Samsung's compensation packages are highly competitive, and are designed in a unique way, so as to take into account the individual abilities and skills of its employees. Also, the economy of the country in question also determines the amount of compensation that the employees get.
Samsung even ensures that its employees contribute to the environment around them by encouraging them to participate in Employee Volunteer Programs. This enables them to participate in lots of social improvement projects, from disaster relief to environment cleanup. In fact, Washington-based POLF gave Samsung the "Award for Excellence in Corporate Community Service."
The level of intellectual capital available with Samsung today can be envisaged from the fact that today Samsung has more than 2000 PhD's within its ranks. To continually meet the challenges in today's marketplace, Samsung always is on the lookout for employees who are not only able to work well in teams, but are also capable of growing individually. Thus, it is not surprising that in Korea, Samsung has emerged as the most sought-after employer. 10
The above figure outlines the vision for Samsung's training programs, which, in the long run, inculcate change and innovation in the organization. The three goals of the program are to cultivate next-generation leaders, to share core values of Samsung, and to develop Global Competency. 11
The structure at Samsung is described as 'Structured Nodes', with teams linked through networks. This is a flexible structure where knowledge flows across the organizational boundaries, and where it is much easier to form and disband multidisciplinary teams. 12
The training programs at Samsung do not just employ conventional methods of learning, but in fact, managers and other employees are trained using creative and motivating methods. Two such examples would serve to elucidate the point. In Texas, 90 Samsung managers were asked to carry out the following activity. They were organized into small teams, and were tasked with building equipment, using 'Lego' blocks. Although the tools were simple, but in order to be successful, the managers were required to be creative and to work efficiently in teams. The exercise enabled the managers to identify different skills within their teams, i.e. motivation, support and critical thinking, and they carried this knowledge back to the workplace. Another example demonstrates the importance of applying creative learning tools. At the same Samsung plant, a tool simulating a manufacturing line was assembled. The participants were asked to create a product with the tool under time constraints, while maintaining high quality standards. This exercise helped the participants better understand the concepts of yield and cycle time. These examples demonstrate Samsung's commitment to the development of its HR. 13
SAMSUNG - the EMPLOYER of CHOICE
Due to its appealing job design, competitive compensation packages, rising reputation, and challenging opportunities, Samsung is emerging as the recruiter of choice for most professionals around the world. Its comprehensive and professionally designed training programs provide added incentives for fresh graduates to be a part of an organization where learning is an integral part of the job. This view is further reinforced by a survey conducted by incruit.com in April, 2007, which places Samsung Electronics at the top in the list of the most preferred companies to work for. 14
Thus, by attracting the most talented minds of the respective countries, Samsung has now become a magnet for talented people to target. Another incentive for young, ambitious individuals to choose Samsung is that it places no age barrier on promotions and executive positions, and identifies talented individuals for its specific training programs, thus following a strategy of not only attracting talent, but also of nurturing and boosting its competency to better enable it to face the challenges of globalization. Some other attractive factors for working at Samsung are its achievement incentive systems, its profit sharing mechanisms, and the stock options that it offers. In addition to that, Samsung also offers annual salary changes every year to its employees, to compensate them in accordance with their yearly performance.
Samsung makes sure that it takes good care of its employees. Thus, the healthcare program at Samsung offers comprehensive medical insurance, including medical, dental and vision related coverage. This health package is not just limited to the employees, but also to their families. Samsung offers excellent sports and extra-curricular facilities to its employees. Employees also get a discount on Samsung products. Thus, it is not difficult to see why Samsung is the preferred company for an increasing number of professionals worldwide. 15
Samsung Press Release, 2004
Samsung America Official Website, www.samsungamerica.com
Samsung Press Release 2004
Sony Pictures Official Website, www.sonypictures.com
Siemens Annual Report 2006 Glossary
Long Portrait - Siemens, pg.2
Samsung Press Release, 2004
Samsung Official Website, FAQ, www.samsung.com/faq.html