3 Days a Week vs Avatar Commute... The Competition of 'Not Going to the Office'

Naver Allows Employees to Choose Work Style
Date Changes Possible for 3-Day Office Weeks
Kakao Enables Voice Connection in Metaverse
Weekly Offline Meetings During Trial Period

Wage Increases Alone Insufficient Amid Labor Shortage
Must Prevent Talent Drain Through Welfare and More

[Asia Economy Reporter Seungjin Lee] The IT industry giants Naver and Kakao have clashed over work system innovations. As most companies have ended remote work and declared a return to normalcy amid the endemic phase of COVID-19, the two companies have started competing in the ‘going to the office less’ race.

Kakao to Work in Virtual Spaces

Kakao will introduce a ‘Metaverse Work System’ starting in July. This is an extension of the remote work system operated during the COVID-19 period. While the metaverse work system is broadly similar to existing remote work, the key difference is that employees must be connected in real-time via voice channels. The metaverse here does not refer to the commonly imagined 3D graphic virtual space but rather a platform connecting colleagues through text and voice.

Kakao will apply guidelines called ‘Ground Rules’ until the metaverse work system is fully established. These rules include meeting offline once a week and staying connected to voice channels. During the pilot operation period, the company plans to seek solutions for issues difficult to resolve online and continuously develop the work system by listening to the opinions of the crew (employees). The metaverse work system will be introduced across 14 companies including Kakao, Kakao Games, and Kakao Mobility.

Namgoong Hoon, CEO of Kakao, stated, "After experiencing remote work for the past two years, we concluded that ‘connection’ is a more important value than physical space for performing work. We will support the metaverse work system centered on connection to help crews work efficiently and establish it as a culture that permeates the Kakao community."

Naver Lets Employees Decide Their Work Style

Naver will also introduce a new work system from July that allows employees to freely choose between office attendance and remote work. This is the ‘Connected Work’ system, where employees decide their work style according to their situation once every six months.

It is divided into ‘Type O,’ where employees come to the office at least three days a week, and ‘Type R,’ which is primarily remote work. Even those who choose ‘Type R’ will be supported with shared seats to work in the office if necessary. Additionally, even if employees come to the office three days a week, they can change the days as they wish. For example, if an employee comes to the office five days this week, they can work entirely from home the following week.

A recent internal survey of employees showed that 55% preferred the remote work style ‘Type R,’ while the remaining 45% preferred ‘Type O,’ coming to the office at least three days a week. By job category, developers showed a similar ratio between office attendance and full remote work, whereas management support and marketing staff preferred office attendance by a 6 to 4 ratio.

Choi Soo-yeon, CEO of Naver, explained the background of the new work system, saying, "Naver has focused on the essential ‘value of work’ rather than ‘when’ or ‘where’ work is done, creating a culture of trust-based autonomy and achieving the best results."

Work System Reform: Not a Choice but a Necessity

Analysts say that the recent work system reforms by Naver and Kakao were not optional but necessary. Amid ongoing IT workforce shortages, both companies decided on double-digit wage increases this year to prevent talent outflow and attract capable personnel. However, wage increases alone had limitations, making it necessary to improve welfare systems such as expanding work flexibility. CEOs Namgoong and Choi reportedly continuously gathered employee feedback before the reforms, with most voices favoring flexible work system reforms through expanded remote work such as working from home.

Meanwhile, according to the ‘2022 Cisco Global Hybrid Work Study,’ conducted this month by Cisco Systems surveying 28,000 workers across 27 countries including South Korea, 75% of domestic respondents expressed a preference for hybrid work combining office and remote work in the future. Additionally, 65% of respondents said corporate culture and mindsets need to be reconsidered to accommodate hybrid work.