[Expert Column] Localization Doesn’t End with Hiring Locally: Korean Organizations in the U.S. Must Invest in Talent Development

>>The Korea Daily - Expert Column Article<<

Written by Stella H. Kim, SPHR

Published October 31, 2025

[HRCap 2025 Localization Playbook Series]

⑦ HR Strategies for Korean Companies in the U.S.

- Transitioning from a “Hiring-Centered” to a “Growth-Centered” HR Models

Stella H. Kim, SVP, Head of Americas & CMO at HRCap

In the U.S. market, hiring is just the beginning.

Many Korean companies focus on hiring top talent quickly, but pay far less attention to how those employees grow and stay within the organization. However, top professionals today value opportunities for growth and advancement even more than competitive pay. When career paths are unclear, engagement declines, and turnover inevitably increases.

HRCap, a Global Total HR Solutions Partner, analyzed that the average turnover rate among Korean companies in the U.S. is approximately 1.5 times higher than that of mainstream local U.S. companies. This is primarily due to the lack of structured career paths and leadership development programs in place. A short-term transactional hiring approach cannot build trust or sustain long-term success in the U.S. market. With the concept of a lifelong career now obsolete, companies that fail to provide growth opportunities struggle to attract and retain top talent.

The U.S. Bureau of Labor Statistics reports that as of 2024, the average employee tenure in the U.S. is approximately 3.9 years, while for younger Millennial and Gen Z employees, it drops to just 2.7 years. The job cycles are shortening rapidly, and employee loyalty is now increasingly shaped by ongoing opportunities for personalized development and long-term career vision.

So then, what and how must Korean companies nurture and retain their top talent after hiring them? The solution lies in shifting from a “hiring-centered” to a “growth-centered” HR model. True localization does not stop at recruitment; it requires ongoing investment in employee development and engagement to create an environment where talent can grow organically and sustainably.

To become a trusted employer in the U.S. market, organizations must view employees not as resources to manage but as key drivers of growth. U.S. companies design career paths from an employee’s first day, establish career maps during the 90-day onboarding program, and provide regular one-on-one feedback and leadership training to cultivate future leaders. This approach motivates employees and fosters a virtuous cycle of leadership growth. In contrast, many Korean subsidiaries still remain heavily focused on seniority-based evaluations and short-term performance metrics, which often lead to disengagement and a lack of ownership among local talent.

Therefore, Korean companies operating in the U.S. must establish locally adapted, growth-based HR strategies. Once top talent is secured, organizations should provide clearly defined career maps for each role, implement competency-based evaluations that ensure fair rewards, and build leadership pipelines supported by data-driven insights. Employees who grow under such systems evolve into local leaders who understand both the local market and the culture, serving as essential bridges between headquarters and local teams while strengthening the company’s long-term competitiveness.

At HRCap, post-hire employee engagement is prioritized as a vital extension of strategic talent development, not just a simple check-in and follow-up. We deliver tailored solutions and continuous support that empower candidates to grow and evolve into future leaders within their respective organizations. Our approach goes beyond one-time retention efforts, laying the groundwork for localized organizational cultures and deeply internalized leadership. As a strategic partner, we help clients cultivate “Culture Add,” not merely “Culture Fit,” by hiring and developing talent who elevate their organizations through fresh perspectives, positive disruption, and transformative innovation.

Korean companies must now adopt these three talent development strategies for effective localization:

1. Establish clear career paths and growth criteria for each role and responsibility

2. Build internal leadership pipelines and expand advancement opportunities for local employees

3. Promote a culture of continuous learning and feedback tailored to the U.S. market to encourage self-driven growth

These three pillars go beyond formal HR management; they serve as localized growth engines that empower employees to become core assets of the company.

In the U.S. market, employees join organizations through effective hiring, but they only stay through intentional growth. True localization is achieved not through recruitment, but through shared, collective growth.

Stella H. Kim, SPHR

HRCap – SVP, Head of Americas & Chief Marketing Officer