배움과 공유의 시간

01 Performance stock wage management

With the implementation of the Labor Contract Act strengthening the protection of layoffs and prolonged labor relations, wage management has become more important for securing personnel rights, meritocratic personnel and workforce metabolism. However, the Korean corporate wage system still has a rich Korean color, making it increasingly difficult to manage the workforce and the reality of employment in China. Korean companies are required to switch to a wage system that fits the local employment climate three to five years after the establishment of the corporation.

1. Single rescue wage system vs. Combined Structural Wage System

Wages once agreed in labor contracts cannot be changed unless agreed by workers. If the wage item is not split and the entire wage is agreed upon as a fixed salary, the company will not be able to exercise the right to adjust wages according to changes in employee's work attitude and performance. If wages are not linked to responsibilities and performance, and are operated under a seniority-type fixed wage system, the longer a company's history of advancement, the less willing it is to work.
The stagnant phenomenon of human metabolism will be unavoidable.
Many Korean companies use the simple Korean-style single-structure wage system even when they come to China. Although there is no burden of complex overwork and there is no friction between employees due to equal payment, the company can face difficult situations in which it cannot cut salaries and it needs to be fired even if employees show an unexpected position of work or need to be expelled.
Of course, low-wage businesses that have nothing to do with wages themselves being very low will have no choice, but continuing the fixed-wage system is not a desirable option in terms of employee management or labor costs.
The single-structure wage system has a fixed amount of wages, and once it is agreed to in the labor contract, the entity cannot unilaterally reduce wages, which in turn results in significant restrictions and restraints on the entity’s exercise of self-employment rights. In the case of the composite structural wage system, the variable portion can be flexibly adjusted according to the outcome of the high performance.

The single-structure wage system o-payment is fixed in the form of fixed amount, and the items are not split.
o Basic salary + allowance + overtime pay form
Combined structural wage system o wages are divided into two parts: fixed and variable.
o Basic salary + job pay (or job allowance) + higher pay + allowance + overtime pay form

The majority of Chinese companies adopt a combined structural wage system. In other words, the company only bears the risk equivalent of "fixed wages," while the remaining "varying wages" are passed on to employees. It goes without saying that it is a complex structural wage system that is advantageous to businesses.
The labor contract is carried out in such a way that only fixed wages (e.g., basic wages) with the nature of "living security pay" among employees' wages are clearly agreed upon, and the job pay and the variable portion are paid in accordance with the separate wage management system.

2. Basic Concepts of Multi-Structure Wage System

The percentage of employees employed for life is increasing day by day at companies with long history of advancement.
Some Korean companies are lax in management of non-fixed contracts, resulting in 90 percent of the dozens of office workers being employed for life. If the age of lifetime employment is not linked to the responsibilities and performance of the employees concerned, and the wages are operated under a fixed wage system of seniority based on the class system, the higher the percentage of employees employed for life, the greater the company's right to appoint personnel.
The event will be further constrained, and the personnel gridlock will be even worse.

(1) Dividing wages into three parts: guaranteed salary, job pay, and performance pay

When a non-fixed contract is concluded, the company must reform the wage structure to increase the proportion of job-level (job-pay) and performance-based pay, and in the case of employees with poor performance, the company needs to redesign to receive only guaranteed wages.
By changing the wage system into a complex structure, the wages of employees are divided into three modules: basic wages (guaranteed wages) and job wages (payments commensurate with positions in charge) and performance wages (payments subject to variable outcomes), minimizing the risk of unnecessary overpayment for employees with poor performance.
To do this, it is necessary to split the comprehensive "basic-level" items currently adopted by most Korean businesses into two. One is "basic level (guarantee level), the variable amount committed to the labour contract, and the equivalent amount of each job (occupation level) adjusted annually according to the in-house value and performance of the "occupation" that the employee is responsible for. In other words, the basic wage (guaranteed salary) must be paid as long as it is on a regular basis.
Igo, the level of duty is a "relatively fixed" salary paid, depending on the function (occupation) in charge.

Set a certain range for the job level

In this way, if you divide the job class into ranges of 5 to 15 grades for each position, each year the user will be able to measure the ability of the employee, the attitude of the job, and the level of compliance with this job requirement.
Depending on the outcome of the Korean review, it will be possible to raise wages and lower wages. In addition, depending on the performance (achieving) performed in the responsibilities, there is also a need to set up "performance" for variable payments.
Such a switch to the composite structural wage system not only allows the adjustment of variable salaries according to the outcome of the report, but also allows the portion of the job to be adjusted once a year depending on the employee's performance.

[Complex structuralization of wages (case) ]
One wage is divided into two parts: fixed wages and variable wages. Fixed wages are wages paid on a fixed basis, consisting of basic pay and job pay (or job allowance).
2 It is agreed that only fixed salaries are listed in the labor contract, and that other job and performance pay are carried out according to the company's wage system.
3 Job pay (or allowance) is automatically adjusted according to the change in the function in charge. The level of duty is determined based on the difficulty of the function in charge, relative value within the company, and importance.
4 Fluctuating wages are paid according to performance (performance) and are regularly paid separately by individuals in connection with performance evaluation, absenteeism and compliance with discipline.
(Explain)
If the wage system is structured as above, the basic wage portion will remain unchanged during the labor contract period.
However, other job-level and performance-based employees are resilient according to their individual skills and performance.
Adjustable. For example, if an employee's job supply is reduced, the job pay is reduced, and the performance is achieved.
In case of poor work performance, performance benefits are reduced by that amount, so the wage provisions of labor contracts are not included.
No change is required, performance-based personnel management is possible.

(2) Transforming the Korean-style position system into a job-grade system

In order to realize wage changes at the same time during job adjustment, it is necessary to switch from the Korean-style position system (employee-agent-chief-director, etc.) to the Chinese-style job pay system (depending on the level of job difficulty and the level of personal job proficiency). That way, the government can break away from the seniority-based system where wages are rigidly fixed according to rank regardless of the position in charge.
It will rebuild the organizational rating system around the concept of job-level, and create a system that will allow automatic changes in job-grade levels based on job- By setting the wage range (minimum-maximum) for each job and dividing it into several water supplies, the superior will be able to raise his or her job pay once a year and make substantial pay cuts for those who are in poor work.

(3) Installing variable wage items

The wage structure of most Chinese companies consists of two pillars: fixed wages (basic salary, job salary, position allowance, etc.) and variable wages (performance, bonus, sales incentive, etc.). In this case, the labor contract stipulates that only fixed wage items are promised, and variable wages are calculated and paid on a monthly or a certain cycle basis, based on the outcome of performance or performance, in accordance with the criteria specified in the separate company's wage management system.
In the case of variable wage, the adjustment payment is made according to the outcome of the employee's performance or performance.
As possible, they can be reduced legally within the range of variable wages. However, the price of an old fruit is high.
Unless carried out objectively and fairly, it is easy to cause employee complaints.
For this reason, Korean companies are paying 100 percent of the variable pay even after installing the variable pay item, resulting in a case where the variable pay is privateized and has no effect. therefore
In order to properly operate variable salaries, an overhaul of the over-the-counter system focusing on the quantitative and qualitative indicators of each job is required.

(4) Agreements on labor contracts to secure the right to adjust duties/wages

1 Changeable labor remuneration clause
In the labor contract, not only the amount of labor remuneration, but also the adjustment process of labor remuneration is agreed.
Adjustment of the amount of labor remuneration within the period of the labor contract (downward)
Allow adjustment (including adjustment).