Gyeonggi Province has reported a 2.1% increase in productivity following the implementation of a 4.5-day work week trial, reversing concerns about reduced working hours leading to decreased output.
Gyeonggi Province, the first in South Korea to implement a 4.5-day work week trial, has found that businesses participating in the scheme not only reduced working hours but also achieved a 2.1% increase in per-employee productivity compared to the previous year. This outcome contradicts the widespread belief that reducing work hours would typically result in lower sales and productivity. Furthermore, increased hiring competitiveness and reduced turnover rates highlight the trial's positive impact on the employment market, with the recruitment rate for participating firms rising from 10.3 to 17.7 applicants per position.
In addition to economic benefits, the study indicates significant improvements in workers' quality of life. Employees reported an 8.3-point increase in leisure time on weekdays and a decrease in job-related stress by 6.9 points. Moreover, 31.7% of respondents experienced reduced commuting time, contributing to a reduction in traffic congestion and other ancillary advantages. These factors, combined with rising income and consumer satisfaction, underscore the effectiveness of reducing work hours without wage cuts, reinforcing the strategy's potential to enhance corporate competitiveness by promoting work-life balance.
The Gyeonggi provincial government supports firms participating in this 4.5-day work week initiative by providing monthly wage subsidies and funding for consulting and management programs aimed at reducing work hours. In 2021, the province plans to expand this model to include large and small businesses together in a cooperative approach, with the goal of promoting this successful case throughout South Korea, demonstrating that work-life balance can indeed strengthen both employee well-being and business efficiency.
