What is the four-day work week? An Employers Perspective
What is the four-day work week?
Over the past few years, we’ve witnessed a global shift in the way we work and what people expect from their employers. Hybrid, remote and flexible working remain high on the agenda. But these terms are open to different interpretation, depending on individual circumstance and the business culture.
At Danton, we have supported many businesses in identifying and implementing working patterns that fit the needs of the business alongside the expectations of their people. Although flexibility is a common request among many employees, when we have delved into the finer detail, what they appear to seek is autonomy, greater work-life-balance and the ability to decide when and where they work.
The pandemic has fast-forwarded conversations around people’s working lives and opened up opportunities for the four-day work week. The Global campaigning group, “4 Day Week Global” are due to begin a trial on June 1st 2022 in the UK and have already enlisted the support of sixty UK firms and over 3,000 employees. The trial is set to continue until December 2022 and is based on the idea that employees will continue to receive 100% of their salary, whilst switching to working only 80% of the time, but they are expected to maintain 100% productivity.
We have written this article to answer some of the commonly asked questions around the four-day work week and what this means to the future of work, including: ‘What is the four-day work week?’ ‘How close is the UK to implementing a four-day work week?’ ‘What effect will the four-day work week have on people?’ ‘What are the benefits of a four-day work week?’
Read on to learn more about the four-day work week, the pros and cons to your workplace and consider whether this is something you would consider implementing.
What is the four-day work week?
Although it is quickly becoming more widely known and discussed. The concept of a four-day work week has actually been around for a few years. Iceland carried out a four-year trial between 2015-2019, where 2,500 people were tracked as they reduced their working hours from forty, to thirty-two, without losing any pay. The outcome has since resulted in 86% of their countrywide workforce working shorter hours and having the option to reduce them if they haven’t already.
There are further trials taking place around the world currently, with big brands including Unilever, Kickstarter and Microsoft. More recently the Scottish National Party pledged a “£10 million fund to allow companies to pilot and explore the benefits of a four-day working week” in their 2021 manifesto1 which followed the plans Labour originally set out for implementing a 32-hour working week with no loss of pay in their 2019 manifesto.
There is much discussion and debate about the four-day working week, and thanks to ongoing campaigning and uptake by so many organisations, we anticipate it being a hot topic of conversation for the remainder of the trial period.
But what does the four-day work week look like in practice? Ultimately there are two ways to implement a four-day work week:
Compressed working week
This could be considered the traditional and most employer friendly way of granting an employee’s request to reduce their working days without losing pay. Employees work longer hours, over four days. This means that the number of hours the person works, will remain the same, but they would get the fifth day “off.” The standard number of hours someone works a week is approximately forty hours. If someone were to try and fit this into a four-day week, they would be required to work ten hours per day, rather than the standard eight.
Reduced hours with no loss of pay
Under the campaign for a four-day week, people are asking for the number of hours in the working week to be reduced, without a reduction in their salary. Using the example of the standard number of hours, under the change to a four-day week, a full-time worker would work around thirty-two hours per week but still receive the same salary that they received when working forty hours.
How close is the UK to implementing a four-day work week?
Over sixty UK businesses will begin piloting a four-day working week, with no loss of pay, for employers from June 1st until December 2022. The trial is co-ordinated by 4 Day Week Global (a non-profit coalition of business leaders and community strategists) in partnership with Autonomy and researchers at Cambridge University, Oxford University and Boston College.
The UK businesses involved in the trial, will receive tools and resources as part of their involvement, including workshops, mentoring, networking and ongoing assessments.
The UK trial is running in parallel to similar pilots in America, Canada, Ireland, Australia, New Zealand and Israel so we expect a further body of research findings to be published at the start of 2023.
What effect will the four-day work week have on people?
Findings from the existing trials have included some considerable statistics, including Microsoft, Japan, who trialled the shorter working week in 2019. They gave their 2,300 employees the choice of “flexible work styles, according to the circumstances of work and life” and found that workers were happier overall and 40% more productive.
Whereas the four- year pilot in Iceland reported that productivity remained the same or improved across most workplaces and that wellbeing was dramatically increased
What are the pros and cons of a four-day work week?
Benefits of a four-day work week
According to 4-day Week Global, 63% of business have found it easier to attract and retain talent by promoting their four-day work week”. Other benefits also include:
Increased productivity
Reduced sickness absence
Employer brand and supporting recruitment
Employee retention
Supports gender equality
Time to develop new skills
Reduced commute and carbon emissions
Drawbacks of a four- day work week
Without doubt, one of the main concerns with adopting a four- day work week is the decreased output and profitability. But existing trials have found this to not be the case. However, some other things to consider include:
Risk of stress and burnout – trying to fit five days’ worth of work, into four.
Not all roles are suitable for flexibility
It is sector specific
At Danton, we work with a variety of businesses across all sectors. We can identify those businesses where a four-day work week may work, compared to those where the industry and needs of the business would make it more challenging to implement a four-day week.
If you are considering moving to a shorter work week, we recommend reviewing the needs of your business and will be on hand to discuss your situation and specific needs.: Danton can help to facilitate:
Employee consultation and engagement – Identifying what’s right for the business
Reviewing the business outcome and business benefit
Making changes to contracts and policies
Supporting you with conversations if part time employees request a reduction in their work week with no change to their pay (if you are offering this to full time employees).
Reviewing and adjusting the annual leave entitlement
The information contained in this article is for illustrative purposes and should not be treated as “advice” that may be relied upon by individuals or businesses. Specific specialist advice should be sought in relation the information outlined above.
For advice and support relating to any issues relating to flexible working, a four-day work week or hybrid working, contact Danton to arrange a free consultation on 01527 306 760