A job seeker holds a four-leaf clover sticker alongside a resume. This photo is not directly related to the article. [Yonhap]
A job seeker holds a four-leaf clover sticker alongside a resume. This photo is not directly related to the article. [Yonhap]

As major conglomerates including Samsung Electronics and SK Hynix have handed out large performance bonuses in recent months, interest in performance-based pay has spread across the broader labor market. Generation Z job seekers are no exception — a new survey shows they prefer compensation structures that include performance bonuses even if the base salary is somewhat lower.

According to a survey of 1,577 job seekers conducted by recruitment platform Jinhaksa Catch and released Friday, 60 percent of respondents chose a package offering an annual salary of 40 million won (about $26,200) plus a performance bonus of 0 to 100 percent depending on results.

By contrast, only 40 percent preferred a fixed annual salary of 55 million won with no performance bonus. The results suggest that more job seekers would rather have the potential for a larger payout tied to results than a higher guaranteed salary with no variable component.

Compensation structure also ranked as a key factor in choosing an employer. When asked how important a company's compensation system is when evaluating job offers, 82 percent of respondents said it was important.

When asked about the most desirable form of reward when a company posts strong earnings, 59 percent chose performance bonuses as their top preference, followed by a base salary increase at 20 percent.

Survey results on compensation structures preferred by job seekers [Jinhaksa Catch]
Survey results on compensation structures preferred by job seekers [Jinhaksa Catch]

The preference for performance bonuses appears closely tied to a broader trend of expanding performance-based pay, particularly at large companies. According to the Ministry of Employment and Labor's April 2026 Business Labor Force Survey, the average monthly wage for regular workers in the first quarter of this year was 4,862,000 won, up just 3.9 percent from last year.

Regular workers at companies with 300 or more employees, however, earned an average of 8,097,000 won per month — a 7.5 percent year-on-year increase. Analysts attributed the gap to holiday bonuses and special performance payments concentrated among full-time employees at large firms.

On how performance bonuses should be distributed, 49 percent of respondents favored differentiated payouts based on individual performance. Another 34 percent preferred a hybrid approach — a flat base amount for all employees with additional pay varying by performance — while 17 percent supported equal distribution across all staff.

As for how bonuses should be calculated, individual performance evaluations topped the list at 47 percent, followed by team results at 23 percent, job difficulty at 20 percent, years of service at 7 percent and job grade at 3 percent.

Still, a notable share of respondents said some limits on bonus expansion are warranted. Asked about caps on performance bonuses, 38 percent said a cap is necessary but that the criteria should be disclosed transparently — the most common response. Another 37 percent said caps are needed for the long-term sustainability of the company, while 18 percent said caps should be adjusted flexibly when the company is performing well.

"Generation Z job seekers are showing strong interest not only in high salaries but also in compensation systems that allow them to share in the results when performance is strong," said Kim Jeong-hyeon, head of Jinhaksa Catch. "Performance bonuses are a key indicator of how much a company recognizes its employees' efforts and contributions, and they will increasingly serve as an important criterion when choosing where to work."


bbo@heraldcorp.com