Why every business should evaluate a four-day week – even if the ultimate decision is no-go

By Pete Brown and Anil Khurana

If further evidence were needed that employees’ expectations have changed since the pandemic hit, then PwC’s new Global Workforce Hopes and Fears Survey 2022 provides it. Of the 52,000 workers we interviewed across 44 territories, 62% said they favour a mix of in-person and remote working, with just 11% preferring full-time in-person work. And while money remains the top factor making people stay in a job, it isn’t enough on its own: after salary, employees considering a job change ranked job fulfilment and the ability to be their true self second and third as reasons for switching employers.?

Such findings will come as no surprise to forward-thinking employers – many of whom have already been responding to their people’s changing expectations. Take the professional services company in New Zealand that trialled a four-day week for its staff without changing their salaries. The results? While overall productivity stayed the same, other people-related scores improved dramatically – with employee engagement leaping by 30% to 40%, and stress levels dropping by 15%. Significantly, people said they were better able to handle their workload working in four days rather than five.

Seeking flexibility?

Given experiences like this one, it's hardly surprising that so many organisations are now considering the viability of moving to a four-day working week. With employee burnout, stress and the skills gaps dominating the workforce headlines, and the pandemic having opened many employees’ eyes to the lifestyle benefits of more flexible working, we’re seeing more and more clients start to contemplate such a move.?

There are other drivers, too. Take recent societal shifts, with both parents often having careers and day-care for children as a norm. Regulation worldwide is changing in response: examples include the draft Thirty-Two-Hour Workweek Act introduced in the US Congress in December 2021, the UAE’s 4.5-day working week for government employees from January 2022, and Belgium’s introduction in February 2022 of the right to a four-day workweek. Only last week, employees across 70 organisations in the UK embarked on a six month four day week trial. There have also been successful trials of a four-day workweek in Iceland and Sweden.??

Factors in favour…

So, if your organisation is thinking about moving to a four-day week, what pros and cons should you bear in mind? First, let’s look at some factors in favour.

As we’ve already highlighted, if you’re a mature and successful business, you’ll probably find your business maintains the same level of productivity. In fact, it might even go up: the potential time savings on commuting can boost the number of productive hours, supplemented by improved wellness, satisfaction and engagement among the workforce.?

These impacts mean you’ll likely boost retention and save on HR costs while also reducing office overheads. And with almost 25% of global greenhouse gas (GHG) emissions generated by transportation, reducing the daily commute can deliver a big improvement in your sustainability performance – feeding back into even higher employee engagement for “doing the right thing”.

The positive effects can go beyond these relatively direct benefits. For office workers in particular, a shorter week can also trigger innovations around organisational efficiency and hierarchy, encouraging less bureaucratic and more digital behaviours. The effect can be to reduce the amount of “unproductive work” that happens in the office as people seek to fill their day and look busy. It can also free up capacity to recruit more employees, helping more – especially younger – people to be employed and productive.

…balanced against some uncertainties

Offsetting these positive impacts are some areas of uncertainty. Legacy labour laws could cause issues: for example, what if some people still want to work five days and be paid?more?for it??An issue for international companies is that varying employment conditions around the world will require different approaches. There are also impacts to consider on other parts of the ecosystem, from schools to social care to city centre sandwich bars. And there’s the question of what people will do with their extra spare time.

There is also the potential for negative unintended consequences, specifically around diversity and inclusion. Any approach needs to be thoughtfully designed to create an experience that works for all, regardless of circumstance. Continual feedback is critical to mitigate this.

Overall, the key is that moving to a four-day week shouldn’t be a knee-jerk reaction to help tackle burnout or improve wellbeing: you could make the switch and find wellbeing doesn’t improve. Instead, the change should be closely aligned with your organisation’s long-term culture and purpose. It will also likely have to be a two-way street. For example, what would employees potentially give up in return for a four-day week? They might be willing to accept changes like greater monitoring, new performance metrics, less holiday or even lower pay.

A four-step approach?

If you’re interested in evaluating the idea of a shorter working week, PwC’s experience with a wide range of organisations points to a four-step approach.?

1. Conduct an in-depth review to consider the feasibility and implications for your organisation, given the specifics of your industry, skills base and business model, as well as the country regulations and labour laws.
2. Consult with your workforce about whether they would like the change.
3. If the feedback is positive, identify an area of the business to run a pilot, and conduct it for at least three months to provide meaningful results
4. Review the outcomes and decide on go/no-go for a roll-out across the business, or in?specific?areas.

Time to develop a view on the four-day week

We believe that – for any business, in any industry – taking a serious look at a four-day week is now vital, even if the final decision is not to go ahead. Why? If a competitor does make the move,?and your organisation doesn’t, you need to be able to explain why.?

So whether or not you?implement?a four-day week, it’s a concept you should consider. Because your employees may well be doing so already. And if you don’t offer it, they might well look elsewhere for someone who does.