Why the 4-day workweek has benefits for employees and employers alike

Amid ongoing disruptions from the pandemic and managing hybrid workforces, New Hampshire employers face increasing employee turnover fueled by the “Great Resignation.” Attracting and retaining top talent is the biggest challenge facing employers, and it has resulted in operational difficulties for companies as the economy continues to reopen.

The constant quest to stand out from the crowd to attract new hires while retaining current employees can have a dizzying effect on business leaders. As new ideas for employee perks are constantly proposed in leadership meetings, it can sometimes feel like a flavor-of-the-day approach to finding a solution to the problem.

Because employees have experienced a remote work environment and more flexible schedules during the last 18 months, workers have placed greater value on having more control over their time. Consequently, some companies have implemented unlimited paid time off policies or transitioned to fully remote workplaces.

If employers can find additional ways to provide more time to employees without affecting the business, it can lead to more desirable employment situations and help reduce employee turnover. Although not yet widely popular in the U.S., one option is a four-day workweek that gives employees additional flexibility and control over their time.

With businesses and workers becoming more adaptable due to the pandemic, a four-day workweek is a natural progression as the business landscape evolves. In fact, during the 20th century, some key milestones helped pave the way for the current 40-hour workweek: Nine-hour shifts six days a week at the Ford factory were reduced to eight-hour shifts (1914); eight-hour workdays were established through legislation for rail workers (1918); Ford plant closed on weekends (1924-1926); Fair Labor Standards Act (FLSA) enacted to mandate 44-hour workweeks (1938); and FLSA was updated to reduce the workweek to 40 hours (1940). Based on history and vast technological advancements, a four-day workweek is possibly the next frontier in the workplace.

The benefits of implementing a four-day workweek include:

• Becoming a preferred employer: Because the balance of power has shifted from employer to employee and is dictated more by the needs of workers, there is greater incentive for organizations to strive to become preferred employers. As workers continue to push the narrative about flexible schedules and the war for talent escalates, companies that offer a four-day workweek can become more attractive to potential candidates. This is especially the case for companies that offer a 32-hour workweek at the same 40-hour pay rate, as opposed to four 10-hour days. In addition, potential cost savings for employees can include reduced gasoline, toll road and parking fees; a decrease in day care expenses; and lower costs associated with eating meals out one day a week.

• Enhanced work-life balance: A four-day workweek enhances work-life balance for employees because they have more time to spend with family and friends; pursue hobbies and other interests; and take care of doctor appointments and errands more freely. In addition, when the extra day is on Fridays or Mondays, extended weekends give workers more time to take short trips or decompress from feeling overworked and burnt out. This provides employees with an opportunity to recharge and return to work refreshed and ready to tackle their responsibilities with a new perspective.

• Increased productivity: When employees work fewer days, they can focus better, resulting in increased employee productivity, engagement and morale. A four-day workweek also encourages teams to become more efficient by cutting back on emails and unnecessary meetings and managing meetings more effectively. In addition, with one less day to complete required tasks, employees are less likely to procrastinate by browsing the internet or social media, shopping online or playing computer games, which can quickly add up to hours of unproductive time.

Before implementing a four-day workweek, employers should consider the reasons behind it, including program scope, potential impact on clients and feasibility within the industry. State wage and hour laws, along with overtime obligations, are another consideration. It is also wise to consult with an HR professional or employment practice attorney before taking action.

As employers continue to navigate the challenges of the “Great Resignation” and explore novel approaches to stand out in the crowd, considering a four-day workweek that addresses the needs of a vocal workforce that desires flexible hours, more personal time and control, and a quality of life will not only lead to greater business success but also continue to advance the efforts to improve working conditions.

Eric Cormier is a manager of HR services for Insperity, a provider of human resources and business performance solutions.