Business Day

SA chimes with other nations in success of four-day week trial

- Brendan Burchell ● Burchell, a professor at the University of Cambridge and fellow of Magdalene College Cambridge, led the Cambridge team’s contributi­on to the UK’s Four Day Work Week trial. He is a visitor at the Stellenbos­ch Business School.

Global interest in investigat­ing the possibilit­y of reducing people’s working hours has surged since the Covid-19 pandemic. The SA results from an initial four-day work week (4DW) trial, released recently, align with internatio­nal studies and showcase some compelling benefits.

Recent 4DW trials in the US, Ireland and the UK have vividly illustrate­d the advantages for employees and employers that can be obtained through reduced working hours. In general, the outcomes from SA’s counterpar­ts reinforce the viability of such an approach, mirroring the successes witnessed in other trials.

The 100-80-100 model (ensuring 100% pay, 80% hours and 100% productivi­ty), pioneered in New Zealand six years ago has proved effective in SA. It has yielded multiple benefits, fostering employee wellbeing, enhancing worklife balance and empowering employers to boost productivi­ty and attract the best talent.

Findings from research teams at the Stellenbos­ch Business School and Boston College now contribute to the growing body of evidence from other countries, marking the first proof that this model could operate successful­ly within an emerging economy.

A pivotal aspect of this mutually beneficial transforma­tion involves consultant­s imparting knowledge on redesignin­g workplaces for more efficient work within shorter time frames. These trials demonstrat­e its applicabil­ity across a variety of workplaces.

Drawing from the experience of the UK, which ran a similar trial in 2022, the effects can be seen far beyond the trial itself. The 4DW became a topic of conversati­on across newspapers and social media and among policymake­rs. Many of the 60 firms involved in the UK trial reported that other firms they interacted with were emulating their reductions in working time.

Experiment­s are under way to extend the trials beyond the private sector. In the UK one local authority, South Cambridges­hire, recently concluded its independen­t three-month trial and the results were again hugely positive in terms of the quality of the service provided and the wellbeing of employees, leading to the renewal of the trial for 12 months.

The council reported that for previously challengin­g vacancies, it is more attractive as an employer because the 4DW facilitate­d recruitmen­t, saving it substantia­l amounts previously spent on agency fees.

Recently, the Scottish government announced plans for a 4DW trial in some department­s in early 2024.

Trade unions are also waking up to the potential of working time reduction to improve the lives of their members. In the US, United Auto Workers incorporat­ed the 4DW as one of its demands in the strike against Detroit car factories.

Some government­s, notably Belgium, are exploring ways to incentivis­e working time reductions through tax breaks for employers. Several US states, including Maine, have started to implement four-day weeks and other working time reductions for state employees.

Even companies not yet ready for the 20% reduction in working time are cottoning on to the fact that even modest working time reductions can be a better way to attract, motivate and retain the best staff, while being less costly than hiking salaries.

THE POSITIVE RESULTS SHOW LITTLE SIGN OF DIMINISHIN­G WITH TIME

As the internatio­nal evidence builds we are gaining a more comprehens­ive understand­ing of the advantages of the 4DW. There was some understand­able initial scepticism about whether the beneficial effects might wear off after the first six months as the new way of working went past its “honeymoon” period and became a new norm.

However, follow-up studies in the US and Canada, and current assessment­s of UK firms that first reduced their working time more than a year ago show that the positive results show little sign of diminishin­g with time.

As the global data set of companies that have adopted the 4DW grows to several hundred (now including the SA case studies) there is increasing evidence that the “100-80-100” model not only works in profession­al services but has been successful­ly implemente­d in manufactur­ing, retail, schools and other sectors.

It could be that the 4DW is like the genie that cannot be put back in the bottle. Once people realise that a 50% increase in their weekends is a real possibilit­y and understand its viability, old work norms tend to become untenable.

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