KCCI Wage and HR Research "To Resolve Corporate Performance Bonus Conflicts, Strengthen Communication Between Labor and Management"

[Asia Economy Reporter Changhwan Lee] The Korea Employers Federation announced on the 1st that it has published the 2021 second half issue of the periodical 'Wage & HR Research (formerly Wage Research)', addressing the conflicts over performance bonuses that heated up the labor market this year.

Wage & HR Research is a periodical that selects recent issues related to personnel, organization, and wage systems of domestic and international companies as special topics, delivering views from academia, field experts, and corporate practitioners, as well as leading company cases, to support efficient and rational personnel management in Korean companies.

The special topic of this second half issue is the 'Performance Bonus System.' Professor Junggoo Yoon of Ewha Womans University’s Business Administration Department, who presented the topic, diagnosed recent environmental changes and explored productive solutions for companies’ rational performance bonus systems through 'New Trends and Challenges Surrounding the Performance Bonus System.'

Professor Yoon pointed out that recent conflicts related to performance bonuses stem from differences in perceptions of fairness and attribution bias. He also emphasized that monetary rewards like performance bonuses serve only as indirect motivators for performance creation and cannot be direct motivators; therefore, efforts are needed to strengthen direct motivation toward performance by clearly presenting the organization’s purpose and future vision.

Seongoh Bae, CEO of Impact Korea, explained 'Ways to Establish a Performance Bonus System Reflecting Individual Company Characteristics' through a research article. To assist companies newly introducing performance bonus systems, he provided step-by-step guidance on the basic design direction, introduction process, and precautions of the performance bonus system.

CEO Bae stressed that the most important factors for effective operation of the performance bonus system are 'fulfillment of promises,' 'securing transparency,' and 'communication between labor and management.'

Additionally, the research articles include 'Fairness and Operation Methods of Performance Bonuses' by Professor Eulter of Gunsan University’s Business Administration Department, 'Compensation System Construction Strategy from a Total Rewards Perspective' by Myunghwan Jeon, CEO of Eon Consulting Group, and 'Organizational Culture and Performance Bonus System' authored by Seunghoon Kang, Research Fellow at LG Economic Research Institute.

Director Sangwoo Ha of the KEF Economic Research Headquarters stated, “As changes in the business environment are accelerating recently, the need for HR (personnel management) to respond swiftly and proactively is increasing. Accordingly, through Wage & HR Research, KEF hopes to provide high-quality, up-to-date content that is helpful in practice, thereby contributing even a little to the efficient and rational personnel management of our companies.”

This content was produced with the assistance of AI translation services.