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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