Fewer hours, more money
The owner of a Christchurch fundraising firm who moved her staff to a four-day week says she prepared herself for a hit to the business’s bottom line – but instead saw profit and revenue increase.
Sarah Barrer, of Barrer & Co, agreed her then team of three could stop working Fridays from November 26, 2018.
They continued to be paid their fulltime salaries and their leave was based on a four-day work week.
She said it felt like a risky move – essentially offering staff a 20 per cent pay rise while the business lost time, if it was not managed well.
But now, with fees kept level and the same number of clients, the business generates more money.
Revenue is up 25 per cent on last year and gross profit 45 per cent. She has since hired another staff member.
‘‘It’s really weird,’’ she said.
‘‘It doesn’t intuitively make sense. It might be because we work in a consulting fashion, requiring lots of energy out – the high people engagement role takes a lot out of people.’’
Barrer said the team were paid a salary that was comparable to the median of the fundraising sector.
‘‘I’ve found that staff work harder for you, and over the four days achieve over and above the typical 40-hour work week. The flexible working hours creates a positive place to work and grow a business through improved productivity,’’ she said.
It had taken clients a while to get to grips with what was happening.
‘‘They would ask questions in the beginning like ‘do you not work on that day’ and ask that repeatedly.’’
Barrer said other business owners thinking about reducing staff hours would need to consider whether they had a high-performing team who understood what the decision would mean.
One of her staff members, Georgia Harvey, said she enjoyed working for a company that valued a work/life balance.
‘‘Having a three-day weekend means we are able to relax or do activities, as well as properly decompress from work to feel energised and motivated on Monday morning.’’