Korea Employers Federation Publishes Second Half Issue of "Wage and HR Research" ... "Talent Should Be Combined Like Lego Blocks"

As the South Korean economy enters a period of low growth, there are calls to design organizations around essential roles and project-based tasks, rather than traditional departments and hierarchical positions.

The Korea Employers Federation published the second half 2025 issue of its periodical "Wage and HR Research" on September 1, under the theme "Sustainable HR Strategies in the Era of Low Growth." The publication introduces HR management strategies and case studies for navigating prolonged low economic growth, which has become a structural issue rather than a short-term situation, and offers key insights.

Kim Joosu, Head of L&D Research at Hunet, stated in a keynote presentation, "We must move away from a department- and rank-based system where one person is responsible for only one role, and instead be able to flexibly combine talent like Lego blocks." He added, "Organizations should be structured around projects to make adaptability to change a fundamental organizational trait." He further emphasized, "HR strategies should be established based on a future operating model that takes into account demographic shifts and the accelerating pace of digital transformation."

Nam Wonjin, Team Leader at Mercer Korea, also said, "The advent of an aging society and a low-growth era is demanding changes to the traditional seniority-based rank system." Nam explained, "Companies are now seriously considering not just breaking down ranks, but also introducing growth systems focused on expertise, roles, and performance," adding, "A representative example is the 'level system.'" The level system is a growth framework that segments advancement stages based on expertise, rather than seniority-based hierarchy. Criteria for defining levels include impact on performance, work difficulty and complexity, problem-solving ability, and professional knowledge and skills.

The case study section highlighted SK, which established the technology- and experience-based career platform "myCareer." MyCareer forms a "skill profile" based on each employee's background and experience, and provides recommendations for career paths and learning opportunities. The company also uses this platform to assess overall skill status by organizational unit and skill area, which can be leveraged for recruitment and talent development. Jang Hwalhun, Team Leader at mySUNI LX&Tech, said, "We are achieving both differentiated career development experiences for employees and efficient human resource management for the company."

Additionally, there were calls for compensation systems during periods of low growth to move away from seniority-based rewards. It was argued that the reasons for each wage component should be clearly defined. Park Hyungchul, CEO of Kim & Chang Management & People Center, stated, "By clarifying the rationale for compensation items and the process of doing so, we can build consensus on the need for and direction of reforming seniority-based compensation systems." He added, "This will enable the establishment of motivational and reward mechanisms that align with business strategies."