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The four-day workweek paradox

Shorten the week, and productivity may go up instead of down. But getting those results takes careful program design.

In the summer of 2019, Microsoft Japan implemented a pilot project – the Work-Life Choice Challenge – providing its 2,300 employees with the opportunity to work a four-day workweek with Fridays off. The specific changes to the work schedule included giving employees paid leave on Fridays, encouraging shorter meetings (30 minutes or less), and promoting remote communication instead of face-to-face meetings. The pilot project lasted the entire month of August. Despite a reduction in workdays, the company reported a 40% boost in productivity. They were also able to conserve resources, like electricity consumption, which dropped by 23%. Based on the results of the pilot, Microsoft Japan has continued to offer a four-day week.

That, of course, was before the pandemic knocked over work models, norms, preconceived notions, and expectations. Since then, interest in the idea of a shorter workweek has only gained momentum.

A global study by nonprofit 4 Day Week Global and researchers from Boston College, University College Dublin, and Cambridge University, has shown that most of the 33 companies and 903 employees who took part in the four-day workweek trials are unlikely to return to a standard five-day workweek. The majority of the firms were in the United States and Ireland, although trials have also taken place in the UK, Japan, Iceland, Spain, and New Zealand. Microsoft Japan claimed productivity rose by just under 40% during their four-day workweek pilot, while a trial in Iceland between 2015 and 2019 saw 2,500 workers participate with well-being increasing in areas such as stress, burnout, health, and work-life balance.

It may not work for every type of job or industry. On the other hand, some countries – well, Belgium and Iceland, so far – may require that most types of companies offer employees the option. Regardless, given today’s burgeoning demand for workers with specialized skills, it pays to explore the potential of a four-day week to attract and keep talent.

There are several options for structuring this work model to meet your organizational and employee needs. The primary concern organizational leaders express is productivity – ensuring that employees can, and will, accomplish the same (or more), whether they’re working the same hours in fewer days, or fewer hours overall. Some companies also fret over responsiveness to customers, although this often can be addressed with overlapping work schedules. However, there is a wide range of variables to consider and a lot of complexity in implementation.

Since it’s not a decision to take lightly, this article walks through evidence of the potential benefits and downsides, different ways to structure work requirements and insights into how to increase your chances of success. These range from the seemingly obvious (train your managers!) to some easier to overlook (such as actively encouraging paid time off).

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Why consider a four-day workweek?

It’s interesting to note and may come as a surprise, but the five-day workweek really hasn’t been around that long. It was promoted in the 1920s by Henry Ford, who felt that giving people more free time – not having them work every day – would help spur the economy. In 1930, economist John Maynard Keynes predicted that by 2030 people might only work 15 hours per week. That prediction appears quite off track so far, but the idea of working fewer hours while accomplishing the same (or even better) outcomes has lingered.

In fact, there are many who believe that “work will expand to fill the time allotted for its completion”– a phenomenon referred to as Parkinson’s Law. In this view, even in models with fewer total hours worked, employees may accomplish just as much as before, and be happier doing it.

It’s not a crazy notion. Both research and practical experience with four-day workweek models point to real benefits for organizations, says Lili Tenney, director of outreach and programs at the Center for Health, Work & Environment at the Colorado School of Public Health, and a renowned expert in workplace productivity. These include employee satisfaction, heightened productivity, and cost savings. Let’s dig into them.

Increased employee satisfaction and well-being

Tenney emphasizes that a four-day workweek can enhance employee satisfaction and overall well-being. Employees may experience reduced stress levels, increased motivation, and a stronger sense of work-life balance. This leads to higher job satisfaction, improved mental health, and decreased burnout rates. Consequently, organizations witness higher employee retention rates and attract top talent.

A study in the UK found that people who worked the equivalent of four days instead of five “experienced decreased absenteeism (65%) and reduced employee turnover (57%), while employees benefited from improved well-being, including reduced stress (39%) and levels of burnout (71%). These companies also maintained or even increased revenue (by 1.4%), despite the significant reduction in work hours.”

Heightened productivity

Contrary to concerns about productivity loss, Tenney highlights the research findings that a condensed workweek can actually boost productivity. Employees can become more focused, driven, and efficient, utilizing their limited time wisely. The compressed schedule encourages individuals to prioritize tasks, eliminate time-wasting activities, and seek innovative solutions to streamline workflows. In addition, the increased downtime allows employees to recharge, resulting in improved concentration and creativity.

Improved work-life balance

An obvious corollary to a four-day workweek is the extra day off, often creating three-day weekends. This gives employees more time for personal pursuits, family commitments, travel, or leisure activities. This enhanced balance positively affects their mental and physical well-being, fostering higher levels of engagement and satisfaction when they return to work. Employers who prioritize work-life balance experience reduced absenteeism and increased employee loyalty.

This is especially important for working parents, says Kati Lechner, director of people operations and talent strategies at Wonderlic, a company known for its success with flexible work arrangements. “It eliminates the need for an extra day of childcare when kids aren’t in school,” she notes. In addition, she says, the combination of flexible policies and the four-day workweek “supports employees’ unique needs in the workplace by allowing for better work-life integration for everyone, supporting our commitment to diversity and inclusion.”

Potential cost savings

Tenney notes that there also are potential cost savings associated with a shorter workweek. These include reduced energy consumption, lower utility bills, decreased office supply expenses, and fewer employee-related costs, such as transportation and meals. In addition, the reduced turnover and improved employee satisfaction lead to savings in recruitment and training.

Research tells us that employees are coming to demand the type of flexibility a four-day workweek can provide. Mercer research, for instance, indicates that “one in three employees would give up a pay increase this year in return for a fully flexible or compressed workweek. With cost-of-living concerns and an uncertain economic outlook, offering time off could be one way for employers to tackle wage inflation.” Mercer’s 2022–2023 Global Talent Trends Study collected insights from 11,000 executives, HR leaders, and workers across 16 countries in 2022 and 2023.

While there are certainly still companies that are resistant to a move to a shorter workweek or other flexible scheduling options, they may ultimately be forced to move in this direction, says Lechner. “Flexibility in work arrangements is becoming increasingly important for attracting and retaining talent,” she says. In fact, Wonderlic has received as many as 6,000 applicants for a single job posting, indicating, Lechner believes, the high demand for the type of flexibility the company provides.

In addition, the United States and other countries are introducing regulations and requirements for organizations to at least consider the four-day workweek option. According to Stateline, "In the past three years, at least six states – California, Hawaii, Maryland, New York, Pennsylvania, and Washington – have considered bills to mandate, incentivize, or allow the switch to a four-day week.”

Short weeks aren’t a one-size-fits-all proposition. Organizations can consider a number of approaches in the search for the right workweek structure for their needs.

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Different ways to structure work

If a five-day week seems onerous, consider the “996” working hour system common in parts of Asia until quite recently: employees worked from 9 a.m. to 9 p.m., six days a week.

The Chinese Supreme Court deemed this practice illegal in 2021. And overall, long workweeks are becoming less common around the globe.

Even in Asia, CNBC notes, some countries – Singapore, Vietnam, Thailand, the Philippines, and Indonesia – are open to a four-day week. And in Europe, the concept is quite popular. Iceland, in fact, led a large four-day workweek pilot between 2015 and 2019, with very positive results. “As of 2022, workers represented by unions in Iceland – close to 90% of the workforce – have won the right to request a shorter workweek,” CNBC reports. Iceland isn’t the only country where unions are leading the switch – the UK, Portugal, Spain, and others are also moving in this direction, or testing through pilots. The United States lags well behind in corporate enthusiasm.

So how much do employees actually work during these four-day weeks? Programs can take on a number of different variations depending on the organization and its needs. Common forms include:

There are many tradeoffs to consider. For example, staggered schedules might mean the office remains open on all weekdays, yielding less energy savings. This might not be the driving factor for choosing one model over another, but it could be important in getting a full, accurate picture of the results.

Each company will need to determine what works best for them, given their legal requirements, industry, structure, employee, and customer needs. The way this looks in most settings is that the workweek is shortened to 32 hours instead of the traditional 40, while each employee’s workload remains the same. The idea is that without typical workplace distractions and fewer personal stressors (commute times, fewer opportunities for work-life balance, etc.) productivity gains will help to cover those eight hours.

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Making it happen

One of the greatest barriers to moving to a four-day workweek is internal resistance. Organizational leaders, and managers in particular, can be resistant to flexibility of work hours; their primary concern is the fear of decreased productivity.

Just as Microsoft Japan did, starting with a pilot can be a good way to dip your toes into the reality of a four-day workweek while identifying potential barriers and how to get around them. That’s what Wonderlic did when it embarked on its shorter workweek journey, Lechner says. They conducted their pilot in the summer of 2021 and have continued to operate in a four-day workweek model. They’ve experienced an increase in employee engagement and happiness without a significant drop in productivity and found that flexibility helps to attract new candidates to the organization.

Lechner and other veterans of the shift offer the following strategies effectively implementing a four-day workweek structure.

Pilot first

Mini experiments, or pilots, can help organizations see exactly how a four-day workweek will affect their organizations and their productivity, easing resistance and revealing processes and supporting decisions that can make the idea work better. Every organization is different, and a pilot project, like Microsoft Japan’s, will help uncover unique requirements.

Equip your managers to keep their teams humming

Tackling the many misconceptions about the four-day workweek can be an important first step in getting managers on board. For example, the four-day workweek doesn’t necessarily mean all employees will get Friday or Monday off. But it could mean that companies get the same amount of productivity out of people in fewer hours by making schedules more flexible, giving people more personal and vacation time, making allowances for family duties, and so on. And is particularly important for managers to understand – that they are still in control. Managers often report a sense of being “out of sight, out of mind” when seeing workers less often and feel a loss of control. In truth, of course, that’s not the case. What it may be, though, is a sign that managers aren’t adept at this new type of management and may not be evaluating employee performance based on objective outcomes. They may need training and support to help them feel more confident managing in a condensed work week.

At Wonderlic, Lechner says, managers implemented different strategies, such as rotating schedules or skeleton crews to address customer support needs on employees’ designated days off. Deliberate planning of meetings and organizational sessions was crucial to optimize time and collaboration, she says.

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Ensure the right balance of a focus on short- and long-term objectives

There’s an important balance to be struck between productivity and innovation, says Tenney, who refers to this as the “mere urgency effect” – a phenomenon where people focus more on urgent, short-term tasks, neglecting long-term more strategic thinking and innovation. The creative and innovative nature of work is important, Tenney says. In order to nurture that, employees need unstructured, or free time.

“Focus on productivity measures, but not everything needs to be structured – provide flexibility to allow employees to connect with others,” Tenney advises. One way to do this, she suggests, is to provide employees the flexibility to block time on their calendars to provide them the opportunity to focus on what she calls “deep work.”

Provide time management training and resources for employees

Time management isn’t a skill that comes naturally to all employees. Companies can benefit from providing time management training and ongoing resources for employees to help them learn about and adopt best practices for being as productive as possible. This might include formal training as well as support groups where employees can share their own best practices with others.

Encourage PTO

Another must: encouraging employees to take time off and use their paid time off (PTO) to prevent burnout, which is a real risk. “We have to be deliberate about encouraging people to take their time off,” Lechner says. “We’ve seen PTO usage drop dramatically, and it’s important for people to take breaks to be fully present at work.”

Evaluate, learn, and adjust

In some cases, Tenney says, companies may try a four-day workweek only to realize it just wasn’t right for them. She cites a company that attempted to implement a four-day workweek but eventually found it challenging: employees ended up working more hours, and the fluctuating demands of the workload caused stress levels to become unpredictable. As a result, the company decided to revert to a five-day workweek with flexible schedules, allowing employees to work fewer than 40 hours per week while still prioritizing productivity focused on performance goals versus hours worked.

Others have also found that they couldn’t make a four-day workweek work. Lachy Gray, managing director at Yarno, for instance, shared his company’s experience in a post on the company’s website saying: “We wanted it to work because we believe in the principles behind it. But we have to face the facts, that it's not working as we thought it would.” The company is going back to a five-day week, although Gray says, “we’re still committed to flexible working hours on those five days.”

In the UK’s four-day workweek trial, about 8% of respondents found that the four-day model simply didn’t work for them. Reporting for Work: In Progress, Alex Christian says: “Even those firms continuing with reduced hours are navigating new challenges arising from shortened workweeks. Though this reflects a small portion of the trial’s participants, it means the four-day workweek isn’t an automatic solution for all.”

Is the four-day workweek right for your team?

Microsoft Japan has never looked back since its successful pilot in 2019, joining several other large companies that have successfully adopted this model. By prioritizing clear communication, flexible scheduling, and effective time management, organizations can navigate the transition to a four-day workweek successfully and reap the rewards this increasingly popular work model provides.

As with any major undertaking, of course, “the devil is in the details.” In a follow-up article, we will take a closer look into the many details — from labor laws to visas to anti-discrimination regulations — you need to consider to ensure your four-day workweek efforts deliver the best results.

Read more in this series