"Not Envious of Samsung or SK Hynix" - Average Salary of 130 Million Won Plus Stock Bonuses... Voluntary Turnover Rate at 3.2% at This Company

Voluntary Turnover Rate Drops to 3.2%
Stronger Organizational Cohesion Amid Reduced Recruitment
Average Salaries: 132 Million Won for Men, 118 Million Won for Women

The performance-based employee stock ownership system introduced by Hyundai Motor Company is being evaluated as an effective mechanism for curbing the outflow of key talent. As the structure enabling employees to share in the company’s growth through stock has become firmly established, organizational stability has increased, and the voluntary turnover rate has dropped to less than half in three years. While overall recruitment has decreased due to global demand slowdown, internal cohesion has actually shown signs of strengthening.

Hyundai Motor Group headquarters building in Yangjae-dong. Hyundai Motor Group

According to the “2026 Sustainability Report” released by Hyundai Motor Company on July 1, a total of 1.77 million shares were allocated through the employee stock ownership association last year. This figure includes 1.53 million shares contributed by the company, in addition to 240,000 shares purchased by employees with their own funds.

The cumulative number of shares distributed has reached 7.85 million, and is expected to approach 9 million with the inclusion of this year’s performance bonuses. By expanding stock-based compensation beyond simple financial rewards, the company has strengthened a system in which employees directly share the benefits of increasing corporate value.

This is interpreted as a strategy to boost organizational engagement by aligning performance and rewards. The company also presents the intention behind the system as enhancing work motivation and aligning corporate goals with personal values.

Turnover Rate Plummets... Retaining Key Talent

This shift in compensation structure is also clearly reflected in talent retention indicators. Last year, Hyundai Motor Company recorded a voluntary turnover rate of 3.2%. Compared to 6.8% in 2022, this figure has fallen to less than half in three years. The overall turnover rate has also stabilized at around 8.1%.

Hyundai Motor Company 2026 Sustainability Report. Hyundai Motor Group

Analysts say this cannot be explained solely by a contraction in the labor market. The combination of performance-based compensation and expectations for rising corporate value has strengthened long-term retention incentives for key personnel.

In particular, the improved corporate status of Hyundai Motor Company and Kia—such as ranking among the top in the global automotive market in terms of profitability—also appears to have contributed to the decline in turnover.

Robotics and Electrification Drive Performance... Stock Price Gains as “Reward”

The performance-based reward structure is directly linked to actual increases in corporate value. A notable example is the more than 60% surge in the stock price after Boston Dynamics, a robotics subsidiary, unveiled the humanoid robot “Atlas” at CES 2026 earlier this year.

In a video released by Boston Dynamics, the robotics subsidiary of Hyundai Motor Group, the humanoid robot Atlas is shown lifting an entire refrigerator. Photo by Yonhap News Agency

As the rise in the stock price is directly translating into employee rewards, the tangible benefits of the performance-based employee stock ownership system have grown. Analysts note that this is significant in that it encourages long-term participation in corporate value, rather than focusing on short-term, bonus-centered compensation.

Recruitment Decreases but “Internal Stability” Strengthens

On the other hand, new recruitment has clearly declined due to the impact of global demand slowdown. Hyundai Motor Company’s new hires decreased from 25,419 in 2023 to 23,631 in 2024 and 14,253 in 2025—a drop of more than 40% over two years. Notably, new hires under the age of 30 have seen a significant reduction.

Domestic direct employment also fell slightly to 73,335, while overseas personnel remained at about 50,000. This is interpreted as the result of adjusting hiring in response to global demand slowdown and not replacing naturally reduced staff. However, despite the reduction in hiring, the lower turnover rate has led to evaluations that overall organizational stability has actually increased.

High Salaries and Increased Organizational Diversity

Employee compensation remains at the highest level in the industry. Last year, average total compensation was 132 million won for men and 118 million won for women. Organizational diversity indicators also continued to improve. The proportion of female employees rose to the upper 11% range, and the proportion of female executives reached the 8% range, reflecting a gradual upward trend. This is interpreted as a structural change aimed at strengthening overall organizational competitiveness, moving beyond a simple employee retention strategy.

Hyundai Motor Group Headquarters Building in Yangjae-dong. Hyundai Motor Group

Hyundai Motor Company’s employee stock ownership system is being evaluated as a core pillar of talent acquisition and retention strategy, beyond a simple welfare measure. As the industrial transition accelerates toward electrification and artificial intelligence, attention is focused on whether such a compensation structure will translate into long-term competitiveness.

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