[Asia Economy Reporter Kim Hyewon] At the end of last year, the CEO of a major company A was informed early by the head of HR that he would be 'retained.' Since he was not young and had been CEO for more than five years, he had quietly been preparing for retirement, so the unexpected news was rather welcome. "Alright, let's pour our passion for one more year and leave without regrets," he resolved. However, just one afternoon before the personnel announcement, he was abruptly replaced with a message saying, "Thank you for your hard work." This CEO said, "Although it is natural to leave a company where I have worked for over 30 years someday, I couldn't help but feel a slight sense of regret."
As the year-end and New Year personnel season approaches in the business world, the tension among 'executives,' who are sometimes referred to as 'temporary employees,' is reaching its peak. Rather than expecting promotion, they feel like they are walking on thin ice at the crossroads of whether to go home or stay at the company. Surviving and getting promoted to move one step higher is ideal, but worries about next year are already emerging. It is also a signal that the day to go home is approaching.
This year, especially due to the variable of the novel coronavirus infection (COVID-19), the atmosphere before the personnel season is extremely 'low-key.' Year-end gatherings are minimized under the pretext of COVID-19, and companies are moving quietly to avoid standing out. As LG and Lotte Group fired the starting gun for regular personnel appointments on the 26th, Lotte Group Chairman Shin Dong-bin carried out a high-intensity reform by dismissing about 100 executives at once, spreading a cold mood throughout the business community. The biggest interest is whether Hyundai Motor Group Chairman Chung Eui-sun, facing his first year-end personnel after promotion, and Samsung Electronics Vice Chairman Lee Jae-yong, who became the de facto group head after Chairman Lee Kun-hee's passing, will reveal their own colors through executive generational changes.
As major groups undergo generational changes to the 3rd or 4th generation of founders, selecting young talent has become a trend. Naturally, the executive ranks are also becoming younger. A newly appointed executive at company B said, "Recently, the harmony between old and new is the trend in executive personnel at large companies," adding, "If someone is capable, there is a tendency to surprisingly appoint new forces based on performance, while valuing good harmony with experienced and senior members within the company."
An executive at company C wanted to ignore the smartphone ringing indifferently two days before the personnel 'list' was announced. It was a call from the company. A call one day before usually means promotion or retention, but two days before generally means packing up. Companies that require more 'shock therapy,' such as strict meritocracy or workforce restructuring, do not particularly observe this unspoken rule of notification. Therefore, year-end and New Year are always a fearful time for corporate executives.
Company D, which introduced a system of frequent executive personnel changes, says the shock is relatively less due to risk dispersion(?). This is because it is common to see colleagues clearing their desks even outside specific times like year-end. The noisy promotion parties are a thing of the past. Since we are in the era of 100-year lifespans, comforting those who leave the company at a relatively young age takes priority.
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