The 'Work-Life Balance 4.5 Project,' which supports companies reducing actual working hours without decreasing wages, has achieved its goal ahead of schedule in the first half of the year.
As of the end of June, the Ministry of Employment and Labor reported that a total of 224 companies participated in the Work-Life Balance + 4.5 Project, surpassing the annual target of 220 companies. The achievement rate stands at 101.8%, with small businesses employing fewer than 50 workers making up 67.9% of the participants.
The Work-Life Balance + 4.5 Project supports companies that operate a 4.5-day workweek or similar arrangements through labor-management agreements, allowing for reduced working hours without wage cuts. Various models are being implemented, including a 4.5-day workweek with Fridays off, biweekly specific day off, voluntary four-hour reductions twice a month, and a 35-hour workweek with daily one-hour reductions.
The ministry explained that reducing working hours is not just about cutting hours but also leads to increased productivity and talent acquisition. For instance, fintech company WireBarley adopted a 38-hour workweek to attract top talent. By minimizing unnecessary reports and meetings and focusing on concentrated work hours, the company saw a 75% reduction in turnover and a 200% increase in new hires compared to the previous year. The reduction of two hours in standard working hours without wage cuts also resulted in a 5% increase in hourly wages.
Eco World Farm, located in a regional industrial complex, implemented a 4.5-day workweek with Friday afternoons off to secure and retain staff. They addressed work gaps through process improvements and tailored AI applications for different departments. Since adopting the 4.5-day workweek, they have hired one new employee and are in the process of hiring three more. Notably, the total weekly working hours for 18 office staff decreased from 673 hours to 648 hours, a reduction of 25 hours.
This initiative demonstrates that discussions about reducing working hours can extend beyond large corporations and office jobs to address labor shortages in small and medium-sized enterprises. For companies in regional industrial complexes or those struggling to attract young talent, balancing working hours and work-life balance can be as crucial as wage increases in enhancing recruitment competitiveness.
The government plans to support the sustainability of reduced working hours in the workplace by enhancing productivity. A public-private joint productivity improvement support team, launched in May, will focus on supporting technological innovations such as AI adoption, redesigning work processes, and providing vocational training.
Minister of Employment and Labor Kim Young-hoon stated, "Reducing working hours is not a one-size-fits-all approach; there are various methods that can suit each company's circumstances. It has been confirmed in the field that labor-management dialogue can lead to tailored systems that yield results, and we will actively support small and medium-sized enterprises in reducing working hours."
* This article has been translated by AI.
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