Opinion

The Four-day Week – Key Considerations for Employers

Posted By:
Clarendon Executive

7th Nov 2024

Rethinking the Workweek: Is Now the Time for a Revolution in How We Organize Work?

In the years since the pandemic, the way we view work has fundamentally shifted. Many of us have come to realize that there are more important things than work, yet work remains essential. It funds our lifestyles, keeps us connected to broader societal experiences, and provides a sense of purpose and community.

As HR professionals, we’re now tasked with responding to these changing attitudes by exploring new initiatives such as “hybrid working,” flexible working hours, and even the adoption of a four-day week.

These ideas, once considered niche and applicable only to certain sectors, are now gaining broader attention. The shift toward blending human and technological solutions has made these concepts more feasible across various industries.

Historically, revolutions in work organization, such as the introduction of the production line, have significantly transformed business operations. Now, the question is whether we’re on the brink of another such revolution.

The Challenge to the Standard Workweek

For decades, the standard workweek—whether 40 hours or 37.5 hours, typically spread over Monday to Friday—has been a fixture of the modern workplace. These arrangements evolved from the needs of industrial processes, where optimizing costs and efficiency was paramount.

However, as workplaces become increasingly digital and services more diversified, is the traditional five-day workweek still necessary?

Recent years have seen growing support for a more flexible approach to work hours. Trade unions and employee advocates have long argued that rigid work schedules are outdated, pointing to successful reforms such as the introduction of the Minimum Wage, parental leave, and part-time work rights. These changes were initially met with resistance but ultimately led to a more equitable and balanced workforce.

Interestingly, data from the UK’s Office for National Statistics (ONS) shows that the average weekly hours for full-time workers decreased from 38.1 in 1992 to 36.1 by August 2021—a reduction of 5.2%.

This trend suggests that we’re already moving toward a shorter workweek, albeit gradually. However, much of the discussion around the four-day week assumes a 40-hour workweek, whether compressed into four days or reduced to 32 hours with the same pay.

The Four-Day Week: Benefits and Challenges

Studies from Sweden, New Zealand, and the USA have consistently reported positive outcomes from trials of the four-day workweek. Employees report better work-life balance, reduced stress, and higher engagement levels. These results seem almost too good to be true, leading many to ask: Why wouldn’t every business adopt this model?

However, there are caveats. For instance, Utah State’s experiment with a four-day week in 2007 was ultimately discontinued due to public dissatisfaction with the unavailability of services on Fridays.

This example underscores the importance of considering customer needs and industry-specific challenges when contemplating such a shift.

Key Considerations for Businesses

Before implementing a four-day workweek, companies should consider several critical factors:

1. Strategic Competitive Advantage

Is the goal to attract top talent in a competitive market, or is the motivation simply to follow a trend? It’s essential to have clear strategic reasons and success metrics.

Are you aiming to improve employee engagement and well-being, or to boost productivity? A well-defined business case is crucial.

2. Performance Objectives

The assumption that the same amount of work can be completed in four days instead of five is often cited as a benefit of the four-day week. However, this raises questions about long-term productivity.

Is it fair to ask employees to maintain the same output in fewer hours, and what does that say about your company’s value system? It’s also important to consider whether productivity gains reported in pilot programs are sustainable.

3. Cultural Fit

A four-day workweek may not suit every company culture. For instance, environments that prioritize long hours and presenteeism may struggle to adapt. However, companies that value work-life balance and employee well-being might find this approach aligns well with their culture and values.

4. Impact on Current Part-Time Staff and Traditionalists

Introducing a four-day week could have unintended consequences for those who prefer a traditional five-day schedule or rely on work for social interaction.

Additionally, care must be taken to avoid creating pay disparities between those moving to a four-day week and those already working reduced hours. Companies need to carefully manage the transition to prevent industrial relations issues and ensure pay equity.

5. Customer Care

While a four-day workweek may benefit employees, businesses must ensure they can still meet customer needs, possibly by maintaining a presence over five or even seven days through hybrid or virtual models.

The long-term benefits to employees and the environment must not come at the cost of losing customers to competitors who can offer more continuous service.

Moving Forward: Pilot Studies and Training

To test the viability of a four-day workweek, companies should consider conducting pilot studies. These trials can help identify potential challenges and ensure the new model fits the company’s strategic goals and culture.

Additionally, providing employees with training in time management and productivity techniques will be crucial to maximizing the benefits of a shorter workweek.

In conclusion, while the four-day workweek presents exciting possibilities for improving work-life balance and employee well-being, its success will depend on careful planning and consideration of the unique needs of each business.

By taking a strategic and thoughtful approach, companies can ensure they make the most of this opportunity to innovate and improve the workplace.