"40 Million Won Salary Plus Bonus vs 55 Million Won Salary: What Do Generation Z Job Seekers Choose?"

82% Say "Compensation System Is Important" When Choosing a Company

Support for Bonus Caps, but Demand for Transparency Remains High

Six out of ten members of Generation Z (born between 1997 and 2011) who are preparing for employment prefer a compensation structure that allows for additional earnings based on performance, even if the fixed annual salary is higher in another option.

As major companies such as Samsung Electronics continue to discuss the standards and distribution methods of performance bonuses, it is clear that job seekers also show a distinct preference for performance-linked compensation.

On June 5, Jinhaksa Catch, a leading recruitment platform, conducted a survey on 'Preferred Compensation Structure' with 1,577 job seekers. The results showed that 60% of respondents chose 'an annual salary of 40 million won plus a 0-100% performance bonus based on results.'

In contrast, 40% selected 'an annual salary of 55 million won with no performance bonus.' This indicates a stronger preference for a structure that offers greater rewards based on performance rather than a higher fixed salary.

The compensation system was also confirmed to be a key factor influencing company selection. 82% of respondents said the compensation system is 'important' when choosing a company. Another 13% answered 'average,' and only 5% said it was 'not important.'

When asked about the most ideal compensation system when a company performs well, 59% preferred 'performance bonus payments,' the highest proportion. 'Base salary increase' followed at 20%. Nearly 8 out of 10 respondents thus favored direct monetary compensation.

Survey results on 'Preferred Compensation Structures' conducted with 1,577 job seekers. Jinhaksa Catch website

Regarding the distribution method of performance bonuses, 'differentiated distribution based on performance' was the most popular, chosen by 49%. 'Uniform base amount with additional differentiated payments based on performance' followed at 34%. Only 17% preferred 'equal distribution to all employees.' In other words, 83% favored some form of differentiated payment based on performance.

As for the criteria for calculating performance bonuses, 'individual performance evaluation' was the top choice at 47%. Many respondents believed that compensation should be based on actual performance and job contribution rather than seniority or position.

However, the preference for expanding performance bonuses did not translate into demands for unlimited payments. When asked about setting an upper limit, the most common response was 'a cap is necessary to some extent, but the criteria should be transparently disclosed,' chosen by 38%. This was followed by 'a cap is needed for the company's sustainability,' at 37%.

Jung Hyun Kim, head of Jinhaksa Catch, said, "Generation Z job seekers are just as interested in a compensation structure that shares results when performance is strong as they are in a high annual salary. Since performance bonuses are a representative compensation system that shows how companies recognize the efforts and contributions of their members, they will become an increasingly important criterion in the company selection process moving forward."

This content was produced with the assistance of AI translation services.