Four-day work week: does it make sense?

Does the four-day work week make sense? Employers have considered you for many roles. After all, does it matter how many days a week your team works or the productivity within those hours?

Traditional management and scheduling models are being challenged by the rapid adoption of remote work during Covid-19. And some companies are asking this question, once again.

Companies have advantages and concerns when considering a four-day work week. For some administrative and service roles, a four-day work week may not be possible (for example, if the person is responsible for technical support or customer services).

But what about professionals who have a fixed number of weekly responsibilities, which can end at any time of the week? Does it make sense to keep them scheduled in the 9am-5pm model, with two days off per week? Or are some of your top performers able to condense their productivity to accomplish everything needed in four days?

What the Covid-19 health emergency has taught us is that any company's workforce must be geographically fluid. We cannot assume that office work will also be an option. With new health threats ahead, companies are closely monitoring work-from-home performance. And the plausibility of co-working can see office space shared between many professionals, across a variety of different work schedules.

A New Zealand study finds that productivity increased with a four-day work week. A financial services company called Perpetual guardian took the leap. The company had many employees who were used to working from home. And that accommodation didn't change productivity levels: it improved them.

The next step for Perpetual Guardian was to implement a four-day work week, instead of the traditional five-day schedule. The company had 240 employees. The University of Auckland and Auckland University of Technology monitored the pilot programme. Staff scores were found to increase in areas including stimulation, empowerment, commitment and leadership skills.

The response from employees and managers was positive. Perpetual Guardian experienced no loss in productivity and an increase in employee satisfaction and loyalty. Work-related stress levels dropped from 45% to 38%, according to the employee survey. Work-life balance scores increased astronomically, from 54% to 78%.

From the pilot project, Andrew Barnes and Stephanie Jones wrote a book. In "The 4-day week: how the flexible working revolution can increase productivity, profitability and wellbeing, and help create a sustainable future“is a valuable resource for managers.

The risks of implementing a four-day work week

Creating a new work schedule is neither quick nor easy. First, management must determine what percentage of employees would be eligible to participate in a four-day work week. It will not be practical to apply it unilaterally to all positions within the organization, which could also present an HR challenge.

Managers can be pragmatic in determining which employees could switch to a new four-day schedule (ten hours per day). It is an opportunity that would be coveted by all employees. An innovative program should be started with a few departments first to evaluate what impact (if any) the change would have on teamwork and productivity.

The administrative cost of making the change could be large. If successful, implementing a four-day workweek could lead to increased performance, productivity, and reduced operating expenses, or it could be an expensive program to launch that doesn't work well for your business.

If you think switching to a four-day structure is difficult, try moving employees back to a standard five-day-a-week scheduled structure. It could result in significant demoralization of your team and even the loss of high-performing employees.

However, the most important consideration is labor laws. Even if you have buy-in from all employees in your organization, you may be at risk for wage and hour violations. If you are considering the change, you should consult a labor or employment attorney. It is possible to implement continental changes (this is frequently done in healthcare, emergency, and law enforcement settings), but it will require legal protections and a framework to protect your business from liability.

Advantages of Modifying the Traditional Five-Day Work Week

The benefits for employees are clear. Your staff can enjoy savings on travel costs and other expenses associated with working in the office. The clearest benefit for employees is, of course, more time at home for family, hobbies, rest and relaxation.

But the four-day workweek also presents some very tangible cost savings and cultural advantages for companies. It can be an effective way to significantly reduce expenses. At a time when all companies are looking to reduce costs.

1. Your business will attract more millennials

Have you been struggling to attract younger, qualified applicants? Millennial professionals are quite different from Generation X employees. They value work-life balance. They are less materialistic and more motivated by a qualitative standard of living, one that does not focus exclusively on their career.

Millennials can be competitive about career advancement and take pride in working for high-growth organizations. But traditionally, millennials are the least likely to spend every weekend working on side projects. They are fundamentally grounded and champion their free time with family and friends.

Millennials would generally be receptive to four-hour and ten-hour days to allow for a three-day weekend each week. Like other employees, they would consider it an attractive perk and can help employers attract, recruit and retain millennial talent.

Would they let an employer allow full-time pay for a modified four-day workweek? Unlikely. For companies that have struggled with talent retention, it may be a viable solution. It is such a desirable adaptation that employees can remain engaged and loyal to their organization.

2. Savings in production and operation costs

Many global companies have experimented with the four-day work week. One of the advantages they have reported is a significant savings in the cost of operations. This can mean reduced energy use (which increases when 50% or more of employees work remotely). It can also allow businesses to reduce the size of the commercial space they rent.

In some markets, commercial leasing space is expensive. During the Covid-19 pandemic, as companies have been forced to transition employees to working remotely, space is underutilized. This creates an opportunity to use office space more efficiently. In some cases, reduce the size of the headquarters location and eliminate additional space that may have been rented to accommodate new workstations.

Flexible scheduling can be one of the most valuable benefits and accommodations an employer can offer. And with more time away from work (three days a week), some employers have also seen a significant reduction in the number of absent days. Having every Friday off, for example, allows employees to schedule medical appointments, meaning they don't have to use a vacation day for self-care activities.

Before implementing a four-day work week across your organization, you may want to test the opportunity with hiring. If your own internal pilot program is successful, consider expanding the four-day, forty-hour workweek to business units that are more functionally suited to flexible scheduling.

At Recruita, we are leaders in human talent management. We are ready to help you transition to a four-day work week: contact us today.