"Take Monday and Tuesday Off, Start Work on Wednesday"…When CEOs Lead, Employee Turnover Stops [K Population Strategy]

by Song Seungseop

Published 11 Feb.2024 15:00(KST)

Updated 15 Feb.2024 15:39(KST)

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Work-Life Balance Achieved by Companies, Not the State
"I Was a Working Mom Too"?CEOs Building Family-Friendly Companies
Is Family-Friendly Management a Cost? "In the Long Run, It's a Benefit"

Editor's NoteThe key to solving South Korea's population problem lies with companies. A workplace culture that evaluates employees based on their work, regardless of gender, and a family-friendly environment are essential to addressing the K-population issue. While low birth rates are driven by complex factors, it is crucial to ensure that burdens at work do not become an obstacle that makes people hesitate to have children. Asia Economy is visiting companies that are leading the way in family-friendly policies to pinpoint what has allowed these systems to take root, and will work from various angles with companies that struggle with practical challenges to find solutions together. Through this, we aim to encourage change starting with businesses, while also analyzing the role the government must play to make this possible. We listen to voices emphasizing that a company's culture and atmosphere, which reduce psychological burdens more than financial support, are the key, and present alternatives from a variety of perspectives.

On December 21 last year, Jin Kwangil was taking his child to kindergarten before going to work in Gangseo-gu, Seoul. Photo by Kang Jinhyung aymsdream@

CEOs have changed. They are rolling up their sleeves to tackle the national challenge of low birth rates. Companies are rapidly introducing family-friendly policies, which were previously dismissed as mere costs, and are actively encouraging employees to take maternity and parental leave. This is not just the story of large corporations or companies with a high proportion of female employees. Even in small and medium-sized enterprises with fewer than 100 employees, or in male-dominated companies, CEOs are prioritizing work-life balance as their core value. The reason for this shift is not simply employee welfare; rather, these leaders have realized that a family-friendly corporate culture benefits management, including HR and sales.

Work-Life Balance Achieved by Companies, Not the State

Asia Economy's year-round series, "K Population Strategy: Gender Equality Is the Answer," launched this year, features the voices of business leaders striving to address the low birth rate issue on the front lines. During our reporting, we witnessed firsthand how much a CEO's determination can change. While it takes time to create new systems and foster a culture where they can be used, companies led by committed CEOs ultimately overcome these challenges and internalize such policies. In a society where work-life balance has yet to take root, pioneering family-friendly initiatives by business leaders have sparked a strong response within their organizations.

Korea Ferring Pharmaceuticals is a prime example. At Korea Ferring Pharmaceuticals, employees who have worked for over a year receive support at every stage of family formation, from pregnancy and childbirth to parenting. This includes infertility treatment, adoption, and counseling. Notably, maternity and parental leave are guaranteed for up to 26 weeks. Last year, an office employee became the first to use these benefits after the CEO personally encouraged her to do so. (Related article: "Global Pharma's Korea CEO Urges Joint Effort by Companies and Government to Solve Low Birth Rate Issue")

Zenith Doussas, President of Korea Perring Pharmaceuticals. Photo by Yongjun Cho jun21@

Zenith Doussas, CEO of Korea Ferring Pharmaceuticals, said, "In the past, I advised a female employee returning from maternity leave to start work on a Wednesday or Thursday instead of Monday. This was to help her adapt to a new caregiving routine over a few days." Although she has not experienced childbirth herself, she emphasized, "I am deeply committed to supporting employees who have given birth so they can feel comfortable."

There are also business leaders in small and male-dominated companies who are proactive about family-friendly management. Mirae City Construction, a small construction firm in Mapo-gu, Seoul, has only 18 female employees out of a total staff of 225. Nevertheless, CEO Lee Hyungyong has personally started changing company systems and culture to establish work-life balance, including introducing a new childbirth subsidy. He is also working to obtain the Family-Friendly Certification from the Ministry of Gender Equality and Family. Lee commented, "It's an era where men also take part in childcare. My second child at home is not yet eight years old. As I became interested in parenting, I realized I needed to create a supportive culture at work as well."

"I Was a Working Mom Too"-CEOs Building Family-Friendly Companies

Hye Min Lee, CEO of Finda. Photo by Jinhyung Kang aymsdream@

At Finda, a childcare-friendly culture is so well established that it is routine for employees with children to be away from their desks for 30 minutes to an hour. It is considered natural for employees to pause work for child-related matters. This progressive company culture stems from the determination of co-CEO Lee Hyemin. From the company's founding, Lee resolved to build systems and a culture that would ensure employees never feel anxious about parenting. (Related article: "A Workplace Where Working Moms and Dads Thrive-It's Actually Good for Productivity")

Lee said, "When I founded the company, I was a working mom with a three-year-old child. Having experienced this situation myself, I naturally wanted to make sure that employees would never feel pressured or anxious due to unavoidable circumstances like pregnancy, childbirth, or parenting." She added that she herself "records in advance any events that must be attended with her child, such as birthdays or developmental checkups, in her schedule, and makes good use of half-days or short leave."

Lim Irang and Connie Byerin, CEOs. Photo by Jinhyung Kang aymsdream@

Lim Irang, CEO of the childcare products manufacturer Connie Byerin (Connie), has had similar experiences. When she founded the company, she was a woman whose career had been interrupted by childbirth. She believes it is important to run a company where employees can fully balance work and parenting. When employees raise concerns related to childcare, Lim's strong commitment is evident in her swift action to revise company policies to address them.

When some employees, including Lim herself, had children entering elementary school, the company strengthened its flexible hours policy. Even though the core working hours are from 10 a.m. to 5 p.m. Korean time, employees with young elementary school children can adjust their schedule by up to two hours per day at the start of the semester. To help employees working from home maintain focus while caring for children, the company began providing a new monthly childcare support allowance of 150,000 won. (Related article: "During Winter Break, We Bring Our Kids to Work-A Company That Set Up a Classroom in the Office")

Is Family-Friendly Management a Cost? "In the Long Run, It's a Benefit"

Jung Heeyoung, CEO of Lego Korea

Business leaders say that family-friendly policies are a major benefit to management in the long term. LEGO Korea, for example, operates a "family care leave" policy that provides four weeks of fully paid leave for employees who need to care for family members, in addition to parental leave. In the short term, this can lead to a loss of manpower and increased company expenses. Nevertheless, the company boldly adopted the policy, believing it would ultimately benefit management. (Related article: "Full Salary and Bonuses-A Dad Who Took Two Months of Paternity Leave")

Jung Heeyoung, CEO of LEGO Korea, explained, "A company is, after all, made up of people, so it is essential to ensure that everyone can maintain a happy and stable life based on mutual trust. While it may appear to be a cost in the short term, I firmly believe that in the long run, it will contribute to the company's success."

Sungchul Kim, CEO of Motion. Photo by Jinhyung Kang aymsdream@

Sungchul Kim, CEO of the software company Motion, also believes that marriage and parenting policies are not just welfare benefits, but have helped the company operate more effectively. Despite having fewer than 100 employees, 80% of whom are men, the company boldly expanded flexible work arrangements and introduced a "parental leave support bonus" for colleagues. Contrary to the usual concerns about declining productivity, sales have doubled every year. (Related article: "Hundreds of Thousands of Won in Bonuses for Colleagues-'Take More Parental Leave!'")

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Kim said, "When employees do not feel pressured about marriage or parenting, they experience psychological stability, which also affects retention. Retaining IT talent is crucial, and since the company was founded in 2019, not a single developer has left, despite high turnover rates in this field."