If the pandemic has taught us anything, it is that it is entirely possible to work differently. Working eight hours a day in an office is no longer an appealing prospect for most employees. There has been talk of the 4 day work week for a while now, and after a successful trial in Iceland, it looks ever likely that this could become an option in the UK too.
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The thought of a 4 day working week may instantly send fear into SME business leaders, with many already struggling to get through their workload. But what would a 4 day working week look like in reality, and more importantly, would it work?
As the name would suggest, a 4 day working week means that employees would work 4 days with 3 days off, perhaps an extended weekend depending on when the days fall. The important point to remember is that it is not a case of compressing the hours so they fit into 4 days, but instead working regular hours. The employee would not receive a pay cut, as they would be entitled to receive the same salary as they would if working 5 days a week.
The most prominent study of working a 4 day work week happened in Iceland, and there was interest in the results on a global scale. The Iceland Trial was conducted by Perpetual Guardian and involved 2,500 workers across a range of workplaces. The participants worked a 4 day work week, with no change to their salary, and the outcome was quite staggering.
Workers reported a reduction in stress and an improvement in their health and overall work-life balance. This is not necessarily a surprise, but what is extremely interesting is that there was no report of a decline in productivity. Since the completion of the trial, 86% of the workforce in Iceland is working reduced hours, and this trend is likely to continue.
Of course, it is not always that simple, and if this is to expand into the UK employment law, it is unlikely that business leaders will have much say in it. This could be a huge concern to SMEs with only a small number of employees, so let’s look at the pros and cons of implementing this structure.
It remains to be seen whether the 4 day working week will become part of UK employment law, but it is looking increasingly likely, especially due to the health benefits. As an SME, it is worth preparing now for such changes, and at least working out the logistics of how this might look. There is always a way to adapt to these changes, but being prepared is always the key.
Just as businesses had to prepare for the recent IR35 changes and make changes to the way they operate during the pandemic, this too can be something that results in positive changes for your business. There are clear advantages to working 4 days a week, and some potential downsides, but it seems that the advantages outweigh any issues it may present.
Flexible working is becoming more and more prominent. With 5.64 million people in the UK mainly working from home in 2020 and 3.98 million working flexi-time hours, this is the direction we are going in. Forward-thinking SMEs need to be prepared to consider flexible working, even if it doesn't become a legal obligation. There is no doubt that 4 day working week advantages are plentiful, so it would be prudent to consider this as part of your staff management plan.