The Drawback of Seniority Pay... Even in Large Corporations, Becoming a Manager Doubles an Employee's Annual Salary
Impact of Seniority-Based Pay System Focused on Tenure Rather Than Skills and Performance
[Sejong=Asia Economy Reporter Moon Chaeseok] A survey revealed that even employees working at leading domestic companies need to reach at least the assistant manager level to earn more than double their salary since joining. This is interpreted as the effect of the seniority-based pay system, which increases wages based on years of service regardless of performance.
According to an analysis of average annual salaries by rank at 94 major corporations announced on the 10th by Saramin, a job matching platform, a four-year university graduate at the staff level earns an average of 53.56 million KRW, assistant level 64.31 million KRW, deputy level 77.14 million KRW, manager level 91.46 million KRW, assistant general manager level 104.20 million KRW, and general manager level 117.89 million KRW. The data was extracted only from companies that responded among the top 100 companies by sales according to CEO Score Daily.
The assistant general manager level is where one can earn more than twice their starting salary. The general manager's salary was 119.9% higher than that of a staff member. On average, the salary increased by 12.87 million KRW with each rank promotion. The salary growth rate compared to the previous rank was 17%.
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By rank, the assistant level showed the highest growth rate, increasing by an average of 20.1% (10.75 million KRW) compared to a four-year university graduate at the staff level. The deputy level increased by 19.9% (12.82 million KRW) compared to the assistant level, the manager level rose by 18.4% (14.32 million KRW) compared to the deputy level, the assistant general manager level increased by 13.7% (12.74 million KRW) compared to the manager level, and the general manager level rose by 12.8% (13.69 million KRW) compared to the assistant general manager level.
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