Is the ‘Four Day Work Week’ Set to Become a Reality Worldwide?

Trends / 23 May 2023

The traditional Monday to Friday 40 hour week has been the default working pattern for decades, but as we enter a new era of work-life balance, the four day work week is gaining traction around the world.

This revolutionary shift has been fuelled by studies that show how overworking leads to burnout, decreased productivity, and poor mental health – while, on the contrary, shorter working weeks lead to greater productivity and other positive outcomes.

In this article, we’ll explore the origins of the four-day work week and discover why it’s gaining momentum as a new standard for the modern workforce.

Benefits of the Four-Day Workweek

The benefits of a shorter workweek are numerous, for both employees and employers. They include the following:

Improved work-life balance: Having an extra day off each week allows employees to have more time for personal activities, leisure, family commitments, pursuing hobbies, and taking much-needed rest. This leads to reduced stress and better overall well-being.
Increased employee satisfaction and engagement: Offering a four day workweek can boost employee morale, satisfaction, and motivation. Employees appreciate having more control over their time and being able to enjoy the benefits mentioned above. This, in turn, can improve retention, loyalty, and engagement levels.
Enhanced productivity: While it might seem counterintuitive, a shorter work week has the potential to increase productivity. Research and various pilot projects have shown that employees often experience a heightened sense of urgency and focus when they have fewer work days available and, as a result, they may become more efficient, prioritize tasks effectively, and experience improved concentration levels. (Click to read more about boosting retail productivity.)
Reduced absenteeism and burnout: A well-rested and rejuvenated workforce is less likely to experience exhaustion or seek additional time off for personal reasons. This can lead to lower absenteeism rates and decreased occurrences of stress-related burnout.
Attraction and retention of talent: Implementing a four-day work week can serve as an attractive perk for potential job candidates and is a key differentiator in a competitive job market. It can also improve employee retention rates, as staff are more likely to stay with an employer that values their well-being.
Increased sustainability: A four-day workweek means less energy and water consumption, and less waste generation. In addition, commuting is a significant contributor to CO₂ emissions and air pollution; with fewer commuting days, there would be reduced use of public transport and less traffic congestion, leading to lower emissions from cars and a decrease in fuel consumption.

History and Evolution of the Four-Day Work Week

The 40 hour, 5-day work week was not always the norm. Going further back, working more than 60 hours each week was the standard and various social movements fought to change that across the world.

Some milestones that have brought us to where we are today are as follows:

The early 20th century: The concept of shorter work hours gained traction during the labour movement of the late 19th and early 20th centuries. Workers in the US began advocating for an eight-hour workday, with the slogan “Eight hours for work, eight hours for rest, eight hours for what we will”; a similar sentiment was demonstrated in Europe. While the focus was on reducing daily working hours, this movement laid the foundation for later discussions on shorter workweeks.
The ILO: In 1919, the International Labour Organization (ILO) was founded, with the objective of promoting social justice and improving working conditions worldwide. The ILO advocated for the eight-hour workday and led to international agreements and conventions supporting shorter workweeks.
Henry Ford’s observations: In the 1920s, Henry Ford discovered that reducing the work week from 60+ to 40 hours gave rise to greater productivity. Observations like this from influential businesses and public figures, along with the work of activists, helped usher in more reasonable work schedules.
The Kellogg’s six-hour day experiment: In 1930, the cereal manufacturer began a six-hour workday experiment. The results were positive, including increased productivity and reduced turnover, but it was eventually abandoned which was allegedly due to opposition from management, among other factors.
The Great Depression: During the 1930s, the Great Depression led to high unemployment rates, which sparked interest in alternative work arrangements. Some suggested reducing the workweek to distribute available work among more people and alleviate the unemployment crisis. In 1933, the US Senate passed a bill for a 30 hour work week, which was later abandoned.
The late 20^th century: This period also saw renewed efforts in Europe to address work hours and improve work-life balance with some countries, like France and Germany, implementing legal reforms that gradually reduced the standard work week. Eventually, France introduced the 35-hour work week in 1998.
The Netherlands’ part-time law: The Netherlands has been a pioneer in advocating for reduced work hours. In the 1980s, the Dutch government introduced the “Part-Time Law,” which aimed to create more job opportunities by encouraging employees to work fewer hours. The law provided financial incentives to both employers and employees, promoting a better work-life balance. As a result, part-time work became more common in the Netherlands, and the country has one of the highest rates of part-time employment in the world.

Developments Worldwide and Case Studies

In recent years, the idea of shortening the work week has gained renewed attention around the world. One influence has been the COVID-19 pandemic, which significantly disrupted traditional work patterns and accelerated the adoption of flexible arrangements. As people had to work from home during lockdowns, managers saw that employees could be trusted to perform well despite the changes.

Combined with research from the non-profit organization 4 Day Week Global (4DWG) and other pilot projects, there is a strong case for implementing this new approach.

The Perpetual Guardian Trial, New Zealand

4DWG was behind the influential Perpetual Guardian trial. In 2018, this New Zealand-based company had employees work four days a week while being paid for five. The experiment resulted in a 20% increase in productivity, higher employee satisfaction, and improved work-life balance. As a result, the company made the four day work week permanent.

Microsoft Japan

Microsoft Japan also implemented a four-day workweek in the summer of 2019. The company reported a 40% increase in productivity, as well as a 23% reduction in electricity costs and a 59% reduction in paper consumption. 90% of employees involved preferred the shorter week.

Iceland

In Iceland, the government and trade unions conducted trials from 2015-2019 involving around 2,500 workers across various industries, reducing their work hours from 40 to 35-36 per week without any reduction in pay. The trials were an ‘overwhelming success’ and productivity remained the same or improved in the majority of cases. By 2021, 86% of the country’s workforce had the right to reduce their work week.

Spain

In March 2021, the Spanish government launched a three-year pilot project in order to study the effects of a 32-hour work week that runs over four days (with no reduction in pay). The project involves around 200 companies.

The Netherlands

The average working week in the Netherlands already clocks in at 29 hours. There are at least 300 companies in the country offering a four day, 32-hour week as the standard (without a reduction in pay).

Belgium

As of November 2022, employees in Belgium have the right to request a four day week, but employees must still work the same number of hours as before.

The United Kingdom

Many UK companies are experimenting with this approach. According to a survey by Harvard Business Review, 50% of business leaders reported increased employee satisfaction, reduced employee sickness, and cost savings of almost £92 billion per year.

Will the Four Day Work Week Catch on Globally?

The adoption of a shorter workweek depends on various factors, including cultural norms, labour laws, industry practices, and the willingness of employers and employees to embrace alternative work arrangements.

As the younger workforce enters the job market, there is a growing demand for work arrangements that prioritize flexibility and well-being. Thus, as employee expectations evolve, employers may be more inclined to consider shorter workweeks to attract and retain talent and motivate Gen Z.

The feasibility and applicability of a four-day workweek can vary across industries; knowledge-based industries may find it easier to adopt these new arrangements, while those with round-the-clock operations, such as manufacturing or customer service-oriented roles, may face more challenges.

Despite the promising results that many companies have experienced, some organizations stopped exploring the four day work week due to the complexity of managing it in their unique circumstances, as well as staffing concerns, among other factors.

While it may be a gradual shift, more and more nations are experimenting with shorter weeks and making the changes permanent. In addition, researchers have reported that employees working in such companies have said they couldn’t be paid enough to go back to working the full five day week. So, it seems that for the majority of those that have started walking this path, there is no turning back.

Conclusion

The four-day workweek is gaining momentum around the world as a new standard for the modern workforce. It’s not surprising considering the benefits: improved employee well-being, retention and job satisfaction; increased productivity; reduced operating costs; and various environmental benefits.

Despite the promising results in certain contexts, its widespread adoption worldwide will require further research, experimentation, and societal shifts. It will depend on the collaboration and efforts of governments, employers, employees, and other stakeholders in order to create the necessary policy frameworks, cultural acceptance, and operational adjustments.

If you’re not ready to take the plunge and reduce your organization’s work week, there is another way to boost productivity and efficiency – workforce management software. Manus WFM is the most experienced provider of workforce software solutions, serving multinational organizations in Europe and beyond. Contact us today to book a demo.

Beat the Slow Summer Season and Boost Retail Productivity

Retail / 09 May 2023

As summer approaches, retailers face the challenge of maintaining productivity during the holiday season. Employees take time off and customers’ shopping patterns change as they spend more time outdoors, enjoying the weather. These changes can make it tempting to slow down and take it easy until autumn.

For many businesses, however, slowing down is not an option. Fierce competition combined with economic challenges means retailers need to stay focused on keeping retail productivity levels high and hitting sales targets.

The summer months are also traditionally the slowest period for e-commerce sales as well; however, PwC’s 2023 Global Consumer Insights Pulse Survey revealed that 43% of consumers intended to increase their online shopping before the end of the summer – things may be different to usual this year, so retailers with online stores can capitalize on that.

This article will review some tips that retailers can use to beat the summer struggles and maintain their productivity.

7 Ways to Boost Retail Productivity During the Holiday Season

1. Review Last Summer’s Sales Data

The first step in planning for the upcoming season is to review the sales data from the previous year to determine which products sold well during the summer season; from there, you can plan to stock those products accordingly.

2. Offer Summer Promotions

Depending on your inventory, you may have the opportunity to attract customers through seasonal campaigns i.e., promotions on summer-related products such as swimwear, sunglasses, items for the beach, sunscreen and related cosmetics, camping and outdoor gear, outdoor sports equipment, garden furniture and equipment, seasonal home décor, and so on. Food retailers can do the same with promotions on popular summer items such as BBQ-related inventory, ice-cream, cold drinks, etc.

For any retail business that does not stock such items, it’s worth considering which segments may be more active during the summer and planning promotions that will attract them. For example, consider a region that gets an influx of tourists at this time of year; if there is an overlap between what those tourists are likely to be doing in the area and what your inventory has to offer, there may be an angle to use for promotion in that regard. It’s just a matter of discovering which segments may already have an interest in your products during the summer season and capitalizing on that.

Even if your brand does not currently stock items that are popular during summer, is there a way that such items could relate to what you already sell? Could you expand your inventory to include them?

Finally, if you sell items that are in-demand throughout the year but you experience reduced foot traffic in the summer, setting up promotions for online orders is another option.

Advertising all promotions through email marketing and social channels will be important because, if customers are not visiting stores in person so much, they won’t come across these promotions any other way.

3. Drive E-Commerce Sales

Above, we mentioned encouraging customers to order online if they are less likely to visit stores in person. Once they are online, here are some suggestions to keep them returning as well as bring in new customers:

Improve the online shopping experience: Make sure that your e-commerce platform is user-friendly, easy to navigate, and mobile-responsive. If you haven’t already, you can implement features such as live chat, product reviews, and personalized recommendations to enhance the experience and encourage customers to make purchases.
Focus on customer service: Ensure that your customer service teams are readily available to answer questions, resolve issues, and provide support to online shoppers. Again, implementing chatbots helps reduce response times and as well as your staff’s workload.
Offer free shipping and returns: Offering free shipping and returns during the summer months can help reduce the barrier to entry for online shoppers who are hesitant to pay for shipping or return fees.
International promotions: International retailers aren’t limited by the seasons. While it’s summer in Europe, setting up promotions on winter products for customers living in areas where it’s winter will help compensate for slower in-store traffic.

4. Analyze Weather Data

Depending on your location, there may be times during the summer when temperatures are more mild, or there may be unexpected rain or storms. These weather changes may drive customers back to their usual patterns, so it’s important to be prepared for possible surges and schedule adequate staff for those days – you will then be able to capitalize on the busier days within the season.

In addition, weather data can inform marketers of potential heatwaves, enabling the promotion of related products just in time. This type of agility is easier with online sales as promotions can be prepared in advance; when the forecast proves to be correct, customers will be informed at the click of a button.

5. Cross-Train Employees

To ensure employee productivity in retail, cross-train staff – this helps to make the most of the workforce when employees are off on holiday. Instead of being short-staffed, the respective departments will be able to transfer employees between them in order to cover all bases.

6. Focus on Other Business Activities

The holiday season is a good time to focus on other aspects of the business, such as stock takes and inventory management, staff training, and refurbishments. Aligning such activities with times of slower sales prevents the need to conduct them during the busy autumn and winter seasons when your staff need to be available to conduct their usual responsibilities.

The slow season is also a good time to implement projects such as improving stockroom organization or upgrading technology, whether that’s implementing a new POS system or workforce management solution.

It’s also a good idea to get ahead with planning for autumn during this time, reviewing sales data from the previous year, assessing inventory levels, projecting staff requirements, and planning promotions and events for the upcoming season.

7. Boost Retail Staff Productivity and Morale

When foot traffic slows, boredom will set in, especially for shop floor staff. Here are a few ways to keep them engaged and motivated:

Keep the workplace at the right temperature: Don’t overlook the obvious such as the air temperature in workspaces. In fact, some studies suggest that 22-24 °C is the optimum range for productivity. On the other hand, it depends on the type of tasks being done; some studies show that people perform complex tasks better in cooler temperatures while repetitive tasks are best reserved for warmer workspaces.
Incentives: Offer incentives such as bonuses or prizes for meeting sales goals or other performance metrics. Rewards can boost retail staff productivity and keep employees focused and motivated during the slowest of times.
Host team-building activities: Summer is a great time to plan team-building activities, such as company picnics, BBQs or other outings, helping to build camaraderie.
Provide opportunities for learning and development: Development opportunities is a vital component of ensuring engagement and employee productivity in retail, and summer is the perfect time to do it. Consider it an investment that will pay off once the busy season gets going.
Offer flexible scheduling: During the summer months, many employees may have extra family commitments. Offering flexible scheduling options, such as shortened work weeks or flexible hours can help employees balance their work and personal lives, and reduce stress and burnout.

How to Reduce Costs in the Slow Season

If things don’t go to plan and sales are slow, here are some ways to reduce your expenses:

Staffing: Review your sales reports and consider rostering less staff on quiet days. Also consider restricting your opening hours if it’s clear from your sales data that certain times of day are not profitable.
Supplier management: Review and negotiate with suppliers to establish better terms.
Reduce inventory: Reduce your inventory levels in order to lower holding costs. This can be achieved by slowing down or delaying the procurement of new stock, as well as avoiding stocking items that are not selling well given the season.
Focus on profitable products: As alluded to above, focus on selling products that have a higher margin during the summer.
Use technology: Technology can streamline your operations and reduce costs. For example, inventory management software can help to reduce holding costs while workforce management software can reduce labor costs by up to 10%.

In Summary

Amidst a drop in foot traffic and employees taking time off, the challenge of maintaining retail productivity emerges. However, there are plenty of strategies to implement that can help to boost those summer sales figures.

Reviewing the previous summer’s sales data is a good place to start in order to determine which products are likely to sell best. Sufficient stock can then be held and items that did not sell well can be ordered in smaller quantities.

Other suggestions included offering seasonal promotions, driving online sales, and keeping a close eye on weather data to ride the wave of related sales trends, and to optimize staff levels in case of unexpected rainy days where customers are more likely to shop in-store. Cross-training employees helps maintain retail staff productivity so that when employees are on holiday, there is always someone available to fill their shoes.

Finally, organizations can use the summer months to focus on other important projects, such as refurbishments and staff training. And remember to boost morale for your shop floor staff who may get bored due to a lack of customers.

MANUS is Europe’s most experienced enterprise workforce management software provider. To discover how we can revolutionize your WFM processes and cut labor costs by 7 – 10%, contact us today to book a demo.