The 4-Day Workweek: Examining an Innovative Benefit

Some companies offer a shorter workweek to boost productivity and attract top talent—but the program has to be the right fit to work

Work culture and the 40-hour, 9 to 5, 5-day week are undergoing a transformation. Many organizations have pushed that hourly total up—or at least blown through the “work ends at 5” paradigm—through “always-on” technology. But other companies are pushing back against the idea that more work equals better work and instituting innovative benefits—such as a 4-day workweek.

Technology has made it nearly impossible to escape work responsibilities. It’s usually not part of the job description, but many employees are expected to be available any time of the day or night. And this constant connectedness is having consequences.

A 2019 Gallup poll of 7,500 employees found that 23% feel burned out always or very often at work. Another 44% feel burned out sometimes. And The Wall Street Journal’s Matthew Kitchen described the “always-on” work culture that has become a new normal:

“Ubiquitous smartphones, slim computers, and innovative apps make every response a snap—quicker, easier, seemingly less painful. It just takes a second, right? But those rapidly accumulating seconds are just technology’s version of death by 1,000 cuts, expanding the workday’s boundaries until it seamlessly blurs with the rest of civilian life.”

Burning out is nothing new, but many employees—especially the Millennial demographic—are starting to realize that it’s not necessary. And some companies are recognizing this trend in a bid to attract top talent.

One of the methods they’re trying out is the 4-day workweek. It’s a fairly new concept, but it’s working well for many businesses. Let’s explore some of this program’s benefits, when it’s appropriate, and some leading examples:

The benefits of a 4-day workweek

Achieving work-life balance for employees

For employees on a traditional 5-days-on, 2-days-off schedule, having weekends off is certainly better than nothing, but it often doesn’t seem like enough time. Cramming errands, appointments, family commitments, and relaxation into a couple of days is a challenge.

Having one extra day to get things done and focus on personal matters lets employees de-stress and truly enjoy their families, friends, and hobbies. This has been shown to improve productivity, motivation, and overall wellbeing.

The New Zealand based financial services company Perpetual Guardian transitioned employees to a 4-day work week for two months in 2017 while maintaining their full-time pay. Stress levels decreased by 7% and rates of positive work-life balance rose from 54% to 78%. Additional measurements such as commitment, belief in leadership, and empowerment all increased as well.

The trial was such a success that Perpetual Guardian permanently switched to a 4-day workweek in 2018. CEO Andrew Barnes said, “We need to get more companies to give it a go. They will be surprised at the improvement in their company, their staff, and in their wider community.”

A recruitment tool for companies

Recent studies have shown that more than anything, employees want time off; more than increased pay, more than business trips, and more than professional development. A 4-day workweek can be a powerful recruitment tool.

Killer Visual Strategies, a marketing and branding agency based out of Seattle, WA switched to a 4-day workweek and reported that the company subsequently took half the time to fill open positions. Art in Offices, an interior design company, uses the 4-day workweek to broaden their recruiting pool to individuals who either prefer a flexible schedule or require one. This often includes mothers, caretakers, and freelance employees.

Companies that offer a shorter workweek receive an average of 13% more applications. It’s a perk that employees are recognizing and sometimes demanding, often in place of higher compensation.

It’s possible to achieve greater efficiency

A 4-day workweek can increase worker efficiency because there are fewer days to get the same amount of things done. It forces employees and management to be efficient in setting and achieving goals.

The abbreviated schedule can also reduce a company’s overall expenses while increasing productivity. Microsoft Japan tested a 4-day workweek this summer and found that it lowered its electricity costs by 23%. Productivity rose 40% and employees took 25% less additional time off during the month.

This month-long trial saw shorter meetings and happier employees. Although it hasn’t been made permanent, the company is considering doing additional tests in the future. CEO Takuya Hirano said, “I want employees to think about and experience how they can achieve the same results with 20% less working time.”

A 4-day workweek has potential—but think carefully about implementing it

There are many factors to take into consideration before implementing a 4-day workweek. Here are some things to think about before making the leap:

Assess needs, set goals, and measure results

The 4-day workweek has to match a specific business’s needs. Some employees are just fine operating on the 5-day schedule. Some companies need the longer schedule to fulfill demand and consistently interact with customers during a full business week. Identify these demands before considering a change.

Of course, the ability to fulfill these needs also depends on what kind of 4-day workweek is instituted. An organization may be able to grant employees the option of a 4-day week at 10 (or 8) hours per day and/or implement different weekly schedules for different employees. Certain programs may avoid interrupting coverage for the business’s essential operations by not moving the entire company to a fixed 4-day schedule.

Assess the goal of implementing a 4-day workweek in whatever version you choose—and measure the impact on achieving it. If employees are frustrated and worn out, then making the transition could help improve morale and productivity. It’s important to define the intent of a shorter week and the benchmarks that employees are expected to meet with the new format.

Similarly, if the intent is to stand out in a competitive hiring environment and recruit a broader, higher-quality pool of talent, take definitive steps to assess whether the program is obtaining better employees faster.

Get team buy-in ahead of time

Before a shorter week is implemented, the team needs to be on board with the decision. Companies often face pushback from employees who don’t buy into it. For example, a stubborn manager may think, When I was your age, I had to sacrifice and work 60-hour weeks. Everybody now gets a free pass.

Companies can’t just roll out a program one day and expect cooperation. They may have to find a way to progressively integrate a 4-day workweek into the culture and have employees recognize it as an important value. An incremental implementation with measurable goals can prove the program’s effectiveness and help persuade those stubborn managers. If the work is getting done and you can prove it, the effort is far likelier to succeed.

Mind the logistics

Shaving off an entire workday and consolidating hours have repercussions throughout the business. Make sure that all operations are covered under the new model. How will customers be serviced? When will maintenance occur? Some employees may need to adjust their schedules to accommodate the workweek while still fulfilling their duties.

Meet with legal and HR to understand the effects on both salaried and part-time employees. Many companies move employees to four 10-hour workdays, but some move to a 32-hour workweek, completely removing a day. How will this affect pay? Does the vacation policy need to change? Companies need to address these issues so both the organization and employees fully understand the change.

Making the switch

Although offering a 4-day workweek is still uncommon, many companies who have implemented some version of this program are seeing positive results. Employees are happier, and the work is still getting done. And shorter workweek is an attractive perk that gives the organization’s a hiring advantage.

But as with many innovative benefits, an abbreviated work schedule is something that has to be designed correctly and matched to both the individual company and its employees’ needs. A qualified HR consultant can help you assess and implement this and other unique benefits programs, including flex-time, individualized benefits, and more.

If you are interested in moving your business to a 4-day workweek or instituting other innovative benefits, contact Karp HR Solutions for a free consultation.