The results of employers trialling a four day working week for no reduction in pay have been published in a report by academic researchers (unabridged version also available). Both employers and employees experienced positive outcomes, with two thirds of the employers who reported back on their experience stating they will continue with the four day working week, and a further 30% indicating they are unlikely to revert to a five day week.  

The pilot’s organiser, 4 Day Week Global (4DWG) supported 33 companies based primarily in the US and Ireland but with employees in a number of other countries including the UK. Employees were required to work 80% of their normal hours for 100% of their normal pay and agreed to deliver 100% of their standard output.  

When asked to rate their experience on a scale from 0-10 (10 being “very positive”), the participants reported overwhelmingly positive outcomes. Employers rated their overall experience as a 9, with impact on company performance scoring 7.6 and impact on productivity scoring 7.7.  Employees rated their experience at 9.1 and considered that their work performance had increased from 7.17 at the start of the trial to 7.83 by the end.  

Data on revenue and employment during the trial revealed turnover growth among participants of approximately 8% and a 12% increase in employee numbers, which the report contrasts with general resignation rates increasing during the period of the pilot. Employees reported reduced stress and fatigue, better work-life balance and more time for exercise and general self-care.  

Whilst the report is based on a small sample, the success of the pilot has led to wider interest in reassessing the five day working week ‘norm’. In the UK, a petition was submitted in January to the Welsh Government to explore a four day working week for the public sector. Following post-pandemic changes to working practices, with greater home and hybrid-working, employers may soon need to accommodate shifting expectations regarding what constitutes a ‘normal’ working week.  

 

  This article reflects the position at the date of publication (21 February 2023). If you are reading this at a later date you are advised to check that that position has not changed in the time since.    

 

We regularly publish articles on a range of tax and wider topical issues which affect employers. If you wish to subscribe to our monthly Employer Focus e-newsletter, please contact us.