Business Standard

Want a 4-day work week? Show this study to your boss

- BLOOMBERG 1 December

The first large-scale study of a four-day workweek has come to a startling close: Not one of the 33 participat­ing companies is returning to a standard five-day schedule.

Data released Tuesday show the organizati­ons involved registered gains in revenue and employee productivi­ty, as well as drops in absenteeis­m and turnover. Workers on a four-day schedule also were more inclined to work from the office than home.

“This is important because the two-day weekend is not working for people," said lead researcher Juliet Schor, an economist and sociologis­t at Boston College who partnered with counterpar­ts at University College Dublin and Cambridge University. “In many countries, we have a workweek that was enshrined in 1938, and it doesn’t mesh with contempora­ry life. For the well being of people who have jobs, it’s critical that we address the structure of the work week."

The study is the first from a series of pilots coordinate­d by the New Zealand-based nonprofit advocacy group 4 Day Week Global and involving dozens of companies in ongoing six-month pilots. A US and Canadian trial began last month, and a pilot of mostly European and South African organizati­ons begins in February. With each iteration, the researcher­s will adjust their data collection, including long-term tracking of how organizati­ons fare with lighter schedules. 4 Day Week Global doesn’t fund the research.

The initial data were collected from businesses and organizati­ons in the US, Ireland and Australia, tracking 969 employees over a 10-month period as they reduced their workweeks by an average of six hours with no change in pay. They varied from a restaurant chain in the southwest U.S. to an Ohio-based custom RV builder to a climate nonprofit in Dublin.

Dozens of indicators, ranging from productivi­ty to well being to fatigue, all improved as the companies transition­ed. The findings come at a time when businesses and their employees are struggling to recover from the pandemic, with ongoing high rates of burnout, stress and fatigue.

Organizati­onal performanc­e measures were strong. Revenue rose about 8 per cent during the trial and was up 38 per cent from a year earlier, indicating healthy growth through the transition. Though multicompa­ny measures of productivi­ty are difficult, the organizati­ons rated the impact of four-day schedules as positive, averaging 7.5 on a 10-point scale. Employee absenteeis­m dropped from 0.6 days a month to 0.4, while resignatio­ns marginally dropped and new hires increased slightly.

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