A four-day work week: the pros and cons

6 mins read
A Four Day Work Week The Pros And Cons

about 3 years ago

​​The past 16 months have given organisations time to consider how they operate, including the number of hours and days they require employees to work.

It is no secret that the coronavirus pandemic has transformed the way we work in the UK, with many businesses having to abandon the office to work from home almost overnight. As well as this, over the last year we have seen the introduction of the Coronavirus Job Retention Scheme and the challenge of juggling home schooling, leaving many employers no choice but to allow for flexible working arrangements.

With this sudden shift to working from home and an increase in hybrid working, we have seen more and more conversations around work-life balance and businesses questioning their ‘typical working week’.

The five-day work week has become a cultural norm, especially in the UK, but after more than a year of change, is it time to rethink this approach and, if we do, would businesses continue to succeed? Or would productivity take a hit?

We asked our LinkedIn followers: “Would you consider changing your company’s working hours to a four-day working week?”. With 919 votes, 50% said yes, but with the same hours, 33% said yes but with reduced hours, 12% said no, and 6% said they would consider it, but not at this time.

With 83% of those surveyed in favour of a four-day week, there are many considerations companies must make when deciding if this is a course of action they would be willing to take.

What is the case for a four-day work week?

A four-day work week can be defined in two ways; the first is when an employee compresses their full-time hours (typically 35 hours) over a four-day period. And the second is reducing an employee’s hours (typically to 28 hours) over four days, so they are then able to have a three-day weekend.

Many argue that, while the five-day work week used to be effective in the 19th century, it no longer suits the needs of the modern-day professional.

With the evolution of technology, some day-to-day tasks are significantly more time-efficient, and with an uplift in office-based roles, we are seeing an argument that longer work hours do not necessarily mean staff are more productive.

Notably, over the last couple of years, many countries across the globe including Japan, New Zealand, Spain - and most recently Iceland - have trialled the four-day work week to research the effect it has on its employees.

Microsoft trialled four-day weeks in its Japanese offices and found the shortened work week led to more efficient meetings, happier workers and boosted productivity by a staggering 40%. Similarly, Iceland undertook a trial which monitored employees working reduced hours over a variety of public sector workplaces and found it to be an overall success, with 86% of the country's workforce now on a shorter work week for the same pay.

In an article for the BBC, Will Stronge,  Director of Research at four-day week consultancy Autonomy, said: “It shows that the public sector is ripe for being a pioneer of shorter working weeks - and lessons can be learned for other governments.”

In the UK, many businesses have also trialled the four-day work week, and some have even made the permanent switch. Gloucestershire-based PR agency Radioactive Public Relations trialled a four-day week for six months and found the business was even more profitable and employees’ sickness days were halved.

What are the advantages of a four-day working week?

Large and small-sized companies trialling the concept have created an evidence-base of the benefits a four-day working week could bring to your organisation.

An increase in productivity levels

Research has shown that working fewer hours boosts productivity levels. With employees spending less time at work, they can feel happier and more fulfilled, leading to them focusing on their job when in the workplace.

A large New Zealand business, Perpetual Guardian, trialled a four-day work week and found not only a 20% rise in productivity, but work-life balance scores increased from 54% to 78%.

Environmental and cost-saving benefits

Shortening your working week means that employees do not need to commute as much, reducing their carbon footprint.

As we have seen throughout the pandemic, those businesses with employees working on the same four days can save on overheads and in some cases even be eligible for tax relief.

Happier employees and fewer absences

According to mental health charity Mind, one in six people report experiencing a common mental health problem in any given week in England, and one in five agreed that they have called in sick to avoid work.

Four-day work weeks leave employees more time to focus on personal development or spend time with loved ones. This will not only increase employees’ happiness, but can contribute to fewer burnouts, leaving them to be more focused and happier in their role.

Better recruitment and retention

The increase of hybrid working and remote working during the pandemic has led to employees wanting greater flexibility from their employers.

The CIPD reported that the majority of people think flexible working is positive for their quality of life, and 30% of people think it positively affects their mental health. So, offering potential new and existing employees a flexible working pattern is a fantastic way of attracting and retaining talented professionals.

What are the disadvantages of a four-day working week?

Whilst there are benefits to a four-day work week, there are disadvantages too:

"A four-day work week wouldn’t work practically because of the need to cover more shifts during a time where we are already facing staff shortages."

Not all industries can participate

Unfortunately, the four-day working week model does not suit every sector. Some businesses or professions require a 24/7 presence which would make a shortened work week unpractical and, in some cases, delay work - creating longer lead times.

A nurse who wanted to remain anonymous expressed her reservations about a four-day week in the healthcare sector, saying: “As an A&E nurse a four-day working week wouldn’t work practically for us. Currently, we work long 12+ hour shifts in order to have four days off, which I prefer as it provides more of a work-life balance. However, while I know a four-day working week would be better for some of my colleagues due to childcare, the shorter, more regular shifts we would have to do on a four-day week wouldn’t work. It would mean the need to cover more shifts during a time where we are already facing staff shortages.”

Unutilised labour

A four-day week is not for everyone; some employees prefer the structure of a five-day working week or would prefer to put in more hours than a four-day working week offers.

Likewise, some professions have tasks which simply take more time than others, which would lead to paying more in overtime or drafting in further staff to make up the shortfall (as happened in healthcare for the Icelandic study), which can ultimately become expensive.

Final thoughts: should your business adopt the four-day work week?

Although the shortened work week has taken off in many European countries and been successful for many UK businesses, it is an extreme approach for a company to take and requires a shift in mindset from the employer and employees for it to work effectively, so it may not be for everyone.

While a more flexible approach on working hours is now expected from employees, a less disruptive, more gradual process would be adopting a hybrid or flexible working policy instead.

Likewise, as mentioned above, the four-day model may not work for all sectors. What studies and data have proven is that organisations who are putting more focus on maintaining staff wellbeing, engagement, morale, and productivity are reaping the benefits.​

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Pros and cons of universal basic income: solution to unemployment or too expensive?
5 mins read

Pros and cons of universal basic income: solution to unemployment or too expensive?

​​​What is universal basic income?

Universal basic income (UBI) is a system in which every adult receives a set amount of money on a regular basis. This payment is unconditional, meaning it does not depend on the recipient's income, employment status, or any other criterion.

Universal– to everyone

Basic– to cover everyday expenses

Income– regularly, for people to spend how they wish.

UBI has been an interesting and controversial topic of conversation over the past few years, with various trials and studies conducted to evaluate its potential impact. While we may be a long way off from this being considered in reality, let’s look at some of the pros and cons of introducing this concept.

Pros of universal basic income

Reduce poverty

One of the main arguments in favour of UBI is its potential to reduce poverty and economic inequality. A 2022 study by the University of York found that a UBI model could cut poverty by more than half. This would be achieved through tax adjustments and guaranteed weekly payments, providing a stable income for everyone. This stability could lead to a more robust economy, increased consumer spending, more job opportunities, and a healthier market overall.

Increased consumer spending

With more disposable income, people would likely spend more, stimulating demand for goods and services and benefiting businesses across various sectors. This increased spending could also lead to higher tax revenues, which could be reinvested into public services and infrastructure.

Empowering workers

UBI would offer a safety net, reducing the pressure on individuals to accept low-paying or precarious jobs. This could lead to higher job satisfaction and productivity, as people would be more likely to pursue jobs that align with their interests.

Improve workplace conditions

It would also encourage businesses to enhance their working conditions by shifting the power dynamic to the employees. With a guaranteed income, workers would no longer be compelled to stay in jobs solely for financial reasons, allowing them the freedom to leave roles with poor working conditions.

This shift in bargaining power would encourage employers to enhance job quality, offer higher wages, and create more supportive work environments to attract and retain employees. Consequently, businesses might need to implement more employee-focused policies, such as flexible working, improved benefits, and a stronger emphasis on work-life balance, to stay competitive in the labour market.

Innovation and entrepreneurship

Many people hesitate to start their own businesses due to fear of failure and financial risks. However, UBI could provide the financial stability needed to encourage entrepreneurship and innovation, potentially resulting in economic growth for the country. This could lead to the creation of new industries and job opportunities, further boosting the economy.

Foster education and societal benefits

Having a steady income would encourage more individuals to pursue further education and training, culminating in a more educated and skilled population. This increase in educational attainment can have numerous positive effects on society, including:

Higher civic engagement: an educated population is more likely to participate in civic activities such as voting, volunteering, and community involvement, fostering a stronger democratic process and community cohesion.

Enhanced critical thinking and creativity: education cultivates critical thinking and creativity, which are essential for technological innovation and economic growth.

Reduction in poverty and inequality: education is a powerful tool for breaking the cycle of poverty. By providing individuals with the skills and knowledge needed to secure better-paying jobs, UBI can help reduce income inequality and improve overall economic stability.

Improved public health: educated individuals are more likely to make informed health choices, meaning lower rates of chronic diseases and improved overall public health.

Cons of universal basic income

High cost

Implementing UBI would be extremely expensive, requiring significant tax increases and reallocation of public spending. While it's challenging to estimate the exact cost, one analysis projected a gross cost of 555 billion – which includes the UBI payments themselves as well as the cost of integrating it into the existing tax and benefits system. Therefore, many critics argue that for this reason, UBI is not sustainable or even feasible.

Decreased motivation to work

Critics argue that UBI could reduce people's incentives to work, prompting higher unemployment rates. They fear that with a guaranteed income, people might choose to work fewer hours or not at all. If this were the case, higher unemployment rates could negatively impact economic growth due to less taxable income.

Those who do continue working while receiving UBI might be less motivated to perform at their best. With their basic financial needs met by UBI, the urgency to excel and advance in their careers could diminish and we could see reduced effort and productivity.

Challenges for low-wage industries

Industries relying on low-wage labour might face increased wage demands, as workers with a financial safety net might be less willing to accept low-paying jobs. This could cause higher operational costs and potentially drive businesses to automate more processes.

Inflation

Increased disposable income could generate higher spending, driving up demand and prices, resulting in inflation. This could erode the purchasing power of the UBI payments, potentially negating some of the benefits.

Potential inequality

While UBI aims to reduce poverty and inequality, some argue that providing the same payment to everyone wouldn't solve inequality but merely shift the goalposts. Critics suggest that a more targeted approach might be necessary to address the specific needs of different groups within society.

The debate around UBI is far from settled, and its implementation would require careful consideration and robust policy design. As we move forward, it's important to engage in thoughtful discussions, consider diverse perspectives, and explore pilot programmes to better understand UBI's real-world impacts.

Ultimately, the question remains: can UBI be the transformative solution we need to fix the unstable labour market, or will it prove too costly and complex?

If you are looking for a talented professional to join your team, or seeking a new employment opportunity yourself, get in touch with a specialist consultant today.

How to fight economic inactivity
1 mins read

How to fight economic inactivity

​It was recently my turn to pick up the pen and contribute to City AM’s ‘The Note Book’.

I chose to write about the issue of economic inactivity and to focus on ways to encourage younger people into the workforce and ways to incentivise older workers to work for longer.

My thinking is that this will encourage the highly paid and highly skilled to work up until retirement age rather than choosing, as many do, to retire early.

And my estimation is that this would result in more, not less, tax being collected and collected sooner because these individuals are frequently higher rate taxpayers who will typically find ways to avoid inheritance tax in the extra spare time they have after they’ve taken early retirement.

Instead, these highly capable higher rate tax payers will be incentivised to continue to contribute to the growth of their organisations and the wider economy and consequently to the exchequer as well.

One for the Office of Budget Responsibility (OBR) to grapple with perhaps… but I’ve no idea how you’d model such an idea. Sometimes it’s just better to give things a go!

And if you do get a chance to see the play ‘A View from The Bridge’, you should go. It’s a precious thing - a brilliant play, brilliantly acted!

Click here to read the article.

Sales CV template: for Sales Executives and other sales professionals
2 mins read

Sales CV template: for Sales Executives and other sales professionals

​​Whether you are a sales executive, supplier relationship manager or field sales consultant, use our free template to build your perfect sales CV today.

[Full Name]
[Home address]
[Contact Number] • [Email Address]

Personal Statement

Use this section of your CV to highlight the skills that would be transferable in a sales environment e.g. questioning and listening, tenacity, resilience and the ability to think on your feet. It’s also a good idea to include a link to your LinkedIn profile.

Sales professionals are target driven and financially motivated, so don't forget to highlight and "sell" yourself.

Try to avoid statements such as "I work well as part of a team and on my own initiative" or "I can communicate at all levels" - the majority of CVs contain these statements. CVs that show creativity stand out in sales.

Education

A relevant degree, for example Business Studies will give you a great start, but many degrees have a sales element, e.g. Psychology - understanding people, Engineering - problem solving, Law - negotiation skills etc.

It is important to present your education in a way that identifies you as a sales person.

In some sales positions experience trumps education, so if you don’t have a glittering academic record, make sure you elaborate on your experience.

[College/School Name]
[Date M/Y– Date M/Y]

A-levels:

  • [Subject] – [Grade]

  • [Subject] – [Grade]

  • [Subject] – [Grade]

GCSEs:

  • [Number] GCSEs, grades [range], including Maths and English

Work Experience

This should be brief and, as a general rule of thumb, focus on the last five years of your career, or last three roles, in chronological order with the most recent at the top. Highlight your key achievements, and aim to use bullet points rather than lengthy descriptions.

[Job Title], [Company Name] [Location]
[Date M/Y- Date M/Y]

Achievements and responsibilities:

  • Brief role overview

  • Worked alongside [team] to produce [project]

  • Implemented [change] which resulted in [benefit]

  • Received an [award name] for [reason]

Hobbies and Interests

This section is not essential, but can be a good opportunity to reinforce your application, and show a future employer what motivates you outside of work.

Don’t just say that you ‘like to socialise’ be specific, and don’t be afraid to share your successes. If you can put a sales slant on this part of your CV too, even better.

I’ve completed a marathon for [charity]

I negotiated my away across [country] on a budget, working as I went

References

References are available upon request.

Download our full sales CV template.