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Daily Briefing

The answer to employee retention: A 4-day workweek?


Editor's note: This popular story from the Daily Briefing's archives was republished on June 23, 2023.

Some organizations are advocating for a shorter workweek, citing the potential to improve employee retention and well-being. And a new large-scale pilot of a four-day workweek in the United Kingdom has also bolstered this argument, with results showing that productivity largely remained steady while employees had less stress and were less likely to quit.

A large-scale pilot of a 4-day work week proves successful

Before the Great Depression, it was common for employees to work six days a week, and the 40-hour workweek was not codified into U.S. law until 1938. Now, advocacy groups like 4 Day Week Global argue that "we're overdue for an update" and are leading pilots of shortened workweeks around the world.

For the trial, 4 Day Week Global collaborated with research group Autonomy, as well as researchers at Boston College and the University of Cambridge to recruit companies in the United Kingdom to test out a four-day workweek for six months.

In total, 61 companies, which included 2,900 employees, participated in the pilot program, which ran between June and November. The businesses included banks, fast food restaurants, marketing agencies, and more. 

During the program, companies could choose different methods to shorten their employees' workweek, such as giving them one day off a week or reducing their working days to average out to 32 hours a week instead of 40. Employers also had to ensure that employees received 100% of their pay.

At the end of six months, employers gave their productivity and performance over the six-month program an average score of 7.5 on a scale of 0-10. According to a survey conducted midway through, 46% of employers said their productivity had remained the same, 34% reported a slight improvement, and 15% reported a significant improvement.

In addition, while companies' revenue "stayed broadly the same" throughout the trial, they were up 35% on average when compared to a similar period from prior years.

Among employees, 39% said they were less stressed after the pilot program, and roughly 50% said there was no changed. Almost half of employees also reported improvements to their mental health, and 37% said their physical health improved. Resignations also decreased.

At the end of the program, many employees said they would not want to go back to a typical five-day workweek unless given a significant raise. Almost a third said they would require a 26% to 50% increase in pay, and 8% said they would want a 50% increase. Fifteen percent said "no amount of money" would make them want to go back to working five days a week.

Overall, 56 of the companies said they would continue the four-day workweek after the pilot, and 18 said they would make this change permanent. Only three companies said they would not continue with any of the changes from the four-day workweek.

Commentary

According to the Wall Street Journal, companies in the United States and Canada have also recently conducted a similar, but smaller pilot of a four-day workweek led by the original U.K. organizers. There are also similar programs currently being tested or developed in Australia, Brazil, New Zealand, and Spain.

"At the beginning, this was about pandemic burnout for a lot of employers. Now it's more of a retention and recruitment issue for many of them," said Juliet Schor, an economist and sociologist at Boston College.

However, widespread adoption of a shorter workweek may be difficult. So far, most of the companies that have participated in the pilot programs have been small employers. In the six-month U.K. trial, 66% had 25 or fewer employees. Some companies have also reported difficulties getting all their work done in the shortened time.

Opponents of a shorter workweek also argue that the change would not be feasible for many workers, including those in childcare or healthcare. Some people also believe that employees' productivity will eventually decrease if four-day workweeks are made permanent.

On the other hand, advocates for a four-day workweek say that while there is no "one-size-fits-all" solution, the benefits of a shorter workweek could help improve society as a whole, leading to lower healthcare costs and less emissions from commutes. People will also have more time for their personal lives, including for childcare.

"It feels like I can breathe," said Michelle, a 49-year-old media executive who said she insisted on a four-day workweek for her current position. "It feels like I'm not constantly behind with my family life and feeling guilty and like squashing all of the jobs and errands and everything into two days." (Timsit, Washington Post, 2/21; Fuhrmans, Wall Street Journal, 2/21)


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