You’re probably reading this at the start of your weekend. But now imagine that weekend had started a day earlier… and did so every week. Sound good?
That could be the new reality many companies, and employees, face in the future, after the four-day business week took another step towards implementation in the UK.
This year, 17 businesses of different types have been trialling the move, organised by the 4 Day Week Foundation. Almost 1,000 different employees were involved, all retaining their normal salary – and after the culmination of that study, all 17 companies have opted to keep going, following an earlier trial which saw 5,000 people adopt the scheme permanently.
Not all are doing straight four-day weeks. Some were trialling nine-day fortnights. And there are clearly some industries which would face challenges to alter schedules and regulations.
But the initial results for those taking part appeared positive, with nearly two-thirds (62 per cent) of employees saying they noted a “reduction in how often they experienced burnout”.
Firms who took part in the trial have cited customer satisfaction and employee performance as reasons for continuing, with one expecting mass adoption across the next decade.
Vicky Walker, chief people officer at Westfield Health, told The Independent that less work has shown to mean more output.
“Studies have shown that a shorter work week can lead to enhanced efficiency and focus among employees. People may be more motivated to complete their tasks and increase productivity. There’s now a growing recognition for flexibility and work-life balance and this trial is a step in the right direction,” Ms Walker said.
“These flexible benefits can also help attract new talent and improve employee retention rates, which for some businesses, is a key business target.”
There is, however, much more to consider for employers and the wider economy, before we see it adopted on a larger scale.
“Ultimately, what matters for the economy is hours worked multiplied by productivity per hour. If people are simply working their weekly hours in four days rather than five, then there should be little economic impact. If they are working harder – fewer hours for the same output – then we could see an uptick in productivity, but that wouldn’t necessarily translate into growth because of fewer hours,” Thomas Pugh, chief economist at RSM UK, told The Independent.
This is essentially the French model of the system, Mr Pugh explained – but success in it will naturally lead to businesses asking one pertinent question:
“If you can be as productive in four days as in five, then why not be as productive over the full five days?”
There also remain questions over the potential for staggered days off – “Do people want Wednesdays off, for example?” – and of course whether a firm’s opening hours would still match up to those of their clients. It’s not a “solution to the UK’s economic problems”, Mr Pugh added.
Andrew Timpson, a tax partner at RSM, pointed out there would be implications if reduced hours meant reduced pay – and not just for the Treasury.
“If base pay is reduced, there could be an impact on salary sacrifice and pensions,” he said, “plus if employees are earning less then the tax take will reduce. Some employees may also find themselves slipping under thresholds which will change the personal allowance, or other aspects such as child benefit.”
The discussion outside of finance has also taken centre stage.
A study by BHN Extras recently concluded over a third of UK workers (34 per cent) said they would accept a pay cut for a shorter commute and only 23 per cent enjoyed their commute.
The survey suggested both the cost and the sentiment was stronger in London, but would knocking a day off the commute into work be a big draw for all?
It won’t be one for everybody, nor every business. Implementation costs and rescheduling alone may make it prohibitive, while there’s no doubt that some management may not appreciate the thought of it, let alone the reality.
But just like working from home, hot-desking and zero-hours contracts before it, the four-day week looks set to play some part in the future of UK business – and like all those others, divide plenty of opinion on the way.
