Kia to expand performance-based pay to junior office workers

The headquarters of Kia located in Seocho-gu, Seoul. (Kia)

Kia Corp. is extending its performance-based pay system, previously applied only to mid-level managers and above, to include junior-level office employees.

The move allows younger staff, previously tied to a seniority-based system with limited performance incentives, to now receive higher compensation based on their work evaluations.

As competition for talent in the rapidly evolving electric vehicle market intensifies, experts see this as Kia’s strategy to attract skilled workers.

On Thursday, Kia’s labor union held a vote on the tentative agreement for this year’s wage and collective bargaining negotiations.

According to industry sources, 53.7 percent of participating members approved the wage agreement, while 51.2 percent rejected the collective bargaining agreement.

Had both agreements passed and been finalized, Kia’s union members would have received a lump-sum payment of 300 percent of their base salary, alongside a 12.8 million won ($9,600) performance bonus and a special incentive to mark the company’s 80th anniversary.

However, with the collective bargaining agreement voted down, the final resolution remains pending.

The rejected collective bargaining agreement included proposals for extending the retirement age, expanding family leave policies, and broadening the scope of eligible hires.