Are NC, Nexon, and Netmarble Welfare Hotspots? [Buaeri's Game Dictionary]

Kim Taek-jin, CEO of NCSoft

[Asia Economy Reporter Buaeri] Every year at the end of the year, attention is focused on bonuses in the gaming industry. This year, as usual, news of 'Taekjin hyung's' generous encouragement money was delivered, and Nexon established a system to reward employees with 20 years of service on its anniversary.

Taekjin hyung's 'Encouragement Money' as a Christmas Gift

Kim Taekjin, CEO of NCSoft, on the 24th, paid all employees 2 million KRW as a 'Let's Overcome COVID-19 CEO Special Encouragement Money.' The same amount was given to all employees, including regular, contract, dispatched, and interns.

The company stated, "We express our gratitude and encouragement to all employees who did their best in their respective positions despite the difficult environment caused by COVID-19 this year."

NCSoft has attracted industry attention by giving 'generous encouragement money' to employees whenever a hit title is released. In December last year, NCSoft also paid a bonus of 3 million KRW per employee. At that time, NCSoft said, "We are paying special encouragement money as a token of thanks and encouragement for those who worked hard for the successful launch and operation of Lineage 2M." NCSoft also gave a 3 million KRW performance bonus to executives and employees in 2017 when it launched Lineage M.

20-Year Service Awards Are the Same Across the 3N

Nexon established a reward system this year to pay 10 million KRW to employees with more than 20 years of service. Nexon explained, "The 20-year service award system was created to honor the unwavering passion and dedication of members who have spent the valuable time of 20 years growing with the company."

Nexon plans to give a '20th Anniversary Commemorative Trophy' and 10 million KRW (tax compensated) vacation support fund as a prize to employees who reach 20 years of service as of December 26, the company's anniversary. This year's first 20-year service award was given to a total of 14 employees within Nexon Company who have served more than 20 years.

Netmarble also operated a similar system and since 2018 has supported vacations and vacation expenses every 5 years of service. For 5 years of service, 5 days of vacation and 1 million KRW vacation support; for 10 years, 10 days and 3 million KRW; for 15 years, 15 days and 5 million KRW; and for 20 years, 20 days and 10 million KRW.

NCSoft has operated a long-term service reward program since 2010 and revamped the system last year. NCSoft gives 5 days of vacation and 1 million KRW vacation support to employees with 5 years of service.

Employees with 10 years of service at NCSoft receive a 'special gift.' They get 10 days of special leave, a thank-you message and plaque from CEO Kim, and a 10 million KRW bank cash card.

Employees with 20 or 30 years of service can choose between 10 days of special leave and 10 million KRW or 4 weeks of paid leave and a special commemorative gift worth about 10 million KRW.

Long-Term Service? ... Average Tenure Is 5 Years

However, the average tenure in the gaming industry is relatively short compared to other industries. The average tenure of the three companies known as the 3N is 5 years. This is less than half the average tenure of general companies. According to CEO Score, among the top 500 companies, the average tenure of 312 companies that submit quarterly reports is 11.1 years.

According to each company's quarterly report, as of the third quarter this year, the average tenure of employees at NCSoft is 5.5 years, Netmarble is 4.4 years, and Nexon is 5.2 years. In fact, only 14 employees at Nexon received the 20-year service award this year. Nexon Company has a total of 6,504 employees.

An industry insider said, "Since development personnel are important in game companies, it is true that they pay special attention to treatment and welfare," but added, "Due to the frequent turnover characteristic of the industry, not many employees will enjoy benefits like the 20-year service award."