Earlier this month, the world’s biggest ever four-day work week pilot was launched across the UK.
More than 3,300 workers at 70 UK companies, are taking part in the trial which will see employees working a four-day week with no loss of pay for six months.
The pandemic has changed the way we work forever, with more people working from home and more emphasis being placed on the importance of work-life balance.
Companies are testing whether the pilot will be successful in terms of productivity, employee commitment, and quality of life.
What will the four-day work week trial entail?
The trial was introduced in June 2022 and will run until January 2023. For 6 months, thousands of workers will test a new four-day working pattern as part of a research campaign organised by 4 Day Week Global, alongside researchers from Cambridge University, Oxford University and Boston College.
The pilot is based on the 100:80:100 model – 100% of pay for 80% of the time, in exchange for a commitment to maintain 100% productivity.
The organisations participating in the research pilot range from a local fish and chip shop, to large financial firms. Some of the other businesses taking part include education settings, construction firms, marketing agencies, recruitment consultants, as well as food and beverage services.
Researchers will work with each of the participating organisations to measure the impact on productivity in the business as well as the wellbeing of its workers. They will also look at the impact on the environment and gender equality.
Analysis will be made on how employees respond to having an extra day off, in terms of job and life satisfaction, health sleep, energy use, travel, as well as stress and burnout.
The government has backed other four-day work week trials set to take place later this year in Scotland and Spain.
What implications must a business consider before changing to a four-day work week?
Juliet Schor, a professor of sociology at Boston College and lead researcher on the pilot, said: “The four-day week is generally considered to be a triple-dividend policy – helping employees, companies, and the climate. Our research efforts will be digging into all of this.”
Although the pilot trial is still ongoing, the proposal for the four-day work week seems very positive. That said, company leaders must consider the future implications that the new working pattern may have on their business.
In a moment, we will look at the pros and cons of the four-day work week from a business perspective – but what other employment matters will need to be considered?
Employee Pay
It is important to remember, that although your staff may decrease their hours from 40 to 32, you will still have you pay them the same salary.
Holiday Entitlement
Your staffs holiday entitlement and other benefits must remain the same.
Updating Employee Contracts
Essentially, by joining the four-day work week, the only changes being made to your employee’s job is the hours that they work. However, it is so important to ensure when employment changes are made that worker’s contracts are updated. This prevents and supports any potential claim that may be made against your business in the future. It also settles disputes and confusion with regards to your employee’s new working hours and how this may alter other areas of their work or duties.
Pros and Cons of the four-day work week
If the same results can be achieved in fewer days, why keep a five-day work week? Let’s look at the pros and cons from a business perspective.
Pros of the four-day work week
Reduced costs – A four-day work week may cut business costs through energy bills, rental space or any other overheads.
Happier employees – Studies show that employees with a better work-life balance are happier in the workplace. A happy workplace is a productive workplace.
Increase in employee productivity – A business owner who’s team is currently taking part in the four-day work week pilot has said: “Morale has improved and we’re hoping that our productivity at work is going to be higher.”
Fewer health issues & sick days – Employees with more days off are less likely to experience stress and burnout, which in turn should result in less time off needed for sickness and other health issues.
Recruitment & staff retention – All business owners can appreciate what a pain the recruitment process can be. It’s timely and it can be costly. By offering employees a better work-life balance, you are more likely to attract and retain hardworking staff.
Cons of the four-day work week
It may not be right for every business model – If we are being frank for a moment, it just may not be possible for some businesses to operate over reduced days. For instance, if you own a shop or a café, by opening just 4 days a week you may find a reduction in your sales or footfall.
Scheduling conflicts – Another concern that could arise is scheduling conflicts. This may be with other businesses and organisations that may operate over 5 days or choose to close on a different day to your business. Scheduling conflicts may also occur within your staffs new working pattern.
Reduced hours could mean reduced work – Although the idea of the four-day work week is that productivity and commitment would increase, this can not be guaranteed for every worker. In some cases, 20% less time at work could mean 20% less work is done.
Stress and Pressure – For those that are willing to up their productivity, they may find themselves feeling stressed or under pressure when trying to complete their workload in a reduced timeframe.
Would you consider implementing the four-day work week in your business?
Depending on your company and the industry in which you operate, there are so many factors to weigh up.
If you are considering joining the four-day work week and require any legal advice on how you may need to alter your employment contracts, get in touch with our friendly team of specialist employment solicitors. We can help you navigate through the necessary requirements and eliminate any potential threat to your business.