Supply Chain Matters parent, The Ferrari Consulting and Research Group, continues in our efforts in featuring a three-part series of Research Advisories addressing the ongoing great resignation’s impact on industry supply chain management organizations along with the importance of supply chain and human resource management strategy alignment in addressing and mitigating such challenges.
In late January, we announced availability of the first research advisory in this series, providing a focus on supply chain operational workforce challenges. Availability of the second advisory, which will provide a focus on supply chain staff, technical and product management talent challenges will be announced for general availability later this month.
We wanted to call Supply Chain Matters reader attention to a further ongoing development that is reflective of these challenges not only involving small and mid-sized enterprises, but global wide as well.
In late February, The Wall Street Journal reported (Paid subscription or metered view) that: “more than 100,000 members of Samsung Electronics professional workforce have made a bold ask: Give us a nearly 16 percent raise.”
Citing informed sources, the report indicates that nearly half of its global workforce, from semiconductor engineers to product designers, are seeking the largest base-salary increase in this company’s history. Staff members point to strong revenue growth and a more than 50 percent increase in profitability as justification for added salary and benefit demands.
Samsung reportedly declined to comment to the publication but did confirm that talks continue with the company’s Work Council.
The report notes that in 2021, workers sought a base pay increase of 6.3 percent before both sides agreed to a 4.5 percent base pay increase plus added incentives tied to employee’s performance. The global tech giant began to formally recognize labor organizing groups last year, but membership influence remains small. The report also notes a history of senior executives shunning labor organizing efforts.
The report points to the ability of the company’s workforce to tap into technology, specifically apps like Blind and others, to exchange information on prevailing working cultures, salaries and compensation levels among South Korea’s rising start-ups and other growing tech companies seeking to recruit and retain experienced talent.
Last October, Amazon incoming CEO Andy Jassy speaking at a tech industry summit held in Seattle, had indicated that there was more the company could do to treat employees better. He reportedly further acknowledged that one of the retailer’s approaches to worker safety during the pandemic fell short. Since that time, base salary and benefit levels for customer fulfillment, warehouse and logistics workers have risen in order to attract added operational workers. The company which is increasingly been recognized as one of the U.S, top three employers, but for compensating staff and management employees lower than tech industry peers, has further announced that it would more than double the base level compensation ceiling from $165,000 to $350,000.
The great resignation period reflects an inflection point for businesses, a shifting of socio-economic forces related to recognizing the contribution and value of workers, at all levels, with a need to recognize, monitor and address worker concerns before they reach confrontational or harmful levels.
We will address more of the challenge in our upcoming part two report. Stay tuned for general availability announcement.
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