Is Family-friendly Management Good for Firms? The Diffusion and Performance of Family-friendly Workplaces in South Korea

Abstract

Using the Korea Workplace Panel Survey data, this study examines the extent of diffusion of family-friendly programmes in Korean workplaces and the effect the programmes have on organizational performance, including employee turnover, labour productivity, and labour—management relations, under the presence and moderation of high performance work systems (HPWS) practices. The diffusion of family-friendly management in Korean firms has been very limited in comparison with British workplaces, despite the Korean government’s policy efforts to promote greater work—family balance. Our analysis reveals that family-friendly programmes do not always benefit firms. Dependent care programmes are beneficial for organizational performance to a certain degree, whereas flexible work schedules are not effective in reducing turnover, exhibiting a negative effect on labour productivity. However, flextime practice in Korea differs to a certain extent from western countries, where employees are allowed to flexibly alter their working schedules to promote work—family integration. Furthermore, family-friendly programmes in Korea do not complement HPWS practices in the enhancement of organizational performance.