Samsung's Evolving HR System... Korea's First Open Recruitment and Expanded Hiring of Women

Chairman Lee Byung-chul Establishes Open Recruitment System
Chairman Lee Kun-hee Expands Capability-Based Hiring
Vice Chairman Lee Jae-yong Contributes to Creating a Horizontal Organizational Culture

[Asia Economy Reporter Kim Hyewon] Samsung's personnel system and organizational culture have evolved based on the founding philosophy of "Talent First" established by the late Lee Byung-chul, the former chairman. Lee Byung-chul pioneered Korea's first open recruitment in 1957, and the late Chairman Lee Kun-hee introduced the country's first exclusive recruitment for female college graduates in 1993, implementing unprecedented and groundbreaking systems. With this recent innovation in Samsung's personnel system, the third-generation leader, Vice Chairman Lee Jae-yong of Samsung Electronics, has left another legacy by breaking the "seniority-based hierarchy."

While former Chairman Lee Byung-chul established personnel systems such as open recruitment to prevent the negative effects of regionalism in hiring, Chairman Lee Kun-hee worked to eliminate gender discrimination practices by focusing on ability-based personnel management and expanding female recruitment. The introduction of professional positions for women and open recruitment for college graduates in the early 1990s was considered a revolutionary personnel innovation at the time. Based on Lee Kun-hee's judgment that the importance of talent with global capabilities would increase in the future, the introduction of the regional expert system in 1990 also marked a milestone in Samsung's personnel system history.

Vice Chairman Lee Jae-yong views the establishment of a horizontal organizational culture as essential for transforming into a creative and challenging organization. Ahead of the "future-oriented personnel system reform" this year, he implemented a system reform in 2016 focused on simplifying job ranks. Samsung Electronics changed the existing seven-step vertical rank system to a four-step career development stage based on job competency growth, and employees' titles were changed to "Mr./Ms. ○○" or "Pro ○○." At the time, these efforts were praised for fostering a culture where intergenerational communication could be more freely exchanged.

While other major domestic companies are abolishing open recruitment systems, Samsung's decision to maintain open recruitment is also distinctive. This aligns with Vice Chairman Lee Jae-yong's intention to provide fair opportunities and hope to young people. An industry insider said, "By continuing the open recruitment system, Samsung enhances the stability and predictability of the domestic hiring market."

Vice Chairman Lee Jae-yong also pays attention to supporting work-life balance. Since 2009, Samsung has introduced the "flexible arrival system," moving away from uniform working hours to allow employees to increase work concentration according to personal circumstances such as childcare and time management plans. In 2012, this was expanded into the "flexible working hours system." In 2018, the "selective working hours system" was introduced to create an environment where employees can work more autonomously and flexibly.