We are creating a company that everyone wants to work for.”
Lee Dong-hyun, Head of the HR Department at CJ ENM
In January of this year, CJ ENM unveiled a new company work structure that will change the working environment for employees. This new work system will provide employees with a variety of new opportunities, exceptional compensation and will create fair competition between company members.
Among noticeable changes in the work environment are the abolition of the employee ranking system, the introduction of an employee stock compensation system — Restricted Stock Units (RSU) — and the expanded operation of the main offices. Lee Dong-hyun, the Head of HR at CJ ENM, spoke to CJ Newsroom about how he attempted to change the employee work system in order to evolve CJ ENM into a global company, emphasizing further that the establishment of a new work culture can never be implemented alone.
The Starting Point for Creating CJ’s New Work Culture
Q. On January 13, the new work culture for CJ ENM’s work environment was unveiled. After the announcement, how did the work environment of the company feel different?
This change was unique and interesting for some, while others may have felt uncomfortable at the same time. No matter how much preparation and effort is put into creating a new work culture, it cannot satisfy everyone. Therefore, the most important part of the work culture comes after it has been implemented. We will continue to monitor how each member of the company is adapting to the changes. Additionally, in order to help people adjust to the changes, having ongoing discussions in order to clarify areas of uncertainty is crucial.
Q. From the perspective of a third party, the changes were quite groundbreaking. When did preparations of the plan begin?
We began to think about changes to the work system in early 2021. Unlike other industries, people are the core of CJ ENM’s business. CJ ENM’s main business is related to content management and this type of business depends on people’s creativity. In order to account for this, we needed to create an environment where employees could showcase their talents and capabilities. Additionally, there were internal concerns about whether CJ ENM was responding appropriately to the rapidly changing management environment, so we thought it was necessary to enact changes to the system at an appropriate time.
Q. In the work system, there will be many changes depending on the age and jobs of the members of the company along with the business groups. What factors were considered in the initial stages of planning?
As mentioned earlier, because CJ ENM’s main business is content management, there are numerous employees who perform creative tasks in our company. In fact, about 80% of our members are Millennials and from Generation Z, or Gen Z. These two generations have a strong desire for fair opportunity, immediate compensation and growth. For these reasons, creating an environment that corresponds to the needs of the major members of an organization is necessary.
Based on this, by sharing a variety of thoughts and opinions, we decided to create a system to unify these Millennial and Gen Z workers and enable them to work dynamically. Some of the ideas of this system, such as the abolishment of the ranking system, may seem a bit bold and unconventional. However, instead of simply removing the entire existing system, we also considered other measures, such as providing compensation to offset potential problems that arise within the system. This was to strengthen our decision to go forward with this plan and to offset the shortcomings that arose by the changes in the system. Although the result may have been seen as an unconventional change, our ultimate goal was to change the way we work based on our main tasks and the characteristics of our employees.
Various Opportunities, Fair Competition, Exceptional Compensation and Growth
Q. The main point to highlight out of these changes is the entire abolition of the ranking system. This shows CJ ENM’s willingness to take a leap forward to become a more horizontal organization. How do you foresee the changes in the way employees work after the abolition of the ranking system?
Unlike with the previous system, we expect CJ ENM to become a more horizontal organization that utilizes a flexible working system based on jobs, roles and projects. If the workload is expanded to focus on projects rather than simply the work of the team, this would create the opportunity for great ideas to be discussed and proposed regardless of the employee’s position or age. Additionally, the employee who comes up with a certain idea is able to then become the leader for the development of that project and can help improve it along the way.
The main objective is to create an environment where members are voluntarily working instead of simply following orders and doing work assigned by their superiors. Employees can come up with ideas based on what they are good at and interested in, and in turn, those ideas could potentially become a full-scale project. This valuable experience cannot be gained from anywhere else. Regardless of position or age, they are also given the opportunity to choose the members of the project themselves and lead the project. The abolition of the ranking system is a positive change in that it provides opportunities to all members to challenge themselves by taking on new tasks and leading projects.
Q. Series A is an in-company venture training program that launched last November. Can you elaborate more on the specifics of the program?
As an in-company venture training program, Series A has expanded the scope of its recruitment to CJ ENM’s division, Studio Dragon and TVING. What was inspiring is that 69% of the total applicants from the first round of applications were assistant managers and staff-level employees, and their submissions were mainly focused on suggesting new entertainment business ideas, such as those related to non-fungible tokens (NFTs) and intellectual property (IP).
While businesses that create self-produced content are dominant, many platforms related to over-the-top content (OTT) and the metaverse are also emerging. The entertainment business is rapidly changing and new business ideas that incorporate other business fields, such as IT, are needed. Talented employees who can put those ideas into action are also essential. In line with this, we believe that in-company venture support and training programs like Series A are necessary. While other companies are aiming to launch an identical venture training program, it will be crucial to continue to develop the programs or support systems that are unique to CJ ENM.
Q. B.I+ is particularly eye-catching in terms of creating a self-directed working atmosphere. It’s an upgraded model of the existing B.I system that was implemented previously. What positive factors are expected from within the company from this system?
The existing B.I system allowed employees to use four hours of self-development time once every two weeks. At that time, the system was flexible within the company without a specific day of a week being designated. It was a great system in terms of being helpful to the members’ work efficiency and motivation, so we decided to develop the system further so that more employees can actively utilize it.
As a result, we created and launched the B.I+ system, which grants four hours of self-development time every Friday, totaling 208 hours in a year. We have implemented the system since January 1 of this year, and we have already received positive responses. We expect this system to increase employees’ quality of life by allowing them to have more time to relax and think more creatively. This is because when quality-of-life increases, work productivity also rises. Since this also allows employees to cultivate their own creative ideas and thoughts, we will continue to monitor this system and adjust it going forward.
Q. The concept of a concrete workspace is now disappearing due to COVID-19. How has the company created a more flexible working environment?
The main office has many similarities with CJ group’s affiliates. Among those numerous main offices in the group, the place that displays our unique characteristics is the CJ ENM Jeju Branch, a base office located in Woljeong-ri, Jeju Island, an island off the coast of Korea. We began implementing this idea last October, and it started when we were working remotely. We had internal discussions about how work efficiency will be affected if changes in office space and the working environment occurred. During this, we came up with the idea to create a remote office on Jeju Island. We decided to gauge reactions and the work efficiency of employees through this idea since it was difficult to go abroad. The initial operation of this office took place for three months. As expected, the reactions of employees who visited the office in Jeju were very positive. At the Jeju office, more than 60% of the employees and supervisors said that the office had a positive effect on their work productivity. There were however a handful of responses that stated their productivity was negatively affected by the office. Overall, we are planning to officially open this main office from February of this year after extending and signing a contract for two more years.
Q. Although there are many benefits from these changes, some employees might be worried about changing from the existing work system. Compensation was mentioned as a part that could make up for this change. What are the specific plans for this?
First, in order to reinforce the concept that the company is growing along with its employees, we will introduce a stock compensation system, RSU, for all employees. We are planning to grant shares of stocks worth about 5% of their annual salary for a period of three years. As a result, a total of 15% of their annual salary can be received as stocks. In addition to this, we also plan to provide additional stock compensation for high performers and key contributors.
We also prepared a compensation scheme for the loss of promotion opportunities due to the abolition of the ranking system. All employees will receive a one-time promotion raise. Moreover, we have strengthened our long-term employment reward system by shortening the raise cycle from every 5 years to every 3, 5, 7, and 10 years. After 10 years of service at the company have been completed, a raise will be given every five years. We will also increase the raise amounts.
Necessities for Implementing a New Work Culture
Q. A new innovative new work system has been unveiled. It is expected that your team will strive to build a new work culture followed by this change. What do you think is necessary to achieve this?
The most important part is the help of leaders and employees who apply the system to their actual work. The personnel support office planned and prepared a lot to create a plan to implement this new system, but we also received assistance from leaders and members of each organization.
I personally believe that input received after the implementation of the system is more important than the process of making that system. To be specific, sound criticisms and opinions are necessary in order to adjust this system realistically. We are planning to operate the system in a more positive way by expanding our communication channels and mediating opinions.
Q. Since various people are involved, the process of collecting and mediating the opinions itself seems tough. This is especially true since Millennials and Gen Z make up about 80% of the organization’s members. What do you consider important in this case?
Honestly speaking, I am from Generation X (Gen X). At that time, we as Gen X were also considered a very different generation compared to older generations. However now when we compare ourselves with today’s Millennials and Gen Z, I can see that they are totally different from us. They have a strong sense of identity, a desire for personal growth and a notable drive for doing well in their role.
In my day, we thought about ‘until when’ we were going to work and that was considered most important. Individuals nowadays consider ‘why’ they are working most important. Consequently, we need to adopt an attitude that understands and listens to the thoughts of our Millennial and Gen Z employees. It would be a lie to say that we understand these generations fully, but we try to understand them as much as we can. This is because these generations are the main players on the field. I believe my current role is to make a place for them to play and work well.
Q. You have been in charge of various tasks in other affiliates since 2012 and have returned to CJ ENM after about 9 years. Compared to before, how do you view CJ ENM, and what efforts are you exerting for the development of the work you oversee?
I have no doubt that CJ ENM’s status has increased, and now the company is targeting not only the domestic market but also the global market. Changes in the media market are happening more rapidly due to the nature of the industry. In particular, the rapid growth of OTT platforms is a game-changer in the media and content market. As someone who was previously in charge of strategy and planning, I feel it has become more difficult to pioneer new businesses and achieve things in line with those changes.
Since I’m currently in charge of human resource affairs, I think about how to improve the organizational design and employee arrangement within the company. I am also thinking deeply about how to effectively utilize employees’ talents and I want to make efforts to transform those thoughts into action. From this, it could be said that the idea to change the work system came from those thoughts and efforts. We do not just simply focus on employee management in this system change. The change of the system also acts as a support plan, as it combines changes in business trends and the understanding of major businesses to achieve better results. In this regard, I hope we can implement this work system well in order to deliver special opportunities to the employees and have a positive impact on the company’s performance.
