Samsung Biologics Voluntary Turnover Falls to 1.9% as Pay Rises

Samsung Biologics Co.'s voluntary turnover rate fell to 1.9% last year, dropping into the 1% range for the first time. The decline appears to reflect improved compensation, with pay rising at nearly three times the domestic average.

According to the company's ESG report released June 1, voluntary turnover steadily declined from 4.5% in 2021 to 4.0% in 2022, 3.4% in 2023 and 2.7% in 2024 before falling to 1.9% last year.

Higher pay is one reason fewer employees are leaving. Average annual compensation rose to $82,600 last year from $57,200 in 2021, representing a compound annual growth rate of 9.6%.

That was more than 1 percentage point above Celltrion Inc.'s 8.2% increase over the same period. It was also nearly triple the 3.7% rise in average monthly income for South Korea's urban working households of three or fewer people.

Pharmaceutical and biotech companies need specialized workers in research and development, production, quality and regulatory affairs. As a result, turnover in the sector tends to be higher than in other industries. At other large drug and biotech companies, voluntary turnover is about 10%. Samsung Biologics has diverged from that pattern.

A Samsung Biologics official said the company is minimizing departures among existing employees through better compensation even as new hiring expands. High pay, strong benefits and continued business growth are helping the company make progress in both recruiting and retention, the official added.

Yang Byeong-hun, Hankyung.com reporter hun@hankyung.com