In a quiet lab in Hove, England, staff at skincare manufacturer Five Squirrels are engrossed in their work. From mixing formulas to labelling bottles, they’re making the most of what they call “deep work time.” Ignoring emails, phone calls, and instant messages, they’re striving to increase productivity during a 4-day workweek, with the aim to maintain their full week’s pay while enjoying a 3-day weekend.
The Impact of the 4-Day Workweek
Five Squirrels‘ owner, Gary Conroy, has reported that his 15 employees have exceeded their targets since adopting the 4-day workweek. What may appear as an unusual approach is, in fact, a strategy gaining momentum among economists and businesses. The aim is to counteract the slowdown in productivity growth in the UK and other Western economies.
The Productivity Challenge
Productivity, or economic output per hour worked, has slowed down considerably in the UK in recent years. From 2010 to 2019, it averaged just 0.75%, a sharp decline from over 2% per year from the 1970s until the financial crisis. The Bank of England predicts this sluggish pace will persist due to additional bureaucratic processes post-Brexit.
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Benefits of the 4-Day Workweek
Considering this trend, a four-day week, maintaining the same output, reflects significant productivity gains. Moreover, it contributes to a happier workforce. Five Squirrels is one of 61 firms that participated in the world’s largest four-day week trial last year. Out of these, 56 companies decided to continue with the policy.
Investing in Productivity
UK’s productivity issue partly stems from low investment, the weakest among the Group of Seven nations in 2021. However, the initial trial suggests that transitioning to a four-day workweek could potentially encourage companies to invest more in equipment and training, improving productivity.
Big Companies on Board
The idea of a four-day workweek has often been met with skepticism by larger companies. However, the trials and the shift towards remote work due to the pandemic have prompted employers to consider alternative work practices. Some major corporations, like Unilever, are also experimenting with reduced workweeks in a bid to attract new talent.
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An Edge in Hiring
As the UK grapples with a labor shortage, the adoption of a four-day workweek could provide smaller companies with an advantage in attracting talent. Some argue that these firms, often with a more cohesive ethos, might find it easier to adopt such a dynamic change.
The Limitations
Despite its benefits, the four-day workweek may not be suitable for all. Some companies, like Allcap, a supplier of industrial components, found the model challenging to implement due to client demands and the need to accommodate sick days and annual leave.
This news is based on a report from asiaone.
