In recent years, there has been a growing interest in adopting the 4-day working week as an alternative to the traditional 5-day work schedule. This shift has gained traction among organizations and employees alike, sparking discussions about its potential benefits and drawbacks.

I recall an occasion 20 year ago in which I was asked to help a mining company move from a 5 day working week (8 hour shifts), to a 4 day working week (12 hour shifts). During negotiations with the trade union representatives, one employee representative made the comment: ‘do you think our wives would want us at home 3 days a week? The divorce rate will go through the roof.’ This flippant comment belies the fact that these men were very concerned about spending 4 more hours per day, 17 levels underground in a very unpleasant working environment.

In this article, I will explore the advantages and disadvantages of a 4-day working week from both organizational and individual perspectives, analyze the associated risks, and provide a few real-world examples of successful and unsuccessful implementations.

What do we mean by a 4 day working week?

There are two main basic options for a four-day workweek: (a) as a compressed workweek or (b) a shortened workweek.

Compressed Workweek

This approach takes the eight-hour days normally worked over the course of a five-day workweek and compresses them into four 10-hour workdays. Employees do the same work, but now they do it during slightly longer workdays.

Shortened Workweek (the 100:80: 100 model)

Like California’s proposed 32-hour workweek, this approach cuts back the work hours for the week while keeping pay the same (in most cases). This is referred to as the 100:80:100 model: employees receive 100 percent of their pay and work 80 percent of their time. The most important part of this exchange, however, is that employees need to give 100 percent productivity.

There are however, many variations on shortened working weeks, which we explore in in some detail in our course on ‘IMPROVING WORKFORCE PRODUCTIVITY’.

Advantages of a 4-Day Working Week

Generally espoused arguments in favor of a 4 day working weeks# include the following:

Organizational Perspective

The espoused benefits from the Organization Perspective typically include:

• Increased Productivity: Contrary to common belief, working fewer days can lead to higher productivity levels. Employees tend to be more focused and motivated, knowing they have a longer weekend to look forward to. This can result in better time management and reduced procrastination during work hours.
• Improved Employee Satisfaction: Offering a 4-day workweek can be a significant perk that attracts top talent and boosts employee morale. Satisfied employees are more likely to stay with the organization, reducing turnover rates and the associated costs of hiring and training new staff.
• Enhanced Work-Life Balance: A shorter workweek allows employees to spend more time with family, pursue personal interests, and engage in activities that contribute to their overall well-being. This balance can lead to lower stress levels and higher job satisfaction.
• Environmental Benefits: With fewer days of commuting, there can be a reduction in carbon emissions and traffic congestion. This aligns with sustainability goals and promotes a greener workplace culture.

Individual Perspective

The proposed advantages of the 4 day working week for the individual include:

• More Leisure Time: Employees can enjoy an extra day off each week, providing opportunities for travel, hobbies, relaxation, and spending quality time with loved ones. This can contribute to overall happiness and work-life harmony.
• Health and Wellness: Longer weekends allow for better rest and recovery, reducing burnout and promoting physical and mental health. Employees may have time for exercise, healthy meal preparation, and self-care activities.
• Increased Motivation: Knowing they have a shorter workweek ahead can boost motivation and productivity. Employees may focus on completing tasks efficiently to fully enjoy their extended weekends.

Disadvantages of a 4-Day Working Week

The often-stated disadvantages of the 4 day working week for an organization include:

Organizational Perspective

• Operational Challenges: Some industries or roles may find it challenging to maintain productivity and customer service levels with a compressed work schedule. Workflows, deadlines, and communication channels may need adjustments to accommodate the change.
• Potential Cost Implications: Depending on how the 4-day week is implemented, there may be additional costs associated with overtime pay, hiring temporary staff, or investing in automation and technology to streamline processes.
• Productivity Losses: Can we be assured that we will see a 20% per day increase in workforce productivity required, to justify the shift to 4 day working weeks (the 100: 80: 100 model).
• Client and Stakeholder Expectations: Meeting client or stakeholder expectations regarding response times and service availability can be more complex with fewer working days. Clear communication and managing expectations become crucial.

Individual Perspective

The potential disadvantages for the individual of the 4 day working week include:

• Workload Management: Employees may experience increased pressure to complete tasks within a shorter timeframe, leading to potential stress and burnout if expectations are not managed effectively.
• Financial Considerations: While a 4-day workweek offers benefits in terms of work-life balance, some employees may be concerned about a corresponding reduction in income if salaries remain unchanged.
• Career Progression: In highly competitive environments, employees may worry that opting for a 4-day week could impact their career advancement opportunities or perceived commitment to the organization.

Risks Associated with a 4-Day Working Week

Some of the main risks associated with a 4 day working weeks include:

1. Inequitable Work Distribution: Without proper planning and workload distribution, some employees may end up shouldering heavier workloads, leading to resentment and decreased morale.
2. Impact on Collaboration: Teams reliant on real-time collaboration or frequent meetings may face challenges coordinating schedules and maintaining efficient communication channels.
3. Industry Suitability: Not all industries or job roles may be suitable for a 4-day workweek due to operational demands, client expectations, or regulatory requirements.

Real-World Examples

Here are some real world examples of the application of a 4 day working week.

Successful Implementations

• Microsoft Japan: Microsoft Japan made headlines in 2019 with its “Work-Life Choice Challenge,” where employees were given Fridays off during the month of August. This experiment aimed to boost productivity by encouraging efficient work practices and reducing unnecessary meetings. The results were remarkable, with a reported 40% increase in productivity compared to the same period the previous year. Employees embraced shorter meetings, utilized online collaboration tools effectively, and focused on delivering results within condensed timelines. Microsoft Japan’s approach highlights the importance of reimagining work processes to align with a compressed workweek while leveraging technology for seamless communication and task management.

• Treehouse, Inc.: Treehouse, Inc., a tech company known for its innovative work practices, has embraced a 4-day workweek for several years. Their success lies in fostering a results-oriented work culture where employees are empowered to manage their schedules and prioritize tasks based on outcomes rather than hours worked. Flexible work arrangements, clear performance metrics, and ongoing feedback mechanisms contribute to high levels of productivity and job satisfaction. Treehouse’s experience underscores the significance of trust, autonomy, and goal alignment in sustaining a shorter workweek model. This tech company has successfully implemented a 4-day workweek for several years, emphasizing results-oriented work and flexible schedules. Employees report higher job satisfaction and productivity.

Failed Implementations

• Perpetual Guardian: While Perpetual Guardian, a New Zealand-based company, faced challenges during its 4-day workweek trial, such as maintaining customer service standards, it also observed benefits like reduced absenteeism and increased employee satisfaction. These nuanced findings underscore the importance of adapting workflows and addressing operational gaps when transitioning to shorter workweeks.

• Amazon Spain: While Amazon has explored flexible work options, including shorter weeks, its implementation in Spain faced criticism and legal challenges due to concerns about workload intensification and inadequate compensation for reduced hours.

Recent Developments

The first four-day work week has been confirmed for an Australian company, after the Australian Services Union (ASU) secured an agreement with Oxfam Australia (February, 2024).

Under the landmark employee bargaining agreement (EBA), permanent full-time employees working 35 hours per week can choose to have weekly hours and entitlements varied to 30 hours per week over four days, without any loss of pay.

Meanwhile, permanent part-time employees will have working hours and entitlements pro-rated against a full-time load of 30 hours. The shakeup will affect almost 100 employees as Oxfam has 97 full-time and 37 part-time works in Australia, of which about 90 are permanent.

ASU Victorian Private Sector Branch secretary, Imogen Sturni, said the trial was a significant win for both workers, and the company.

“A four-day, 30-hour work week is a win-win for Oxfam and its staff,” she said. “It is pleasing to see Oxfam publicly recognising productivity comes in different forms and that work-life balance is essential for workers mental and physical health.”

The UK Trial

A trial of a four-day work week in Britain, billed as the world’s largest, has found that an overwhelming majority of the 61 companies that participated from June to December will keep going with the shorter hours and that most employees were less stressed and had better work-life balance.

That was all while companies reported revenue largely stayed the same during the trial period last year, and even grew compared with the same six months a year earlier, according to findings released.

“We feel really encouraged by the results, which showed the many ways companies were turning the four-day week from a dream into a realistic policy, with multiple benefits,” said David Frayne, research associate at University of Cambridge, who helped lead the team conducting employee interviews for the trial. “We think there is a lot here that ought to motivate other companies and industries to give it a try.”

The research sought to see how the companies from industries spanning marketing to finance to nonprofits, and their 2900 workers would respond to reduced work hours while pay stayed the same. Not surprisingly, employees reported benefits, with 71 per cent less burned out, 39 per cent less stressed and 48 per cent more satisfied with their job than before the trial.

Words of Caution

These trials do not, however, answer all the questions about the viability of the four-day week. There are important questions to be answered:

1. HOW RELIABLE ARE THE RESULTS?

Employers and employees were surveyed at the start, halfway through and at the end of the six-month trials. But only about half of the employees and two-thirds of employers completed the vital final round. So there’s some uncertainty about their representativeness.

2. WERE THERE GENUINE PRODUCTIVITY GAINS?

Did the participating firms demonstrate the key productivity proposition: an increase of almost 20% in output per employee per hour worked? The firms involved were not asked to provide “output” data, just revenue. This may be a reasonable substitute. But it may also have been affected by price movements (inflation was on the march in 2022).

Additionally, or those firms that achieved the claimed productivity increase, how did it come about?

3. WILL WE SEE PRODUCTIVITY GROWTH?

Will the productivity gains be sustainable, and can we expect an increase in productivity? Proponents of the four-day week argue that employees are more productive because they work in a more concentrated way, ignoring distractions. A much longer period than six months will be needed to establish whether this more intense work pattern is sustainable.

More importantly, can we expect increased productivity, a vital consideration for countries with stagnant productivity, such as in the U.K and Australia.

4. WILL THERE BE BENEFITS FOR THE WIDER ECONOMY?

Is the four-day model likely to be applicable across the whole economy? This is the key question, the answer to which will only emerge over time. The organisations involved in the trials were self-selected and unrepresentative of the economy as a whole. They employed mostly office-based workers. Almost four-fifths were in managerial, professional, IT and clerical occupations. Organisations in other sectors, with different occupational profiles, may find increased productivity through more intensive working difficult to emulate.

Take manufacturing: only three firms from this sector were included in the large UK trial. Since manufacturing has been subject to efficiency studies and labour-saving investment for a century or more, an overall 20% “efficiency gain” to be had across the board seems unlikely.

Then there are sectors that provide face-to-face services to the public, often seven days a week. They cannot close for a day, and their work intensity is often governed by health and safety concerns. Reduced hours are unlikely to be covered by individual productivity increases. To maintain operating hours, either staff will have to work overtime or more staff would need to be employed.

View our course on IMPROVING WORKFORCE PRODUCTIVITY

Conclusion

The shift towards a 4-day working week presents opportunities and challenges for organizations and individuals alike. While it can improve productivity, morale, and work-life balance, careful planning, communication, and adaptation are crucial for successful implementation.

Real-world examples highlight the diverse outcomes of such initiatives, emphasizing the need for tailored approaches that consider industry dynamics, employee needs, and organizational goals. By addressing potential risks and leveraging the benefits strategically, organizations can navigate this evolving work paradigm to foster a more sustainable and fulfilling work environment.

Considerations of the implications for the wider economy need to be factored into debates on a 4 day working week, and any impetus to legislate changes must be tempered by consideration of the stagnant and falling productivity rates of many mature western economies.

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