Hiring Peaks in March, Resignations Concentrated in December
Oh Oilseon: "Preventing the Loss of Key Personnel Is the Main Challenge"
Analysis suggests that the average annual compensation (salary) for Samsung Electronics employees last year was around 128 million KRW. It has been confirmed that Samsung Electronics hired more than 10,000 new employees over the past year.
The Korea CXO Institute (hereafter the Institute), a corporate analysis specialist, released the results of its survey on "2024 Samsung Electronics Employee Average Compensation Analysis and Labor Cost Change Status" on the 20th. The survey calculated the expected average salary per employee based on the audit report submitted on the 18th. The scope of employees includes non-registered executives and general staff below the department head level, excluding registered executives. Employment numbers were analyzed based on National Pension subscribers.
The Institute estimated that Samsung Electronics employees’ average annual salary last year was between 125 million and 128 million KRW. To calculate the average compensation, items such as "total salary amount" and "total number of employees" are required. The Institute focused on the "salary and retirement benefit amounts" recorded in the audit report. The sum of salary and retirement benefits stated in the audit reports from 2017 to 2023 over seven years was equivalent to the annual total salary amount in the business reports.
According to the audit report, the total employee compensation (salary and retirement benefits) for Samsung Electronics in 2024 was 16.1628 trillion KRW. Based on this, the total employee salary amount to be disclosed soon in the business report is expected to be between 15.6779 trillion and 16.2436 trillion KRW. Separately from the total employee salary amount, the total number of employees required to calculate the average salary was estimated at 125,000.
The actual average compensation paid in 2023 was 120 million KRW, and combining this with the Institute’s calculation suggests an increase of about 8 million KRW annually. This corresponds to an approximate 7% increase based on annual salary.
Meanwhile, based on separate financial statements, the ratio of employee labor costs to sales dropped by more than 1 percentage point over the past year, entering 9%. On a consolidated basis, the labor cost ratio also fell from 14% to 13%.
It was also confirmed that Samsung Electronics hired more than 10,000 new employees last year. Specifically, 10,960 new employees joined while 6,459 left. Monthly data shows that March had the highest number of new hires, and December had the highest number of resignations.
The Institute noted that the concentration of resignations in December was unusual, with 884 employees, accounting for 13.7% of all Samsung Electronics resignations last year, leaving in December. Despite many employees joining, there is also a high turnover rate, a phenomenon referred to as 'Ipchulsamda (入出三多)'?meaning many entries and exits.
Director Oilseon Oh of the Institute said, "Last year, Samsung Electronics made considerable efforts from a financial perspective to reduce the labor cost ratio below 10% based on separate financial statements," adding, "This year, Samsung Electronics’ major challenge is to find a strategic balance between preventing the loss of key personnel and optimizing labor costs."
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