The Four-Day Work Week

If you’ve been following the blog, you know how we feel about vacation days (hint: we like them).

Thinking about how taking vacation days should not be controversial has us considering a topic of recent debate: the four-day work week (4DWW for those of you who like fancy abbreviations). In general, a 4DWW is characterized by working four days instead of five but still receiving full salary and benefits. That sounds pretty great, right?

The 4DWW is sometimes thought of as a compressed workweek (CWW) in which employees work the same number of hours as before (in the U.S., this would be the “10-hour day” option), however, some advocate for a proportional reduction in the number of hours worked meaning a 32-hour workweek in the U.S.

Like vacation days, compressed work schedules are not especially controversial. Many organizations, including the government, offer this benefit. In the post-pandemic push for employees to come back to the office, hybrid schedules with 2-3 days on site rather than the full 5-day week in office have become a popular option.* These arrangements are not technically 4DWWs, but they do signal employer openness to more flexibility, which is key to employee happiness.

As always, your happiness is our greatest interest, so we’ve been looking at the latest news and research on 4DWW arrangements to see how they affect well-being. But also, we are business professors, so we need to factor in how this impacts organizations. With that in mind, we know what makes your employer happy: productivity!

Let’s take a gander at 4DWWs from these two perspectives.

Employees

Recent findings seem to indicate that 4DWW arrangements are good for employees. Unsurprisingly, 4DWWs are perceived to result in improved work-life balance. More off days mean more time and flexibility to get to the dry cleaners, wash the car, and just deal with competing commitments. No one likes to choose between responsibilities to work, family, friends, and oneself, and the 4DWW means you don’t have to choose (at least not as often).

Fewer forced trade-offs mean reduced tension and more quality time. Employees with greater detachment from work get more rest (both kinds — physical and mental) and opportunities for personal growth. Working parents benefit even more from these arrangements. Less time in the office means reduced child care expenses and less stress around your child’s school and extracurricular commitments. Plus, we think more time with the kiddos is nice (your results may vary).

One study conducted in the UK suggests that employees are enthusiastic about the prospect of 4DWWs, believing that they will enhance their well-being and job satisfaction. And studies of these arrangements implemented in Japan and other countries indicate that employees are stressed less and have increased productivity.

Employers

The effects of 4DWWs on employers have been studied for over 50 years, and most research has shown a net positive effect on employers as well. Unsurprisingly, these schedules increase morale and job satisfaction. They also reduce employee turnover and absenteeism! While the net effects on employer costs are hard to pin down, cost savings through reduced sick days have been claimed. Also, hiring and onboarding are expensive, so reduced turnover has a real effect on the bottom line. Additionally, many people will accept a lower salary in exchange for greater schedule flexibility.

As for worker productivity under 4DWW, well… the research gets complicated, but the overall finding seems to be that workers are at least as productive under these schemes. Unfortunately, the investigations in this area have not been particularly rigorous, and there are a lot of factors that come into play, so we need to be cautious about jumping to any conclusions. But here’s a promising indicator: in Belgium, CWW legislation caused stock prices to go up. Researchers figure that this is because investors expected workers to be more productive.

Here’s our take: AI is already increasing worker productivity, especially for knowledge workers. And the AI plane is still on the metaphorical runway. What we are saying is that we think worker productivity per hour is about to explode. Firms can respond to this productivity windfall by cutting their workforce or at least reducing their hiring plans. Or, hear us out, they could invest some of the windfall in 4DWW, creating workers that are happier, more creative, and more productive. Plus, we avoid the vicious cycle that comes with skyrocketing unemployment rates.

Career Essential Reads

You’re Taking Vacations Wrong

The Psychology of Staying in a Job When Everyone Else Leaves

Overall, we think the 4DWW is a potential win/win/win. Employers face reduced turnover and have happy and productive employees. The employees feel that they are being given more control over their lives, are facing less stress, and are seeing increased well-being. These (now happy) employees, in turn, have a positive impact on society overall, as research shows that happier people donate their time and money to help others.

The 4DWW seems like an option that could be an important factor in creating space for more happiness in people’s lives. Happiness matters. We are trying to find and maintain ours and hope to help you along the way!**

*We would like to note that many organizations are reverting to requiring employees to be in the office five days a week. This is NOT a popular decision and is decreasing employee happiness and well-being.

**Please note that we would like to make a caveat to our general discussion on happiness. No one is (or should be) happy all of the time. That’s not how life works.