Should employers institute four-day workweeks?

We didn’t used to have an eight-hour full working day in Australia. For that, we can thank the stonemasons in Melbourne who downed their tools on April 21, 1856, and marched to Parliament House to demand shorter hours.

Now, the Senate Select Committee on Work and Care, chaired by Greens senator Barbara Pocock, has recommended trialing the four-day workweek, following the so-called 100:80:100 model: employees keep 100 per cent of the pay, put in 80 per cent of the time, and maintain 100 per cent productivity.

There has been growing interest in the idea of a four-day workweek, with many organisations experimenting with the model. While the concept of a shorter workweek is not new, recent research has highlighted its potential benefits and drawbacks.

One benefit of a four-day workweek is increased employee productivity. Several studies across diverse industries and occupations demonstrated that workers who switched to a four-day workweek were more productive than their five-day counterparts. Employees who worked fewer hours also had higher levels of job satisfaction, which translates into increased productivity.

A shorter workweek can lead to an improved work–life balance, which is associated with lower stress, improved mental health, and better overall wellbeing. Employees working shorter hours report higher job satisfaction, as they have more time to spend with family and pursue hobbies. Companies that offer a four-day workweek had lower rates of absenteeism and turnover.

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But there are drawbacks, too. One concern is that initially, employees may have difficulty adjusting to a shorter workweek, particularly if they’re used to longer hours. Some workers may find it challenging to complete their tasks in a shorter amount of time, leading to increased stress and lower levels of productivity. Additionally, there is concern that a four-day workweek may not be possible for all job types, particularly those that need employees to be on call or work irregular hours.

There is also some concern that a four-day workweek could lead to a loss of income for workers. While some companies that have implemented a shorter workweek have maintained the same pay rates for employees, others have reduced salaries in proportion to the reduction in hours worked.

So, is a four-day workweek the right model for your business or organisation? The answer to that question will depend on a variety of factors, including the nature of the work, the needs of the organisation, and the preferences of employees. As companies continue to experiment with this model, it will be important to monitor its impacts and evaluate its effectiveness in promoting the wellbeing of workers and the success of businesses.