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The rise of the 4-day work week

The rise of the 4-day work week

As a business owner or an employee, what are your thoughts on a four-day work week? Do you think this concept is the future of work? Or a concept that could work in your own business? In this blog, we discuss the rise of this alternate work week, and look at how many companies have turned this dream into a reality.

The implementation of a four-day work week is a notion that has been on the rise in the last decade, but never more so since the Corona Virus pandemic hit – which saw an upending of well-established work norms and practices around the world. Many companies used this opportunity to reexamine their practices and make big structural changes to benefit their businesses, as well as the lives of their employees. The pandemic saw companies challenge traditional business practices and prompt questions along the lines of, “It doesn’t have to be this way!” or “Let’s find a solution that best suits the needs of our business.” This type of thinking has led to an increased number of employees still remote working on flexible schedules, even though the crisis of the pandemic has ended.

One of the first cases of a shortened work week can be attributed to Henry Ford, where he introduced a five-day work week instead of six days, his reason being that having an extra day off would boost the energy levels of his employees and therefore increase their productivity. This was soon mandated across America, and the world – seeing a 50-hour week cut down to 44 hours, and then 40 hours. Now we see a big movement and the idea of a four-day work week gaining momentum. A large part of this “break” from the traditional office setting is rooted in the flexibility of work that arose during the pandemic. Seemingly, the power has shifted from the employer to the employee, and employees are seen to be invested in a greater work/life balance, with work time reduction. This is evident as thousands of companies around the world are reducing work time, one way or another. Even countries are adopting this approach. In 2021, Japan proposed a four-day work week in its annual economic policy guidelines and in the same year the United Arab Emirates announced it would be transitioning from a five-day work week to a four-and-a-half-day work week. At this stage, tech companies are the leaders in switching to this new model, but there are a number of finance, marketing and design companies that are following suit.

A study by non-profit company, “4 Day Week Global” recently conducted a four-day week pilot program in which thirty-three companies from countries such as Australia, Ireland and the United States of America, with over 1 000 employees, participated in the six month trial program. At the end of the trial, many companies expressed an extreme satisfaction with the results of the program, namely in the overall productivity and performance of their employees. Most companies saw an increase in revenue during the trial period, even when comparing it to the same months the previous year. 82% of employees stated that their general health and happiness had improved, as well as their overall moral and attitude towards their jobs and the companies that employed them. Some larger companies saw a significant reduction in costs such as electricity and other services. This is interesting as countries with shorter working hours typically have a smaller carbon footprint. So reducing our work week from five to four days could have an environmental benefit too.

The results from the study should not be surprising given that some of the world’s most productive countries (Norway, Denmark, Germany and the Netherlands) on average work around 27 hours a week -which is close to the number of hours in a four-day work week.

An example of a company that is thriving under a four-day work week is a New Zealand based company, Perpetual Guardian. Through a trial it was seen that not only did employees maintain the same productivity level, but they also showed improvements in job satisfaction, teamwork, work/life balance and company loyalty. Employees also experienced less stress with a decrease of 45% to 38%.

This being said, the model does not work for all companies. A few companies complained that instead of enhancing employee well-being, it was doing the opposite. Reports that placing a limit on hours worked was adding pressure to employees to meet deadlines and they ended up feeling more stressed. Although some employees embrace flexibility, some expressed that the structure unsettled those who craved stability. Implementing a four-day work week can be difficult as it requires the right support, technology and workplace culture. Unavoidably, new changes will encounter some challenges and disadvantages. Many confused the concept of a four- day work week with compressed hours. Employees who are expected to still work 35 hours, but across 4 days will actually show decreased levels of productivity and it can also impact employees’ engagement, work-life balance and overall happiness.

One of the most important points to arise from the trial program was that coordination was key to effectively navigate a four-day work week. Businesses need to be very attentive to schedules, and knowing when certain individuals are working and when they are not, in order to ensure that customers needs are always met.

An example of a company that is thriving under a four-day work week is a New Zealand based company, Perpetual Guardian. Through a trial it was seen that not only did employees maintain the same productivity level, but they also showed improvements in job satisfaction, teamwork, work/life balance and company loyalty. Employees also experienced less stress with a decrease of 45% to 38%.

This being said, the model does not work for all companies. A few companies complained that instead of enhancing employee well-being, it was doing the opposite. Reports that placing a limit on hours worked was adding pressure to employees to meet deadlines and they ended up feeling more stressed. Although some employees embrace flexibility, some expressed that the structure unsettled those who craved stability. Implementing a four-day work week can be difficult as it requires the right support, technology and workplace culture. Unavoidably, new changes will encounter some challenges and disadvantages. Many confused the concept of a four- day work week with compressed hours. Employees who are expected to still work 35 hours, but across 4 days will actually show decreased levels of productivity and it can also impact employees’ engagement, work-life balance and overall happiness.

One of the most important points to arise from the trial program was that coordination was key to effectively navigate a four-day work week. Businesses need to be very attentive to schedules, and knowing when certain individuals are working and when they are not, in order to ensure that customers needs are always met.

How does a four-day work week actually work?

If you are wondering how this model is implemented, every company has its own system but there are a few similarities. A general 40-day work week is cut down to 32 hours per week, with no salary reduction. Essentially, employees are working for four-day while being paid for five. In some cases, the employee can choose the days they do not wish to work, while some companies completely shut-down on a certain day, for example every Friday.

This strategy offers a creative solution and if implemented effectively the objectives of the company should not be compromised. If this model reflects that the productivity of the business is not affected, as well as customer needs not neglected, and it brings boosts moral and well-being of employees, then it seems like a favorable option, and something to be considered by all business owners…

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We are Connect Space! Humans spend so much of their lives working, striving to find purpose and create a meaningful impact. The world of work has changed so drastically, yet one truth has endured – humanity is better when we work together. With a focus on creating collaborative workspaces, at Connect Space we tailor our space offerings to our Client’s needs, making areas that are unavoidably productive with agreement terms that suit your business.

Need an hourly rate for hot desking? We can do that. Need a weekly solution while you’re in town? We have you covered. We pride ourselves in going the extra mile to formulate the best agreements with our so they can focus on what they do best.

Our 3 locations in Musgrave, Umhlanga and Mount Edgecombe are conveniently located close to major transport routes. We offer a prestigious address that includes serviced offices, meeting rooms and coworking spaces, with fast and reliable wifi and shared break-out areas – perfect for meeting others and collaboration.

Better together – Let’s connect and see how we can accommodate you and your business’s needs!