KCC Revamps HR System... Eliminates Ranks and Focuses on Performance-Based Approach

[Asia Economy Reporter Donghyun Choi] Global advanced materials chemical company KCC announced on the 4th that it has introduced a new personnel system and embarked on creating a flexible corporate culture by reorganizing job ranks and emphasizing performance-based principles.

The keywords of KCC's new personnel system are a Young, Energetic, and Strong organization. The aim is to work wisely and maintain work-life balance (WLB) to activate horizontal communication and establish a thoroughly performance-oriented organization. At the same time, it reflects the will to build a strong organization capable of generating growth momentum.

The new personnel system abolishes the existing rank structure and groups employees as follows: staff and assistant managers are classified as "Pro," while managers, deputy general managers, and general managers are grouped as "Responsible." This minimizes communication barriers based on rank and promotes horizontal communication. Among employees at the Responsible level, team leader positions are assigned to prioritize performance and ability over seniority.

To operate a performance-based personnel system, the traditional seniority-based promotion system has been abolished and replaced with a point system where promotion is possible upon acquiring a certain number of points. Unlike the conventional method where promotion eligibility is granted after a certain period of service, promotion can now be achieved by earning points through various means, including work performance, enabling the selection of outstanding talent.

Additionally, to strictly uphold the principle that rewards follow performance, the year-end lump-sum performance bonuses have been improved. Through enhancements in evaluation systems such as periodic assessments, a differentiated reward system based on performance will be applied. The criteria for performance rewards will be shared with all employees, and objective compensation will be implemented.

A KCC official stated, “The introduction of this personnel system reflects KCC’s commitment to change and innovation as a company pursuing global standards. Since various generations coexist within the company, we will continuously improve the system toward efficient communication and a horizontal corporate culture.”

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