The idea of working less and achieving more may sound too good to be true, but a growing number of startups are embracing the benefits of a four-day workweek. By reducing the number of hours employees work from 40 to 32 per week, without cutting their pay or productivity, these companies are reaping the rewards of happier, healthier, and more efficient teams.
One of the pioneers of this movement is Andrew Barnes, the co-founder of 4 Day Week Global, a nonprofit that funds research on four-day workweek practices and the future of work. Barnes shared his insights at the Work/23 symposium, hosted by MIT Sloan Management Review, where he presented the results of a pilot program involving 91 organizations and 3,500 employees.
The program showed that a four-day workweek increased productivity, performance, revenue, hiring, and employee satisfaction, while reducing absenteeism and burnout. Employees also reported improved well-being, health, sleep, exercise, and family time. Men spent 22% more time on child care, and both men and women got an average of 42 more minutes of sleep per week.
Barnes also explained how his own trust company, Perpetual Guardian, adopted a four-day workweek by following the 100-80-100 rule: 100% of normal pay, 80% of typical work hours, 100% productivity. He advised organizations to involve their employees in designing a four-day workweek that meets their existing obligations and optimizes their efficiency.
“Even lean companies can find a better way, because otherwise you’re saying [that you’ve] reached the pinnacle of human achievement in the way in which you’re working in your company today,” Barnes said.
“We don’t recommend keeping the working week at 40 hours and trying to cram it into four days. There’s a lot of evidence that suggests that in fact the productivity in those extra hours is not very high at all,” he added.
Other startups that have implemented a four-day workweek have also seen positive outcomes. Eden Cheng, the co-founder of PeopleFinderFree, said that his company switched to a four-day workweek while still paying the same five-day paycheck and found that it was a success, resulting in a “40% increase in productivity, as well as huge cost savings in electricity and printing in the office.”
“In this post-pandemic climate, most workers these days are looking for a work environment that provides them with a better work-life balance,” Cheng said. “The pandemic has made flexible working conditions the most valued and requested benefit option in our company.”
Lynda Fairly, the co-founder of Numlooker, also praised the benefits of a four-day workweek for her business and her employees. “As far as business goes, having extra days to plan saves me money on overtime fees. If you want to get ahead of the competition, you can get so much more done in fewer hours. And if you’re looking for a way to get employees to remember the business and what they do there is more than just a job, this is it,” she said.
A four-day workweek may not be suitable for every startup or every industry, but it is certainly worth considering as an alternative to the traditional five-day model. By shifting the mindset from valuing hours worked to valuing actual output and results, startups can create a culture that fosters innovation, collaboration, and well-being for their employees and their customers.
Relevant articles:
– How to implement a 4-day workweek for the whole organization, MIT Sloan, Jul 31, 2023
– The benefits of a four-day workweek, WGN-TV, Aug 1, 2023
– 4-Day Workweek Boosts Productivity and Retention, According to New Research, Inc.com, Jul 26, 2023
– Companies that took a ‘leap of faith’ with a four-day workweek saw improved productivity — and held fewer boring meetings, MSN.com, Jul 31, 2023