[Exclusive] More Children Born in Family-Friendly Companies [K Population Strategy]

(32) Ministry of Gender Equality and Family - Korea Women's Policy Institute Analysis Data
Certified Companies Have 1.4%P Higher Maternity Leave Rate
54.3%P Gap in Female Employment Retention Rate Too

Editor's NoteThe key to solving South Korea's population problem lies within companies. A workplace culture that evaluates employees based on their work regardless of gender and a family-friendly environment are crucial to addressing the K-population issue. While low birth rates are influenced by multiple factors, it is important to ensure that workplace burdens do not become obstacles that discourage having children. Asia Economy visited companies leading family-friendly policies to identify the factors that enabled stable implementation of these systems and plans to explore various solutions with companies facing practical challenges. Through this, we aim to encourage change starting from companies and analyze the government's role in making this possible. We listen to voices emphasizing that company culture and atmosphere that reduce psychological burdens are more critical than financial support, and propose alternatives from diverse perspectives.

It has been confirmed that employees at 'Family-Friendly Certified Companies' have more children compared to those at general companies. The proportion of female employees taking maternity leave at companies that passed family-friendly certification was 1.4 percentage points higher than at uncertified companies. The number of female employees taking maternity leave can be used to estimate the number of children born to female employees in that year. This proves that having systems and an atmosphere where parental leave is relatively easy to use and employees can return to work stably is a key starting point for solving the K-population problem.

According to the 'Effect Analysis of Family-Friendly Certification' data obtained by Asia Economy on the 6th through the Ministry of Gender Equality and Family, the proportion of female employees taking maternity leave at companies that passed family-friendly certification was up to 1.4 percentage points higher than at uncertified companies. This is based on a recent study conducted by the Ministry of Gender Equality and Family through the Korean Women's Development Institute, comparing 446 family-friendly certified companies and 1,071 uncertified companies over three years from 2020 to 2022 (surveying 604 HR managers and 5,011 employees from the Women Manager Panel workplaces).

Minister Kim Hyun-sook of the Ministry of Gender Equality and Family explained, "When looking at the rate of maternity leave taken by women of childbearing age, family-friendly certified companies showed a higher rate compared to uncertified companies," adding, "This result controls for variables affecting corporate birth rates such as whether the company has a female representative, the proportion of regular employees, and workplace size." She emphasized, "Ultimately, as the number of family-friendly certified companies increases, the culture changes, enabling both men and women to internalize work-family balance, which can lead to higher birth rates."

She particularly noted that in small and medium-sized enterprises (SMEs), the rate was up to 1.5 percentage points higher. Minister Kim set increasing the number of family-friendly certified SMEs to 40,000 this year as a key task for the Ministry of Gender Equality and Family. (Related article: "Only 1% of SMEs are Family-Friendly Certified... Lowering Entry Barriers to Expand to 10%" [K-Population Strategy])

Employees at family-friendly certified companies also found it easier to take parental leave. The rate of parental leave usage among certified company employees was 2.8 percentage points higher for women and 1.0 percentage point higher for men compared to uncertified companies. Employee perceptions also showed a higher proportion at certified companies believing that family-friendly policies such as maternity leave and parental leave are easy to utilize.

Certified companies not only had higher actual parental leave usage rates and employee perceptions but also significantly higher employment retention rates after returning to work. This is a positive signal for companies investing heavily in talent recruitment and retention. According to data requested by Asia Economy from the Ministry of Gender Equality and Family, the return-to-work rate (employment retention rate) after female parental leave at 2,183 companies that passed family-friendly certification last year was 82.7% on average. This is 28.4 percentage points higher than the national employment retention rate of 54.3% for women aged 25-54 after parental leave, as reported in the Ministry's '2022 Career Interruption Survey' released the same year. The return-to-work rate after parental leave was 81.0% for large companies, 79.1% for SMEs, and 91.7% for public institutions.

Minister Kim said, "Although family-friendly certified companies allow freer use of maternity and parental leave, research results support that their productivity and corporate performance are not lower than those of uncertified companies," adding, "This year, the Ministry of Gender Equality and Family will actively expand family-friendly certified companies to induce a virtuous cycle of work-family balance."

Special Coverage Team 'K-Population Strategy - Gender Equality is the Answer'

Reporters: Kim Yuri, Lee Hyun-joo, Jung Hyun-jin, Boo Ae-ri, Gong Byung-seon, Park Joon-i, Song Seung-seop
Editor: Kim Pil-su, Economy & Finance