Would a 4-Day Work Week Help Your Small Business?

The idea is to spend fewer hours at work, but be more productive when you're there.

The idea of a four-day work week has attracted attention recently, particularly after a successful six-month trial involving thousands of workers in the UK. Not only did the study find employees could be just as productive when working fewer hours, it also showed company revenues were unaffected in many cases. So how does a four-day week work? And is it something that might benefit your business?

Why companies are considering four-day work weeks

At heart, a four-day work week involves encouraging employees to work fewer hours for the same pay. Proponents challenge the idea that people are more productive if they work more, and champion ways of working smarter instead. The thinking is that people will get more done if they are less tired, less stressed, and more able to focus. 

Given that two of the trends that have emerged in a post-pandemic workplace are high levels of both staff turnover and burnout, the concept has gained traction. The UK study, which tracked around 2,900 staff in 61 organizations across six months, generated positive results for companies and staff alike. 

According to think tank Autonomy, key findings from the pilot include:

• Many companies plan to continue: 56 of the 61 organizations said they'd carry on with the four-day week after the trial.
• No impact on bottom line: Not all companies shared revenue data with the scheme, but those that did saw a slight increase in revenue.
• Fewer resignations: There was a reduction in the number of people who quit their jobs during the trial.
• Improved well-being: The majority of employees reported reduced stress and increased job satisfaction.

Four-day work weeks in the U.S.

There's a lot of interest in four-day work weeks around the world, and a number of American companies have also gotten in on the game. Indeed, some states are looking at ways to encourage adoption. For example, Maryland is considering a Four-Day Workweek Act that would give tax credits to incentivize companies to participate in a five-year pilot. There have also been discussions in California and local politicians in New York have started to engage with the idea.

If you're wondering how you might implement a four-day work week in your small business, the organizations in the pilot project took different approaches. Some shut down completely for an extra day each week. Others, especially client-facing companies, staggered staff days off so they could still offer continuous service. Companies in seasonal industries switched things up to give staff reduced hours at non-peak times of the year.

Would a four-day week work for your business?

For many organizations, cutting the number of hours employees spend at work will involve a big change in working culture. It's important to weigh the benefits against the risks and know that it won't suit every organization or employee.

For example, some staff who spoke to Wall Street Journal about their four-day week experiences found it stressful to try to cram their work into the time available. It can also be challenging for companies to reduce the number of hours for shift workers without also increasing costs. 

Nonetheless, the potential for increased productivity and improved staff retention are hard to ignore. If you're considering a four-day week for your company, start by shifting the focus away from hours spent in the office. Instead, consider measurable goals in terms of productivity and outputs and look for ways to empower your employees to manage their own time. 

Talk to your employees and clients about your plans. You'll need them to buy into the process if it's to be a success. Look at the different models other four-day week organizations have used and think which might work best for your company. You might also reach out to other companies who've already made the leap to learn from their experiences. 

Consider how you might measure the success of any trial period, how you would handle work emergencies out of hours, and how you can maintain productivity levels. Perhaps there are ways technology could save people time -- whether it's a new accounting software package or customer relationship management system. 

Bottom line

It's easy to understand why employees might jump at the chance to work fewer hours for the same pay. While there are benefits for companies too, it's also a big change that requires a lot of flexibility across the organization. Don't rush into a four-day work week. Read the studies, try to get buy-in from your team and clients, and make sure you find a model that works for you.