Gyeonggi Province's 4.5-Day Workweek Pilot Program Achieves Both Productivity and Happiness
A Successful Case of Reduced Working Hours at Incis
Higher Productivity and Efficiency Despite Fewer Hours, No Pay Cuts
Company CEO: "Both Employees and the Company Are Satisfied After Implementation"
Employees: "More Time for Childcare and Self-Development... Improved Work Efficiency"
Gyeonggi Province Launches '4.5-Day Workweek Pilot Program' with 107 Companies and Institutions This Year
"Since I get off work at 3 p.m. on Fridays, I can go home with my child when they return from daycare. My wife even calls if I don't come home on time," he said.
Heehoon Hwang, Senior Manager in the Security Solution Business Division at Incis Co., Ltd., who has been with the company for 11 years, described how his daily life has changed after participating in Gyeonggi Province's '4.5-Day Workweek Pilot Program.'
Incis Co., Ltd. (CEO Hyunsik Nam), a company specializing in security screening equipment, has practiced "people-centered" management for 17 years since its founding in 2009. The "In" in the company name also means "person." Starting as a supplier of security screening equipment for airports and ports, the company now mainly provides X-ray scanners for information protection to semiconductor companies such as SK Hynix, Samsung, and LG. Approximately 900 units have been installed in Korea alone.
CEO Hyunsik Nam explained, "There are limits to what equipment can do. Ultimately, people are what matter." He added, "We also provide significant support for loans to help young employees with housing issues." When constructing a new headquarters three years ago, the company actively reflected employees' opinions from the land purchase stage. The company spared no investment in improving the working environment, such as securing parking spaces and arranging workspaces. As a result, CEO Nam said that the company's turnover rate is significantly lower than that of similar companies in the industry.
Even before participating in this pilot program, the company had already implemented a flexible work system. CEO Nam said, "One of our employees told me, 'Gyeonggi Province is recruiting companies to participate in the 4.5-day workweek program, and with a few adjustments, we could do it too.' That's how we decided to apply."
After reviewing various options, the company chose a "35-hour workweek," with employees leaving at 5 p.m. from Monday to Thursday and at 3 p.m. on Fridays.
CEO Nam explained, "We considered a half-day on Friday, but there could be communication gaps with partners or clients, so we decided on a format that suits our company." He added, "Since we are not the only ones working, we still sometimes hear comments like, 'They don't answer the phone on Friday afternoons.' Fortunately, people are starting to recognize us as 'the company with the 4.5-day workweek.'"
Senior Manager Hwang candidly shared employees' initial reactions to the system. "For the first three weeks or so, everyone was hesitant, wondering, 'Can we really leave?' But when the CEO told us, 'Go ahead and leave,' now everyone naturally starts preparing to leave around 2:40 to 2:50 p.m. on Fridays," he said.
Employee satisfaction is very high. Leaving at 5 p.m. from Monday to Thursday allows employees to spend evenings with their families, and leaving at 3 p.m. on Fridays gives them more personal time. Single employees invest their time in club activities or self-development. Some work out or study for certifications, making use of their increased leisure time in their own ways. The spouses of married employees are also highly satisfied. CEO Nam said with a smile, "The wives of married male employees, in particular, are very pleased."
There have been other positive effects as well. Work efficiency has improved. Senior Manager Hwang explained, "Since working hours have been reduced, there is a greater sense of responsibility to finish work within the set time." He added, "By designating specific periods for focused work, our efficiency has increased." CEO Nam also said, "Employees' work efficiency has definitely improved. Even though working hours have decreased, I see people focusing more during the time they have. The fact that employees are happy is itself a positive outcome for the company."
The Friday after-work gathering culture has also naturally disappeared. CEO Nam said, "In the past, I used to go out for dinner on Fridays five or six times a month, but now it's only once or twice, and sometimes not at all. Getting off work at 3 p.m. on Fridays has actually reduced unnecessary gatherings." Senior Manager Hwang added, "There used to be a lot of Friday gatherings, but now there are almost none. In the past, spontaneous plans after work could be inconvenient, but now that concern is gone."
CEO Nam offered advice to companies considering introducing the system. "At first, I was afraid. Working hours would be reduced, but salaries couldn't be cut, and I worried about how other companies would view us. I was especially concerned about how to handle Friday business trips. But once we started, both the employees and I adapted well," he said.
He emphasized, "Since employees are happy, the company atmosphere has improved. There's no need to be afraid."
The 4.5-day workweek pilot program, launched this year, aims to promote work-life balance and healthy workplaces for workers, as well as to strengthen recruitment competitiveness and resolve workforce shortages for small and medium-sized enterprises. Through labor-management agreements, companies can choose one of the following options: a 4.5-day workweek, a 35-hour or 36-hour workweek, a biweekly four-day workweek, or a hybrid model, and are supported in reducing working hours.
Eligible applicants are small and medium-sized companies with fewer than 300 employees that wish to introduce a 4.5-day workweek and have offices in Gyeonggi Province. Each worker can receive up to 260,000 won per month (based on a five-hour reduction per week) as a wage subsidy. Each company can receive up to 20 million won in support for productivity improvement, such as consulting for process and workflow improvements or establishing attendance management systems.
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As of October 31, a total of 107 companies (106 private and 1 public, with 3,050 workers) are participating in Gyeonggi Province's '4.5-Day Workweek Pilot Program.'
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