Could a 4-Day workweek help your business?

Erin Keck, IOM, Chamber CEO

The traditional 5-day workweek has been the norm for decades, but as the workforce evolves (and shrinks), and the childcare crisis grows, companies are starting to explore alternative solutions to these issues.

 You may be hearing talk of the “4-day workweek” more and more, as a growing number of companies and even countries are putting it to the test. In fact, they are finding that hours at a desk doesn’t equal increased output, and for those able to offer flexibility as a benefit, it just may pay off in productivity, loyalty and talent retention.

 There is a growing body of research indicating that a 4-day workweek can have significant benefits for employees, employers, and even society as a whole. So how exactly could it be beneficial?

 Increased Work-Life Balance/Reduced Stress and Burnout

With a 4-day workweek, employees can have more time to spend with their families, take care of household responsibilities, or simply relax and recharge their batteries. This can also lead to fewer requests off for appointments, and results in happier, more fulfilled employees who are better able to manage their personal and professional responsibilities, (and who are significantly less stressed overall). When stress is decreased, productivity increases.

Bonus for employees who are also parents: Childcare responsibilities can be incredibly demanding, both physically and emotionally. A 4-day workweek can help alleviate some of the stress and burnout that can come with juggling work and family obligations. Studies have also shown that a 4-day workweek can be incredibly beneficial for working mothers, in particular.

Improved Productivity

Research has shown that when employees have more time to rest and recharge, they are often more focused and motivated when they return to work. Additionally, having one less day in the office can encourage employees to be more efficient and prioritize their tasks, which can lead to increased productivity overall.

Increased Employee Retention and Loyalty

By providing a more flexible work schedule that accommodates employees' personal and family needs, employers can demonstrate their commitment to their employees' well-being. This can lead to higher job satisfaction, better employee morale, and ultimately, lower turnover rates.

Enhanced Recruitment

In addition to improving retention, offering a 4-day workweek can also be a powerful recruitment tool. In today's competitive job market, offering unique and flexible benefits can be a major draw for candidates. By promoting a family-friendly workplace that values work-life balance, employers can attract top talent and differentiate themselves from other employers.

But don’t just take my word for it. There’s a growing body of evidence, research, and pilot programs experimenting with 4-day workweeks. Here are some key studies and their findings:

Microsoft Japan's Trial: In August 2019, Microsoft Japan trialed a 4-day workweek for its employees, resulting in a 40% boost in productivity and a reduction in electricity costs by 23%. The trial also led to happier employees, with 92% saying they liked the shorter week.

Iceland's Experiment: In 2015, The Icelandic Government launched a pilot program in which some of its public sector workers were given a 4-day workweek without a reduction in pay. The results were overwhelmingly positive, with workers reporting better work-life balance, improved job satisfaction, and reduced stress levels. This let to a permanent change in a growing number of workplaces and industries.

Perpetual Guardian: This New Zealand-based financial services company implemented a 4-day workweek in 2018, reducing their employees' working hours from 40 hours per week to 32 hours. The company reported increased productivity, work-life balance, and job satisfaction among employees.

A 2019 study by the University of Gothenburg in Sweden found that reducing the workweek from 5 days to 4 days led to a 50% reduction in sick days taken by employees.

A 2020 study by Henley Business School in the UK found that a 4-day workweek could reduce carbon emissions by up to 30%, due to fewer people commuting to work.

A 2021 study by the Workforce Institute at UKG found that employees who worked a 4-day workweek reported higher levels of job satisfaction, better work-life balance, and less burnout than those who worked a traditional 5-day week.

These are just a handful of the pilot programs and studies, and the results are undeniably positive.

Now, it stands to reason that not all industries are in a position to offer a 4-day workweek due to the nature of their business. However, there are still many ways employers can use flexibility for their employees to their mutual advantage. For example, the flexibility to work from home, or to adjust their work hours to accommodate childcare needs, other responsibilities, or simply the preference to work at non-traditional times of day when an employee is naturally more efficient. There’s plenty of evidence out there to support varying “peak” times, but that’s a topic for another blog post. Shifting the workplace culture from “time-based” to “project-based” also sends the message to employees that quality and innovation are important, and that their contributions are valued.

In conclusion, offering a 4-day workweek (or other flexibility in scheduling) can have a significant impact on employees’ well-being, productivity, and job satisfaction, particularly for working parents. By demonstrating a commitment to work-life balance, employers can improve employee retention and loyalty, attract top talent, significantly reduce stress, and ultimately, create a happier and more productive workforce.

Questions?

Contact us at 719-589-3681 or email AlamosaCountyChamber@gmail.com.