Let’s play a game of “Jeopardy.”
“The United States passed this law to implement a 40-hour, five-day-per-week schedule.”
Answer: “What is the Fair Labor Standards Act of 1938?”
Correct!
The United States passed the Fair Labor Standards Act of 1938 because it wasn’t uncommon for workers to put in 60 hours of labor, six days per week.
Employees were stressed, dealing with health issues, and missing time with their families. The problems of low productivity, employee disengagement, and morale required a reduction in work schedules and the standardization of labor policies.
So, why did America adopt an eight-hour workday and a 40-hour workweek?
Robert Owen, a textile manufacturer, proposed that the 24 hours in a day be divided as follows:
- 8 hours: Work
- 8 hours: Recreation
- 8 hours: Rest
Owen believed that working for eight hours, five days a week, would help employees find a work-life balance and improve productivity.
The Eight-Hour Movement was successful in having the Fair Labor Standards Act of 1938 passed into law… 87 years ago.
Is the traditional 40-hour, five-day workweek still relevant, or is it time for your business to transition to a four-day workweek with flexible hours?
Is There Proof A Four-Day Workweek Works?
Yes.
In 2022, Juliet B. Schorr launched a groundbreaking study to examine and analyze the benefits of adopting a four-day workweek. An economist and sociologist at Boston College, Schorr’s study involved 245 companies and 8,700 employees across various industries.
What were the findings of the study?
- Increase in overall workplace productivity.
- Increase in the number of self-reported productivity.
- Work intensity remained unchanged. Companies saved time without compromising productivity.
- A small decrease in the number of employees looking for side jobs or gigs.
- Relationships with work colleagues remained strong.
- The larger the reduction in work hours, the higher the level of well-being.
After one year, 90% of the companies surveyed maintained a four-day workweek.
The benefits of the four-day workweek were consistent across demographics, including gender, age, and race.
This finding was significant because it meant the heightened feeling of well-being wasn’t a byproduct of the 2020 pandemic.
Employees were happier with a four-day workweek because they were less stressed out.
Their employers benefited as well.
One of the companies in Schorr’s study reported that they landed a client immediately after implementing the four-day workweek. A company representative attributed the success to having employees who were happy and not burned out.
To paraphrase a popular saying:
“Happy employees, happy employer.”
What Are The Reasons For Adopting A Four-Day Workweek?
Julia Schorr identified three main reasons for businesses to adopt a four-day workweek:
1. The Emergence of AI
Artificial Intelligence has evolved to a point where the technology can handle the bulk of the workload.
Workflows can be automated to improve efficiency. Businesses can increase output without breaking the budget. Processes such as customer service, marketing, and sales can run 24/7 unless there are technical issues.
Companies shouldn’t use AI as an excuse to transfer more work to employees. Instead, companies should harness AI’s ability to manage workload to help employees achieve a work-life balance.
2. Employer-Driven Movement
Many employers are shifting toward a four-day workweek in response to post-pandemic changes in employee behavior.
The pandemic awakened people to the things that are important in life: Family, Health, and Happiness.
This realization led to “The Great Resignation.”
Jobs were available, but no one wanted to return to the workplace.
Employees realized that work took time away from their families, affected their health, and that the lack of appreciation, along with a company-sponsored career path, made them unhappy.
Employers must prioritize their employees’ family time, health, and happiness to retain talent and ensure business success.
3, The Struggle Is Real
Schorr found out that employees don’t think two days off per week is enough to rest and recharge.
Two off days mean 72% of the week is allocated for work.
Employees only have 28% or two days to attend to other facets of their lives, such as family, health, friendships, household chores, hobbies and interests, and rest, to name a few.
72% work and 28% life is far from being balanced!
This significant imbalance produces stressed-out employees who are unhappy, unproductive, and disengaged from their work.
We’d like to add two more viable reasons for adopting a four-day workweek:
4. Lower Business Costs
With a four-day workweek, you can streamline specific business expenses such as:
Rent
Instead of renting an office space, implement remote work models such as telecommuting or Work-From-Home (WFH) arrangements.
If you prefer having a satellite office as a contingency measure, look for a concierge or boutique lessor who charges tenants on a daily or hourly basis.
Utilities
Fewer work days or incorporating remote work arrangements mean less consumption of power and water.
Transportation and Communication
Employees and employers will spend less money on public transportation and gasoline.
Likewise, since operations will be carried out via online channels, you can cut unnecessary landline subscriptions and go 100% mobile.
5. Save The Planet
Related to the previous section, less commuting results in fewer carbon emissions, which is better for Mother Earth.
A study by the University of Massachusetts Amherst showed that a 10% reduction in work hours led to an 8.6% reduction in an individual’s carbon footprint.
How To Implement A Four-Day Workweek For Your Business
You’ve gotten this far because you’re at least thinking about shifting your business to a four-day workweek schedule.
“Thinking” is correct because to run an effective four-day workweek, you must have a shift in mindset.
Step 1: Think Productivity
An employee could log eight hours of work, but did the employee actually “work?”
Let’s set aside the guesswork.
According to a study by VoucherCloud, employees are productive for only two hours and 53 minutes out of an eight-hour work day.
The breakdown of unproductive activities within an eight-hour work day was as follows:
|
Unproductive Activity: |
Time Used: |
|
Scouring Websites |
1 hour and 5 minutes |
|
Social Media |
44 minutes |
|
Personal discussions with co-workers |
40 minutes |
|
New job search |
26 minutes |
|
Smoke breaks |
23 minutes |
|
Personal calls |
18 minutes |
|
Water cooler/coffee breaks |
17 minutes |
|
Sending/reading personal text messages |
14 minutes |
|
Snacking |
8 minutes |
|
Preparing Food |
7 minutes |
The companies that were interviewed in the VoucherCloud were paying employees an entire day’s wages when they were only productive for 36% of the time.
They paid for nearly five hours of unproductive time!
An eight-hour workday creates an impression in the employee that “I have a lot of time.” This type of mindset makes individuals susceptible to distractions and encourages procrastination.
With a shift in mindset from quantitative benchmarks to productivity, you’re focused on results, not compliance.
Step 2: Study Your Current Business Model
Once you’ve firmed up the decision to switch to a four-day workweek, the next step is to map out the transition process. Reducing the number of work days will have an impact on the systems in place.
The planning process begins by studying your current business model. Get your managers and supervisors involved.
Conduct a brainstorming session and find the answers to the questions below:
- Should we shift to a four-day workweek?
- How many hours should we work per day?
- Which days of the week should we designate as workdays?
- What are the working hours?
- Should we incorporate remote work arrangements?
- How should we transition the shift to a four-day workweek without impacting our relationships with clients, customers, and partners?
- How would the shift affect our current workflows?
- Can we improve our productivity with a four-day workweek?
- Will shifting to a shorter work week create redundancies that lead to layoffs?
- Are you in favor of integrating AI technology in our process flows?
Brainstorming sessions won’t deliver conclusive answers, but they’ll provide information critical to the next step.
Step 3: Prepare a SWOT Analysis
SWOT analysis is used to assess the impact internal (Strengths and weaknesses) and external (Opportunities and threats) factors have on a planned venture or organizational shift.
SWOT stands for:
- Strengths: The characteristics or qualities of a business that give it an advantage over its competitors.
- Weaknesses: Flaws or potential problem areas of a business that could put it at a disadvantageous position against its competitors.
- Opportunities: External factors that could become future opportunities for growth.
- Threats: External factors that could manifest as potential risks to the business.
Here’s an example of how SWOT analysis would look for a company shifting to a four-day workweek:
|
Strengths: |
Weaknesses: |
Opportunities: |
Threats: |
|
Greater efficiency |
Network security vulnerability |
Expand the talent pool to include regional locations |
Legal action from laid-off employees |
|
Improved productivity |
Layoffs due to job redundancies |
Create new streams of revenue from online channels |
Loss of confidential information due to cyber attacks |
|
Engaged employees |
Poor quality of work |
Capitalize on comparative cost advantages prevalent in other regions |
Increased stress levels |
|
Reduced costs |
Inconsistent communication and output due to persistent latency issues with the technology infrastructure |
Allocate free time to study or invest in new ventures to diversify the business. |
Lower productivity |
|
Enhance customer support with 24/7 services |
High initial cash outlay that might affect cash flow. |
Identify future leaders in the organization. |
Lower income |
Step 4: Communicate Your Plan With Everyone
When you’ve mapped out a plan, discuss it with your employees. They’re worried that if you decide to automate processes using AI technology or outsource select tasks, some will lose their jobs.
Explain to your employees that the decision to shift from five to four work days per week isn’t final yet. The new schedule will be in pilot test mode for one to three months.
Layoffs are always a possibility whenever a company changes its business model, especially if there are redundancies. However, layoffs can be avoided if your focus is on productivity.
As we discussed, a four-day workweek can lower costs. If the company maintains productivity with reduced workdays and lower costs, you can keep everyone on payroll.
Jobs are also contingent on the economy.
If the economy is good and business is humming, employees will be more assured of job security. If the economy turns for the worse, layoffs become a possibility.
“Everyone” in the communication chain also includes your suppliers, clients, and partners.
A shift to a four-day workweek might be perceived as a consequence of an unprofitable business. Suppliers and clients might go into panic mode. Customers might switch brands.
Schedule meetings with the representatives of your supplies and clients and discuss the shift with them. Be clear about its purpose and goals.
Inform customers via social media or email about the shift. Assure them that the shift is intended to improve efficiency and won’t affect the quality of products and services.
Step 5: Run The Pilot Test
Once the processes are in place and everyone’s onboard, it’s time to set the wheels of the four-day workweek in motion.
But don’t expect a smooth ride. Problems will arise – and that’s a good thing.
The goal of the pilot test is to identify its flaws and potential pain points. You’ll see which processes fit and which ones hinder operations.
Your employees are placed in unfamiliar conditions. You’ll have a clear view of which individuals are thriving and which are struggling; which ones are motivated and which ones don’t care.
Essentially, a pilot test is an incubation period.
Keep an open mind. The inability to achieve benchmarks isn’t an indication of failure, but opportunities to fine-tune the process.
The next step is crucial for the success of the transition to a four-day workweek.
Step 6: Analyze the Results of the Pilot Test
Identify the quantitative and qualitative benchmarks of the pilot test, gather data, and analyze the results.
What are examples of quantitative benchmarks?
- Total output produced.
- Total sales generated.
- Total hours worked.
- Compare productivity data on remote work versus office work.
- Number of leads or new contacts generated.
- Percentage increase/decrease in the conversion rate.
- Number of website visits, pageviews, unique visitors, repeat visitors, and click-throughs.
- Number of positive social proofs.
If quantitative benchmarks provide measurable results, qualitative benchmarks enhance understanding by representing the intangibles that cannot be quantified.
How do you gather data for qualitative benchmarks?
1. Conduct interviews with your employees. Focus on assessing their feelings and emotions.
- How do you feel about the four-day workweek?
- Do you feel more engaged at work?
- Do you feel happier?
- Are you less stressed?
- How has a shorter work schedule affected your relationship with co-workers?
- Do you think you’re more productive with a four-day-a-week schedule?
- Do you prefer remote work or an office designation?
- Do you prefer a four-day workweek or the traditional schedule?
2. Meet with your suppliers. Find out if deliveries of products or services were affected by the shift to a four-day workweek. Inquire with suppliers if their inventory management system was affected by your changes in operating schedule.
3. Talk to your clients and customers. Get feedback about your products and services.
- Did the shortened schedule affect the quality of products and services?
- Did we comply with our deliverables to your company?
- Are we meeting your timetable?
Your employees, suppliers, clients, and customers are your stakeholders. Solicit their opinions, get feedback, and ask for recommendations. Their inputs are essential to the success of your business.
Step 7: Determine Your Four-Day Workweek Business Model
You’ve experienced the process, analyzed the numbers, and solicited feedback from your stakeholders.
It’s time to design the first official iteration of your four-day workweek schedule.
A four-day work week schedule can assume different modalities:
1. Telecommuting: A percentage of the employees are designated as remote workers.
2. Fully Remote: Everyone works from home.
3. Hybrid: Remote workers are given the option to work in a traditional office environment.
4. Outsourced Work: Certain areas of responsibility are outsourced to regional or international talent to provide 24/7 support and reduce costs.
5. 100/80/100 model: Recommended by Schorr, employees receive 100% of their salaries, work only 80% of their hours, but are required to maintain 100% productivity.
You can also design a proprietary four-day workweek model that’s customized to fit your business needs.
For your guidance, read this article we wrote, “Should You Choose A Remote Or Hybrid Work Model For Your Business?”
Conclusion
Identify the Key Performance Indicators (KPIs) and metrics of your four-day workweek schedule and regularly track its progress. Remember, the numbers follow the performance.
But tracking the schedule’s progress isn’t just about KPIs and metrics.
Keep the communication channels with employees, suppliers, clients, and customers open. Schedule interviews, distribute surveys, and solicit feedback from your stakeholders.
Any business model is a work in progress. The iteration process will continue throughout the business life cycle.
A website is a key component of a four-day workweek. It can serve as the online business hub where stakeholders can find the information they need about changes to your work schedule.
No website? No problem! We’ve been developing optimized websites for years. Book a call for a quick meeting!
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