Labor Rights and Interests
VNET respects and safeguards employees' rights and interests, pays attention to their physical and mental health as well as welfare protection, and is committed to creating a diverse, equal, and inclusive workplace. We implement a sustainable talent development strategy, providing employees with the conditions to promote their career development and personal growth. We work together with employees to create and share the success of the company's development, jointly driving the company forward.
As a participant of the UN Global Compact (UNGC), we adhere to international treaties and requirements of relevant laws and regulations of where it operates such as the Universal Declaration of Human Rights, the Guiding Principles on Business and Human Rights, the Ten Principles of the UN Global Compact, the Convention on the Elimination of All Forms of Discrimination against Women, the International Labor Organization's Declaration on Fundamental Principles and Rights at Work, and the Core Labor Standard. We formulate and continuously optimize internal policies and systems to protect labor rights in all aspects.
The Group has formulated and issued the Labor Rights Protection Policy, which clarifies the process for identifying and managing human rights risks and standardizes the grievance and corrective procedures, aiming to comprehensively safeguard all labor rights. The Group has developed a human rights due diligence process, including human rights commitment, human rights risk identification and assessment, risk mitigation and remediation, and improvement tracking and reporting. In 2024, there were no incidents of employee discrimination, harassment, forced labor, child labor, etc.
Human Rights Due Diligence Process
Talent Attraction and Retention
Talent Recruitment
VNET is dedicated to fostering a diverse and transparent work environment because we fully understand that the Group’s development relies on attracting and retaining outstanding talent. We adhere to the recruitment principles of fairness, justice, and transparency, and firmly oppose any form of employment discrimination based on ethnicity, race, gender, region, or religious beliefs, striving to create an equal and inclusive atmosphere for talent growth.
The Group attracts outstanding talent from diverse backgrounds and promotes social employment through multiple recruitment channels, including campus recruitment, external recruitment, employee referrals, school-enterprise cooperation, and trainee programs. At the same time, by implementing a rigorous recruitment process and piloting intelligent interviews, we enhance talent-position matching accuracy and overall recruitment efficiency.
Performance and Incentive
VNET has established a comprehensive rank structure and promotion mechanism to ensure equal opportunities for all employees. Through the formalized position and rank management procedure, we standardize the career development paths, allowing employees to choose their growth trajectory based on personal career plans and maximize their potential.
We value the long-term performance of our employees and manage their promotions from multiple perspectives based on five basic principles: organizational development needs, competency, performance, value alignment, fairness and equality. For open positions, we encourage internal mobility, employee referrals and self-nominations, with candidates assessed through competitive evaluations.
The Group has formulated the VNET Employee Performance Management Regulations and established a multi-level strategic performance management system. Employees are annually evaluated through various methods such as management by objectives, multidimensional performance appraisal, and agile conversations, with timely communication of performance results and improvement plans. In 2024, 100% of employees (including part-time employees) have received performance evaluations or assessments.
◇Management by objectives: The Group organizes all teams to break down objectives based on the annual strategy and goals and sets personal business objectives on this basis.
◇Team-based performance appraisal: The performance of teams is evaluated based on the achievement of team performance targets and cross-functional collaboration effectiveness. Performance appraisals of team members include both the team performance and the individual's competencies and contributions.
◇Multidimensional performance appraisal: Using a specialized tool to conduct 360-degree assessments while considering team objective achievement, as well as evaluations by superiors, colleagues, and subordinates and self-evaluations to guarantee scientific, objective, and fair evaluations.
◇Agile conversations: We maintain continuous communication through diversified platforms, including email, employee forums, Trade Unions, etc., to conduct instant and ongoing communication with employees.
We offer all employees performance-based bonuses and instant and long-term incentives, while ensuring transparent communication of performance appraisal results to each employee. In 2024, the Group updated the VNET Employee Performance Management Regulations to clarify the performance appeal process and established a dedicated appeal handling team to resolve performance-related matters.
Welfare and Care
VNET strictly complies with the relevant laws and regulations of where it operates and ensures full and timely payment of all mandatory social insurance. We have expanded our social security measures, including supplementary medical insurance and health checkups. VNET is committed to providing a minimum wage that meets or exceeds the legal requirements to satisfy employees’ essential living standards. We strongly advocate for a work-life balance, and in cases of overtime work, we guarantee that employees receive appropriate compensation through working hours monitoring and overtime management.
We offer a diverse range of non-remuneration benefits to all employees (including part-time employees), such as exclusive benefits, anniversary benefits, special holidays, recreation, employee care, and health and safety. We are committed to building a warm, harmonious, and dynamic team environment and providing comprehensive humanistic care for employees.
·Employee Supplementary Benefits
◇Exclusive benefits: staff cafeteria, allowance, care for frontline workers, care credit points, etc.
◇Anniversary benefits
◇Special holidays: extra annual leave, additional holiday leave, Children's Day parental leave, etc.
◇Recreation: staff club, library, etc.
◇Employee care: condolatory allowance, etc.
◇Health and safety: paid sick leave, health checkups, supplementary medical insurance, free gym, etc.
·Employee Support Program
◇Flexible working: We fully consider employees' childcare needs, strictly implement the parental leave policy, provide parental leave for employees who are the primary caregivers (such as parents), and offer flexible working hours for female employees during their breastfeeding period.
◇Care program: We offer comprehensive and multi-channel personalized support. We have set up professional psychological counseling rooms and a hotline to provide employees with confidential mental health support services. These resources assist employees in managing emotional distress, mitigating mental strain, and addressing work-related challenges.
◇Breastfeeding facilities: We set up a private and convenient breastfeeding place in the office. To ensure privacy, the breastfeeding room is equipped with access control and blackout curtains, providing breastfeeding employees with a private and comfortable environment.
◇Assistance subsidies: We provide aid and subsidies to employees who encounter emergencies or unexpected difficulties. In 2024, we have granted a total of RMB21,500.
◇Sports activities: We regularly organize diverse sports activities, including basketball, football, table tennis, swimming, badminton, and fitness, to enhance the physical health of employees, foster team collaboration, alleviate work-related stress, and enhance their job satisfaction and workplace well-being.
Employee Communication
VNET prioritizes employee communication in corporate management, striving to cultivate a healthy and orderly communication environment. The Group continuously advances democracy, respects and supports employees' rights to freedom of expression, freedom of association, and collective bargaining. Through the Trade Union Committee, the Women Workers’ Committee, and external professional support systems, the Group comprehensively protects employees' rights concerning their information, participation, privacy, expression and supervision. These measures collectively foster a communication environment characterized by integrity, transparency, and constructive engagement.
The Group further reinforces the supervision to protect employees' rights and interests. The Trade Union Committee, as the official employee representative body, participates in policymaking concerning their core interests while maintaining regular dialogue with management to propose recommendations in multiple areas, including diversity, occupational health and safety, working conditions, and employee welfare. To continuously enhance the employee rights protection system, the Committee, on behalf of employees, executes collective bargaining agreements including a collective labor contract and a specialized agreement on women's protection, which cover 100% of the employees.
The Group has established formal communication and grievance mechanisms and set up a labor dispute mediation office. Employees may anonymously or identifiably complain and suggest about working-related harassment, bullying, unfair treatment, and conflict through various channels such as whistleblower email, hotline, Trade Union mailbox, and face-to-face consultations. Direct communication options are also available through the Trade Union Committee, HR representatives, department heads, or cross-functional/hierarchical leaders. For grievances requiring investigation, formal inquiry protocols will be promptly initiated, with investigation processes and resolution outcomes escalated directly to executive management and the Board of Directors. In disciplinary cases, employees retain statutory rights to appeal if they believe issues were unresolved or improperly addressed.
The Group conducts annual satisfaction surveys covering all employees, leveraging in-depth analysis and ongoing monitoring of survey outcomes to gain comprehensive insights into employees' authentic feedback and sentiments. We actively adopt and promptly address valuable suggestions proposed by employees to ensure the effective improvement initiatives. In 2024, we carried out the anonymous satisfaction survey, evaluating dimensions such as job satisfaction, purpose, happiness and stress. The overall satisfaction rate achieved 91%, demonstrating exceptional performance in employee engagement.
Diversity, Equality and Inclusion
VNET has always been committed to creating a diverse, equal, and inclusive workplace. The Group strictly adheres to the equality principle across all management processes, including recruitment, performance evaluations, incentives, and training, and firmly opposes employment discrimination based on ethnicity, race, gender, region, and religion. At the same time, we advocate for the equal employment of persons with disabilities and provide them with comprehensive salary and welfare guarantees.
As a global signatory of the Women's Empowerment Principles, we actively implement gender-equality policies and are committed to joining hands with global enterprises to promote gender equality and women's empowerment. By the end of 2024, female employees accounted for 28% of the total workforce, and the percentage of female employees in management positions was 33%.
In 2024, the Group continues to advance the "V-Can" Gender Equality Action Plan. By organizing special training sessions, cultural activities, etc., we encourage all employees to break down gender stereotypes in the workplace, create a fair and equitable environment, and support more female professionals to become the backbone of the IDC industry. On International Women's Day, the Group held a special event for female engineers, providing them a platform to exchange experiences, share insights, and showcase their talents, further helping women achieve self-fulfillment in the workplace.
VNET always ensures the fairness and reasonableness of its compensation management, firmly avoiding gender bias and any other improper factors. We are committed to reasonably closing and ultimately eliminating the gender pay gap, ensuring that all employees are granted equal rights and interests in career development, compensation, and promotion.
Training and Development
VNET regards talent development as a key driver of corporate development. Our sustainable talent strategy is fully integrated with corporate objectives, providing employees with comprehensive career development support to help them enhance their technological innovation capabilities and achieve self-fulfillment.
The Company encourages a cross-functional, "linked" management model, allowing employees to gain diverse work experiences, while they continuously and actively learn, grow, and create value. We encourage all employees to adopt an entrepreneurial mindset, driving both personal and organizational success.
In terms of the training system, the Group has established a systematic and multi-level employee training system following the Employee Training Management System. It provides targeted training for employees at different career stages to meet the talent development needs of various business lines. At the same time, the Group provides external training opportunities and financial support for professional certification exams for all employees, effectively reducing their burden and enhancing their enthusiasm for learning.
To achieve co-creation and knowledge sharing, VNET has developed the "VNET E-Learning" platform, which is designed to cultivate leadership, professional and general capabilities, and integrates educational resources to tailor learning maps for each employee. Currently, a total of 874 premium courses have been released on the "VNET E-Learning" platform. These courses cover various categories such as multicultural education, digital tool application, and intelligent technology knowledge, helping employees broaden their horizons, improve efficiency, and keep up with technological trends to meet their diverse learning needs. For employees in career transition periods (such as those returning to the workplace), there are multiple types of course resources for them to quickly obtain the support and guidance needed, master practical skills, and smoothly integrate into the workplace during career transitions period.
VNET has formulated a comprehensive succession and development plan for all employees, along with training programs focusing on leadership, profession, and general capabilities. For senior and middle-level management, we have set up benchmarking visits and management training programs. For reserve talents, we have designed tailored training and empowerment programs. Through mentorship and guidance, we provide employees at different levels with assistance in professional knowledge and management experience to enhance their leadership capabilities. For graduates and young talents, we have launched management trainee programs and organized diversified training and practice to inject new vitality into the Group's talent development.
To achieve mutual benefits in the field of talent development, the Group has deepened its cooperation with external educational institutions and actively expanded the recruitment channels from professional colleges. This not only injects fresh talent into our sustainable growth but also plays a positive role in empowering the optimization of the educational ecosystem in professional colleges and promoting broader social talent development.
The Group has launched multiple professional job training programs to precisely empower employees to master the professional skills required for their positions based on the requirements and characteristics of different positions. Meanwhile, we encourage employees to embrace digital technology tools and actively learn innovative technology skills, providing a strong driving force for promoting the Group's digital transformation and development.
Health and Safety
VNET is committed to safeguarding the occupational health and safety of its employees, suppliers, third-party partners and other stakeholders. We strictly comply with relevant laws, regulations, and standards in our operational locations. The executive management regularly reviews and oversees the implementation of occupational health and safety practices and the effectiveness of the management system to continuously enhance our occupational health and safety management capabilities. We have formulated regulations such as the Regulations on Work Safety Management, Fire Safety Management System and Personal Safety Incident Management System, which clearly define various requirements, including safety management responsibilities and risk assessment standards. We have established a risk mitigation action plan based on the risk priority of occupational health and safety. At present, multiple sites of the main business have been certified with the Occupational Health and Safety Management System (ISO 45001).
We have formulated and issued the Occupational Health and Safety Policy applicable to all employees as well as contractors, and actively encourage suppliers, business partners, and other stakeholders to comply with it. We have set a work safety target of achieving zero fatalities rate in relation to engineering construction responsibilities. We also include occupational health and safety performance targets as a part of salary and bonus evaluations for relevant managers to enhance their responsibility.
The Group has formulated a safety standardization manual for high-risk and high-incidence safety hazards during the project construction process, providing visual and actionable safety implementation standards for each project. Meanwhile, we have prepared different safeguard measures and emergency response plans based on the characteristics of each project and established safety and emergency response mechanisms. In the event of safety control incidents such as work-related accidents, we will immediately initiate investigation procedures, properly handle the issues, investigate the causes of the accidents, and rectify the systems to prevent similar accidents from recurring. By the end of 2024, the Group had no work-related fatal accidents.
VNET's occupational health and safety management measures for various stakeholders:
Employee:
◇Collect employees' suggestions on occupational health and safety through the Trade Union Committee, and continuously optimize the management of them based on the input received.
◇Regularly conduct health and safety themed lectures covering all employees, such as safety emergency drills, fire safety training, first aid training, etc., to reduce the likelihood of accidents.
◇Equip the office area with safety first-aid equipment such as automatic external defibrillators (AEDs), health huts, and mental health counseling rooms, and first-aid kits to provide employees with professional physical and mental health service support.
Supplier /Contractor/ Construction Personnel:
◇We sign Work Safety Agreements and Construction Safety Liability Agreements with contractors, and require subcontractors to follow VNET's work safety management practice to ensure the safety of personnel, equipment, and operations and avoid accidents and incidents.
◇Operators must complete the skills and safety training upon entry, hold valid operation certificates and relevant qualifications, and sign safety commitment letters.
◇Regularly conduct work safety education and training, as well as fire emergency drills for project construction personnel, including training on fire evacuation, first-aid, and personal protection skills.
◇Conduct monthly safety information dissemination to on-site workers and conduct random checks on safety education.
◇Establish a dedicated team to conduct unannounced inspections and regular patrols of construction projects, with identified issues subject to rectification and re-inspection within a specified timeframe, and strengthen the supervision and control of the project's initial safety responsibility objectives.
◇Engage third-party organizations to inspect construction projects for quality defects and safety hazards, and provide early warnings and rectifications for potential risks.
Community:
◇Reasonably plan the construction periods and implement sound insulation and noise reduction measures for high-noise equipment to avoid disturbing residents.
◇Strictly comply with the requirements of environmental impact assessment, conduct patrols to clean up construction waste, and eliminate potential safety hazards.
◇Implement closed-off fencing management at construction sites and set up clear warning signs and safety protection facilities.
◇Establish a communication mechanism to promptly respond to residents' demands and resolve conflicts.
