A human resources manager at a corporation is struggling due to the short tenure of employees. Composed of a young workforce with an average age of 25, the company is pondering how to extend employees' tenure, enhance organizational satisfaction, and boost sales.To address this, A Corporation adopted an HR service from a startup that helps with performance management. As a result of establishing a system that links employee goals with the corporation's strategic objectives, the average employee tenure increased by 31.9% within six months of implementing the service.
Recently, as the MZ generation enters the workforce, there has been a shift in human resource management within organizations. With increasing cases of early resignations among those who prioritize personal growth and performance-based rewards, corporations are also accelerating their responses. Additionally, as recruitment culture changes with the expansion of occasional hiring, customized human resources (HR) services encompassing everything from recruitment to talent management are gaining attention.
According to Incruit on the 18th, 60.9% of domestic corporations show that new hires leave within 1 to 3 years. Experts cite the lack of linkage between performance and rewards, a rigid organizational culture, and the spread of cultures emphasizing work-life balance as factors underlying this phenomenon.
From a corporation's perspective, early resignations among new employees lead to considerable losses. Not only can the costs incurred for recruitment and training not be recouped, but existing employees must also shoulder the workload of those who leave, increasing the overall burden on the organization. This process can lead to decreased work efficiency and negatively impact organizational culture.
To solve these issues, corporations are implementing customized HR services. This initiative aims to increase job satisfaction and extend tenure while focusing on performance-based evaluations and role-centric rewards that align with the characteristics of the MZ generation.
The performance management solution "CLAP" is rapidly growing in response to this trend. CLAP provides customized performance management services that reflect the work environment and HR practices of corporations, acquiring over 1,000 mid-sized to large corporate clients including SL Corporation, the Minbyun Educational Group, and Millie's Library. Clients that have adopted the service reported an average 80% reduction in performance management work time and an increase in employee tenure of over 30%.
The business-to-business (B2B) software-as-a-service (SaaS) startup "Shiftee," which provides integrated workforce management solutions, is also experiencing growth. Since its launch in 2017, Shiftee has supplied services to various industries, ranging from large corporations like SK, Hyundai, and Lotte to startups like Coupang and Woowa Brothers. In 2023, it achieved an operating profit of 5 billion won, and last year, it formed a strategic partnership with domestic private equity firm SkyLake, expanding its business into Asian markets including Japan and Singapore.
As early resignations among new hires increase, the trend of focusing on career-oriented occasional hiring is also spreading. Experienced hires can be deployed immediately without a separate training period, and their job fit and career direction are relatively clear, resulting in lower turnover risks. This enables corporations to hire the necessary talent promptly.
However, occasional hiring does impose a significant burden on corporations' HR teams, as the entire process from posting announcements to evaluations, scheduling, and notifying results is not standardized. Consequently, there is growing interest in HR tech startups that can streamline the recruitment process.
The recruitment management solution "Greeting" is rapidly growing, having attracted 1,000 new clients within 2024. The adoption rate among large and mid-sized corporations increased by 23% compared to the previous year, and in the semiconductor, advanced materials, and battery industries, it surged by over 230%. Currently, major corporations like Hyundai AutoEver, KB Securities, Samyang Foods, Kakao Pay, and SME are implementing this service.
Experts note that the rise in resignations among the MZ generation is a global phenomenon and predict that the culture of occasional hiring will continue to expand. They emphasize the need for recruitment strategies that align with market conditions.
Choi Jang-ho, a professor at Sogang University, said, "From a corporation's perspective, it usually takes about five years to hire a new employee and achieve the desired level of performance. In contrast, experienced hires can be deployed immediately, making it inevitable to expand occasional hiring."
He added, "As the trend of occasional hiring progresses, those looking to enter the market should also change their strategies. They should first find the area they want to work in and build their experience, continuously planning to change jobs effectively."