The four-day work week has its positives and challenges, but is it right for your organisation?

In June 2022, 70 UK companies and over 3,300 workers began working a four-day week with no loss of pay in the biggest ever four-day week pilot to take place anywhere in the world so far.

Participating organisations are trialling a four-day week with no loss of pay for employees, based on the principle of the 100:80:100™ model – 100% of the pay for 80% of the time, in exchange for a commitment to maintain at least 100% productivity. (The other model, not part of this trial, is for a four-day week is to work compressed hours, e.g., working 37.5 hours within four days.)

Researchers are working with each participating organisation to measure the impact on productivity in the business and the wellbeing of its workers, as well as the impact on the environment and gender equality. At the halfway point, data shows that productivity has been maintained or improved at the majority of organisations.

Participating organisations were asked to complete a survey midway through the scheme and the responses have been encouraging:

  • 86% of those surveyed said they would keep the four-day week policy going after the trial ends
  • 95% said that productivity had stayed the same or improved during the shorter week

There are arguments for and against the four-day work week. So, what have been the pros and cons so far?

The four-day week positives

  • Happier employees: Studies to date show that employees are happier working a four-day week. Maintaining good mental health is good for businesses, but it also gives people more time to focus on the things they enjoy doing, be it learning a new skill, enjoying a hobby, spending time with their loved ones or enabling them to care for elderly relatives or young dependants. Happier employees are more loyal employees.
  • Fewer health issues and sick days: Happy employees experience fewer health concerns. One in six employees will experience poor mental health, and stress can often manifest itself in physical ways. According to the UK Health and Safety Executive (HSE) in 2020/21 stress, depression or anxiety accounted for 50% of all work-related ill health cases. Having a shorter working week can improve employee wellbeing and reduce sickness.
  • Increase in productivity: Stanford University’s productivity study showed that overworked employees are less productive. When New Zealand based Perpetual Guardian conducted a trial study of a four-day working week, it found that employees maintained the same productivity levels while demonstrating improvements in job satisfaction, teamwork, work/life balance and company loyalty. Employees also claimed they experienced up to 45% less stress. Highly productive countries such as Norway, Denmark, Germany, and the Netherlands have an average working week of 27 hours. By knowing that they have an extra day off, people are more motivated to complete tasks and be more focused.
  • Recruitment and retention: A four-day working week can be a huge part of a company’s Employee Value Proposition; it’s a fantastic attraction and retention tool.
  • Promoting equality: Approximately two million British people are not currently in employment due to childcare responsibilities. 89% of these people are women. A four-day working week would enable some of those individuals to better juggle their families with work commitments.
  • A smaller carbon footprint: Countries with shorter working hours typically have a smaller carbon footprint, so reducing the working week could also have an environmental benefit.

The four-day week challenges

  • One size doesn’t fit all: A four-day week simply won’t work for every business. Introducing a four-day week means adapting the entire operation to this way of working, and for companies which need to operate around the clock it may not be possible without careful planning and additional resources.
  • Longer working hours: To free up one day of time, some employees may feel they need to work additional hours on the four days they are working, in order to perform their tasks. This could counteract the productivity benefit and put employees under more pressure to perform their job in less time. This may have an impact on stress levels as well as productivity.
  • Coverage: Should the whole organisation have a three-day weekend with no one working on Friday, for example, or is it important to ensure ‘normal’ office hours are covered by some employees every day? Organisations considering a four-day work week need to work through all scenarios to decide on the right path for them. It is important to consider how this is approached so as not to impact productivity and customer relations.
  • Holiday entitlement, salary and weekend work: If you switch to a four-day week and keep the standard 37.5 hour working week (compressed hours, i.e., you condense 5 days into 4), your employees’ holiday allowance won’t change. However, if you reduce the number of hours your people are working each week, you may need to re-calculate the holiday they’re entitled to. If weekend work will be required, it’s also important to consider how this could work in practice.

Key points to consider about the four-day work week

If you’ve been thinking about changing to a four-day working week, here are some key points to consider when making the move:

  • Consider whether to use the 100:80:100™ model or compressed hours
  • Consider how part-time employees will be affected and any adjustments that may need to be made to their working patterns
  • Prepare the ground for the four-day week; consider running a short trial
  • Build employee trust in a proposed four-day week through good, clear communication
  • Ensure the business objectives are widely understood from employee to Board level
  • Communicate with your customers, suppliers etc
  • Embrace time as the scarce resource in your business, exercising care in how it’s used
  • Do your homework, learn from others, know what works in your industry
  • Ensure you obtain appropriate legal advice
  • Develop a productivity policy
  • Concentrate on the value of output in the given timeframe
  • For office-based staff experiment with models of working which incorporate regular breaks, to reduce screen time

Let the trial and policy be led by those who will implement them – the workers – and understand that not all managers or employees will embrace or find it easy to adapt to a productivity policy. It may not suit all staff, making an opt-in model necessary. Workers must understand from the outset that failure to maintain productivity at the mutually agreed levels will result in the loss of the four-day week.

The four-day week is just as viable in non-office-based businesses; simply start by consulting your staff as to the work-week structure which works best for their life outside work.

If you are considering a four-day work week at your business and are looking for guidance, feel free to get in touch at info@peoplebusiness.co.uk