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Inscrutable Employee Loyalty in Korea
By Tom Coyner
Korea Times
April 4, 2007

 

Korean employees are world-renown to be industrious, self-sacrificing and certainly long-working. At the same time, newspapers and television are quick to report militant union strikes, yet only 11 percent of all Korean workers are unionized -- and only a small fraction of these belong to militant unions. So how loyal are they really?

One might consider that in certain sectors, such as manufacturing, where Korean workers are generally well regarded to be quite productive; their efficiency may be a reflection of their company loyalty. Or is it?

Four years ago, British commercial pollster TNS conducted a global employee attitude survey of some 1,000 employees in 35 countries. When the results were tabulated, even TNS’ long-term Korea resident and North Asia Regional Director, David Richardson, was floored with the results. Only Bulgaria edged out Korea as having the least company-loyal employees. Mr. Richardson was so shocked that he even temporarily delayed the survey’s global announcement to check if something may have been in serious error.

In fact, the survey results of TNS accurately reflected the interviewed sentiments, including those of the Koreans. Interestingly, Japan also scored among the lowest while countries such as Israel, New Zealand, the Netherlands and Mexico scored among the highest in loyalty.

Among the low-ranking countries, the former Soviet bloc weighed heavily. Given general worker attitudes developed over decades in inefficient, centrally planned markets, this was not at all surprising, since most observers expected a correlation between low productivity and low company loyalty.

So it came as a surprise that the two Northeast Asian advanced economies with their high productivity, ranking so low. Immediate speculation considered that like the Soviet model, traditionally Korean and Japanese workers have had relatively low job mobility. From childhood these Asians have been forced marched into studying at the right schools and cram institutes so as to get into the right universities and later enter the best companies -- with relatively little freedom in selecting their careers. While comparing Japan and Korea with the Soviet bloc may be a bit of an exaggeration, the parallel is arguably a strong one.

Actually, on a worldwide average, 19 percent of all employees were ``drivers’’ who are satisfied and motivated. Another 12 percent are ``critics’’ who are motivated but dissatisfied. An exact third are ``residents’’ who are satisfied but not motivated, with a bottom 36 percent being ``detached,’’ the dissatisfied and unmotivated.

Mr. Richardson recently reviewed these results and updates at the British Chamber of Commerce Business Breakfast together with special input from KMAC’s advisor, Dr. Vincent Conte. As usually is the case, there was active discussion among the other business professionals who attended the event, monitored by Market Entry President Joe Day.

A further breakdown of the Korean employee results indicated that there was an unusually wide disparity between the top two ``engaged’’ groups -- the drivers and the critics -- from the bottom detached group. Given there was only a very small resident group, when averaged together, the national average was lower than what one may expect. Also, it was noted that the most of the engaged employees were males aged 25 to 49 years old. In other words, if one is female or in the majority of middle aged men with increasingly fewer chances for continuing promotion and employment, there may be much less of a chance for one to be engaged -- or very company loyal.

KMAC’s Dr. Conte pointed out that survey results of the same people can vary significantly if the survey is taken at the work site, away from the comfort of their homes or by private telephone conversations. In other words, if interviewed away from the work site, results tend to be more individualized. Whereas, surveys conducted on the worksite often reflect more of a group perspective. Many people adopt a very different mentality once they set foot on the factory floor or into the office. And this attitude can greatly color a survey’s results.

Dr. Conte further suggested that many Korean employees are emotionally detached since they realistically expect to be with a given employer only five year or less. There may be a subconscious anxiety that if one puts their total heart, soul and mind into their work, one’s own true values or feelings may inappropriately come in to conflict with one’s superiors’ views. Thus out of cautious self-preservation, many employees, including Koreans, behave differently in the work place than their real feelings would predict.

In addition to the skepticism about their company’s motives, Dr Conte suggests that Koreans get more emotional reinforcement and comfort from their family and network of friends. For the average Korean worker, long-term security is less a matter of success on the job and, more about having friends and family who will help you when you are in trouble. The late 1990’s made people realize that companies go out of business and even great employees can lose their jobs

So, in Dr Conte’s opinion, TNS’ data was much more insightful into what he called the ``private Korea’’ than what he labeled the ``professional Korea.’’ It seems that like those of many countries, Korean employee attitudes shift during each day as they walk in and out of the workplace.

Mr. Richardson noted that Korean employees seem to shy away from taking personal initiative for self-development beyond English classes. They tend to be more group oriented and generally only follow the suggestions and directions of their superiors.

One Western executive concurred. He noted that there seems to be a pattern of the expat manager suggesting an employee to take evening classes, etc. as a way to further qualify for possible advancement. Yet, too often the employee’s immediate response is ``What is in it for me? What guarantee is there for reward, such as promotion, if I do that?’’ Since most managers lack complete future clarity, they generally cannot make any real promises. As a result, the employee loses interest.

Another executive noted that many Korean employees seem to be more concerned about the negative impact to others in their group by one person’s advance.

Dr. Conte suggested that the old rules of the manufacturing-centric economy worked well, but as the Korean economy morphs into a more serviced-based one, much rethinking will be needed to foster new behaviors suitable for future markets and industries. He allowed that while a nation’s fundamental culture never really changes, processes within a culture can be modified to be in synch with new paradigms.

For example, Dr. Conte pointed out that Korean HR departments are not focused on individual development but more on team building -- often including sophisticated social engineering to help an optimum number of individuals to work well in groups. Given that, one may expect less in HR development policy changes, but more effort to adjust the work environments, including a great deal of future work dedicated to easing individuals and groups into more efficient, service-centric work environments via social pressures and structured social interactions.

So what conclusions may we make out of all of this? The Business Breakfast executives were not sure. But two notions came to my mind. First, if a manager wishes to keep his or her employees intellectually and emotionally engaged, the manager must communicate some kind of vision that employees can internalize as to how they will personally grow and benefit by working for the organization. At the same time, if Korean organizations are to effectively become fully productive in the service-oriented Korean economy of the 21st century, employers must remove overt and subtle threats of employment termination based simply on gender and age.

Tom Coyner is president of Soft Landing Korea (www.softlandingkorea.com), a sales-focused business development firm, and co-author of Mastering Korean Business: A Practical Guide.