5 day workweek: Dying a slow death
Now that the Work From Home revolution is an acceptable benefit for our working week, there’s another trending workplace harmony initiative!! Gather around the coffee machine, and listen to the rumours (that are true), a four-day workweek could soon be a reality. Both large and small businesses globally are calling on their governments to support fewer working hours for the same pay.
I know, you’re asking:
- How is such a favourable situation possible?
- Why would business leaders allow their employees to work only four days a week?
- Won’t company productivity and profits suffer?
- Pros and Cons?
The How: For many industries, the 4 day workweek possibility is contributed to robot co-workers and technological developments potentially making it possible for employees to accomplish the same amount of work in less time and still ensure customers are supported.
AI technology is a major player and is expected to significantly disrupt every aspect of each industry around the world, including how and when we work.
The Why: Already we’ve seen an increase in remote/hybrid working conditions but a call for more flexible work options is on the rise. In fact, a recent study found 42% of people would leave a job for a flexible work environment*. The past three years have accelerated the evolution of the 9-5 job, options like the four-day workweek are being considered heavily in response to the markets’ quest for tailored working conditions. Companies globally, nationally, locally and even the SME sector are not only thinking about a four-day work week they are taking part in trialling it. We’ve seen reported success and this new wave of benefits has the potential to attract top talent, increase productivity and support better retention rates.
What about Productivity and profits: It’s a practical fear that moving to a four-day week would hit an organisation’s productivity or revenue but the newly emerging research is proving this to be unfounded.
The stats:
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A trial 4 day workweek study conducted by Perpetual Guardian (NZ) uncovered that employees maintained the same productivity level and showed improvements in teamwork, work/life balance, job satisfaction and company loyalty.
A Swinburne University of Technology study found:
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A 65% decrease in sick leave
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A 57% drop in staff exits compared to same period in the previous year
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A healthy growth during the working time reduction period with an overall 1.4% increase in revenue.
These results are relatively unsurprising given that some of the most productive countries such as Norway, Denmark, Germany and the Netherlands, on average work around 27 hours a week. Comparatively, Japan, a nation notoriously known for overworked employees, ranks as the 20th out of 35 countries for productivity.
So let’s look at the full picture and weigh up the pros and cons.
The Pros:
Better Employee Engagement
Happier and more committed employees is the overarching message. Research has found employees are less likely to be stressed or take sick leave as they have more to time to rest and digest. As a result, they return to work feeling ready to take on new challenges.
Stress and sick-related absenteeism directly cost Australian employers $10.11 billion a year and 3.2. days per worker, annually. This is a massive coo in the bid to combat the costs of absenteeism.
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Perpetual Guardian (NZ) reported the employees experienced less stress with 38-45% reduction in leave.
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78% of employees effectively balance their work and home life better, compared to 54% prior to the Perpetual Guardian’s trial.
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Precision Sourcing reported a 14% increase in employee engagement.
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The Swinburne study found 71 per cent of employees reported lower levels of burnout, with 39% saying they were less stressed compared with the start of the trial.
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60% said a four-day week made it easier to combine their work with parental or other care responsibilities.
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62% per cent said that it was easier to maintain a balance between their work and social lives.
Wellbeing
Mental health and wellbeing is at the forefront of every HR department. Decreasing stress and improving mental health is the aim. Swinburne University’s 4 day work week pilot demonstrated 43% felt an improvement in their mental health and many self-reported levels of anxiety and fatigue decreasing, while mental and physical health improved.
A Green Advantage
Countries with shorter working hours typically have a smaller carbon footprint so reducing our work week from 5 to 4 days could have an environmental benefit too. Shortening our working week means less commuting ie less emissions and less energy consumption in the office.
Improve your Employer Value Proposition
The 4 day week has the potential to provide that “competitive edge” when recruiting. The ability to offer “Quality of life” - a true “work-life balance” benefit will be a huge draw card and a key value in attracting and maintaining staff levels.
The Cons:
Implementing a four-day workweek requires deep consideration as it requires the right support, technology and workplace culture. Unavoidably, new changes will encounter some challenges and disadvantages. The areas for consideration are:
Not for all Business Models
Unfortunately, a four-day week model doesn’t suit every business. It’s an option that is only viable for companies who can re-adapt their whole business to a new way of working.
Adopting a different way of working is a big step, so you'll need to consider whether or not a four-day week is right for your company. Can your business model adapt by refining workflow with efficiencies in mind like cutting back meetings and what can be automated or outsourced?
Customer/Client Satisfaction
What about the customers? Customer/Client satisfaction must be protected, and they will surely complain if services are closed one day a week when they need access. The “off” day must be analysed with customer/client activity levels and utilising technology, like chatbots and AI-powered websites could solve the issue. It would also allow another avenue of support rather than relying on office-based staff members.
Wrong Approach
The concept of a four day work week can be confused with compressed hours. Employees who are expected to still work 37.5 hours, but across four days. This is not the model. Implementing compressed hours will show decreased levels of productivity and negatively impact employees’ engagement, work-life balance and well-being. To achieve the desired effects a four day workweek the week should consist of standard seven to eight hour work days.
Final Thoughts: Should You Adopt the four Day Work Week?
We can not only see that the four day workweek increases employee satisfaction, company commitment and teamwork, but it also decreases stress levels. Even better, reducing employees’ work schedules doesn’t harm productivity or company output, it also gives businesses a real competitive edge when recruiting and provides retention protection. A four day workweek is a viable option as technology would make it possible for business to continue as usual while humans can still have meaningful careers with a better work/life balance.
So;
Do the pros far out way the cons?
Is it really possible for smaller businesses to make a four day week work?
Can the people, environment and customer satisfaction really be truly measured against profits?
Are we realising that humans are the value in the business not always the profit?
This is definitely food for thought, that’s all…
References:
4 day workweek, Precision Sourcing, Dec ‘22
The Change, Pros and Cons of a 4 day week
Four day working week boosts revenue and makes staff happier, The Times UK
A Case Study for a 4 day week, Swinburne University 2022