Working Less, Performing Better... At 35 Hours a Week, Turnover Rates Plummet

Publication of the "Best Practice Casebook on Work-Life Balance"

Havas Korea Co., Ltd. operates a system of working from home twice a week, workation, and a free-address (non-assigned seating) system, while keeping the average weekly working hours at around 35 hours. By using reduced working hours for family care and remote work, an employee who had been considering resignation was able to continue their service. After employees began using these systems, an internal survey found that work engagement increased by 30%, while the turnover rate decreased by 19%.

On February 11, the Ministry of Employment and Labor announced that it had published the "2025 Best Practices of Work-Life Balance in Korea," a collection of on-site cases that enhanced corporate competitiveness through a work environment where employees can balance work and childcare.

The casebook was jointly published by the Ministry of Employment and Labor, the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, the Federation of Korean Trade Unions, the Korea Employers Federation, the Korea Chamber of Commerce and Industry, and the Korea Federation of SMEs. This is the second edition following the first publication last year, and it contains examples of how 183 best-practice companies for work-life balance operate systems that support pregnancy and childcare, flexible work arrangements, and reduced working hours.

The casebook also presents how improvements in work methods have translated into organizational performance. It details the trial and error experienced until systems that take workers' family circumstances into account became established, the concerns of management, and changes in productivity and engagement after implementation, emphasizing that such systems can serve as a source of competitiveness rather than a burden on corporate management.

Park Systems Corp., a manufacturer of nano-scale measurement equipment, has expanded maternity protection systems and begun operating an in-house daycare center to prevent the loss of employees during childcare periods. By hiring replacement workers for those on parental leave, the company reduced the burden of on-site vacancies, and it is currently operating with an average weekly working time of 38 hours. As a result, an internal survey showed that satisfaction with "work-life balance" was the highest, and more than 90% of employees returning from parental leave continued to work. CEO Park Sangil stated, "Building an organization where people can protect both work and life is our competitiveness."

Letsmilan Commerce Co., Ltd., a wholesale and retail company, operates a paid reduced working-hours system during pregnancy up to 16 weeks of gestation, which is broader than the legal standard (within 12 weeks of pregnancy), and grants three days of paid care leave to employees with children aged 8 or younger. It also operates rest schemes such as a half-day off on the day before holidays and on birthdays, and the average weekly working hours are around 34 hours.

The casebook can be downloaded from the Work-Life Balance website, as well as from the websites of the Ministry of Employment and Labor and the Korea Labor Foundation. Companies recognized as best-practice work-life balance companies receive incentives such as additional points in public procurement, deferral of regular labor inspections and tax audits, and preferential treatment in immigration, technology guarantees, and credit guarantees. In particular, as of February 2, additional points are also granted in the procurement of manufacturing and purchasing of military supplies.

Cho Jeongsook, policy chief for employment support, said, "Work-life balance makes the workplace a happy space and forms the foundation for corporate growth," adding, "The government will continue to discover and spread best practices by promoting the expansion of flexible work, supporting the use of related systems, and strengthening on-site guidance."