(123rf)
South Korean battery makers are luring tech talent in the US with big welfare benefits and other hefty incentives to fuel their growth momentum in the burgeoning electric vehicle market, industry sources said Monday.
Starting from Jan. 1, LG Energy Solution, the largest battery maker here, will extend its medical welfare policy by offering free health insurance to some 2,000 employees working at its Michigan plant along with their family members. Currently, the company covers insurance for dental and eye care only.
“LG Energy Solution’s new policy stands out even among US employers considering only a handful of them are covering the entire health insurance premiums of their employees,” an industry source said on condition of anonymity.
An LG Energy Solution official confirmed the policy, saying “With better welfare benefits, we are seeking to appeal to local talents.”
SK Battery America, SK On’s US subsidiary, is also going all-out to recruit top tech talent in the US. For some 2,000 workers, it pays 90 percent of medical, dental and vision insurance and offers full coverage for life insurance and short- or long-term disability. Wages start from $20 per hour with $3 in extra wages for night shifts.
“Unlike most US firms, we offer free meals -- lunch for all employees and dinner for third shift workers,” said an SK On official. “This year, the company bumped up the 401(k) matching contribution up to 6.5 percent, up from last year’s 6 percent.” Under a 401(k), employers contribute a certain amount to employees’ retirement savings.
Samsung SDI, which is poised to build a joint plant with Stellantis in Indiana by 2025, is also mulling ways to lure qualified tech candidates in the US.
“It is still too soon to tell, but I think the company will consider providing medical care or other welfare benefits to recruit talented workers,” said a company official.
Hefty incentives aside, battery makers are also looking to hire workers with better understanding of Korean corporate culture as well.
LG Energy Solutions is planning to start a recruitment program next year in cities including Los Angeles and New York, home to many Korean Americans and Korean students with US university diplomas.
In partnership with Ford, SK On will build the BlueOval SK Training Center in Glendale, Kentucky, by 2024 to educate some 5,000 workers on Korea's manufacturing process and quality control. Compared to SK On’s training centers in Korea, it is on an unprecedented scale, the official said.
“It would be a challenge for foreign workers to work with their quick-tempered Korean colleagues,” said another source, citing the nation’s deep-rooted “ppali ppali” culture of getting things done quickly.
Korean battery companies’ rush to create a top-tier workplace in the US comes from staffing shortages in the manufacturing industry. Analysts say US companies’ offshoring over the past decades has caused the talent pipeline in the manufacturing sector to dry up.
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