Is a Four-Day Workweek Imminent?

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One year after the conclusion of the world’s biggest trial of a four-day workweek, a large majority of companies that took part were still allowing their employees to work a shorter week and more than half had made the change permanent.

?For six months between June and December 2022, workers at 61 organizations in the United Kingdom worked 80 percent of their usual hours — for the same pay — in exchange for promising to deliver 100 percent of their usual work.

?At least 89 percent of those firms were still operating the policy and at least 51 percent had made the four-day week permanent at the end of 2023, according to a report published on February 21 by one of the trial organizers.

?The study was released recently by Autonomy, a think tank that ran the 2022 trial with nonprofit 4 Day Week Global and the 4 Day Week UK Campaign in partnership with researchers from Cambridge and Oxford universities, and Boston College.

?The effects of reduced working hours have been overwhelmingly beneficial for staff and their companies, according to the report.

At the end of the trial, employees reported enjoying better physical and mental health, greater work-life balance and general life satisfaction, and less exhaustion from work.

?“The key point is that the strong findings at six months are not due to novelty or short-term impacts. These effects are real and long-lasting,” Juliet Schor, professor of sociology at Boston College, which surveyed staff at the companies that participated in the trial, told CNN.

?Managers and CEOs at 28 firms said the four-day week had a positive impact on their company. Staff turnover fell at half of the organizations, almost a third said the policy had noticeably improved recruitment, and 82 percent reported beneficial effects on staff well-being.

?The Autonomy report also highlights the methods organizations have used to sustain a four-day week, including revising the norms around meetings, work communications, and prioritization.

?“In this study, it has been clear the four-day week is not just a flash in the pan: companies around the UK have successfully been ‘making it stick’,” the authors wrote.

?Nearly half of the 61 companies that took part in the 2022 trial are in marketing and advertising, professional services, and the nonprofit sector. The remainder make up a range of industries, including construction, manufacturing, retail, healthcare, and arts and entertainment.

Burnout Solutions

?Burnout has become such a prevalent issue for workers that an increasing number of employers are contemplating shortening the length of the workweek.

?According to a recent survey conducted by KPMG, nearly one-third (30 percent) of large US companies are exploring alternative work schedule options, such as implementing four-day or four-and-a-half-day work weeks.

?These findings shed light on how executives are seeking innovative solutions to attract and retain talent in a fiercely competitive job market, where many employees feel overburdened and undervalued.

?“We are all working to figure out what is optimal, and we will continue to experiment and pivot,” Paul Knopp, chair and CEO of KPMG US, told CNN.

?A Gallup poll released in November revealed that a significant majority, 77 percent of US workers, believe that a four-day, 40-hour workweek would positively impact their well-being.

?Several studies conducted in the United States and Europe have shown promising results regarding the positive effects of four-day workweeks on employee well-being and productivity.

?Despite these positive findings, CEOs are still grappling with questions about the practicality of implementing such an approach, its potential impact on the mental and physical health of employees, and whether it can effectively reduce costs by fostering healthier work environments.

?Calls to shorten the working week have multiplied in recent years. These calls have grown louder after millions of employees switched to remote work during the pandemic and stopped commuting, saving time and money.

?Knopp acknowledged that while a four-day workweek might be suitable for industries like finance, marketing, and certain office jobs, it may not be as feasible in sectors facing labor shortages, such as healthcare.

?“My guess is a widespread four-day workweek could be years away – if ever,” he remarked. “You’ll see companies quietly experimenting with it, but I don’t personally foresee widespread adoption in the next couple of years.”

?AI May Make a Shorter Workweek More Likely

However, Knopp expressed optimism about the potential role of artificial intelligence in facilitating shorter workweeks. He said AI technology can enhance worker efficiency, thereby making the concept of a four-day workweek more viable.

“Not only can AI automate mundane and routine tasks such as building presentations, crafting emails, and writing reports, but in the future, it will get better at even more complex activities,” Knopp explained.

“It’s possible that generative AI might make the four-day workweek more realistic,” he added.

The idea of AI improving companies’ bottom lines is an alluring thought; former Treasury secretary and current OpenAI board member Larry Summers recently said he thinks AI could replace “almost all” forms of labor.

?“I don’t think that this is going to drive a productivity miracle in the next three to five years,” Summers told Fortune Magazine.

The KPMG survey revealed that 61 percent of US CEOs are encouraging the use of generative AI among employees to automate repetitive tasks, alleviate stress, and manage workloads.

Billionaire investor Steve Cohen echoed this sentiment, expressing confidence in the inevitability of a four-day workweek, particularly with the advancement of AI technology. Cohen cited his investment in a startup golf league as evidence of his belief that people will have more leisure time, especially on Fridays.

?“I think I would have done the golf investment anyway, because I think there’s a longer-term thought, but my belief is a four-day workweek is coming,” he told CNBC.

Barry Diller, the chairman of IAC and Expedia, also predicts that companies may ultimately transition to a four-day in-person work model, with a flexible Friday option.

During an interview with CNBC’s “Squawk Box,” Diller criticized the current array of work-from-home and in-person combinations as "madness."

?“In the wake of the Covid-19 pandemic, companies have gravitated toward flexible working schedules, but the multitude of options has created some ‘chaos’ at companies,” Diller said.

?He suggests that a sensible solution would entail four days in the office and allowing employees to work from home or at their own schedule on Fridays. While not necessarily a formal four-day workweek, this hybrid approach could provide the flexibility and structure needed to navigate the evolving landscape of work.

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