'Small firms must improve welfare'
.jpg?w=728)
Handstudio CEO Ahn Joon-hee
By Chung Hyun-chae
Many small companies these days are facing a hard time in attracting talented workers as most jobseekers want to find a job at large companies that offer higher wages and more generous employee benefits.
But there are small- and medium-sized enterprises (SMEs) that defy the general notion. Handstudio, a smart TV application developer, may be small in size but is certainly one such corporation that has set up handsome employee welfare programs, according to its chief.
CEO Ahn Joon-hee said small companies need to boost their benefits and create a more employee-friendly environment if they want to attract talent.
In an interview with The Korea Times, Ahn said its generous employee benefits are “fair trade.”
“The word trade is a key concept of capitalist society. Countless people are living while dealing with others. If one company wants to increase its sales, it has to give employees high salaries. They will then work harder to raise sales volume,” Ahn said.
“If the company wants to grow, it has to help individuals to improve themselves. We try to give employees a square deal for our company’s future,” he said.
The company has established a reputation for its competitive benefits package offered to employees.
If an employee gets married, the company unconditionally gives them 10 million won. If an employee gives birth to a child, the company also gives 10 million won. The number of children is not limited and the employees can take maternity leave for up to two years.
Handstudio even takes its entire staff to department stores four times a year to shop for clothes at the expense of the company.
These packages aside, it offers several other incentives to its employees.
The CEO said he designs all benefits to meet the specific needs of his employees after closely observing them.
“It is welfare that can solve employees’ problems. The age of our staff averages 28. Most people in that age bracket have concerns over marriage. Though the company cannot pay for the whole wedding process, we would like to be of some help for them. If they get older, they could get different types of welfare programs,” the CEO said.
The company spends about 80 percent of its profits to finance employee benefits.
“I know this is insane. We can do this because information technology (IT) companies basically have low production costs, so most earnings are translated into profits. And we spend most of our profits on labor costs,” Ahn said.
He added that the reason why the company sets aside a small amount of money for emergencies is because he thinks nothing can guarantee the safety of the firm’s future.
When asked to give advice to those who are set to start their own businesses, Ahn said, “If possible, please do not establish the business too early. It takes time to meet people of like minds.”