Productivity Vs. Efficiency - How to Work a 4-Day Week?

The 4 day work week is no longer a dream, it’s real for hundreds of thousands of people around the world. Countries like Iceland, Spain, Finland, and the United Kingdom are phasing in or have already shifted to it. At the very least, countries around the world are opening up to the idea of shorter or flexible work weeks.

The onset of the coronavirus pandemic and the shift to remote work has also pushed forward this idea.

Today, 25% of all jobs in North America are predicted to go fully remote by 2022’s end. Already, 4.7 million people are working remotely in the United States. These are huge numbers which look like they will transfer into law soon enough.

Is a 4-Day Work Week Better for Productivity or Efficiency?

While there are many 4 day work week trials going on around the world, what do the numbers actually say? Is the most efficient work week really shorter than the regular 9-5, Monday-Friday?

According to research done by the firm Atlassian, the ideal work week comprises of 38 hours. Studies have shown that productivity falls sharply at 50 hours per week. That decrease is exponential after 55 hours per week.

A WHO study found that working 55 hours per week or more increase the stroke of risk by 35%. Also, the risk of dying from heart disease increases by 17%.

Productivity Wins Over Efficiency

Work hours must be adequately spaced out to avoid burnout. This is a fact that has been made readily apparent by the failed 4-day work week experiment by Utah (more on that below). In the experiment, Primary Keyword: productivity vs. efficiency, productivity or efficiency the work week was shortened to 4 days, but each day comprised 10 hours. Hence, the total number of hours worked never went down.

Utah tried to boost efficiency by getting the same amount of work out of their state employees within fewer days. What occurred was burnout, stress, and headaches. Also, they never even achieved their goal of reducing energy costs by 20%.

While the trial wasn’t a complete failure, they failed to recognize the point of the 4 day work week. It was to energize their employees and give them peace of mind. Instead, they ended up with an exhausted workforce.

Is the 38 Hour Work Week the Most Effective?

The figure comes from time management expert Laura Vanderkam. Her study showed employees who felt they had the most time and least time off differed very slightly.

Of the 900 people in the study, those who worked 7.6 hours per week felt the least time pressured. Those who felt the most time pressured worked 8.6 hours per week. A 7.6-hour work day translates to a 38 hour work week.

The 38 hour figure is favorably compared to the standard 37 hour work week in Denmark. The country consistently ranks among the happiest in the world and at the top of the World Happiness Report. The report counts ‘freedom to make life choices’ among the deciding factors.

In 2022, Denmark ranked second, just behind Finland (which is looking to implement its own shorter work week). However, the 38-hour outlook simply converts a rigid figure into a one-size-fits-all solution. Alternatives have been proposed including:

● A 30-hour work week (5 days a week, 6 hours a day)

● 32-hour work week (4 days a week, 8 hours a day)

These alternatives are backed by Happiness expert Dan Buettner. His review of research comprising 20 million people worldwide through the Gallup-Sharecare Well-Being Index showed part-time work keeps people happiest.

Combined with a 30–35-hour work week, Dan recommends 6 weeks of vacation per year. “This is the optimal amount for happiness.” -Dan Buettner-Happiness Expert

Productivity Vs. Efficiency for a 4 Day Work Week

We’ve seen that a 4-day work week can make people happier and that it can sustain efficiency.

However, employers should understand that it’s not about shoving as much work as possible on to their

employees.

The remote work experiment during the coronavirus pandemic showed that overwhelming employees with work causes more harm than good. In 2020, 62% of people in a UK survey reported feeling burnt out very often during remote work. In 2021, 67% of workers reported that stress and burnout had increased since the pandemic.

These same mistakes shouldn’t be made to implement a 4-day work week. Otherwise, neither efficiency nor productivity will be achieved. A study in New Zealand about the shift to a shorter work week revealed work had intensified. This is not sustainable.

Preferring efficiency over productivity or productivity over your employees’ wellbeing will result in huge turnover. It will cost companies in the long run. It will cost economies in the long run. Without looking at these important details, shifting to a shorter work week will do more harm than good.

Companies Which Showed a 4 Day Work Week Increase Productivity

Certain companies all over the world have tried a 4 day work week to great success. Here are some major examples which have shown productivity can increase in a shorter work week.

Buffer

Buffer is a company that comprises just 84 people. The company embraced remote work long before the coronavirus pandemic, getting rid of its office in 2015. During the pandemic, management gave its employees 3 day weekends in May of 2020. The month-long experiment became a standard policy.

The reason? 91% of workers were more productive on a shorter work week. This fantastic revelation allowed the company to completely revise its work practices in favor of a human-focused policy.

However, there are specifics in this policy that can’t be ignored. The customer service department still works on Fridays. They still get shortened weeks, but on staggered rotation. Also, employees can opt for flexible shorter weeks. This means they can come in a few hours on Friday if they want, or five shorter days a week.

Finally, the CEO and the senior leadership overall have been committed to making the experiment a success. It’s been less about waiting for the results, and more about making it work.

Microsoft Japan

Microsoft’s Japan headquarters trialed a 4 day work week in 2019. They found that the company’s productivity jumped by just under 40%. Also, the electricity costs of the company shrank by 23%. Also, their carbon footprint also shrank, as workers printed almost 60% less.

Perpetual Guardian New Zealand

One of the most successful trials for a 4 day work week was at Perpetual Guardian, New Zealand in 2018. 78% of the company’s 240 staff members reported being able to manager their work life balance better. Compared to a survey carried out during regular work weeks, this number shot up by 24%. By any standard, that is a resounding success.

The shorter work week also resulted in less stress for employees. Just 38% reported feeling stressed compared to 45% before. Other markers that rose during the trial included stimulation (84%), empowerment (86%) and commitment (88%).

Unilever New Zealand

Unilever began its four-day work week at full pay in 2020 in New Zealand. While the results haven’t been posted yet, previous trials conducted by the company showed a 20% jump in productivity. They also showed higher job satisfaction and lower stress levels.

Countries Which Have Implemented a 4 Day Week

Several countries, or at least their provinces and states have implemented a shorter work week. While the results are not all equal, some interesting insights have been revealed by their pilot programs. Utah State Government’s Unsuccessful Trial While not a country, one of the first governments to experiment with a 4-day work week was Utah. In 2008, amid surging gas prices, the state mandated a shorter work week for all state employees. That being said, each day’s duration was boosted to 10 hours instead of 8.

The original goal for the shorter work week was to cut energy costs by 20%. While assessments nearly a year later found that energy savings were minimal, there were unexpected boosts to productivity. Worker satisfaction also rose. However, the state’s main goal was also a partial success. They saved 13% in energy costs. Since every state building was unique, managers had to come up with different plans to shutdown power on Friday.

Needless to say, they weren’t all successful. The state’s carbon footprint also shrunk. The elimination of commutes on Friday resulted in less carbon dioxide being pumped into the air.

The overall results for the experiment were mixed. While some workers appreciated the shorter work week, they also resented the longer hours. Overstressed employees complained of headaches and 20% of state employees reported struggling to adjust a year later.

In 2011, Utah shut down the experiment. The experiment was only a partial success, but not in the specific areas the government wanted.

Iceland’s Successful 4 Day Work Week Experiment

Perhaps the most successful 4-day work week trial in history has been by Iceland. A recent success, Iceland’s 4-year trial between 2015 and 2019 involved 2500 workers. That’s nearly 1% of the entire working population.

The trial showed a huge improvement in worker satisfaction in areas like work life balance, health, and stress and burnout. As for productivity, the results showed that it either remained the same or improved across workplaces and industries.

Hence, 86% of the country’s workforce is working reduced hours or have gained the right to shorten work hours.

The UK’s Six-Month Trial

In June of 2022, the UK government implemented a trial 4 day work week. This is the largest experiment of its kind the world has ever seen. It includes 3300 people: 800 more than Iceland. They are spread across 70 companies ranging from local mom and pop stores to healthcare organizations.

The experiment involves 4 Day Week Global, Autonomy (a UK-based think tank), and the 4 Day Week Campaign. Also along for the ride are Oxford and Cambridge. While the experiment is only a little more than 2 months old, it’s a very popular idea among citizens.

Recruitment giant Reed conducted a survey in 2021 showing that 80% of the UK’s population prefer 4 day work weeks.

Belgium’s Opt-in 4 Day Week

Belgium’s introduction of a 4 day work week was a win for citizens. The government’s mandate allowed them to choose flexible work hours. While employers still had the right to turn them down, they needed to submit a reasonable rebuttal to the government.

The idea is to help women care for their children, and aging parents maintain a work life balance. However, it is also a benefit to the labor market. According to Belgian Association of Women Business

Leaders’ President Beatrice Delfin-Diaz, the market will benefit from increased choice. Germany’s Startups Experimenting with a Shorter Work Week The average work week in Germany is already 34.2 hours according to the World Economic Forum.

However, trade unions are asking for further reduced hours. A survey has shown that 71% of the labor force in Germany would like a four day work week (32 hours). The same survey showed that over three quarters of people would like the country to explore a 4-day work week.

Spain’s Trial Phase

A left-wing party, Mas Pais, has started its own trial phase of the 4 day work week. It announced earlier in 2022 that a modest pilot program was going into effect. 6000 employees working at 200 SMEs would have the option to extend their weekend by one day. The trial phase will run for at least one year and will explore its pros and cons.

Already, one of Spain’s biggest telecom companies, Telefonica has adopted the idea. In June they offered the 4 day work week option to its employees.

While the jury may still be out about the effectiveness of a 4-day work week, some things are clear.

Productivity either stays at the same levels or increases across industries. Workers feel more engaged and less stressed when a 4 day work week is in effect.

However, it is notable that efficiency is not the way forward. Productivity can be a natural product of the shorter work week only if employers don’t intensify work hours. That practice has been shown to result in more stress and frustration. So, in the battle between productivity and efficiency, productivity wins in a 4 day work week.