One of the most popular trends in the global corporate world is the 4-day work week. In Canada, we have yet to adopt this model, though it has been adopted in other countries, including Spain, the UK, New Zealand, Belgium, and Japan. A Bloomberg study reported that 78% of leaders at over 70 UK companies that shifted to four-day schedules said their transition was good or “seamless”. Most (88%) said that four-day schedules are working well.
This concept is getting the attention of senior management as firms try to reduce their turnover rate and stay competitive amidst the aftereffects of the COVID pandemic. Locally, one Toronto company, PRAXIS, a marketing communications agency, announced it will join the 4-Day Week Global trial, along with 59 other North American companies.
Iceland has been piloting the four-day work week since 2015, they have seen significant improvements in overall employee well being following this change. Employees were less likely to suffer from workplace stress, anxiety, depression, and burnout. This has been further substantiated by Gallup, who conducted a poll in March 2020 and found that people working four-day weeks reported lower levels of burnout and higher levels of well-being compared to those working five- or six-day weeks.
However, this is more than just an employee wellness play, there are significant business benefits associated with this change. For example, a New Zealand company, Perpetual Guardian, reported a 20% productivity increase after switching to a four-day work week. Similarly, in Japan, Microsoft reported that implementing a four-day workweek led to a 40% boost in productivity compared to the previous year. Furthermore, one less day of work is one less day the lights are on at the office. Microsoft Japan saw a 23% reduction in electricity consumption and a 59% reduction in paper printing after implementing a four-day workweek.
A recent Gallup report estimated that millennial turnover costs the U.S. economy $30.5 billion annually. According to that same report, millennials rank work-life balance high on their list of priorities when considering employment options. A work schedule that provides employees with an additional non-workday a week may be attractive to your workers.
It’s clear that the 4-day work week has the opportunity to provide both employees and firms with a significant amount of benefits. However, implementation of a change of this magnitude is highly complex and there are risks that must be managed effectively. However, if you have the right tools and support to manage the change, the 4-day work week could be a blessing for your firm and employees.
Are you thinking about implementing a 4-day work week across your organization? Contact us, we can help!