The results of the world’s largest 4-day working week trial, conducted by 4 Day Week Global, in partnership with the think tank Autonomy, the 4 Day Week Campaign, and researchers at the University of Cambridge and Boston College, have recently been published.
The 6-month trial took place in the UK from June to December 2022, and involved 61 companies and around 2,900 workers. The report found that overall, the trial had been a ‘resounding success’ and that revenue increased by over 8% in 33 of the companies taking part. Among other things, employees reported less burnout and fatigue, and an increase in physical health.
Some of the key points highlighted by the report were.
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- Participating companies adopted a range of models, ranging from one day off per week, to annualised hours or shorter working days. The essential criteria was only that there had to be a ‘meaningful reduction in work time’.
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- Of the 61 companies that participated, 56 (92%) are continuing with the 4-day working week and 18 have confirmed this as a permanent change.
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- The report findings used data from participating companies and data gathered from employees throughout the pilot, and it was reported that the most noticeable benefits were found in employee wellbeing.
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- By the end of the trial, the pilot reported that 39% of employees were less stressed, and 71% had reduced levels of burnout. Levels of anxiety, fatigue and sleep issues had decreased, while mental and physical health both improved.
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- 54% of employees found it easier to balance work with household jobs and employees were more satisfied with their household finances, relationships and how their time was being managed.
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- 60% of employees found an increased ability to combine paid work with care responsibilities, and 62% reported it easier to combine work with social life.
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- Company revenue stayed broadly the same over the trial period, rising by 1.4% on average, and when compared to a similar period from previous years, organisations reported revenue increases of 35% on average.
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- Staff turnover dropped significantly by 57% over the trial period, and 15% of employees said they were now accustomed to a 4-day working week and no amount of money would persuade them to return to a 5-day week model.
- However, the pilot study was still relatively small, and a number of the movements in key metrics, whilst positive, were also small. It’s also notable that 34% of the participants were in the Marketing/Advertising and Professional Services sectors, and only 2% in the manufacturing sector. In addition, there was no quantitative data regarding the overall effects on profitability, albeit that average revenue across the participants increased. In our view, whilst the study is undoubtedly positive for those advocating for shorter working hours, employers need to be mindful of potential drawbacks that could still present themselves. Important issues which need to be addressed before implementing such a change, include:
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- Is there a danger that initial productivity gains could fall back once the change becomes permanent? Will employees begin to ‘wind down’ on the lead up to their 3 days off so Thursday becomes the new Friday?
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- Reducing the working week needs to go hand in hand with increased productivity if profitability is not to be affected. Is there a possibility of greater stress over a longer period, and could there be a potential risk of successful ET claims if employees are subject to sanctions for not meeting the same individual performance targets whilst working fewer hours?
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- What if it doesn’t work further down the line – where does that leave the employer in terms of moving back to 5 days? Once it becomes permanent, it’s difficult to change back and this may have effects on morale, and result in increased employee turnover.
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- There are also contractual issues to consider. Will it be optional or compulsory? Not necessarily all employees will welcome the change and organisations are advised to extensively consult with employees beforehand. Contracts will need to be changed if the arrangement becomes permanent.
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- What about other time off for medical and dental appointments, school parents consultations, domestic issues etc? Employees might be happy to arrange these on their day off (or switch their day off to deal with them). But will this always be the case? Policies to support such a change need to be carefully thought through.
A reduction in working hours which can be fuelled by gains in productivity could undoubtedly be a key tool in improving recruitment and retention. But one thing is sure – any plan to implement such a change needs careful consideration, planning and trialling.
The full report of the pilot study can be found here.
If you’re an employer considering a move to a 4-day working week and require any additional guidance on this topic, or have any other HR, Employment Law or Health, Safety & Wellbeing issue you would like to discuss, please contact us on 01942 727200 or email enquiries@employeemanagement.co.uk