Should Your Company Consider a 4-Day Workweek?

Japan has long been renowned for its intense work culture that places punishingly high expectations on employees. Extreme levels of work-related stress and exhaustion, which in some cases resulted in suicides, strokes, and heart failure, became so widespread that in the late 1970s a new word, karōshi, was invented – literally translating to “death by overwork.”

This makes it especially interesting that Microsoft recently trialed a four-day workweek in Japan. The summer project, part of Microsoft’s Work-Life Choice Challenge, saw its Japanese offices closing each Friday in August, the implementation of a 30-minute meeting limit, and employees being encouraged to reduce time spent replying to emails.

The experiment aimed to improve work-life balance, boost workplace creativity, and encourage flexible working. Resulting in a 40% productivity boost compared with August 2018, it was considered a huge success; Microsoft has plans to repeat the project in Japan this winter.

This begs the question: will a four-day workweek soon become the norm across the globe?

The demand is certainly there; over 50% of global workers saying their ideal working week would last three or four days, while other companies are testing schemes similar to Microsoft’s.

In the U.S., the implementation of such a significant workplace change is likely to be a long way off.

The average working hours for Americans have barely reduced in the past five decades and the U.S. is now considered the most overworked developed nation in the world, far exceeding Japan. American companies would need to address several factors to make four-day weeks a reality, particularly in industries where very long hours are considered the norm.

We’ve delved into some of the pros and cons of the four-day week, and how it might impact manufacturing companies.

The Case for a 4-Day Workweek

1. It Boosts Productivity

It’s not just Microsoft reaping the productivity benefits of a four-day workweek. New Zealand-based trust management firm Perpetual Guardian recently cut down to a four-day week and reported a 20% increase in productivity and a 45% gain in work-life balance for their employees.

When workers are asked to deliver the same work in fewer days, they are motivated to work more effectively and with greater efficiency. Less time is spent on futile activities, meetings are shorter, more productive and less frequent, and employees procrastinate less, choosing to focus on value-adding tasks. Employees are also more likely to be on time and less likely to take long breaks or leave early.

2. Employees Are Happier

There can be no doubt that happy employees are better employees. Reduced turnover, greater innovation, fewer sick days taken, and increased productivity are the hallmarks of a content workforce.

According to the American Institute of Stress,  83% of U.S. workers suffer from work-related stress. Allocating an extra day for employees to spend with their friends and families, travel, rest, or exercise means they’ll be refreshed and energized for the four days they do spend in the office. Those with long commutes, working parents, part-time workers, and anyone with health problems are among those whose quality of life will be most positively impacted.

3. It Reduces Costs

A four-day workweek could also save businesses a substantial amount of money.

It’s one less day employers need to pay for office security, cleaners, and other staff. It’s less of a drain on facilities and employees will consume fewer resources, which means it’s also more sustainable. One study found that if Americans worked similar hours to Europeans they would consume 20%less energy.

4. It’s Feasible

Perhaps the most important point to note is that the four-day working week is very achievable. A study conducted by The Workforce Institute found that 78% of full-time workers believe they could manage their workload in seven hours or less per day if they could work uninterrupted. As many as 45% believed their job could take less than five hours each day.

Given that researchers have found the average office worker is only productive for two hours and 53 minutes each day, it’s arguably extremely inefficient for employers to maintain a five-day workweek.

The Case Against a 4-Day Workweek

1. It Could Negatively Impact Business

Even though success stories have been reported by early adopters such as Microsoft and Perpetual Guardian, a poorly implemented transition to a four-day workweek could lead to a drop in productivity, which would compel companies to hire more staff.

Today’s global economy also makes a four-day workweek more challenging for companies to implement. International businesses and complex supply chains often demand that employees work independently or long hours to accommodate time differences and meet project deadlines. Reducing the week could result in employees being out of contact with their international colleagues, clients, or key stakeholders for several days, which could have a significant impact on efficiency and output. Manufacturing companies will be particularly wary of this as they could face major project delays or lose out to their competitors who work five-day weeks.

2. It May Lead to Employee Burnout

Reducing the workweek won’t necessarily result in employees embracing a better work-life balance. Over 50% of employees worldwide feel pressure to work longer hours to advance their career, a figure that rises to 67% for Gen Z.

This is a mindset that will be very difficult to shift overnight, which means four-days-a-week employees would likely still work long hours, leading to increased stress and potential burnout. This ultimately results in more days of work missed and disengaged employees.

On the other hand, employees who rush to complete their weekly tasks within four days are more likely to make mistakes or produce work of lower quality. This is concerning in an industry like manufacturing where there are numerous safety concerns and quality control is of the utmost importance.

3. It Would Require New Legislation

To ensure the four-day workweek delivers on its intentions (less employee stress, not more), governments would likely need to implement new legislation that safeguards workers and strengthens existing overtime laws.

The overtime threshold, for example, would need to be shortened to reflect a four-day week and prevent employees from squeezing their usual 40-hour week into just four days. Similarly, minimum wages would need to be increased to ensure part-time workers were fairly compensated for the work they do.

France is often recognized as a beacon for employee rights. The legal length of the working week is 35 hours, employees may not work for more than 4.5 hours without a break, and the working day cannot exceed 10 hours. Similar laws could be adopted in the U.S. to accommodate any changes to the working week.

The Realistic Future of the 4-Day Workweek

Does the four-day working week have a real future?

If leading companies like Microsoft continue to drive these changes and employees continue to demand them, it’s highly plausible that other companies will follow suit. However, history would tell us that the best chance employees have of imparting such significant change is to unionize. After all, we have the union strikes of the 19th and 20th centuries to thank for the Fair Labor Standards Act of 1937, weekends, and the 40-hour working week; privileges we take for granted today.