As companies across the globe explore innovative approaches to enhance employee well-being and business performance, the concept of a four-day work week has gained considerable attention. This approach has been tested in various pilots and trials, yielding positive outcomes such as improved employee retention, better mental health, and even increased revenues. Many organisations that participated in these trials have now decided to implement the four-day work week on a permanent basis.
In this article, we will consider the pros and cons of adopting a four-day work week and provide practical guidance on how it could be implemented within your business. We will also share insights on how to navigate potential challenges to ensure a smooth transition to this new working model.
Defining a Four-Day Work Week
A four-day work week typically follows the 100:80:100 model. This means employees receive 100% of their pay for working 80% of the traditional working hours, with the expectation that they maintain 100% productivity. However, businesses may choose to adapt this model to suit their specific needs, such as condensing full-time hours into four days while keeping pay the same, or making adjustments based on operational requirements.
It’s important to note that the four-day work week can be implemented in various ways, depending on what is most appropriate for the business. Some organisations may opt for a different approach, such as reducing both hours and pay in exceptional circumstances. However, such decisions require careful consideration and a well-structured business case to mitigate potential risks.
Four-Day Work Week Global Pilot
Across the globe, businesses have experimented with the four-day work week to assess its impact on productivity and employee satisfaction. Organisations from various industries, including technology, finance, and public services, have participated in these trials, each adapting the model to fit their unique operational needs.
The results have generally been positive, with many companies reporting increased productivity, reduced absenteeism, and improved employee engagement. Employees have also expressed high levels of satisfaction, citing better work-life balance, reduced burnout, and enhanced mental well-being as key benefits of the four-day work week.
The world’s largest trial of a 4-day working week, which included over 60 organisations worldwide, involving around 3,000 UK employees set out to determine whether working four days a week instead of the traditional five improved employee wellbeing and productivity.
Some of the key business results included:
- 92% of businesses are to continue with 4 day working permanently
- The number of employees leaving over the trial period fell by 57%
- Businesses saw a 35% on average, increase in revenues when compared to a similar period in previous years
- Absenteeism and resignations fell compared to the same period from the previous year
- Hiring increased in companies
- Business productivity and business performance scored 7.5/10 on two separate scales
Key results from the employee perspective include:
- 90% of employees wanted to continue working a four day work week (furthermore, no one said they definitely did not want to continue working it)
- 55% reported an increase in their ability at work
- 15% said that no amount of money would make them accept a five day schedule at their next job
- 71% reported reduced levels of burnout
- 43% felt an improvement to their mental health
- 46% reported a reduction in fatigue
- 60% found an increased ability to combine paid work with caring responsibilities
You can access the report here.
What Are The Benefits of Operating a Four-Day Work Week
According to various reports and studies, the four-day work week offers several benefits:
For Workers:
- Improved Work-Life Balance: A four-day work week allows employees more time to focus on non-work aspects of life, such as rest, leisure, and personal responsibilities, leading to happier and more fulfilled lives.
- Cost Savings: By working fewer days, employees can save on commuting and childcare costs without a reduction in pay.
For Employers:
- Higher Performance and Profits: Companies that have adopted a four-day work week often experience increased productivity and reduced operational costs.
- Attracting and Retaining Talent: The promise of a four-day work week can be a significant draw for high-quality employees, helping organisations reduce turnover and attract top talent.
For the Economy and Society:
- Boosting Productivity: Studies suggest that a four-day work week can enhance overall productivity, contributing to economic growth.
- Enhanced Mental and Physical Health: With more time to focus on health and well-being, employees experience fewer stress-related issues, leading to better overall health outcomes.
- Environmental Benefits: A four-day work week can contribute to a reduced carbon footprint, as less commuting and lower energy consumption in workplaces decrease overall environmental impact.
Case Studies
Several organisations have successfully implemented the four-day work week, showcasing the potential benefits and challenges:
- Local Government Trials: Some local government bodies have trialled the four-day work week to address recruitment and retention issues. These trials often focus on maintaining service levels while reducing working hours, resulting in cost savings and improved employee morale.
- Professional Organisations: Institutions like the Royal Society of Biology have reported increased productivity and reduced absenteeism after adopting a four-day work week. Their experiences suggest that the benefits of this work model can outweigh potential drawbacks, especially when it comes to employee well-being.
- Private Sector Adoption: Companies in sectors ranging from finance to public relations have successfully transitioned to a four-day work week. These organisations often report higher employee engagement, better customer satisfaction, and a competitive edge in talent acquisition.
Challenges of Operating a Four-Day Work Week
While the benefits of a four-day work week are compelling, there are challenges to consider:
- Ensuring Productivity: One of the main concerns is whether employees can maintain productivity levels with reduced working hours. This requires careful planning and possibly new management practices.
- Increased Stress: Compressing work into fewer days could lead to higher stress levels if workloads are not managed effectively.
- Customer Impact: Businesses that operate on fewer days may need to find ways to ensure that customer service remains unaffected, which might involve adopting new technologies or restructuring work processes.
- Operational Adjustments: Implementing a four-day work week may require changes to workplace procedures, such as introducing rota systems or investing in new technology to support remote work and collaboration.
How to Introduce a Four-Day Work Week
A four-day work week will not work for every business, nor every employee. There will be several factors as an employer, that must be considered including the type of business, the industry in which you operate and the needs of the employee.
As with any people based initiative, it must link back to the business goals and be identified through strategic HR planning. That way, there is a clear, objective rationale for the business case to implement. This is particularly important for mitigating risk, when you are proposing to change an employee’s terms and conditions of employment.
Introducing a four day work week can be used to address many issues facing a business, for example:
- An inability to recruit
- To remain competitive with local employers for attracting candidates
- Help reduce high employee turnover
- Improve employee engagement
Having identified a four day week as a possible solution, then setting a clear objective is vital because if introduced, the business will need to analyse its effectiveness against what the company was setting out to achieve.
- Link to Business Goals: Ensure the move to a four-day work week aligns with your business objectives, such as improving recruitment, retention, and employee engagement.
- Legal Considerations: Review existing employment contracts and understand the legal implications of changing working hours and conditions.
- Pilot the Initiative: Consider starting with a pilot programme to measure the effectiveness of the four-day work week and address any challenges before a full rollout.
- Involve Employees: Engage with your workforce in the planning and implementation process to ensure their concerns are addressed and their input is valued.
- Monitor and Adjust: Continuously monitor the impact of the four-day work week on both business performance and employee well-being, and be prepared to make adjustments as necessary.
Changing Contractual Terms
You may be able to insist on a change being accepted within the terms of the existing contract of employment, but this would be where the existing contract provides for variation. Care must be taken because of the risk of a tribunal claim if mishandled.
When there is no contractual right or implied right to make the changes
Most problems arise when you need to make a change and there is no contractual provision to do so, in which case it is essential to get your employee’s consent. If the employee does not consent, and the change is material, they may resign and claim constructive dismissal, or make a claim for an unlawful deduction from wages if the change affects their pay.
An employee may also be able to claim direct or indirect discrimination if the effect of the change has a greater impact on them than on others in the workforce. For example, if a change in hours may make it more difficult for a female employee to comply than a male employee because of childcare responsibilities. Always remember to consider your employee’s personal needs – what is reasonable for one may not be for another.
Any change in terms must be reasonable. If the change results, for example, in greatly reduced pay, or hours are reduced to the point that the job cannot be reasonably performed within the reduced hours, you may not only be in breach of an express term of the contract but may also be in breach of an implied term. This would happen if, for example, you reduce the employee’s hours to the extent that the job cannot be performed within the reduced hours as this would amount to a breach of trust and confidence.
Collective consultation
If you propose to change the contracts of more than 20 employees, you are required to consult under the Trade Union and Labour Relations (Consolidation) Act 1992. A variation to contract terms is a repudiation of the existing contract (ie a form of dismissal) and an offer to rehire on new terms. The reason for the dismissal falls within the extended definition of redundancy, therefore proper consultation must take place.
The way in which you consult will depend on arrangements in place in your organisation. If trade unions are recognised, you must consult in accordance with your Recognition Agreement. If not, you may consult through some form of employee representative committee or directly with the affected employees.
Obtaining your employees’ consent
Obviously, most employers wish to avoid any resistance to change and subsequent dismissal and possible claims for unfair or constructive dismissal. There is a general principle that an employer is entitled to re-organise its business in the interests of improving efficiency and, to facilitate this, to propose changes in the terms and conditions of service of its employees.
Conclusion
Implementing a four-day work week is a significant change that can offer numerous benefits, but it requires thoughtful planning and a strategic approach to ensure success. By carefully considering the potential challenges and aligning the initiative with your business goals, you can create a more productive, engaged, and satisfied workforce.
How We Can Assist
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