Compensation System

Currently many companies are moving from seniority based pay system to pay for performance system.
Pursuing pay-for-performance system which provides base pay and performance pay strictly on performance value could achieve both corporate strategy and employee satisfaction.

Based on our various experience in compensation system establishment, IAN Labor Law Firm & IAN HR promises to establish an optimized compensation system for our clients

.Pay Mix

How to mix between base pay and performance pay

.Pay Contributor

What should be more emphasized between performance and competency

.Pay Structure

What factors should be constitute pay structure

.Pay Level

How much we should pay for attracting potential talent and current employees


Fair and objective assessment of job performance and capabilities of employees is the fundamental element of HR operations. Performance management system needs to be designed for the establishment of an HR system based on performance, job value, and competence to facilitate organizational an individual goals of employee, and to support individual competence development.

Based on our various performance management system establishment experience, IAN Labor Law Firm & IAN HR provides an optimized assessment tool, assessment process, and assessment management system for clients.

Marginal Employee Management

The necessity of
Marginal Employee Management

Low-performing employee at the managerial level may inappropriately manage their team members to become a low-performing organization or to enter a vicious cycle of fostering marginal employees.

Low-performing employee at the team member level may fail to perform its allocated tasks which leads to task overload and stress to other team members.

The existence of a low-performing employee may lead to decreased work satisfaction of talent employee, decreased company loyalty, and increased possibility of leaving the company.

In order to motivate employee through enhanced performance and management of marginal employees, and to secure companies’ competitive edge through pay-for-performance enhancement, it is necessary to introduce marginal employee management.

The effects of
Marginal Employee Management

Securing talent
  • As part of an effort to secure talent employee, it is important to provide systematic training to excellent performers.
Systematic marginal employee management
  • Establish marginal employee management system that reflects the ‘Fair HR management Guidelines’ of MOEL
  • Seek constructive ways for all members including the low-performing individual
  • Emphasize pay-for-performance through the establishment of institutional and distinctive system.
Continuous motivation
  • Establish a defining standard for talent employee and marginal employee
  • Provide motivation for employees to not become marginal employees.


Diagnose performance management System
  • Review current performance management system
  • elements lacking justification on marginal employee dismissal based on standards
  • Draw improvement direction

Design marginal employee management system
  • Draft marginal employee selection standard
  • Establish a Performance Improvement Program(PIP)
  • HR committee assessment standard
  • Consider outplacement service
  • Consider voluntary resignation