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60% of Korean companies struggle to keep new hires, HR survey finds

Published: 13 May. 2025, 11:43 Updated: 13 May. 2025, 18:43

Workers work overtime at an office in Seoul on Feb. 28, 2018. [YONHAP]

Six in 10 Korean companies say new hires leave within one to three years, underscoring a persistent challenge in employee retention, a new survey shows.

Human resources (HR) tech firm Incruit released Tuesday the results of a poll conducted with 446 corporate HR managers on early turnover among entry-level employees.

The most common length of service among those who quit was one to three years, accounting for 60.9 percent.

This was followed by tenures of four months to less than one year at 32.9 percent, and three months or less at 6.3 percent.

The top reason for early departures, cited by 58.9 percent of respondents, was a mismatch between job expectations and actual roles.

Low pay followed at 42.5 percent, while 26.6 percent cited poor fit with company culture.

Other reasons included strained relationships with supervisors or colleagues with 23.4 percent and lack of work-life balance with 17.1 percent. Miscellaneous factors made up 7.7 percent.

Most HR managers said early departures negatively affected company morale and operations. About 80.5 percent said the trend disrupted workplace dynamics, with 37.6 percent citing wasted time and resources.

Other concerns included increased workloads for remaining staff at 32 percent, weakened team cohesion at 15.9 percent and a rise in resignations among current employees at 13.9 percent.

Hiring and onboarding a single entry-level worker costs companies varying amounts.

The largest group of respondents, at 35.9 percent, said they spend less than 500,000 won ($355) per new hire, while 21.5 percent said the cost exceeds 3 million won. Others reported spending 500,000 to 1 million won, 2 to 3 million won, or 1 to 2 million won, which accounted for 17.5 percent, 12.6 percent and 12.6 percent of responses, respectively.

Despite HR recognizing these issues, less than half of the surveyed companies had programs in place to curb early turnover. Only 34.5 percent of HR managers said their firms operated initiatives to retain new hires.

Among those with such programs, 52.6 percent offered incentives or extra vacation days. Another 38.3 percent implemented mentoring systems, while 37 percent structured onboarding programs.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM JI-HYE [[email protected]]