Gold still No.1 reward for long-serving workers

Amid soaring gold prices, companies maintain gold reward for long-term workers


Lotte Department Store, a leading retailer, has maintained a unique reward system for long-term employees for more than 20 years ― offering a gold nugget.

Starting with the 10 dons of gold given to workers who have worked for 10 years, the company rewards them with an additional five dons of pure gold every five years. “Don” is a Korean measure equivalent to 3.75 grams.

Employees, of course, are allowed to choose between gold and other benefits equal in value such as flight tickets for overseas travel and gift cards.

“Amid runaway gold prices recently, an overwhelming number of employees opt for gold,” said a Lotte Group official. “In these days when career transfer is easy and frequent, we want to offer motivation for workers to stay longer.”

Lotte is one of Korean companies that have kept the gold reward tradition for many years.

Amid growing pressure following a surge in gold prices, some companies are considering replacing the policy with cash or other welfare benefits.

But many of them have recently decided to go ahead with the policy, saying “gold has become a strong motivation.”

In the past when gold prices were 50,000 won ($46.56) per don, gold items offered to long-term employees by companies were largely considered less than a souvenir.

With gold prices soaring almost five-fold in a decade, however, Korean workers feel really rewarding about the reward policy.

As of Monday, the retail price of 1-don pure gold was 251,900 won, according to Korea Gold Exchange.

Hyundai Engineering and Construction has offered a golden metal worth up to 35 dons of gold starting with the workers with 10 years of career. The market value of the 35-don gold medal would amount to 8.75 million won.

POSCO Engineering and Construction gives a plaque made of 1 to 5 dons of pure gold, while Samsung Corporation offers a golden necklace.

“Considering the contribution that employees with 10 years of career have made to the company, companies seem not to feel so much pressure (about giving them gold),” an industry source said.

“Gold has a symbolic meaning and there’s no better substitute to replace it for now.”

Food conglomerate SPC Group has recently decided to maintain the tradition of offering gold rings. Instead, the company was considering securing gold when the prices are cheaper.

E-Mart and Shinsegae Department Store, both retail units of Shinsegae Group, also said they will continue its gold reward policy despite further increase in gold prices.

Hyundai Motors has provided gold medals to long-term employees following the conditions set by the collective bargaining with the union.

Korea Express, the nation’s largest logistics company, rewards long-term workers with gold rings and medals for workers of 20 and 25 years of work, respectively.

“It’s a long-held promise with employees. We will stick to the policy if possible,” said the Lotte official, adding that even during the 1997-8 financial crisis here when gold prices skyrocketed, the company did not abandon the policy.

By Lee Ji-yoon (jylee@heraldcorp.com)