The Four-Day Workweek: A Change in the World of Employment
The regular workweek isn’t so great anymore. A big change could make things better for all of us.
If there’s a way to make work better and make everyone happier and more productive, why not give it a try? That’s the idea at Kickstarter, where they’ve been testing a four-day workweek for the past six months, and employees still get their full pay.
Wolf Owczarek, who runs operations at Kickstarter, says, “Our team is happier and more energised after a three-day weekend to recharge. And our company is getting more done.”
This might sound strange, but the idea is that employees can get the same amount of work done in less time. It could be the solution to two big problems: fixing the not-so-great balance between work and life and figuring out how to make companies more productive.
Inspired by research and successful examples from places like Iceland, Japan, and New Zealand, companies all over the world are saying goodbye to the traditional Monday to Friday workweek.
Embracing a Fresh Approach to Work
In November 2021, Atom Bank in the UK introduced a four-day, 32-hour workweek with no pay reduction for its employees. The results were remarkable: a 500% increase in job applications and a staggering 92% boost in productivity by August 2022. A survey showed that 91% of staff could complete their tasks within four days.
Now, other companies are eager to replicate these achievements. In June 2022, a coalition of 70 UK companies, including 3,300 employers, launched one of the largest workplace experiments in a generation. Led by 4 Day Week Global, in collaboration with UK think-tank Autonomy, and researchers from esteemed institutions like Cambridge University, Oxford University, and Boston College.
These six-month-long trials aim to investigate the potential positive impacts of a four-day workweek on productivity, well-being, work-life balance, and broader societal issues like job equity and carbon emissions.
The trials are centered on the innovative 100/80/100 principle: employees receive full 100% pay for working 80% of their usual hours, all while committing to maintain 100% productivity. Similar experiments are concurrently taking place in the United States and various other locations. If successful, these trials could usher in the most substantial changes to traditional work models in nearly a century.
At the halfway point of the UK trials, a promising 88% of respondents reported that the four-day workweek was benefiting their businesses. Nearly half (46%) mentioned that productivity had remained at the same level, while 34% noted a slight improvement, & 15% reported a significant boost in productivity since implementing the four-day workweek.
According to Managing Director Jo Burns-Russell, Amplitude’s transition to a four-day workweek has been remarkably smooth. All ongoing projects have stayed on course, and employees have relished the extra time to pursue their personal interests, which ultimately benefits the company.
Burns-Russell notes, “Everybody’s got a side hustle. Everybody’s into different things – which is great, because we’re a creative industry and fully encourage and support that as much as possible.” In Amplitude’s pilot program, employees can choose either Wednesday or Friday as their day off. The choice is almost evenly split: some opt for Fridays to enjoy extended weekends, while others select Wednesdays to dedicate time to personal projects.
People are using this extra day for a variety of creative endeavors, including game design, novel writing, and producing plays. Burns-Russell believes this is advantageous for the company: “That’s only going to benefit us because the more they cross-skill and go off to explore these things, they’ll come back to me as better creatives… Creativity needs space. Creativity needs downtime. You’re not always going to be at your most creative when you’re sitting in front of a computer.”
Work, rest, play
“While businesses can gain advantages from switching to a four-day workweek, we shouldn’t overlook how it affects employees’ balance between work and personal life, as well as their overall well-being.
Joe O’Connor, the outgoing CEO of 4 Day Week Global, emphasises that this change is truly transformative for employees, and it’s essential to keep that in mind. He believes that the idea of a four-day workweek has gone from being just a dream to something very achievable, especially because people now value their personal needs more than ever due to the pandemic.
O’Connor adds, ‘Some of the stories we hear about what this means for people are incredibly powerful. It could be about picking up kids from school, spending more time with elderly family members, learning new skills, or enjoying hobbies. This change makes a significant and positive difference in people’s lives.’
Employees in companies with a four-day workweek also report having more time to relax, handle errands, and engage in rejuvenating activities.
Christina Medeiros, a trust and safety analyst at Kickstarter and a mother of three, shares how the four-day workweek has made a big difference in her life. She can now schedule doctor appointments, complete errands, and, most importantly, enjoy more quality time with her daughters.
Brooke McDaniels, a marketing automation manager at Kickstarter, talks about the benefits of having Fridays off. This extra day allows her to exercise, take care of household chores, and handle other life responsibilities, so that she can fully enjoy her weekends on Saturday and Sunday. She adds that having that extra day to tackle tasks that would otherwise occupy her mind helps her stay more focused on her work during the week.
A fairer work model
The four-day workweek holds promise in addressing the gender pay gap, a challenge that researchers and economists are optimistic about.
The ‘motherhood penalty’ significantly contributes to the pay gap between men and women. In the UK, for example, research from the Institute for Fiscal Studies in 2022 revealed that the wage gap starts at 10% before a woman has her first child and increases to 33% when the child is 12 years old.
Mothers often return to work on reduced hours and lower salaries, despite producing similar output as their full-time male colleagues. By introducing a universal four-day workweek, it could enhance earning potential for mothers entering the workforce.
India Burgess, head of advocacy at Autonomy, explains, “A four-day week for everyone would create more opportunities for mothers or women to have better-paid part-time jobs. If your pro-rata salary increases for a two-day week, it’s equivalent to half a full-time job.”
Additionally, a four-day workweek could lead to a fairer distribution of ‘reproductive labor’ when both parents have an extra day at home each week. This helps evenly divide household chores & responsibilities, especially if days off align differently for each parent.
Overall, universalising reduced work time can promote workplace equality by offering more opportunities for women to pursue senior leadership roles and encouraging men to assume a greater share of duties, which are often disproportionately shouldered by women.
Another enticing aspect of the four-day workweek for business leaders is its effectiveness as a recruitment tool. As competition for skilled talent intensifies in industries like tech, companies are exploring innovative ways to attract and retain employees.
Apart from its numerous advantages, a four-day workweek could also have significant environmental benefits by potentially reducing carbon emissions linked to commuting. Although more research is required to fully understand the environmental impact of reduced work hours, a 2021 UK analysis suggested that adopting a four-day workweek could lower the country’s carbon footprint by 21.3% annually.
Additionally, a shorter workweek could promote more sustainable habits. With less time dedicated to work, individuals might have more opportunities to cook meals at home, reducing their reliance on fast food or junk food. Less time spent in traffic or navigating congested streets would mean reduced exposure to harmful pollutants.
The extra day off could enable people to engage in exercise, volunteer, contribute to their communities, or simply rest – all of which benefit both individuals and society at large.
No silver bullet
While the idea of a four-day workweek is appealing and success stories abound, it’s important to recognise that it comes with its own set of challenges. Some companies may discover that shortening the workweek introduces new difficulties that offset the benefits they seek to achieve.
One challenge lies in customer service. If everyone is off on Fridays, addressing urgent customer or client needs on a Thursday evening can be problematic. Delayed responses may lead to dissatisfaction.
Moreover, a shorter workweek can mean less time for informal interactions with colleagues, which are crucial for workplace culture and fostering a sense of belonging within a team.
Another concern is the potential for increased work intensity if employers don’t adjust work processes and management practices for a four-day week. The introduction of detailed time tracking or new performance metrics can add stress to workers.
Furthermore, the four-day workweek may not be feasible or practical for all sectors. While knowledge workers can adapt to it, certain industries may face significant challenges in implementing it.
It’s essential to recognise that a four-day workweek is not a universal solution to all economic issues. It won’t address issues like zero-hours contracts that provide insecure employment. Implementing such a policy would require a broader, national approach rather than a sector-by-sector solution.
For companies successfully implementing a four-day workweek, there is a legitimate concern about the possibility of long-term productivity backsliding. The incentive of a shorter workweek can motivate employees to work harder, especially when they fear losing this perk. Therefore, the initial positive results from UK trials may not necessarily guarantee sustained productivity gains.
However, evidence thus far suggests that the benefits of increased leisure time from a shorter workweek extend beyond the short-term. Companies that have operated with shorter workweeks for years continue to experience positive outcomes.
India Burgess, who herself follows a four-day workweek, finds it challenging to dispute the concept. She notes that since the onset of COVID-19, there has been a significant focus on mental health and well-being in the business world. Many organisations recognise the potential for a four-day workweek to make a meaningful difference in their employees’ lives, which, in turn, can have a positive impact on their businesses.
Companies participating in the UK trials have emphasised their commitment to employee well-being. If a four-day workweek were to prove detrimental to employees, businesses would be willing to revert to the traditional five-day week.
This commitment to employee welfare would likely hold true in the short term or over the long term, as no company wants to compromise productivity, retention, or revenue when a proven alternative is available.
What’s crucial is that employers take action rather than maintaining the current culture of overwork and digital overload. According to Pang, adopting a four-day workweek carries no significant drawbacks for companies, whether in periods of economic growth or recession. The benefits of reduced working hours are evident regardless of the economic cycle.
Pang concludes, “Managing the transition is a challenge, but it’s clear that, in the long run, persistent issues like burnout and gender disparity cannot be solved by increasing working hours.”