[K Population Strategy] Kookmin Bank's Secret to Increasing Female Employees' Average Tenure by 5 Years

According to the 2023 KB Kookmin Bank business report, the average length of service for female employees is 17 years and 5 months. This is an increase of 5 years compared to 12 years and 5 months in 2018.

Among the four major commercial banks (KB Kookmin, Shinhan, Hana, and Woori), KB Kookmin Bank has the longest average length of service for female employees. As of last year, the average length of service for female employees at Shinhan Bank was 14 years and 1 month, Hana Bank 15 years and 6 months, and Woori Bank 17 years and 3 months.

The remarkable increase in the average length of service for female employees at KB Kookmin Bank is attributed to various institutional supports such as childbirth incentives and reduced working hours during childcare periods, but the 'Rehire-Conditional Childcare Retirement' system is widely regarded as the most significant contributor.

KB Kookmin Bank's 'Rehire-Conditional Childcare Retirement' system grants a childcare retirement period of three years if an employee has used the full two years of childcare leave. Upon return, the employee retains the same rank and base salary grade as at the time of retirement. Last July, KB Kookmin Bank's labor and management agreed to introduce the 'Rehire-Conditional Childcare Retirement' system?the first of its kind in the financial sector?and it has been in operation since January this year.

KB Kookmin Bank, which introduced the 'Rehire-Conditional Childcare Retirement' system in January this year, received 45 applications. Among them, the case of Deputy Manager Haesin Jeong (41, female), who has been with the bank for 18 years and is raising a 5-year-old son, is representative. Deputy Manager Jeong said, "I was considering resigning because I had no place to leave my child, but when the 'Rehire-Conditional Childcare Retirement' system was introduced, I applied. In banking, it is not easy to transfer to another bank, so I was very worried about career interruption. The biggest advantage is that I can focus on childcare for three years and then return to continue my career."

The 'Rehire-Conditional Childcare Retirement' system eliminates concerns about career interruption and wage reduction from the employees' perspective, and from the company's perspective, it allows securing skilled employees, making it welcomed by both labor and management. Most of the employees who applied for this system are in their 30s and 40s. Recently, Woori Bank also introduced this system in June this year, with a total of 35 applicants.

Male employees also welcome the 'Rehire-Conditional Childcare Retirement' system.

Lee Hyukwon, team leader of the HR department at KB Kookmin Bank, said, "Although a minority, there are male employees who have applied for the 'Rehire-Conditional Childcare Retirement' system. This coincides with the increasing trend of male employees taking childcare leave, and the system is receiving great response from both male and female employees."