Itochu Implements Morning Work Incentives to Boost Employee Efficiency

Fumihiko Kobayashi, an advisor at Itochu Corporation, spoke at a Taiwan-Japan listed enterprise forum about the challenge of declining labor forces. He shared that to improve work efficiency and prevent overwork, Itochu introduced a "morning work" system in 2013. The policy generally bans work between 8 PM and 10 PM, offering incentives for employees to shift their tasks to a 5 AM to 8 AM early shift. After three years, despite the cost of incentives, the company saw a 15% reduction in overtime pay and decreased electricity and late-night taxi costs, leading to an overall cost reduction of about 6%. The forum also highlighted decision-making speed differences in M&A between Taiwanese and Japanese firms.