Bloomberg’s reports on a traditional Japanese trading company which has changed it’s culture dramatically, with real results.
“… when Masahiro Okafuji became chief executive officer of Itochu in 2010, he made improving productivity a top priority to compete against rivals in Japan and made drastic changes to its employees working hours, his approach was counterintuitive… he banned working in the office after 8 p.m. with rare exceptions and had security guards and human resources staff scout Itochu’s office building in Tokyo, telling people to go home. Those clinging to their desks were told to come in early the next day to get their work done — and get paid extra.
A decade later, the company — whose businesses range from the FamilyMart convenience store chain to metals trading — reported a change that even surprised management. The fertility rate among full-time employees had doubled in the years since Okafuji became CEO, reaching almost two children per female in the fiscal year ended March 2022. That far exceeds Japan’s current national rate of about 1.3.
… So, what happened at Itochu? After the Covid pandemic, employees were granted the option to work from home two days a week. Last year, the company went further and cut core office hours from eight to just six, so workers are able to punch out as early as 3 p.m. — around the time when schoolkids get home.
Female employees who took maternity leave had their children and came back to work, thanks to the curtailed working hours — and a day-care center the company set up near its office. Few expected a trading house to break away from the decades-old ethos of extreme dedication to work and become a pioneer in the push for better work-life balance. If Itochu can figure it out, others should be able to find their own ways to improve quality of life of their employees.