12 Ways a 4-Day Work Week Would Help the Economy
Over the past few years, many companies have realized the value of implementing a four-day workweek. Aside from benefiting employees, how does a four-day workweek help the economy?
A four-day workweek would help the economy by increasing productivity and consumer spending. It also would encourage investment in training, entrepreneurship, and studies and allow more people to work while decreasing running costs, traffic, and the carbon footprint.
This article will provide an in-depth explanation of how these factors would help the economy. I’ll also discuss other ways workweek restructuring can help the economy and if a four-day working week structure is suitable for all industries. Finally, I’ll explain the drawbacks of a four-day workweek.
1. Increases Productivity
Implementing a four-day workweek can result in a boost in productivity. Although this means that employees have less time to complete their work, it can motivate them to manage their time more efficiently and encourage employers to eliminate time-wasting exercises, such as unnecessary meetings.
With limited working hours, companies could be encouraged to implement innovative operations strategies, including automation or artificial intelligence.
An excellent example of how the four-day week has increased productivity is Microsoft Japan. In 2019, the company implemented a four-day workweek as an experiment and saw an increase in productivity of 40%.
Aside from being motivated to work more efficiently, the four-day workweek also helps make employees happier as they have more time to spend with their loved ones and hobbies. Employees with a good work-life balance can be more productive because they feel less stressed.
An increase in productivity helps the economy because it increases the company’s profits, allowing them to grow, contribute more taxes, and employ more people.
2. Reduces Running Costs
A company can reduce its running costs by closing the office for an additional day each week. In doing so, it can use the extra money saved to innovate new products or services, create more jobs and, in doing so, improve the economy.
Here are some examples of where companies can save money by implementing a four-day week:
Energy. Having the lights off and not using power outlets for an extra day each week can reduce the energy bill.
Water. A four-day workweek results in fewer toilets being flushed and less water being used for washing hands or dishes.
Office equipment. A four-day workweek encourages employees to use their time and office resources more efficiently, reducing wear and tear on copy machines and other equipment.
HVAC equipment. Not using the HVAC system for an extra day every week makes maintenance intervals longer and helps prolong its lifespan, saving money.
Consumables. Closing the office weekly for an additional day means that the company uses fewer consumables, such as coffee, toilet tissue, hand soap, and more. The amount saved in one day is not much, but the annual impact can mean a significant financial saving.
When Microsoft Japan first implemented its four-day workweek, it saw a 23% reduction in electricity costs and a 58% decrease in print volume, providing that the extra day off each week makes a difference in running costs.
3. Less Absenteeism
A four-day workweek can reduce employee absenteeism due to fewer stress-related illnesses resulting from a better work-life balance. Not being in the office for an extra day each week also slightly reduces the employee’s exposure to viruses and bacteria, making them a little less likely to catch seasonal colds and flu.
Employees who have an extra day off to take care of personal matters are also likely to take fewer personal days.
Advice Direct Scotland, a citizens’ advice agency, implemented a four-day workweek structure in 2018. They found that this way of working benefited both employees and the company and saw a whopping 71% reduction in staff absences.
A lower staff absenteeism rate can improve the economy as the company will be more profitable. Additionally, as part of the reason for lower absenteeism is fewer stress-related illnesses, there will be less of a burden on the country’s healthcare system.
4. Decreases Staff Turnover
Successful companies know it’s worth attracting top talent by offering them favorable working conditions and a decent pay package because this will make them more likely to stay with them.
Implementing a four-day workweek can make a company more attractive to current and potential employees. Employees who stay with a company for a long time are more likely to be highly skilled at their jobs as they have more experience in the role.
A YouGov poll conducted in seven European countries revealed that employees mostly favor a four-day week structure as they believe it would make people happier and more well-balanced.
When a company can retain its intellectual assets, it benefits the company by increasing profits and the economy because company growth means more jobs and taxes paid.
5. Encourages Companies To Invest in Training
The traditional five-day workweek structure allows enough time for new employees to learn the ropes and gradually become more efficient in their roles. Depending on the role, employers can save money by hiring entry-level employees and providing them with on-the-job training.
On the other hand, a four-day workweek doesn’t allow such a luxury, and employers are forced to hire well-qualified staff or upskill their current staff to fulfill their duties in fewer hours.
By setting a higher standard for employee training, the economy is helped as there are more highly-skilled people to increase profits and/or start their own companies.
6. Increases Consumer Spending
Having only two days off every week means that employees typically use at least one of those days to run errands, clean their homes, and do grocery shopping. Many employees use their second day off to relax and spend quality time with family and friends.
With a third day off, they have more time to focus on other pursuits, which can increase consumer spending and help the economy. Some examples include:
Going on a weekend break to a nearby town and supporting a local hotel or bed and breakfast
Enjoying a meal at a local restaurant
Supporting local businesses, such as niche stores, farmer’s markets, and sports venues
7. Reduces the Company’s Carbon Footprint
Many companies aim to have a lower carbon footprint, but this can be challenging. Introducing a four-day workweek could help them to achieve a lower carbon footprint due to using fewer office resources.
Reducing carbon emissions can help the economy because fewer pollution-related illnesses will ease pressure on healthcare facilities and increase employee productivity due to less absenteeism.
Reducing a carbon footprint is also an impressive accolade and can help a company attract more customers, become more profitable, and, in so doing, improve the economy.
8. Less Traffic
Allowing your employees to work a four-day week decreases the amount of traffic on the roads to your city’s central business district, freeing up space for trucks transporting essential goods.
With trucking companies encountering less traffic, they save time and money on fuel, making them more able to maintain their prices, and help the economy.
9. Gives Entrepreneurs Time To Start a Business
Not everyone with a corporate job plans on keeping it for the rest of their lives, and many dream of starting their own business. The two factors keeping most people back are money and time, resulting in many folks giving up on their dreams.
Although the primary goal of a four-day week is not to encourage employees to start their own businesses, it can help the economy by encouraging new startups to emerge.
10. Gives Employees Time To Pursue Studies
While some corporate employees dream of having their own companies, others fantasize about furthering their studies. Unfortunately, the traditional workweek structure doesn’t leave people with much time for studying, but a four-day workweek can make it possible.
By furthering their studies, employees can become more valuable assets to their employees, adding insight and helping them to increase their efficiency and innovate new solutions. This can benefit the economy by helping companies become more profitable and employ more people.
11. Gives More People Access to Employment
The traditional five-day workweek structure means many qualified and skilled employees cannot apply for jobs due to family or personal commitments.
Single parents who find childcare too expensive or people who need to take care of elderly relatives might find it possible to hold down a job with a four-day workweek structure.
Giving more people access to employment can help the economy as it can benefit from additional skills and knowledge.
12. Encourages a New Generation of Well-Balanced Employees
The final reason a four-day workweek would help the economy is that it would help encourage the new generation to be healthy and well-adjusted employees.
Introducing a four-day workweek now would mean that kids see more of their parents. Since their parents would likely be less stressed and happier, kids would have a greater chance of having a happier childhood.
A study by the Paris School of Economics, Aix-Marseille University, and Chulalongkorn University revealed that people with a happy childhood are likelier and healthier adults and perform better at work.
Raising a new generation of happy and healthy adults could benefit the economy as they may have lower work absenteeism rates and be better able to collaborate with team members, improving operations.
Other Ways Workweek Re-Structuring Can Help the Economy
A four-day workweek (with Mondays or Fridays off) is the most popular way companies are restructuring how their employees work.
Some companies have not yet embraced this concept but have restructured their workweeks in other ways, which can also help the economy:
Only Requiring In-Office Working on Certain Days
The work-from-home structure has become increasingly popular recently, with many companies realizing that it allows employees to become happier and more productive.
However, in some industries, in-person collaboration is essential, and some companies have compromised by allowing their employees to come into the office only on certain days.
This working structure helps the economy because employees spend less money and time commuting, leaving money to spend elsewhere. Less commuting also helps reduce carbon emissions, helping to reduce pollution-related illnesses.
Furthermore, this work structure allows companies to move into smaller buildings as fewer employees work in the office on any given day. By hotdesking (i.e., not giving employees their own desks), they can save money on overheads and can price their goods or services more attractively.
Allowing Employees To Work Flexible Hours
Some companies yet to embrace the four-day workweek require employees to come into the office five days a week but allow them to work flexible hours.
This has numerous time-management and social benefits. For instance, starting work before the morning traffic and leaving before the rush hour saves workers time and money on commuting and helps reduce traffic.
It also allows highly-skilled workers who wouldn’t ordinarily be able to take up employment due to family commitments to find jobs. For example, a highly-qualified single parent might find it convenient to work flexible hours, allowing them to take a two-hour lunch break and fetch their kids from school.
Is a Four-Day Workweek Suitable for All Businesses?
With the four-day workweek becoming increasingly popular, you might wonder if it will be implemented across all industries.
The four-day workweek is not suitable for all businesses because some rely on employees performing hands-on tasks in the workplace, and working hours cannot be reduced.
Some examples of industries where a four-day workweek is unsuitable include:
Hospitality
Education
Healthcare
Aviation
Law enforcement
What Are the Drawbacks To a Four-Day Workweek?
The overwhelming consensus on a four-day workweek seems to favor it. However, despite its many benefits to employees and the economy, it does have drawbacks:
Increased stress levels for those who can’t manage their time effectively. Newly-appointed employees may still be getting to grips with the role and might not realistically be able to finish all their work in four days. Employees who don’t have good time management skills could also struggle with this workweek structure.
Unreasonable expectations. Some people believe that working only four days a week will improve their lives dramatically. While there’s certainly a honeymoon period for the first few months, the novelty soon wears off, and it may not have the effect they were hoping for.
Not suitable for all employees. Although most employees would wholeheartedly embrace a four-day workweek, some would prefer the traditional model. For some folks, work is the most important part of their lives, and they thrive on working overtime and spending time in the office.
Sources
NPR: 4-Day Workweek Boosted Workers' Productivity By 40%, Microsoft Japan Says
UCL: Happy children tend to become happy adults, research finds
YouGov: Eurotrack: Europeans support introducing a four day working week