[These Days' Newcomers] ① The 2030 Generation Kicking Away the Iron Rice Bowl

"My career is more important than a respectable company business card"

[Asia Economy Reporter Kim Eun-byeol] # About ten years ago, right after the financial crisis, buzzwords such as ‘a company bestowed by God,’ ‘a company even gods want to join,’ and ‘a company hidden by God’ were popular among job seekers. As jobs became unstable after the crisis, the perception arose that the best workplace was one where you could work for life without intense work pressure. However, recently, young employees in their 20s and 30s have been leaving the Bank of Korea, which was once called ‘a company bestowed by God.’ A 5-year employee from key departments such as the Financial Stability Bureau and Financial Market Bureau moved to private financial companies like Korea Investment Trust Management and venture capital (VC) SBI Investment. An 11-year employee went to Coupang, and some moved to IT and fintech companies. In April, an employee assigned to the Governor’s Policy Advisor department also moved to the Capital Market Research Institute. In the past, employees would endure with pride as central bank staff, but now, employees who have not been with the Bank for long are resigning and moving to private companies or the financial sector, causing unrest inside the Bank.

# Last year, during the height of the COVID-19 cold wave, Amorepacific implemented voluntary retirement for the first time in its history. They offered employees in the duty-free business division a lump sum of 100 million KRW regardless of their years of service. Many employees with fewer years of service applied for voluntary retirement due to the large severance pay. Although they had entered the company after overcoming tough employment conditions, it is said that the condition of receiving a large sum of money at once was more attractive to young employees. Nowadays, with the concept of a lifelong job disappearing, many perceive receiving a large sum and leaving as a ‘jackpot.’ Recently, even major banks have seen many mid-level managers applying for voluntary retirement.

It is obvious that more 20s and 30s are quitting ‘respectable’ jobs. New employees nowadays dream of quitting within five years even at well-known, enviable companies. According to a recent survey by the job platform Saramin targeting 500 companies, 49.2% responded that the early resignation rate within one year is higher among the MZ generation (born 1980?2000). Early resigners decide to leave on average within five months after joining. Despite the severe employment difficulties, why do new employees leave companies they worked hard to enter so quickly? Why do they reject the ‘iron rice bowl’ (lifetime employment at one place)?

"I don’t waste time enduring"

Mr. A, in his 20s, who was contemplating resignation, received an offer from another industry that could change his career and began to seriously consider quitting. He cautiously requested a meeting and consultation with his department head. The department head persuaded him, saying, "If you continue as you are, you can easily become a department head, so why do you want to quit?" However, this remark ultimately encouraged Mr. A’s resignation. It firmly established the thought that his goal was not to live ‘comfortably like a manager.’

Mr. B, who joined a large e-commerce company and resigned after four years, said, "Looking around, there were almost no employees in their 50s except executives," and "I felt a crisis that if I worked hard, I would end up ‘running a chicken restaurant’." His anxiety grew as he talked more with senior colleagues. Mr. B said, "They all get married, have children, and go to companies they dislike to pay off loans," and "Their lives are about forcing themselves to work during their youth and having nothing to do after retirement." After much deliberation, Mr. B challenged entrepreneurship. He said, "I thought I had to get out of the company as soon as possible while I still had my senses and try anything."

According to Saramin’s survey, the top reason for early resignation among the MZ generation was ‘personal satisfaction is much more important’ (60.2%, multiple responses). HR managers believed the main reason employees quit was ‘job mismatch’ (48%, multiple responses). Next were ‘dissatisfaction with organizational culture’ (31.1%), ‘dissatisfaction with salary and benefits’ (28.2%), ‘high work intensity’ (20.4%), and ‘low salary’ (19.6%). If the job does not fit them and the company does not manage their career, they decide not to waste time enduring.

Many young employees who recently left the Bank of Korea were also dissatisfied due to career management. The Bank uses a rotation system, and when promoted, employees are dispatched to regional offices for two years. If the current assignment is to an undesired department and promotion overlaps, they end up spending a total of four years doing unwanted work. Seniors advise, "It all becomes experience and growth," but this does not resonate with today’s new employees. The pressure is strong that if they do not challenge themselves and learn new things, they might just become ‘mediocre people’ after wasting time.

Last year’s Saramin survey also showed that half of the 20s and 30s preferred ‘job hopping’ over the ‘iron rice bowl.’ Among 2,816 adults surveyed, 49.4% preferred job hopping, and 82.2% expected to become job hoppers themselves. The main reason for preferring job hopping was ‘to build a competitive career’ (49.7%, multiple responses).

"I hate workplaces without rewards"

Another characteristic of today’s new employees is their extreme dislike of the vertical corporate culture and demand for horizontal relationships. The culture of leaving work promptly at the end of the day reflects their work style. They leave work exactly on time and do not care if their boss is still working. They refuse when seniors suddenly offer to buy dinner under the pretext of taking care of juniors. They hate the company suddenly disrupting their personal plans the most.

One reason why new employees want to work at startups as much as large corporations is this. According to a survey by JobKorea last year of 504 new job seekers, 7 out of 10 expressed willingness to work at startups. The biggest reason was ‘the corporate culture seems free’ (49.4%). The most important criterion when applying to startups was also ‘horizontal organizational culture’ (34.6%). Mr. C, who moved from a large IT company to a startup, said, "At the large company I used to work for, I felt frustrated seeing a book titled ‘Generation born in the 90s is coming’ on the team leader’s bookshelf," and "Casual dress code and refraining from company dinners are natural, but maybe the fact that they don’t properly understand why we resign is itself a reason for resignation."

Fair compensation corresponding to performance is also important. If they perceive unfairness, they boldly ask owners and management what the criteria for performance bonuses are. A 4-year employee at SK Hynix sent an email to the CEO and all employees earlier this year demanding an explanation of the profit-sharing (PS) calculation criteria. Salary issues also underlie the departure of young employees from the Bank of Korea. A researcher at the Bank said, "The older generation must understand keywords like horizontal culture and fairness, not just salary."

◇Terminology Explanation

◆Job hoppers = A neologism referring to those who frequently change jobs every 2?3 years to earn high salaries or develop their careers.