How your childcare leave policy can impact employee value proposition

With the shrinking labour force due to declining birth rates and an ageing population, companies concerned about talent shortages are racing to secure excellent people. As diverse work styles become increasingly commonplace, companies will need to strengthen their appeal as an employer.

This article explains how promoting the use of childcare leave can be an effective recruitment strategy.

Japan’s childcare leave usage rate

In Japan, the burden of housework and child rearing still tends to be disproportionately placed on women in many households. According to our survey, 72% of women at foreign-affiliated companies and 66% of women at Japanese companies took childcare leave while continuing to work after pregnancy. In contrast, only 17% of men at foreign-affiliated companies and 11% of men at Japanese companies took childcare leave. The most common reason given by female employees who answered that they did not take maternity leave was that they resigned (61%). This seems to indicate that many women leave their jobs for one reason or another after pregnancy or childbirth. Although the percentage of men taking childcare leave is on the rise, having exceeded 10% for the first time in a 2021 survey by the Ministry of Health, Labor and Welfare, a bias toward women bearing the burden of childcare still exists.

Merits of promoting childcare leave

Although childcare leave is traditionally seen as an employee benefit, it also has advantages for employers:

• Attracting new talent: A high childcare usage rate among both male and female employees projects an image that a company offers flexible work styles. In particular, more young men have expressed willingness to take childcare leave year by year. A company wanting to increase their attractiveness as an employer can appeal to candidates that it offers flexible working conditions to suit a wider range of lifestyles.
• Higher retention rates: Everyone wants to work for a company that openly shows that it cares for its employees. Providing widespread access to childcare leave is an excellent way to make employees feel cared for and contributes to creating a comfortable working environment. By supporting employees through various life stages, companies can hold onto its existing talent.

How to increase childcare usage

In our survey, many male employees who cited a lack of childcare leave and a difficult workplace atmosphere as reasons for not taking childcare leave. Additionally, a certain number of women who took childcare leave changed jobs or unintentionally took on different duties after returning to work. To prevent such issues, it’s important to create an environment where employees can take childcare leave with peace of mind. Here’s what companies can do to achieve such an environment:

• Streamline operations within the organisation to develop a system where employees can cover for each other.
• Promote initiatives (e.g., standardisation and creation of workflows) that do not allocate tasks within the company to only one specific person.

Flexible work styles for all life stages

The pandemic has triggered work style reforms in Japan and the rest of the world, moving towards more flexibility. Given this, now is a golden opportunity to embrace change as increased work style flexibility offers an environment that is more conducive to promoting childcare leave.
With Japan’s working population in continuous decline, companies wishing to attract and retain talent can stay ahead by offering an environment that is easy to work in and can accommodate diverse lifestyles and different stages in life.