The five-day working week is often credited to Henry Ford, who in 1914 proposed that his car production
switch from a six-day working week to five. The creation of unions in the 20th century helped to
make a five-day week and two days’ rest the norm.
There has been much debate about a four-day working week, but the pandemic and technological advancements have begun to shift some employers’ mindsets to one that is more open and trusting of their workforces. Many workplaces have been experimenting with different types of flexible working arrangements for years now, but the pandemic has made the need for flexibility far more pressing.
Some companies are trialling a four-day work week.
When Microsoft trialled a four-day week with no loss of pay in their Japan office, the company claimed productivity went up by just under 40%. Microsoft Japan also found that electricity costs fell by 23%, and when workers took Fridays off, they printed almost 60% less. The four-day-working-week pilot that took place in Iceland between 2015 and 2019 was hailed an “overwhelming success”. 2,500 workers took part in the trial
with the results revealing that worker wellbeing increased in areas such as stress and burnout, health and
work-life balance.
In 2018, estate planners Perpetual Guardian entered their 240 staff into a four-day-work week trial, resulting in 78% of them saying they were able to better manage their work-life balance – an increase of 24 percentage points. In 2020, Unilever also stepped forward in New Zealand with plans for a four-day week. It placed the 81 employees based in the country into a year-long trial.
Spain launched a four-day-week trial in 2021, following calls from left-wing party Más País. The trial is set to run for three years.
“With the four-day work week (32 hours), we’re launching into the real debate of our times,” said Iñigo Errejón of Más País on Twitter.
But what about closer to home, in Australia?
The trend towards offering a compressed work week as a form of flexible working is on the rise, according to
one prominent remuneration consulting firm. Organisations offering compressed work weeks – full time hours over four days rather than five, for example – has risen by 29 per cent over the last four years. Today, more than one in four Australian organisations (27 per cent) are offering this benefit to employees.
The way we work has radically changed, and we are redefining our workplaces and working models accordingly. In addition, the war for talent has intensified due to continued border closures, and as a result Australian businesses are reimagining their benefits programs in their efforts to attract and retain employees.
Not a one size fits all approach, but there are benefits …
The four-day working week may not work for every organisation, and those that are heavily reliant on customer service tend to tread carefully. But there are other types of flexible working practices. Other forms of
flexibility may be more suitable for some organisations, at least in the short term. These include remote work,
working part-time (at reduced pay) or a mix between remote and office work.
Undoubtedly, we are moving into a future of more flexible working practices, a future that has been catalysed
by the pandemic. The four-day working week has the potential of reducing unemployment, raising productivity and improving life and work satisfaction. But organisations may need to reflect carefully on which forms of flexibility may release the greatest wellbeing and productivity benefits for them and their employees.
Source: World Economic Forum & Mercer, 2022.