Samsung Electronics to Reform HR System: "Expanding Absolute Evaluation and Introducing Peer Review System"

[Asia Economy Reporter Song Seung-yoon] Samsung Electronics is set to reform its personnel system, including expanding absolute evaluation and introducing a peer evaluation system.

According to industry sources on the 16th, Samsung Electronics introduced these details at a briefing session on the personnel system reform plan for its employees. The main points reportedly include expanding absolute evaluation in employee performance reviews and introducing a peer evaluation system.

Samsung Electronics' employee performance evaluations are divided into five grades: 'EX' (Excellent), 'VG' (Very Good), 'GD' (Good), 'NI' (Need Improvement), and 'UN' (Unsatisfactory).

The top 10% of employees receive the highest grade, EX, followed by 25% receiving the VG grade. The remaining employees are assigned GD or NI grades, and low performers receive the UN grade. The evaluation results serve as basic data for the following year's salary and promotion decisions.

In this reform plan, Samsung Electronics is reportedly maintaining the EX grade for the top 10% of employees while removing the ratio limit for the VG grade. Except for the top 10%, the system will shift from the existing relative evaluation to an absolute evaluation method. The current evaluation method, where superiors evaluate subordinates, will also be supplemented by introducing a mutual evaluation system called 'peer evaluation.' However, the possible abolition of the rank system, which had been suggested, was not mentioned in this personnel reform briefing.

Samsung Electronics plans to finalize the reform plan after gathering opinions from the labor-management council, labor union, and department heads, and is expected to hold departmental briefing sessions by the end of this month.

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