs, the development of appropriate tools, and the creation of learning communities that enable employees to exchange experiences and effectively apply AI knowledge in their daily work. The third pillar is collaboration, which creates opportunities for employees from different functions to share best practices, jointly develop projects, and generate cross-functional innovations that address organizational needs.
In 2025, Central Retail developed AI capabilities for more than 20,000 employees through diverse and comprehensive learning formats. These included e-learning for flexible learning, AI Classes for in-depth skill development, Live Talks to keep pace with emerging trends from experts, AI Community for knowledge sharing, and AI Project Challenges that provided hands-on experience. With the ‘CFG Innovation Day’ provides a platform for Food Group employees to showcase AI- and technology-driven innovations that improve work processes, with awards recognizing outstanding projects. The initiative fosters an innovation-focused culture and contributed to international recognition at the IDC Future Enterprise Awards 2025 in the category of ‘Best in New Ways of Work’, reflecting Central Retail’s success in leveraging AI to enhance HR management, build organizational agility, and support long-term sustainability.
Developing and Empowering High-Potential Employees to Build the Next Generation of Leaders (Talent)
Central Retail prioritizes continuous development of Top Talent through a 2025 Management Development Program integrating AI literacy, business acumen, and innovation. More than 30 participants applied AI tools through hands-on workshops, business case challenges, mentoring, and executive knowledge sharing, generating AI use cases now being scaled across business units. In addition, 100% of Top Talent complete an Individual Career Development Plan, using AI-enabled assessments to create personalized and sustainable career pathways.
Performance Summary 2024
Employee Training
Average hours of training for employees
Average cost of training for employees
Human Capital Return on Investment (HCROI)
Employee Training
Employee Level
Executive / Top management
Senior employee and junior management
Middle management
Non-management
Gender
Male
Female
Employees that Receive Regular Individual Performance Appraisal
Ratio Between Average Compensation of Female to Male Employees
According to the Company’s annual employee survey, out of 27,890 survey participants (60% female, 40% male), an outstanding 82% of female employees shared positive experiences working to ensure men and women are treated fairly.
The ratio between average compensation of female to male employees are also within 0.93-1.05, demonstrating equal remuneration.
