Japanese Company Itochu Corp. Bans Late-Night Work and Sees Significant Increase in Employee Fertility Rates

Itochu Corp., a company with a diverse range of businesses including convenience stores and metals trading, implemented the policy when its CEO, Masahiro Okafuji, took office in 2010.

The goal was to improve productivity and compete with larger rivals, but the result has been a doubling of the fertility rate among full-time employees and a rate nearly twice the national average of 1.3. The policy has been met with mixed reactions, with some criticizing the company for interfering in employees' personal lives, while others see it as a positive message that it is possible to balance having a family and a career.

Japan is facing a significant demographic challenge, with a rapidly aging population and falling birth rates.

The government has responded to this crisis with a new agency for children and families and a pledge of $25 billion in new policies to encourage people to have more babies.

However, Japan is not alone in facing these challenges.

South Korea has the world's lowest birthrate, and many women are leaving the workforce due to a lack of child care options.

China's population is also shrinking, due in part to a lack of child support and financial strain.

This trend is not unique to Asia, as many countries around the world are facing declining birth rates and an aging population.

One potential solution to this problem is for companies to offer better work-life balance options, such as flexible working hours and child-care subsidies.

Japan's trading companies, including Itochu, have traditionally embodied a corporate culture characterized by long working hours and pressure to join drinking parties with bosses and clients after work.

However, Itochu has broken away from this ethos and become a pioneer in the push for better work-life balance.

When Anna Furuya returned from maternity leave in 2013 to her job at Itochu's textile division, she felt like an outlier when she left for home earlier than her colleagues.

Now, the 38-year-old works in Itochu's corporate division and is "incredibly happy" with her life as a working mother.

She sometimes starts her day in the office at about 6:30 a.m. and leaves around 4 p.m., which allows her to watch her 9-year-old son do his homework while cooking dinner.

Other Japanese companies have taken note of Itochu's success and are introducing similar work-life balance policies.

Mitsui Sumitomo Insurance Co. is giving employees as much as 100,000 yen to those who take on the workload of colleagues on child-care leave.

Recruit Holdings Co., the Japanese parent of job search and review sites Indeed.com and Glassdoor, allows employees to work from home and offers extra days off on top of statutory holidays.

While large companies Itochu, a Japanese trading company, has become known for its high average annual income of 17.3 million yen in 2023, which is nearly four times the national average.

This high income is likely due to the fact that the company employs high earners who can afford to start a family.

According to Yasuko Hassall Kobayashi, an associate professor of Asian studies at Ritsumeikan University, the main reason for the decline in the birthrate in Japan is the lack of financial means for people with low economic status to start a family.

While Itochu has traditionally been known for its male "shosha man" stereotype of corporate elites, the company has recently made efforts to attract more women to join and fill mission-critical positions.

In addition, the company offers its employees flexibility and support, which has led to more men taking paternity leave.

In fact, half of the male employees at Itochu have taken paternity leave, compared to only 14% of male workers nationwide.

One employee at Itochu, Furuya, who is a working mom, says that she no longer feels guilty about leaving early because the company's policies apply to everyone, not just mothers.

Itochu's efforts to attract and support women in the workplace have helped to break down traditional gender stereotypes and create a more diverse and inclusive workplace.

Overall, Itochu's high income and support for working parents demonstrate the important role that companies can play in promoting family-friendly policies and creating a more equitable society.