Read: Even flexible working requires flexibility
The five-day week we’re all used to has only been the norm since the 1930s. Traditionally, people worked a six-day week. In the mid-nineteenth century, trade unions and religious groups launched a campaign for workers to finish early on Saturdays so that they could enjoy leisure activities or educational pursuits and return to work on Mondays feeling more refreshed but it took years before it was fully embedded in our working culture. Many now believe that the five-day working week pattern is no longer fit for purpose and that a more flexible approach is needed. Some employers had already begun shifting their focus when the pandemic showed us how organisations could adapt effectively to changed circumstances in a way that suited many people much better. Many have continued to deploy hybrid working arrangements.
Last week saw the results of the largest trial of a four-day week in the world. If the reaction of those organisations which took part are anything to go by, it’s been a resounding success. Sixty-one companies covering around 2,900 employees took part in the six-month trial from June to December 2022. There was a wide range of sizes and sectors, including some non-profit organisations as well as private firms in recruitment, software and manufacturing, from a fish and chip shop in Norfolk to a Citizens Advice office in Gateshead, from a robotics start up in Sheffield to a bank in Tonbridge.
Participants underwent two months of preparation to help them rethink their working practices which included workshops, coaching, mentoring and peer support from companies who had already moved to a shorter working week. They weren’t obliged to use any one type of working time reduction or four-day week, as long as pay was maintained at 100% and employees had a meaningful reduction in work time. Each company designed a policy that was tailored to its particular industry and its own organisational challenges and culture. That led to a range of four-day week models with most choosing to give all their staff Fridays off, while some offered Monday or Friday, and others opted for no common day off.
A report published this week shows that the reaction of the businesses that took part has been overwhelmingly positive, with 56 of the 61 companies choosing to continue with a four-day week. Data from the trial shows that 39% of employees reported being less stressed and 71% had reduced levels of burnout at the end of the trial, with a decrease in levels of anxiety, fatigue and sleep issues and improved mental and physical health. Fifty-four per cent found it was easier to balance work with household jobs and were more satisfied with their household finances, relationships and time management. Sixty per cent of employees found it easier to combine paid work with care responsibilities and 62% reported it was easier to combine work with a social life.
Participants found that the trial also had a positive impact on their business more widely. Compared to a similar period from previous years, they reported revenue increases on average of 35%. Revenue over the trial period itself stayed broadly the same, rising by 1.4% on average. The number of staff leaving decreased significantly, dropping by 57% over the trial period and 15% of employees said that no amount of money would persuade them to accept a five-day schedule rather than their new four day-week.
There were undoubted challenges. Staff who preferred to continue to work a five-day week needed to be reassured that a four-day week was optional, and a personal choice. The arrangement also required a degree of flexibility, for example to attend essential meetings on their day off. Some, particularly in the creative sector, were concerned that the emphasis on efficiency in the workplace might also make it less sociable. However, for most, the whole process was a constructive one and both employers and employees felt they benefitted from the revaluation of working practices and the introduction of new ways of working they had developed together.
Chair of the Purpose Coalition, Rt Hon Justine Greening, said: “The pandemic seems to have been a real reset moment for how employers and people work. Organisations were already looking at ways they could improve the health and wellbeing of their workforce but it had the impact of turbocharging change. Many employers are now rightly rethinking their status quo and giving more flexibility on how, where and when their employees work. In a sense it’s about finding a new balance between the three “P’s” - people, performance, and pounds. It’s also been interesting to see Purpose Coalition employers like Virgin Money putting ultra-flexible working at the heart of their strategy and using it as a way to really reduce barriers to many different people being able to work and pursue careers at the company. Getting this right can be a real positive for levelling up, as well as recruiting and retaining great talent.”
“It’s clear that flexible ways of working can make a huge difference to people’s lives and contribute to a much more inclusive workforce. What this study has also shown is that employers who look at all their organisation’s structures, procedures and culture and refine them reap much more positive results, with happier and healthier employees and improved productivity. Listening to their employees about what works, implementing bold and innovative strategies in a collective effort and assessing the results pays off. It has also underlined that, as with the wider problem of poor social mobility, there is no one-size-fits-all solution.
“Working with our Purpose Coalition partners has highlighted how our most purpose-driven organisations are leading the way in shaping their workforces for the twenty-first century. They are prepared to tailor their approach to fit the needs of their employees, customers and communities, share their best practice with others and measure the impact of their policies to ensure effective and tangible change.”
