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

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.