Creating a Vibrant WorkforceCreating a Vibrant Workforce

Strong Loyalty of Korean Employees

Commitment Versus Loyalty

Korean Commitment Versus Worldwide Norms

AgendaAgenda

Empowering Korea’s Employees

Loyalty of KoreansLoyalty of Koreans

 

   

 

   

 

   

 

   

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CommitmentCommitment

A couple may have been married for years (i.e. they

are loyal)

CommitmentCommitment

A couple may have been married for years (i.e. they

are loyal)

But do they necessarily love each other? (i.e. are

they committed?)

GGloballobalEEmployeemployeeCCommitmentommitmentReport 2002Report 2002

Europe

Asia Pacific•Australia•Hong Kong•India•Japan•Korea•Malaysia•New Zealand

•Philippines•Taiwan•Thailand•Vietnam

North America•Mexico•United States

•Hungary•Latvia•Lithuania•Russia (Moscow)

•The Netherlands

•Norway•Poland•Sweden•TurkeySouth

America•Argentina

33 Countries Covered33 Countries Covered

Mid East & Africa •Israel•South Africa

•Belgium•Bulgaria•Czech•Estonia•Finland•France•Germany•Great Britain

43%

57%

Uncommitted Committed

Percentage of employeesPercentage of employeescommitted to their committed to their workwork

49%51%

Uncommitted Committed

Percentage of employeesPercentage of employeescommitted to their companycommitted to their company

WorldwideWorldwide Employee Commitment Employee Commitment

64%

36%

Uncommitted Committed

65%

35%

Uncommitted Committed

Percentage of employeesPercentage of employeescommitted to their committed to their workwork

Percentage of employeesPercentage of employeescommitted to their companycommitted to their company

KoreanKorean Employee Commitment Employee Commitment

23%34% 35%

47%35% 37%

27%33% 34%

51%

35% 34%

0%

50%

100%

18 to 24 25 to 34 35 to 49 50 and older Male Female

Commitment toCommitment to work and to company work and to company by age and by by age and by gendergender

Committed to Work Committed to Company

KoreanKorean Employee Commitment Employee Commitment

Worldwide Commitment Worldwide Commitment 20022002

42 4245

52 53 53 5457 57 58 58 60 61

64 64 65 66 68 69 69 70 70 71 7174 74 75

77 77 79 79 79 81

58 5855

48 47 47 4643 43 42 42 40 39

36 36 35 34 32 31 31 30 30 29 2926 26 25

23 23 21 21 21 19

0

10

20

30

40

50

60

70

80

90

100

Bul

garia

Japa

n

Kor

ea

Pol

and

Cze

ch R

ep

Latv

ia

Hon

g K

ong

Lith

uani

a

Taiw

an

Hun

gary

Rus

sia

(Mos

cow

)

Est

onia

Sou

th A

frica

Turk

ey

Arg

entin

a

Phi

lippi

nes

Gre

at B

ritai

n

Mal

aysi

a

Uni

ted

Sta

tes

Vie

tnam

Thai

land

Finl

and

Sw

eden

Indi

a

Fran

ce

Mex

ico

Ger

man

y

Nor

way

Bel

gium

Aus

tralia

New

Zea

land

Net

herla

nds

Isra

el

Country average (65%)

% of the working population who have high commitment to work, company, or both. % of the working population who have high commitment to work, company, or both.

% of the working population who have low commitment to both work and company.

% of the working population who have low commitment to both work and company.

Committed to work, company, or both vs. Uncommitted to work and companyCommitted to work, company, or both vs. Uncommitted to work and company

Global Employee Commitment MatrixGlobal Employee Commitment Matrix

Low Commitment to company High

Ambassador

Committed company;

Committed job

Global: 44%

Career Oriented

Uncommitted company;

Committed job

Global: 14%

Uncommitted

Uncommitted company;

Uncommitted job

Global: 35%

Company Oriented

Committed company;

Uncommitted job

Global: 8%

High

Com

mitm

ent

to t

ype

of w

ork

Career Oriented

Uncommitted company;

Committed job

Ambassador

Committed company;

Committed job

Uncommitted

Uncommitted company;

Uncommitted jobCompany Oriented

Committed company;

Uncommitted job

High

Com

mitm

ent

to t

ype

of w

ork

Low Commitment to company High

Global: 44%Global: 14%

Global: 35% Global: 8%

25%25%

10%10%

10%10%

55%55%

Global Employee Commitment MatrixGlobal Employee Commitment Matrix

Career Oriented13%

Uncommitted19%

CompanyOriented

9%

Ambassadors59%

Countries with High CommitmentCountries with High Commitment

IsraelIsraelThe

NetherlandsThe

Netherlands

New ZealandNew Zealand

Career Oriented21%

Uncommitted21%

CompanyOriented

9%

Ambassadors49%

Career Oriented12%

Uncommitted21%

CompanyOriented

12%

Ambassadors55%

BelgiumBelgium

Career Oriented17%

Uncommitted23%

CompanyOriented

9%

Ambassadors51%

Career Oriented16%

Uncommitted48%

CompanyOriented

8%

Ambassadors28%

PolandPoland

JapanJapan

KoreaKorea

Career Oriented12%

Uncommitted59%

CompanyOriented

4%

Ambassadors25%

Career Oriented10%

Uncommitted55%

CompanyOriented

10%

Ambassadors25%

BulgariaBulgaria

Career Oriented8%

Uncommitted58%

CompanyOriented

4%

Ambassadors30%

Countries Similar to KoreaCountries Similar to Korea

Ambassadors Company Oriented Career Oriented Uncommitted

(N=19126)

43

52

51

48

48

41

39

35

35

8

5

10

7

8

9

7

8

12

14

16

11

14

15

12

11

14

12

35

27

28

31

30

39

42

43

41

Overall

Educational Services

Finance,Insurance

Business & OtherServices

Public Sector

Wholesale,Retail

Transportation

Manufacturing

Construction

Global Commitment across SectorsGlobal Commitment across Sectors

Ambassadors Company Oriented Career Oriented Uncommitted

Korea (N=683)

25

53

37

33

24

19

17

17

13

10

12

8

19

8

10

3

4

15

10

3

12

11

13

12

13

10

6

55

31

43

36

55

58

67

69

66

Overall

Public Sector

Educational Services

Finance,Insurance

Business & OtherServices

Construction

Transportation

Wholesale,Retail

Manufacturing

*Som

e ind

ust

ries

rem

oved

as

the s

am

ple

was

less

than 3

0

Korean Commitment across SectorsKorean Commitment across Sectors

Empowering Korea’s Greatest Assets

Empowering Korea’s Greatest Assets

Opportunities to Win CommitmentOpportunities to Win Commitment

• Improvement is not only possible…

• It is required for…– the new economy– labor flexibility – lifelong employability

Barriers to OvercomeBarriers to Overcome

• Rigid hierarchies• Seniority based compensation• Paternalistic attitudes• Blind loyalty and endurance• Dependency on employers

Labor flexibility is required Labor flexibility is required for both labor and managementfor both labor and management

Our Leadership RoleOur Leadership Role

• We have the experience

• We understand merit based compensation

• We treat HR as a science

• We are a major employer

We can lead Korea toward more We can lead Korea toward more competitive labor practicescompetitive labor practices