Pfizer pays an average of 1.1 billion won per person

to voluntary retirees last year

Implementation of voluntary retirement through sales organization reorganization… Application for less than 10 people

Reduce managers and increase younger staff

It was found that Pfizer Korea Pharmaceutical, which implemented an ERP system through organizational reorganization last year, paid 11.5 billion won as compensation for retirement.

 

It is known that about 10 employees applied for voluntary retirement.

 

It is calculated that each person received an average of 1.1 billion won.

 

According to an audit report submitted by Pfizer Pharmaceutical Korea to the Financial Supervisory Service on the 15th, the company paid a total of 17.8 billion won last year as employee severance pay.

 

Retirement benefits are 6.4 billion won and honorary severance pay is 11.5 billion won.

 

The notable part is the honorary severance pay.

 

Retirement pay refers to the severance pay paid by the company upon resignation.

 

Honorary severance pay is in the nature of consolation money.

 

This is an expense paid to employees who applied for voluntary retirement when the company conducts a manpower reduction due to a change in management.

 

Last year, Pfizer Pharmaceuticals Korea conducted an organizational reorganization according to the business environment that changed with Corona 19.

 

As the proportion of digital-centered non-face-to-face sales increases, the direction is to establish a new sales department.

 

As a result, the size of the existing sales team, which was divided into business divisions, was partially reduced.

 

During the reorganization process, the company conducted an in-house 'job posting' to readjust the arrangement of employees who applied for a job transfer and also implemented an early retirement program.

 

About 10 people are said to have left the company due to voluntary retirement.

 

The reorganization was completed in November last year.

 

The total amount of severance pay paid by the company to applicants for voluntary retirement is 11.5 billion won.

 

Although there are variations depending on the number of years of service, each employee received an average of 1.1 billion won as compensation.

 

Pfizer's ERP conditions are not known, but the average condition commonly used in the industry is 2n+8.

 

This means that an additional 8 months' salary is paid for twice the number of years of service.

 

Depending on the company, there are cases where additional special consolation money is paid according to annual leave.

 

This is to induce managers with a long service life to apply for voluntary retirement.

 

The amount of honorary severance pay paid by Pfizer Korea last year was the largest since 2015.

 

Pfizer Korea is often considered a company that implements voluntary retirement programs.

 

In 2013 and 2015, the company paid 18 billion won and 19.2 billion won in honorary retirement benefits, respectively, as a large-scale voluntary retirement program.

 

In 2016, it also spent 6.9 billion won.

 

In 2018, ahead of the spin-off of the out-of-patent drug division (Pfizer Upzone), 9.4 billion won was paid as an honorary severance pay.

 

For 10 years from 2013, the total amount of honorary severance pay paid by Pfizer Korea reached 71.2 billion won.

 

The number of employees is maintained at a similar level by sending out high-ranking managers and recruiting young people.

 

Pfizer Pharmaceuticals Korea, which had about 730 to 750 people before the spin-off of Pfizer Upzone, has grown to 460 people after the separation.

 

Since then, the number has dropped to 406 due to continued voluntary retirement but rose to 420 last year.

 

Recently, it has also started to recruit new sales staff on a large scale.

 

About 10 new employees are selected to be in charge of selling the Corona 19 vaccine and treatment.

 

It is interpreted as a measure to prepare for the private market after the end of the Corona 19 pandemic.