First Securities Firm to Implement '120 Days Maternity Leave + 2 Years Parental Leave' [K Population Strategy]

Interview with Park Sang-ho, Head of Management Support Division at NH Investment & Securities
Parental leave extended from 20 to 24 months
13 male employees took leave over 2 years
Focus on actively encouraging existing policies rather than creating new ones

Sangho Park, Head of the Management Support Division at NH Investment & Securities, is being interviewed by Asia Economy. Photo by Yongjun Cho jun21@

NH Investment & Securities began directly operating a daycare center in December 2017, becoming the first domestic securities firm to do so. Most domestic securities firms use daycare centers operated by the Korea Exchange and the Korea Financial Investment Association. This shows that running a daycare center is not as easy as it seems. Furthermore, NH Investment & Securities expanded the parental leave period to two years starting this year, separate from the 120-day maternity leave. Why would NH Investment & Securities, known for its strong performance-driven culture, strengthen childcare welfare? We heard the reasons directly from Park Sang-ho, Head of the Management Support Division at NH Investment & Securities.

- I heard that you are the first and still the only securities firm to directly operate a daycare center. I am curious about the reason behind that decision.

▲ There are three backgrounds: the characteristics of the securities industry, the changing times, and the organizational culture the company pursues. The securities industry is composed of expert groups, so people are the most important asset. Also, as times have changed, many women have entered the financial industry. At NH Investment & Securities, women make up over 40% of the workforce. Against this backdrop, we decided to directly operate a daycare center as part of our efforts to institutionally support welfare that allows employees to fully concentrate on their work.

- Usually, the securities industry has a strong performance-oriented culture, right?

▲ Of course, securities firms have a performance-driven organizational culture. However, there are aspects that cannot be explained by monetary compensation alone. For married employees, children are a variable. When the company directly operates a daycare center, employees can briefly take care of their sick children. This allows employees to focus on their work with peace of mind. Providing the best welfare to employees creates an environment where they can immerse themselves in their work, and the company can aim for the best performance.

Sangho Park, Head of the Management Support Division at NH Investment & Securities, is being interviewed by Asia Economy. Photo by Yongjun Cho jun21@

- Does NH Investment & Securities really provide the best welfare?

▲ Starting this year, the parental leave period has been extended from 20 months to 24 months. This is the longest parental leave period among securities firms. Including the 120-day maternity leave, it amounts to two years and four months. This was decided in the 2022 wage and collective bargaining agreement. Over the past three years, the average number of employees on parental leave has been about 80. This means there is a shortage of personnel to that extent. However, the CEO and executives shared a consensus on expanding parental leave. There is a belief throughout the organization that expanding parental leave can create an environment where employees can focus on their work.

- I am curious if male employees use parental leave.

▲ In the past, not at all. Recently, it has increased but still remains low. In 2022, nine male employees took parental leave, and in 2023, four male employees did so.

- Are there policies other than parental leave?

▲ Since 2010, we have operated an employee psychological counseling program, which is also available to employees' families. It is similar to the program "My Precious Child in These Days of Parenting." It provides counseling for stress from raising children or conflicts within families. Also, we were the first in the industry to introduce 'PC OFF' (a system that automatically logs out computers at the end of work hours). Unnecessary overtime should be avoided. Securities professionals are knowledge workers. Management should be performance-based, not time-based. Overall, the company's organizational culture has positively changed.

- Is there a role companies can play to help balance work and family life?

▲ It is more important to activate existing systems than to come up with new ideas. Parental leave is a representative example. Men do not use parental leave well. They fear potential disadvantages upon returning to work. The same goes for vacation. Many employees still do not use all their guaranteed vacation days. Companies need to actively encourage employees to better utilize existing systems. These aspects are connected to the company’s organizational culture.