Does Having a 4 Day Work Week Actually Save Money?

Written By Carolyn Gallagher
woman putting money in her pocket

Maximizing profits and saving money is vital to any forward-thinking company. That is why, lately, there has been a shift from the usual activities designed to overwork employees. We’re now exploring more flexible trends like remote work and, more recently, the four-day work week taking over most industries. 

Having a 4 day work week does actually save money for both employees and the employer. It may seem surprising, but shortening the work day keeps employees more focused on their job, increasing sales. This is because they know they have an extra day to dedicate to their personal matters. 

This guide will discuss how a 32-hour work week saves more money than the standard 40-hour work week. After that, I will review other benefits of this system, its challenges, and how to overcome these setbacks. Let’s get started!

How Does Working 32-Hour Weekly Save More Money?

Working four days a week, eight hours a day, is not a new development, although it is increasingly popular now. It existed long before the pandemic came crashing in 2020. 

According to a report, this trend has been popular since the late 1900s. 

In 2018, a company from New Zealand already tested its employees with the 32-hour work week and got results. After this experiment, the results proved that adding one extra day for rest did not affect productivity. 

Another company that has put the 32-hour work week to test is the Japanese branch of Microsoft. They experienced increased productivity of 40% from their employees because of this single change. 

Moreover, according to Andrew Barnes, author of The 4 Day Week, he reports that profit per employee increased 14.5% after he transitioned his 240-person financial services company to a 4-day workweek.

Every industry has two main entities- employees and employers. Having a 4-day work week has a lot of economic benefits for both parties. Let's look at how this change can save money for all affected stakeholders. 

For the Employer

Every company owner will quickly assume a 32-hour work week to be a loss. If you think from their perspective, they are losing a day when they could get a lot of work done. 

Another perspective, however, is that this work culture can save you some of the operational costs of running a company. Some of the expenses it helps reduce include; 

  • Rent. In a case where you calculate your office space rent based on the days used, a four-day work week will buy you more time on the rent. 

  • Electricity. You will not want to give employees a reason to stay idle at any point during a workday. A report says that companies pay over $500 every month on electricity. However, when you run a 32-hour work day, you get to save electricity bills. 

  • Office stationery. Materials like paper, pen, and printing, amongst others, are part of what every office pays for daily. Operating a four-day work week will reduce the number of these materials used and, in turn, money spent. 

  • Damage to accessories. Most machines and tools have lifespans that depend on their use. With one day removed from the work week, you will use these accessories less, making them last longer. 

  • Less meals. This cost consideration is for firms that take care of one meal or snack for their employees. Removing one day off the schedule will significantly affect how much you will spend on food. 

  • Salary reduction. You may not notice this at first, but if you operate with the regular pay-per-hour system, the 4-day work week saves you a lot. 

Changing operations to a 32-hour work week can initially seem like a challenge, especially for the business owner, but as discussed, there are many advantages to this type of change. 

For the Employee

Many perceive an establishment with a 32-hour system employee to be in serious luck. Well, the advantages of the 4-day employee are numerous. The financial savings include; 

  • Cost of commuting. This cost can either be buying gas or paying for a train fare. Either way, you save each of those costs on a free day. 

  • Cost of professional attire. Most establishments require you to abide by a dress code, especially if you meet with clients or investors. These clothing items could cost a lot. Removing one day of the week from work means less worrying about buying clothes for work. 

  • Meals and snacks. Most employees start their day with a lot of coffee or smoothie and go on to eat later. You can save these costs when you have an extra free day at home. 

These advantages explain why many US employees prefer working four days a week. A survey proves that more than 90% will like to work for four days, even if it means an increase in work hours. 

That said, let me show you some other advantages of a 32-hour work week. 

an iphone with the calculator app open

Other Advantages of a 4-Day Work Week

In a recent study of 2500 employees in Iceland, researchers have concluded that the 4-day work week has zero effect on productivity. Instead, it comes bearing lots of advantages. Some of which are:

  • Time for evaluation and restrategizing

  • Fewer employee excuses 

  • Improve the efficiency of the employee 

  • Getting best employees 

  • Reduced carbon emissions

  • Increases employee satisfaction and retention

  • More family time

  • Increased sales 

Let's talk a bit more about each of these advantages. 

Time for Evaluation and Restrategizing

As an employer, you should involve your team in most decision-making processes that affect the company. Employees usually come up with some of the best ideas on a proposal, business idea, or strategy. However, it is not in their place to make decisions. 



Hearing their ideas is one thing; making the right decision is another. Therefore, you need enough room and quiet to make these decisions. 

A 32-hour operating system will give you more time to make more informed decisions. Similarly, if you’re already using one strategy, you can evaluate and refurbish it to be better on a free day. 

Less Employee Excuses

According to a study. Millennials make up the largest population of employees and potential employees in most countries. In this age bracket, you have many years on your side to pursue dreams and passion. Moreover, you will probably be building a family that you will love wholeheartedly. 

If you work a stiff five-day work week, you limit time for personal activities. As a result, you will be making lots of excuses to your employer to get some free time to yourself.

Running a 32-hour work week allows millenials to follow their personal goals relatively easily. In turn, this will reduce the amount of employee emergency excuses, increasing productivity.

Improved Efficiency of Employees

Removing one day of work without increasing the working hours may seem to reduce employee productivity. However, this is usually a wrong assumption. 

The research of the renowned Society for Human Resource Management found that more than half of companies operating the 32-hour work week had experienced increased efficiency. 

Microsoft Japan remains an exciting example to prove this claim right. There was a whopping forty percent increase in productivity amongst employees during a trial for the 32-hour work week.  

When you work five days a week, you have a stressful week, and the weekends are never enough to rest, clean, and prepare. Therefore, your head is always wandering about work, affecting productivity. 

According to a survey of 1500 employees, more than half associate their productivity with their mental health. 

A 32-hour work week gives them that breather they always needed. 

Getting the Best Employees 

If you think about it closely, working four days a week sounds like an excellent idea for any employee. Who doesn’t want an extra free day?

As mentioned earlier, the Millennials are the generation that comprises most of the workforce. This generation is one actively adopting the remote working system. A report predicts that working remotely from home will become the norm in most departments. The 2020 pandemic worsened matters, as there were many resignations from employees. 

You compete to get the best employees possible for your company's growth. However, the available employees prioritize their lives ahead of a job. 

Therefore, a 4-day work week will be an excellent way to attract the best employees to your company. According to USA Today, there is an increase in the number of job postings from companies operating within the 4-day work week. 

Reduced Carbon Emissions 

Daily work activities like driving to work,  machine usage, energy usage, and others may seem like the norm, but they affect the environment. You are releasing carbon emissions into the atmosphere, either actively or subconsciously. 



According to a research project, removing one day of the week reduced carbon emissions and environmental impact. According to this project, one less work day saved more than $1 million that would have gone for energy alone. 

Increases Employee Satisfaction and Retention

Maintaining a career- personal life balance is a top priority for every millennial willing to work. Employees are eager to stay where their minds are at peace while their jobs flourish. 

According to a report, more than 60% of companies operating the four-day system retained their employees better. 

Let's get a bit more practical:

Let's assume you have about 20 employees in your company, and two are unhappy with your policies. The output on their tasks will fall below quality. In turn, it will affect the final results or slow down other employees because they must correct the work before submission. Mostly, they will still make mistakes. 

Without correcting such operating patterns in the office, you risk losing a lot of business. 

Giving employees one extra day a week provides more chances to solve their problems without affecting their careers. 

More Family Time

Family is vital, irrespective of our careers and goals. The pandemic wasn't pleasant, but it taught us how much we cherish family. 

A 32-hour work week creates more time for family bonds for both employees and employers. 

The millennial generation is just starting its nuclear family, needing more time. This additional need to focus on children and spouses has forced many employees out of their jobs. According to a report, more than 600,000 women stopped working in the US to give extra care to their children. 

However, with an operational 32-hour work week, you provide an opportunity for families to plan better. 

For instance, one spouse can have a work week that spans between Tuesday and Friday, while the other has to work between Mondays and Thursdays. That way, they make up for the time each partner is not around. 

Increased Sales

The purpose of starting any business is to make and maximize profits. 

As discussed above, operating four days a week saves you money. Additionally, your work flexibility makes you attract only the best of talents. 

Amongst these top talents you can have in your workplace, about 90% believe that working for four days impacts their mental health positively, according to a survey. 

If you provide these conditions for your employees, they will work more productively, get better ideas, and remain loyal to your firm. All of these characteristics will automatically increase sales in your company. 

Challenges of the 4-Day Work Week

The 32-hour weekly work system already has a lot of buzz from the global community. Countries like Japan, Luxembourg, Norway, and others all work below thirty-two hours weekly. 

Changing an operational system from the regular 5-day work week to the 32-hour system will come with challenges. However, it may interest you to know that the typical work week in the past used to be six days before a switch. Hence, operating the four-day work week will be hard at first, but it is not impossible. 

Some of the challenges you may face include: 

  • Business strategy. You may have to change business models when you operate a 32-hour work week, which is never a convenient option. 

  • A competitive weak point. If you operate a business in a competitive industry, your competition may capitalize on your 4-day work week model to attract customers.

  • Customer needs. Every customer wants to patronize a brand that will listen to them anytime. This model may be hard to achieve with the new system.

  • Overworked staff. Many companies remove one day and increase the working hours of the 4-day work week. This will only further stress your workers and have a negative impact. 

You can solve all these challenges by having a flexible four-day week system, where workers pick different days when they will not be at work. You can check this guide to learn how to start and sustain a four-day work week in your company. 

a figure of a man sitting on coins

Conclusion

Running a four-day work week will, without doubt, save you lots of money, amidst many other advantages, as I have discussed. 

However, it is not always an easy change, as it can fuel unseriousness within your firm. Therefore, before you opt for this system, ensure you completely understand how it works. 

Sources

Carolyn Gallagher
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