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[에너지경제신문 신유미 기자] “Disclose incentive payment criteria.”
This is a complaint e-mail sent to all employees, including the president, by an employee for 4 years at SK Hynix. Since then, the controversy over’incentive pay’ ignited, and it even emerged as a social concern. Employees’ dissatisfaction with incentives continued, but this year, a toxic problem emerged, and compensation system management and communication within the company became an important management task for companies. Controversy spread to all industries as well as other large companies such as Samsung and LG.
While issues related to corporate culture improvement are rising on the surface of the so-called MZ (millennial + Z, born in the late 1980s to 2000s) generation, who are sensitive to fairness, transparency, and practicality, these are already established. Unlike generations, it is not a kind of incentive given by a company, but rather as a’share’ that one should receive.
Im Hong-taek, the author of’The 90’s is Coming’, which emerged as a bestseller in 2019, cited’honesty’ as one of the characteristics of being born in 90 in the book. It is the generation who proved themselves with constant test scores, so they emphasize the fairness of processes and procedures above all else. “In the 90s, students reject the formula that loyalty to the company is my growth. The new generation agrees with the’workplace commandment’ on the Internet, saying,’If you commit to a company, you become a devotion partner.’ “I ask if there is a reason to be a company.”
Even with the controversy over SK Hynix incentives, interpretations such as’the characteristics of the MZ generation have been reflected’ or’The revolt of the MZ generation that values fairness and practicality’ are emerging. On the 9th, the Energy Economics Newspaper asked related contents by industry, age, and year in order to hear the’think about performance pay’ triggered by the controversy over SK Hynix’s performance pay. First of all, regarding their dissatisfaction with incentives, they all say,’There is a complaint, but it has passed. In fact, in the in-house community, etc., employee complaints are pouring over the level of incentive pay. “We had questions and complaints about the incentive pay because we didn’t have a union, but we just went over it. I was a bit surprised by looking at SK Hynix. I thought it would work,” said Mr. A, who joined the IT department for the second year.
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◇ “Performance pay controversy, disagreement and opacity is a problem…it should be made so that everyone can understand”
They pointed out that in common there is no explanation and communication about the calculation of incentives. If there is a clear explanation, you will understand the low amount, but the problem is that while saying’performance is good’, the incentive pay has decreased compared to last year, which is absurd. Mr. A, in his second year at a semiconductor company, briefly defined “SK Hynix is a problem of communication.” At the same time, he pointed out, “From the standpoint of the company, it would have been calculated and given money,” he said.
B, a second-year IT company, also mentioned a similar story. He said, “In the case of our company, we had high expectations because we kept spreading data that the performance was good last year. However, the incentive paid was really’less than expected’.” said. The company’s community also posted a post saying, “I am angry because I have not transparently disclosed why the incentives came out like this, and have not communicated.”
MZ generation employees with high annual leave also demanded an improvement in the method of calculating incentives. Mr. C, who has been at a pharmaceutical company for 10 years, said, “Even in the case of SK Hynix, it would not have occurred if there were clear standards,” he said. “We need to make it so that employees can know and understand at once.” He said, “I think there will be more discussions and plans of companies about incentives in the future. If sharing the company’s profits with employees is well applied, it will be a win-win situation.”
Mr. D, who has been working for a semiconductor company for 10 years, said, “The performance pay calculation method is whether the target sales amount has been achieved, and the company arbitrarily calculates this, which is unfavorable to the employee.” Whether it is presented and discussed with the employee, improvement is needed.”
Mr. E, who has been working for 9 years in the bio industry, said, “Objective standards must be strengthened through the pure business results and capabilities of employees,” and “We need to pay incentives based on more clear standards and objective data compared to performance.” Pointed out. They wanted’clear feedback’ and’smooth communication’. Mr. A said, “If you can’t get feedback when you hear the company community or what you hear around you, it’s good to have a positive feedback on what you did well,” he said.
◇ The importance of incentive pay…’the key to making a difference in salary’
In particular, in Korea, where the salary system is complex, incentive pay acts as an important factor in determining annual salary. These office workers also said that the basic salary is similar for each industry, but that there is a difference in performance pay. In this regard, Mr. A said, “In the case of our company, the annual salary is not similar or much higher than that of other companies except for incentives. Some people don’t have to be there if they don’t have a special job objective. “He explained.
Mr. B also told the story that, “Even though they are hard-working kids, when they fight with an annual salary, putting out a spirit (to attract souls) and putting them out includes incentives.” “The key to the difference in the salary of a company is incentives. The answer to thinking that you should go to a large company is also incentives.” He said, “Because the intent of incentive pay is to treat employees, the company that recognizes that part has good basic pay, incentive pay, and internal value.”
At the same time, there are opinions that the basic salary system should be improved. Mr. D explained, “The core of the SK Hynix problem is a low basic salary system in the end. It is not a problem with performance pay, but a low basic salary. It is more efficient to raise the basic salary.”
◇ Perception of incentive pay is “different inclinations, not differences from older generations”
When asked about the representative difference between older generations and incentives, the interviewees cited whether there was a protest or not. It is that older generations seek more stability. Mr. B said, “A company like this is not a company that rebels. Adults don’t rebel too much, but young kids seem to have questions.” I. Even if it was me, if I had a family and the retirement age was not clear, I would have stayed still,” he said.
Mr. C said, “I think the generational difference is more of a difference in disposition than a difference in perspective.” There are also many changes. It seems that we have to look at the MZ generation is different rather than wrong.”
Mr. D said, “I haven’t seen anyone who has no dissatisfaction with the employees and managers around them, regardless of generation,” and “However, even if the incentives increase further, seniors and above will be caught in the tax section, and the mistake will be the same. So, younger generations are more active. There will be.” Mr. E also pointed out that it is not a generational difference, but rather a “difference in the way of logic between the leading and non-leading parts.”
Earlier, at the end of last month, SK Hynix announced that it would pay 20% of its annual salary (400% of the basic salary) for 2020 excess profit distribution (PS). PS is an incentive for excess performance. Last year’s operating profit reached 5 trillion won, an 84% increase from the previous year. The PS amount was only at the same level as the special contribution received in the previous year when the performance was sluggish. The complaint exploded in earnest when an employee who had joined the company for the fourth year sent a complaint email to all members, including President Lee Seok-hee. SK Group Chairman Choi Tae-won declared’return of annual salary’ on the 1st, and President Lee Seok-hee expressed an apology, but the controversy continued.
Accordingly, on the 4th, SK Hynix took measures such as abolishing EVA (Economic Value Added), which was used as an index for calculating incentives, through labor-management consultation, and linking incentives with operating profit. However, the labor union belonging to the KCTU, composed of technical white-collar staff, was not recognized as a formal bargaining organization, and the internal problems arising from participation have not yet been resolved, and the issue is spreading throughout the industry.