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Research on 2010 work competency evaluation of new graduate recruit |
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KEF |
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2010-07-26 |
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It is found that among the new graduate recruit, 15.7% are resigning within a year due to failure in adapting to organization. Also it shows that firm's satisfaction on work competency of new recruit has improved by a small margin compared to 3 years ago.
Main cause of resignation is failure in adapting to organization
According to a survey by KEF, among the new graduate recruit, 15.7% are resigning within a year. This survey was conducted on 382 companies with 100 or more employees. Result shows 4.9%p reduction compared to 2007 (20.6%) which is attributable to temporary employment downturn in 2009 due to the economic crisis.
By company size, SMEs show 22.3%, three times that of large companies (7.3%). The research indicates that high resignation rate in SMEs is one of the causes of the shortage of labor force and deterioration of business environment.
For the causes of new recruit resignation, the companies have listed 'failure in adapting to organization(41.8%)', followed by 'dissatisfaction in wage and benefits(27.9%)' and 'dissatisfaction in location of worksite and working environment(17.0%).' In particular, responses of 'dissatisfaction in wage and benefits' and 'dissatisfaction in location of worksite and working environment' were higher in SMEs compared to the large companies. This reflects the relatively poor wage and working conditions of SMEs.
New graduate recruit wage is 13.2% above appropriate level
Of the companies surveyed, new graduate recruit annual salary was suggested 22,240,000 won ($18,487 USD) but it was found that they are paying 13.2% higher, 25,170,000 won ($20,922 USD). This gap is reduced compared to the result of 2007 (16.1%) but there is still a big gap in large companies and non-manufacturing sector. By company size, large companies with 17.1%, SMEs with 11.7% and in industry wise, non-manufacturing 17.2% and manufacturing 10.8% each.
A KEF official said, "the gap between the real wage and work competency of the new graduate recruit is mainly due to Korea's labor movement that is focused on low ranks of large companies which made the initial payment for graduates too high. Large companies' competition to secure outstanding work force and to improve company's image have fixed a high graduate initial payment."
Work competency of new graduate scored 70~79points(42.5%), 80~89points(41.9%)
Meanwhile, satisfaction on work competency of the new graduate recruit scored 70~79points(42.5%), 80~89points(41.9%) and 60~69points(8.9%) which implies there still exist dissatisfaction on work competency of new recruit. The highest scores in 90~100points had no more than 5.0%.
However, these figures are improved compared to 2007. That is, 70~79points which scored the most in the companies, reduced by 6.0%p compared to 2007(48.5%) whereas 90~100points and 80~89points each increased by 3.1%p and 6.9%p. 60~69points and 50~59points also reduced by 3.8%p and 0.2%p. These results are attributable to the social trend of strengthening academic-industrial connection along with emphasizing on education adjusted to industrial demand that have improved the level of standard of new recruits.
By company size, 52.2% of SMEs scored 80points or higher whereas 30.3% of large companies scored 80points or higher. Satisfaction on work competency of new recruit scored higher in the SMEs relatively.
As for the reasons of dissatisfaction, large companies say "school education", SMEs say "lack of passion and attitude of the new recruit."
Companies have cited 'lack of passion and working attitude(39.0%)' for the reasons of dissatisfaction, followed by 'school education do not meet business demands of companies(33.3%)', 'could not select the right talent given low compensation level(21.3%).'
What is interesting is that major reason for the dissatisfaction for the large companies was 'school education do not meet business demands(44.8%) whereas for the SMEs, it was 'lack of passion and working attitude of new recruit(40.2%). It shows different views of large companies and SMEs to a certain extent.
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