Time to read : 7 Minutes
Let’s dream a little...
You love your job. You’re paid well for your job And you work at your job only four days a week. Though this might sound like utopia, it’s happening in many companies around the globe.
And now there’s research that shows the shift to a four-day working week improves your life without any drop in productivity or company profitability.
So let’s unpack what this opportunity could mean for you.
Why is working a four-day week great?
The research that found working four days is good for employees and employers, comes from a six-month study across six countries.
Published in Nature Human Behaviour, it revealed a positive impact on both employees’ mental and physical health… and their performance. And the study found this to be the case across nearly 3,000 staff in 141 organisations (but note these were organisations in English-speaking countries). The research was based on employee surveys before and after the six-month, four-day-a-week trial, versus a control group of people who worked five days. And another big – but perhaps expected – result of having an extra day off was a notable drop in staff burnout.
Job fatigue can harm employees’ health and increase costs for companies – all those sick days can rack up and eat into profits. You may be wondering: did workers trying to accomplish the same amount in four days instead of five experience higher levels of stress? This was a central test in the study and the resounding answer was ‘no’ – staff members’ stress levels fell. But all this came with one big caveat: switching to a four-day week had to mean no decrease in salary. The employee couldn’t bear any extra financial burden.
There’s a whole trade-marked theory about this, dubbed the 100:80:100 model.
Founders of New Zealand’s Perpetual Guardian came up with this ratio when they began offering a four-day week. They now use it to advise other organisations how to apply the logic successfully.
So what do the numbers mean? The first 100% in 100:80:100 represents employees’ pay – there is no reduction. The same goes with the output, that’s the last 100%. The 80% refers to the hours worked.
The theory is that you can achieve the same output in less time, on the same income.
But how can productivity remain high while working less days?
From an employer’s perspective, one of the key ways to keep productivity up is to find more efficient ways of working. Here are some strategies:
Meetings: reducing the number of meetings and finding smarter ways to collaborate is a great way to free up considerable time.
Automation and AI: using technology and AI tools can streamline repetitive tasks and improve workflows, which again saves time.
Focus on outputs: shifting attention from the hours worked to tasks completed and results achieved means productivity can be measured by the outcomes, not the time spent.
So can you request to work a four-day week on the same pay?
The key to getting your employer to agree to a four-day work week – for the same pay – is to convince them they will see no drop in your productivity. It’s now becoming more common overseas for employees to work four days a week instead of five. The movement became popular after Iceland began trialling it several years ago and was quickly given a go by other countries. Just last month, Dubai mandated four days a week for its public sector employees.
Are Australian workplaces open to a four-day work week?
Two years ago, a federal Senate committee recommended a four-day work week trial for Australian government employees… but no action has been taken. But some Australian companies are firmly on board. Medibank-brand AHM has switched hundreds of workers from five to four days, on the same wage, and reports successful business results as well as staff satisfaction. A review of the trial by Macquarie University, found that for the most part performance went up. On some occasions, performance stayed the same, but it didn’t fall in any circumstance.
What did fall was the number of sick days, in other words there was less time taken off work for being sick. Meanwhile, staff retention increased. The insights are compelling. Oxfam Australia has been successfully running the policy, where workers take it up, for several years now – with no drop in productivity. The Australian Services Union is trying for the same in other agreements while the Australian Manufacturing Workers Union is about to throw its weight behind the policy with the argument that it will increase productivity. IKEA Australia has a slightly different approach where it offers employees the flexibility to work longer, 10-hour days… for just four of them. But this is not to say that allowing four days a week is working for every company. Another Australian healthcare fund, BUPA, has quietly scaled back its four-day-a-week trial. In fact, it had been allowing a nine-day fortnight for employees, over a trial period of some 18 months. And, of course, there are some industries where you just cannot squeeze the same amount of work into fewer hours. In reality, a four-day working week policy is far from the norm and is more likely to be individually negotiated. But let’s get back to that dream scenario… because the above information could help you get fewer days over the line. So…
Which day off ‘works’ best for the employee and employer?
What would you prefer… a long weekend every time? A Wednesday off, meaning you work two days with a break and then another two days? Employer preferences vary but there may be similar guidelines to preferences now for work-from-home days… if companies still allow that. Most AHM workers choose to take Friday off. (Incidentally, to allow that without a dip in output, the company has considerably reduced meetings.) But – and it’s a big but – if there is work remaining for the week, they are still expected to clock on and finish it. Meanwhile, it was the day of the week that was the sticking point recently for Unilever. The consumer goods manufacturer halted its four-day-a-week program at the beginning of this financial year, saying in a statement that the program was too inflexible with a nominated day off. It says it is moving to an “everyday flexibility approach”, which gives staff the freedom to manage their workload in a way that works best for them.
What if employers offer you a four-day week for less money?
In the cost-of-living crisis, the last thing you want is less money for the work you do. If your boss plans to pay you less for working four days instead of five, you should check your employment contract or enterprise agreement.
Under the Fair Work Act, an employer can’t reduce your pay without your agreement. If your contract or agreement does allow changes to hours and pay, your boss needs to have your consent.
Note: any pay reduction must comply with minimum wage laws and relevant awards, which set minimum pay standards via industry or job.
Changes to working hours and pay can often be negotiated. Understand your legal rights and where you stand before agreeing to anything.
Bottom line
Insights from companies that have trialled or adopted a four-day work week show that giving employees more time back doesn’t reduce performance.
Perhaps you’ll be able to persuade your boss that you’ll be just as productive if you work four days instead of five. And you may even arrive at the four days that best suit you and your organisation.
This new way of working could allow you to prioritise your personal life, enhance your professional life… and increase the contribution you make to your company’s profit.
