The Four-Day Week Is Gaining Momentum - Could It Benefit Employers?

The four-day work week is a winner – or at least that’s the result of a major pilot program conducted at 33 international businesses.

With employees working only four days, the companies involved saw a 38% increase in revenue year-on-year, despite no reduction in pay for employees. Every single business involved in the trial is sticking with the four day workweek, and employees loved their day off so much that most said they'd need a significant pay rise to go back to working five days.

Maybe it's time to think about whether it could work at your business. If so, Achieve Business Solutions, the accountants Frankston business owners trust, could help. Let's take a look at the pros and cons of working 80% of the time for 100% of the pay.

Employer advantages of the four-day work week

  • It can cut overheads by up to 20%.
  • Employers with 4 day working week jobs have been rated as some of the best for work-life balance.
  • Productivity is likely to remain at 100%; some studies show an increase.
  • Existing employees are less likely to resign due to work-life balance
  • It's easier to recruit new team members.
  • Emissions created by commuting will reduce.
  • Employees can strike a balance between work and life.

Employer disadvantages of the four-day work week

  • Your total revenue may suffer.
  • It simply won't work for many businesses, particularly those focused on customer service.
  • You'll have to decide whether to limit your operating hours or try to manage workers' schedules and workloads to allow a 4 day work week to succeed.
  • We don't have long-term studies of the positive effects on staff morale - there are some indications that it may fall back to the baseline over time.
  • Squeezing more into four days of work could prove stressful for you and your team.

Are you thinking of offering 4 day working week jobs? A financial advisor on the Mornington Peninsula can help you run the numbers.

If you're considering a 4 day working week trial or another flexible arrangement, our financial advisor on the Mornington Peninsula can help. It's useful to identify your least profitable days, for instance, if you plan to simply shut up shop for one weekday. Or we can help you figure out optimal staffing requirements based on revenue streams.

Our team can work with you to do a cost-benefit analysis of what a four-day workweek might look like for your business, discuss how you can change the way your business operates - and help you reap the rewards.