Samsung SDS is currently conducting a company-wide vote on a proposed reform to its human resources system, which includes converting cash incentives into company stock. However, the process has sparked internal controversy following allegations that some managers pressured employees to vote in favor of the proposal or urged them to participate.
The company stated that it extended the voting period to ensure sufficient collection of employee feedback and emphasized that the new system will not be implemented without the consent of a majority of its members.
According to industry sources on June 29, Samsung SDS has been holding a vote on the proposed HR system reform for all employees since June 24.
Although the vote was originally scheduled to close on June 29, the company extended the period until July 7 to allow for more comprehensive feedback from employees.
Multiple sources confirmed that during the voting period, the Samsung SDS task force for system reform sent phone calls and text messages to employees to encourage participation in the vote.
However, some employees have claimed that they felt pressured not just to participate, but to vote in favor of the proposal.
On an anonymous communication channel currently used by about 2,600 employees, posts have appeared alleging that certain managers told staff to vote in favor or suggested that the outcome could affect future performance evaluations.
The proposed reform involves a complete overhaul of the incentive system, replacing the existing cash-based Profit Incentive (PI) with a scheme that grants company stock based on 20 percent of an employee's annual salary. The plan is set to take effect immediately if it receives majority approval.
Employees opposing the reform point to issues such as the fact that 70 percent of the incentive calculation criteria would be linked to external indicators, including company stock prices and industry indices, and that the existing Profit Incentive would be excluded from severance pay calculations.
The company reportedly responded to inquiries regarding the reform on its internal employee portal by stating that it would not force the change without the consent of at least 50 percent of its members.
(Photo: Yonhap News)
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