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      Localization Of HCM In Thailand

      1. Introduction

      SAIC Motor-CP Co Ltd, the Thai-Chinese joint venture between, the largest Automotive corporation in China, Shanghai Automotive Industry Corporation Group (SAIC) and Charoen Pokphand Group (CP), one of the biggest corporation in Thailand intends to make Thailand its manufacturing base for the well-known British brand MG to serve both the local market and exports. 

      2. Background

      As a joint venture company, SAIC Motor faces huge managerial challenges. Both SAIC Motor and Charoen Pokphand Group are one of the largest group companies in China and Thailand, and their internal management requirements are very high. While Charoen Pokphand Group uses SAP HCM to manage human resources and salary calculations, and SAIC Group adopts yonyou HCM software.

      At the beginning of the establishment of the joint venture, due to the Thai government’s high compliance requirements of human resources software, SAIC Motor borrowed the SAP HCM software from Charoen Pokphand Group to calculate the salary and tax for its employees. However, the management culture of the two companies and the compensation system of Thailand/China, and the arrangement of leave are very different. CP’s SAP HCM software cannot fully meet the requirements of the joint venture. SAIC Motor needs a HCM software that not only meets local regulatory requirements but also able to flexibly adjust to meet the complex management requirements of the joint venture company.

      After long period of model selection, SAIC Motor ultimately chose UFIDA to build its HCM system. SAIC Motor hopes to achieve systematization, standardization, and specialization through the implementation of the system. SAIC Motor recognised that in order to establish a set of organizational management structure in line with the development strategy of the enterprise, optimizing the business process of HR at all levels is a critical task.

      3. Solution


      i. Fully comply with the requirements of Thailand’s personnel and compensation regulations, and automatically generates SSO, PND and other reports, including SSO103, SSO609, PND1 and PND91, etc., to meet local regulatory needs.

      ii. System supports multi-language, including Simplified Chinese, Traditional Chinese, English and Thai, which fully meets the needs of Chinese expatriates and local employees.

      iii. Full application/all-employee application (employee self-service platform/manager self-service platform) SAIC Motor’s application scope includes organization management, personnel information management, personnel change management, salary management, time management, localized tax filing, social security reporting, comprehensive statements and other businesses. yonyou HCM application has realized comprehensive application. All staff’s applications for leave and overtime are all realized through the platform, achieving the paperless operation of HR business process. Employees can independently inquire about attendance and leave information, print salary and various tax slips. At the same time, the system supports the docking with K-Bank, Bangkok Bank and other banks.

      iv. Thailand’s personnel and compensation regulations are quite complex. Both CP Group and SAIC Motor have complex internal human management systems. SAIC Motor’s compensation system, salary items, and overtime calculation methods are all extremely complicated. For example, there are multiple modes of overtime pay, such as 1.5 times, 2 times, 3 times, and so on, and there may be different overtime rates within one overtime period. yonyou HCM solution fully meets the complex management needs of SAIC Motor. Once the employees check in, the system automatically calculates the length of overtime and overtime pay for different periods of time.



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