4-day work week: A case study

1. Executive Summary

This report emphasizes the importance of a 4-day workweek to combat burnout and turnover in organizations, leading to a more engaged and productive workforce while reducing associated costs. A 4-day work week can increase employee productivity, broaden employer branding, and lower employee turnover in response to the increasing demand for a work-life balance. Alternatives such as remote work, flextime, nine-day fortnight, and job share could be considered.

The action plan outlines the short-term and long-term goals for implementing a 4-day workweek, including a feasibility study, a small-scale pilot program, communication protocols with employees, training managers, and monitoring employee productivity, fiscal impact, and evaluate satisfaction. The major milestones include completing the feasibility study, establishing a pilot program, implementing the 4-day workweek, and conducting six months of financial analysis. Measurable metrics include production output, units sold, revenue, cost savings, employee satisfaction, and retention rates.

2. Problem statement

Employee turnover and burnout are two business issues a corporation may be trying to address with a 4-day work week. Many businesses are witnessing their staff members become overburdened, stressed, and burned out because of longer work hours and more time demands (Hu, Chen, and Cheng, 2016). This can result in decreased productivity, absenteeism, and attrition.

Employers can give workers an extra day off each week by adopting a 4-day workweek, giving them more time to relax, refuel, and handle personal duties. This may result in a more contented, healthy, and engaged workforce, which in turn may boost productivity, enhance job quality, and reduce turnover and absenteeism (Gostick, 2023). A 4-day work week can also be a desirable benefit for potential employees, making the business more competitive on the employment market and assisting in luring and keeping top talent. Companies may be able to lower the expenses of hiring and training new employees by providing this benefit. Overall, businesses can enhance employee wellbeing, boost productivity, and make long-term financial savings by tackling staff burnout and attrition through a 4-day work week.

3. Background

To address some of these problems, Microsoft Japan, a division of Microsoft Corporation, started a 4-day workweek trial in August 2019. The business provided every employee with five consecutive Fridays off during the trial without decreasing their salary. Here are some strategies Microsoft Japan used to successfully address the issue of the standard work week:

• Improved work-life balance: Employees had an extra day off each week because of the 4-day workweek, which helped them better balance their personal and professional life. As a result, stress levels dropped, motivation rose, and overall job satisfaction increased.
• Reduced meeting times: Microsoft Japan limited meetings to a 30-minute maximum to make the most of the shortened workweek. Additionally, the company urged staff members to use collaboration tools rather than attend meetings in person. Employee productivity rose because they could concentrate on their work.
• Encouraged flexible working: Microsoft Japan promoted flexible working by encouraging staff to work from home or choose their own hours to balance personal obligations. Performance improved due to increased autonomy, trust, and motivation among the workforces.
• Improved communication: By replacing internal emails with shared collaboration tools and cutting down on the amount of them, Microsoft Japan increased communication. As a result, managing emails took less time, and staff communication was more effective.

The pilot had outstanding results, with Microsoft Japan reporting a 40% boost in productivity and a decrease in electricity and paper consumption, both of which resulted in long-term cost savings (Hancock, 2021). The business also noted a rise in employee engagement and satisfaction.

To address the issue with the standard work week, the fast-food restaurant Shake Shack started implementing a 4-day work week for its managers in 2019. The topic of the standard workweek is complicated and has been linked to high turnover rates, poor job performance, and increasing absenteeism. Long working hours, a heavy workload, job uncertainty, a lack of work-life balance, and stress are frequently the root causes of this issue (Smith, 2018).

In Shake Shack’s trial, the work week was shortened to four days, giving managers one extra day off every week. The trial sought to enhance work-life balance, raise morale, and encourage time management. Here is how Shake Shack approached the issue of the standard work week and what effect it had on the business:

• Increased efficiency: Shake Shack managers had to develop methods to boost productivity and prioritize work because the workweek was cut to four days. As a result, the task was more concentrated and effective, which enhanced performance.
• Encouraged time management: Shake Shack pushed its managers to be more productive with their time and create goals for themselves. As a result, managers managed their time more effectively and finished assignments faster.
• Boosted morale: The four-day work week gave managers an extra day to relax and recover, which improved employee morale. As a result, the staff became happier and more engaged.

The trial, in the opinion of Shake Shack’s CEO, was a success since managers reported higher levels of productivity and job satisfaction (Ziwewe, 2022). The trial also boosted employee retention and due to the reduced schedule, managers saved on childcare which had had a positive effect on the managers’ wellbeing and mental health (Littman, 2021).

4. Project Objectives

There are several advantages to a four-day workweek for both companies and employees, such as:

• Better work-life balance: Working fewer hours per week can provide employees more time to pursue hobbies, personal interests, and spend time with friends and family.
• Productivity increases: Research has shown that employees who work fewer hours are frequently more productive because they are less prone to experience burnout and exhaustion.

A shorter workweek can help to lessen the need for such absences because employees may be more likely to take time off when they are feeling pressured or overworked. An abbreviated workweek can result in less stress and greater job satisfaction, both of which can enhance mental health. Fewer working days can also reduce the carbon footprint which is an added advantage.

5. Current Process

Around the world, several nations and businesses are experimenting with a four-day workweek. Iceland, New Zealand, Spain, Japan, and in the United States there are a few places where it is being tested or used. Governments and businesses are experimenting with shorter workweeks to encourage employees to be less stressed and more effective. Although it is not very prevalent yet, as more people learn about its advantages, its popularity is growing. A corporation must determine whether a four-day workweek is feasible and popular before implementing it. There may need to be a change in the number of employees and the amount of work they have. Subsequently, they must inform every one of the new rule and guarantee that everyone is paid equally. Planning is essential to ensure quality work is completed. Some steps that companies can take to begin to implement a four-day workweek are:

• Analyze organizational viability and employee interest: The business should think about whether a four-day workweek would be practical for the company and whether employees would be enthusiastic about it.
• Workload and productivity levels should be determined by the company, which should evaluate how much work must be done and staff productivity. To ensure that work can be accomplished within the reduced workweek, the organization may need to hire more employees.
• Create a fresh schedule: The organization should decide how the new timetable will operate and inform staff of the changes. Compensation and benefits may need to be modified by the business to ensure workers are appropriately compensated. The current 4-day work week that some states are implementing includes working four days a week (Monday — Thursday) and a three-day weekend.

6. Requirements

One of the first things that companies need to do is determine if the company should offer a 4-day work week such as whether roles require interacting with customers all week and if this schedule change will negatively impact customers. If the company determines that it is a promising idea to implement a 4-day work week, they should follow a few steps. For a four-day work week to be successful, leaders must shift their mindsets to value actual productivity, not just hours worked (Whillans, A., & Lockhart, A., 2021). Employers that are considering offering a 4-day work week can support this mindset by trusting employees to get their tasks done and adjusting the company culture to model a healthy work-life balance. Second, companies need to define their goals. Is the company’s goal to improve productivity, reduce costs, or improve employee engagement? Third, communication is important to keep employees, customers, and stakeholders at ease. Identify which customers, partners, or other stakeholders might be affected, and work with the appropriate internal representatives to ensure the scheduling change is communicated clearly (Whillans, A., & Lockhart, A., 2021) (“A Guide to Implementing the 4-Day Workweek — Harvard Business Review”). Implementing a pilot will help identify what is needed to successfully make the change from a traditional work week to a 4-day work week. Employers should also have an open line of communication between employees and the human resources management team. Listening to employees will help companies stay proactive, provide support, and make changes when they need to. This proactive strategy may help with employee retention after the change is implemented. Lastly, employers can invest in employee productivity tracker software to monitor the progress of the new schedule.

7. Alternatives

People want more flexibility to have a work life balance. Job seekers are now searching for jobs that require spending less time in the office when. Hence, companies should be open to trying something new, especially if it will help increase employee productivity, broaden employer branding, and lower employee turnover. Although a 4-day work week might not be possible for all organizations, there are some alternatives such as remote work, flextime, nine-day fortnight, and job share. Each alternative has its benefits and disadvantages.

7.1 Remote work

The option to work remotely was unusual before the pandemic. Organizations did not think it was possible, but Covid-19 forced companies to think creatively to avoid company closures. Remote work makes it feasible to work anywhere with a laptop and network access. Remote work is convenient for parents that need to watch their kids or drive them to and from school. Remote work saves employees time and money. No commuting means no gas, low car maintenance, and no travel time.

However, there are some downsides to remote work. There can be communication barriers between colleagues and management due to the lack of social interaction, so employers need to think creatively to improve collaboration and communication. Another disadvantage is the security risks such as email frauds, weak passwords and unsecured Wi-Fi networks that can put the company information at risk. To stay proactive, employers should have cyber-attack prevention policies and offer employee training on good cyber hygiene practices.

7.2 Flextime

A flextime work schedule is when an employer makes it mandatory for employees to work during a specific time, but the rest of the hours worked can be completed at any time of the day. Flextime is a great option for students that have classes during the day or for parents who have children in activities that require a lot of commuting during the day. Flextime offers the flexibility that students and parents need to carry out their daily responsibilities while working full time. The challenge with offering flextime is that employers are unable to supervise employees with nontraditional hours. Another potential disadvantage with flextime is high utility costs if employees are working in an office. If employees are going in and out of the office at separate times of the day, the electricity is on for longer periods compared to an office with employees on a traditional schedule.

7.3 Nine-day fortnight

Another alternative is the nine-day fortnight. The nine-day fortnight is a compressed work schedule that allows employees to work their hours in a shorter number of days. A 35-hour full-time employee would need to work 7.78 hours per day to have a day off every other week. This option is great for people who enjoy traveling as it gives them a 3-day weekend every other week. This work schedule maximizes the employer brand, as employees like to have Fridays off. Further, companies can compete and attract employees from competitors because it is a rare offering. A disadvantage is that the schedule can be exhausting for employees as it is necessary for them to be productive most of the time. Employees with a nine-day fortnight need to have suitable time management skills.

7.4 Job share

Job sharing is yet another alternative to the 4-day work week. Job share is when two part-time employees share the job duties of a full-time job. This work schedule offers flexibility to the employees and coverage benefits to the employer. Having two people working on the same task makes it easier to deal with absences. A potential disadvantage of job sharing is finding compatible partners that are willing to work together. These partnerships require having similar personalities, skills, and working styles. Also, if a partner needs to be replaced, it might be a challenge to find someone. To manage a successful job-sharing schedule, employers should have effective procedures in place to facilitate job handovers. In addition, employers should offer communication skills training to avoid miscommunication between the job-sharing partners.

8. Comparative Analysis

A 4-day workweek consists of 32 work hours instead of the typical 40 work hours per week of the 5-day workweek model. From a Human Resource Management perspective, job descriptions and responsibilities remain unchanged in both scenarios — the volume of work remains the same, employees maintain the same remuneration packages, and employers do not have to hire more people to handle the existing workload.

The Monday to Friday 5-day work week is the current ‘standard’ across most industries over the last 100 years within the U.S. In contrast, the 4-day work week is a recent trend that is mostly on trial by individual companies within the U.S. and globally. Most of such trials have recorded success, revealing that 4-day work week benefits both the employers and the employees. Several companies are enforcing it on a long-term basis, and governments too. In early 2022, the Belgian government introduced a new labor market reform that allows workers to choose to work a 4-day work week. Workers in Belgium traditionally worked a 5-day work week.

Legions of employees in companies and industries that run intense 5-day work weeks endure heavy work-inspired stress and burn-out or find work-life balance more mythical than practical. According to a Microsoft study (2022), the top five reasons employees quit were because of well-being or mental health (24%), lack of work-life balance (24%), or because of lack of flexibility in work hours or locations (21%). The study further reveals that the collective experience of the Covid-19 pandemic has left a lasting imprint on how employees define the role of work in their lives. “47% of respondents say they are more likely to put family and personal life over work than they were before the pandemic.” (“AZ Talent Coop — Education and Networking for Professional Business People”). In addition, 53% — particularly parents (55%) and women (56%) — say why they are more likely to prioritize their health and well-being over work than before. In contrast, 4-day work weeks give employees a 50% increase in usable leisure time from 2-day to 3-day weekends. This plays a vital role in improving work-life balance and mental health as employees are more likely to get sufficient rest, add more hours to their exercise routines, spend time with loved ones, and attend to personal matters.

4-day work weeks are associated with more benefits to the employers that the current 5-day work week model does not deliver including increased employee productivity, a fact companies that had done 4-day work week trials have established. In addition, 4-day work weeks foster a good employee relationship with employers. It is easier to retain employees who feel employers care about them. Richard Branson, founder of the Virgin Group once remarked “Clients do not come first. Employees come first. “If you take care of your employees, they will take care of the clients.” (“Richard Branson > Quotes > Quotable Quote — Goodreads”).

Compared to the 5-day work week, 4-day work weeks are more cost-effective, they come with a 20% reduction in commuting time for employees which saves employees commuting fares and/or gasoline, in addition to reducing carbon emissions and traffic congestion. Employees also save other working costs like lunches and childcare.

9. Additional considerations

There are several benefits to a four-day work week. But when engaging in such an endeavor, companies must keep in mind that there may be other considerations that may require attention. Some additional considerations when considering shifting to a four-day work week would be the additional pressure on support staff. The customer service call line, for example, will need more staffing because of the sudden rise in calls due to the unavailability of in-person representatives to address client needs. The employer will need to establish a plan for dividing the workload of the organization over four instead of five days. It needs to ensure that deadlines can still be reached and that workloads are manageable given the shorter time limit.

The company may also need to hire more employees to maintain the production output of a five-day work week with only a four-day work week due to the fewer hours/ days worked. The increase in staffing may also cause the company to need a bigger location or a different scheduling window with multiple shifts in a workday. The company will also need to analyze the effect on customer and client interactions. It will need to take into account future adjustments to business hours, customer assistance options, and communication methods. External stakeholders will need to be informed of the change in working hours to manage their expectations successfully.

The organization will also need to evaluate the effect on salary and benefits. Depending on the modified work schedule, it will need to decide if salaries will stay the same or whether they need to be adjusted. It also needs to assess the possible impacts on employee benefits like health insurance and retirement plans, paid time off regulations, and overtime pay. To ensure adherence to any prospective changes, the company will be required to review employment laws, labor rules, and collective bargaining agreements. To negotiate any legal ramifications, such as pay and hour requirements, overtime rules, and employment classification, legal help may be sought.

10. Action Plan

10.1 Short-Term Plan (First 3 Months)

Our short-term goals for the action plan will encompass the first three months involved in implementing a four-day work week. We have broken down the first stage of our action plan into four stages. First, a feasibility study must be conducted. Second, create a small-scale pilot program involving a subset of the workforce. Third, establish communication protocols with employees for questions and concerns. Finally, train front line managers to manage teams under this new paradigm. Human Resources must be kept abreast of every stage in this action plan and any deviation from the period will be communicated with employees.

Prior to radically changing an entire company’s “9 to 5” model, a feasibility study must be accomplished to see if the change is even viable. Questions to consider could be: Will this new change be incompatible with our customer base? Do the financial implications of this new change put far too much strain on certain departments? Will employee productivity rise or drop? The organization will have to be analyzed and a determination must be made about whether this change will be an overall net positive or negative.

If the feasibility study deems the switch in schedule would be workable, a small-scale pilot program will be implemented. A subset of the workforce will be briefed on the changes and all elements of that team’s operation will be tracked and analyzed. The subset of employees should not be so big that the pilot program negatively disrupts overall operations or so small that any results are statistically insignificant.

A successful pilot program will entail the need to establish a communication protocol that ensures all employees are kept well-informed of all that changes taking place. Furthermore, a change of this radical will bring forth many questions and concerns from the employees. Communication with employees must be clear, concise, and transparent. Comments from the employees must be responded to promptly; less than 48 hours would be advisable. Employees should also be encouraged to voice any concerns they may have; anyone may provide valuable insight into an aspect being overlooked.

The last step in our short-term plan would be to train the front-line managers to manage teams over a four-day workweek. Managers unable to lead their teams under a four-day workweek represent a critical point of failure; resources must be allocated to ensure every manager successfully leads their teams under these new constraints.

10.2 Long-Term Plan (3 Months — Conclusion)

We have broken down our long-term goals into 4 phases. First, begin the rollout throughout the company of the 4-day workweek. Second, closely monitor employee productivity for adverse effects. Third, monitor what monetary impact the change is having on the company. Finally, evaluate employee satisfaction with the new schedule.

After having met all the factors listed in our short-term plan, a rollout of the new 4-day workweek should commence. Full transition over to the new schedule should last no longer than one month. The goal at this stage is to keep the human resources department from being inundated with unforeseen issues all at once. The period may be extended or shortened, depending on the smoothness of the transition period. Regardless, any change to the planned 1-month rollout should be communicated with the employees. Maintaining trust with all our employees will be vital to this plan’s success.

The most direct impact will be felt by the employees. Thus, it is important employee productivity is monitored closely. Specific metrics will vary, depending on the department, however, every manager will need to create objective measures to analyze and compare with. For example, a measure for the sales department could use the metric “total units sold.”

Financial implications must be closely monitored as well. Measures like revenue and expenses will be analyzed monthly during the first 6 months to ensure the plan is economically viable. If the financial implications are not negatively affected, financial analysis will return to the standard quarterly intervals.

Finally, employee satisfaction will need to be measured for the entire first year after transitioning. Initial feedback may skew positive as employees now have three-day weekends being the norm. However, as employees become accustomed to the new schedule, the “honeymoon” phase of the switch will end. We expect to see some impact on employee morale and work-life balance, be it positive or negative. Feedback from employee satisfaction must be analyzed so improvements to the plan can be made.

10.3 Major Milestones

1. Complete the feasibility study.
2. Establish and complete the pilot program.
3. Ensure management is trained on the new 4-day workweek.
4. Implement a 4-day workweek for the entire organization.
5. 6 months of financial analyses regarding the monetary impact the switch has had.

Measurable Metrics

1. Production Output- 1,000 units produced a day (5-day) vs. 1,500 produced a day (4-day)
2. Units Sold- 20 units sold per sales rep (5-day) vs. 35 units sold per sales rep (4-day)
3. Revenue- 4Q revenue of $3,000,000 (5-day) vs. 4Q revenue of $4,500,000 (4-day)
4. Cost Savings

• Higher overtime costs due to lower efficiency vs. Little to no overtime expenses.
• Lower office expense cost (electricity, cleaning, heating) due to 4-day work week.
• Reduced wear on equipment due to less daily use.

5. Employee Satisfaction (Surveys)

• Higher morale among employees due to better work/life balance.

6. Employee Retention Rates

• Lower turnover rate due to more rested, happier employees.
• Lower recruitment and onboarding costs.

11. Conclusion

The concept of a 4-day work week has become increasingly popular in recent years as more companies and nations have started to adopt it as a standard. This shift has been driven by a desire to address issues such as high employee turnover and burnout. By properly planning and implementing a 4-day work week, companies can see an increase in employee productivity, morale, and retention rates. Additionally, this approach has a positive impact on employees’ health, finances, and overall quality of life. However, in cases where a 4-day work week is not feasible in a particular company or industry, alternative solutions such as remote work, flextime, a nine-day fortnight, or job sharing can be considered.

In conclusion, implementing a four-day workweek necessitates creating a well-organized action plan that takes into account both short- and long-term objectives. The short-term strategy is concentrated on carrying out a feasibility assessment, managing a modest pilot program, creating efficient communication protocols, and training front-line managers. These procedures guarantee a seamless transition and enable feedback and modifications along the way. The long-term strategy calls for implementing the four-day workweek throughout the entire organization, tracking staff productivity, analyzing the financial ramifications, and gauging employee satisfaction. To gauge the effect of the new timetable, the rollout should be publicly stated, and productivity and financial measures should be constantly monitored. Additionally, keeping a watch on staff satisfaction throughout the first year will help pinpoint areas that need improvement and implement the appropriate changes.

By adhering to this thorough action plan, the organization can carefully navigate the switch to a four-day workweek while ensuring that employee wellbeing, productivity, and overall business performance are managed and optimized.

References

Whillans, A., & Lockhart, C. (2021). A Guide to Implementing the 4-Day Workweek. Harvard Business Review. Retrieved from https://hbr.org/2021/09/a-guide-to-implementing-the-4-day-workweek

Microsoft (2022), ‘Great Expectations: Making Remote Work, work’:
https://www.microsoft.com/en-us/worklab/work-trend-index/great-expectations-making-hybrid-work-work

Gostick, A. (2023, February). Is The 4-Day Workweek the Next Big Thing? Forbes. Retrieved from https://www.forbes.com/sites/adriangostick/2023/02/27/is-the-4-day-workweek-the-next-big-thing/?sh=4552e888725c

Hancock, L. (2021, March). Towards a Four-Day Workweek: The Rise and Resistance. Organizational Performance Group. Retrieved from https://organizationalperformancegroup.com/publications/towards-a-four-day-workweek-the-rise-and-resistance/

Hu, N.-C., Chen, J.-D., & Cheng, T.-J. (2016). The Associations Between Long Working Hours, Physical Inactivity, and Burnout. Journal of Occupational and Environmental Medicine, 58(5), 514–518. https://www.jstor.org/stable/48500892

Littman, J. (2021, September 7). Shake Shack suspends 4-day workweek perk for managers. Dive Brief. Retrieved from https://www.restaurantdive.com/news/shake-shack-suspends-4-day-workweek-perk-for-managers/606123/

Smith, D. S. (2018). Workplace Stress and Absenteeism, Turnover, and Employee Performance in the Ship-repair Industry: A Case Study (Doctoral dissertation, Northcentral University).

Ziwewe, N. D. (2022, February 23). 4-day work week: What we know already from scientific research. Retrieved from https://www.thehumancapitalhub.com/articles/4-day-work-week-what-we-know-already-from-scientific-research

AZ Talent Coop — Education and Networking for Professional Business People, http://aztalentcoopllc.com/.

Richard Branson > Quotes > Quotable Quote — Goodreads, https://www.goodreads.com/quotes/7356284-clients-do-not-come-first-employees-come-first-if-you.