HANCOM recently stated its position regarding the conflict over collective bargaining with the union on the 26th. While HANCOM and the union have been at odds over wage increase proposals, negotiations ultimately broke down without narrowing their differences.
HANCOM noted on that day, "In this year's wage negotiations, after a total of eight rounds, we proposed an average wage increase rate of 4.3% along with a performance-based separate incentive compensation plan." The union required a 7.86% increase, arguing that the proposed rate did not adequately reflect employees' performance.
HANCOM said it has maintained a consistently high salary increase rate over the years, regardless of fluctuations in operating profit margins, adding that "the proposed increase rate is an inevitable starting point for sustainable growth and cost structure adjustments as a result of management improvement efforts in recent years."
It further explained, "Until recently, HANCOM faced a slowdown in revenue growth and a decline in profit margins due to ongoing increasing expenses; however, this year marks the first year to overcome such operational challenges and fully adopt a performance-based personnel system."
HANCOM is also intensifying its transition from a revenue structure centered on traditional installed office software to new business areas based on artificial intelligence (AI) and cloud computing. Consequently, continuous investments are being made in various fields, including new recruitment, AI development, infrastructure construction, and marketing, which leads to a structural characteristic of rising fixed costs and cost of goods sold. The company stated its intention to build a sustainable growth foundation amidst these market changes and create a system where performance and compensation are clearly linked, aiming to motivate members and enhance productivity.
The company is also proactively expanding treatment beyond simple salary increases through a performance-based compensation system tailored to high performers, which has been implemented since this year. It has already introduced a new business incentive system last year that provided additional compensation, and this year, the focus will be on investing in employees who contributed to the company's performance rather than uniform wage increases. This reflects the company's strong commitment to evaluate and reward performance clearly, promoting the development of both the company and individuals instead of uniform and simple salary increases.
HANCOM plans to continue to solidify its performance-based personnel culture and enhance members' motivation, spreading systems that allow the company and employees to grow together. A HANCOM official said, "To date, the company has continuously safeguarded employees' salaries regardless of increases or decreases in operating profit margins," and added, "In the future, we will continue to move in a direction that strengthens compensation for employees who generate results without being swayed by short-term numbers."