What is the 4-day working week?

The four-day working week simply means allowing employees to work four days a week instead of five, while still being considered full-time and receiving the same pay. While traditionally, employees have worked five days a week on a full-time basis, governments and businesses are now increasingly open to the idea that it may be more productive and cost-effective to have a four-day rather than five-day working week.

According to the 2024 Indeed Hiring Lab report, job postings are increasingly mentioning four-day working week arrangements. This is mostly the case for businesses with the least remote-friendly posts, such as healthcare, childcare, manufacturing and food service, as it helps make them more competitive and desirable to jobseekers generally interested in the benefits of a remote position. 

The 100:80:100 rule for working a four-day week

Many businesses who use the four-day week model implement what’s known as the 100:80:100 rule. This means that employees receive 100% of their pay for 80% of their time at work while adhering to 100% of their productivity output. Employees are expected to complete the same work in four days (sometimes with a slight adjustment in hours) as they did in five days, but receive the same pay and are entitled to an extra day off per week.

What is the UK law on the 4-day working week?

In 2022, the UK government launched a pilot scheme for the four-day working week. As we found through our own research, early indicators indicated positive outcomes, boosting both profits and employee morale. Ultimately, it will depend on UK government decisions whether employees are given the right to request a four-day working week. 

However, while the scheme might boost employee productivity and improve morale, there are still numerous logistical concerns for employers to consider, as it may not suit businesses across all industries.

These next sections explore the benefits and downsides. We also look at UK government research so far and whether it demonstrates positive outcomes for the scheme.

4-day working week benefits

A four-day working week includes 32 hours of work spread over four days with five-day pay. Rather than compressing hours, this alternative working week proposes reducing hours for several benefits, including increased productivity and higher employee satisfaction.

Increased productivity

Studies show that one of the greatest benefits to a four-day working week is a significant increase in employee productivity.

According to a four-day working week study completed by the South Cambridgeshire District Council, 22 out of 24 measures improved or remained consistent. Notable improvements included call answering times, timeliness of planning decisions, the time taken to process benefits claims and speed of emergency repairs for their Council homes. This demonstrated a clear increase in productivity in most areas.

The Council explained that the increased productivity resulted from employees feeling more pressure to complete tasks within four days. In contrast, a five-day week often leads to reduced productivity towards the end of the week.

However, with a four-day working week, employees maintained a consistent level of productivity and returned to work refreshed and motivated after longer weekends.

Moreover, the additional day off helped reduce stress, improve mental health and further boost productivity. Organisations adopting this model may also need to restructure workdays, leading to fewer meetings and less micromanagement, which can reduce distractions and allow employees to focus on important tasks.

Other possible benefits to increased productivity in the workplace include:

• Higher-quality work
• Less absenteeism
• Higher profitability
• Higher output
• Fewer missed deadlines
• Lower employee turnover

A boost in employee satisfaction

Employee satisfaction increasingly relies on a flexible work schedule and a healthy work-life balance. Since the COVID-19 pandemic, many companies have focused on improving both the physical and mental well-being of their employees.

As highlighted in our study on why leading businesses are investing in work wellbeing, companies that prioritise wellbeing tend to see higher valuations, better returns on assets and improved profits. Introducing a four-day working week is one way to prioritise employee wellbeing, as the extended weekend helps employees rest and recharge.

Employees presented with the opportunity of a four-day working week may appreciate the flexibility, fewer tedious tasks and more quality time at home. This boost in overall wellbeing lends to higher job satisfaction, which in turn supports employee retention.

Better employee retention

Millennials, long advocates for more flexible hours, make up the largest generational sector in the workforce today. However, similar flexible working arrangements are popular with Gen Z who are now entering the workforce. These groups value perks relating to wellbeing and employer branding.

As highlighted in our article on reward and recognition, only 11% of the UK’s workers are engaged. Burnout is an increasing issue for employees who are increasingly seeking reassurance and support from their employers, particularly through improved work-life balance.

Offering more flexible hours, such as a four-day working week, can increase your employees’ incentive to stay with your company long term. This flexibility is one way employers can support retention and wellbeing.

Better talent attraction

One of the key benefits of offering a flexible work schedule is the ability to attract top talent. Highly qualified individuals are often drawn to companies that offer flexibility, allowing them to manage outside obligations or long commutes more effectively.

As our 2024 UK Hiring Lab report also discovered, candidate needs will likely continue influencing workplace perks and conditions, with flexibility ranking high on the list. By advertising a four-day working week, employers may attract even more talented professionals and grow their talent pool.

Is a four-day working week right for your business?

While there are many benefits to a four-day working week, there are often drawbacks too. Several factors should be weighed up carefully before deciding if a four-day working week is the right choice for a business.

Define your goals for a four-day working week

Before implementing any changes, employers will benefit from asking themselves why they want to change employee hours. Is the primary goal to boost productivity? Are you interested in improving employee retention? Or is there a need to offer more flexibility for your workforce?

Measure the effectiveness of a four-day working week

To ensure employee flexibility and maintain productivity, it’s essential to define clear metrics for measuring effectiveness before introducing a four-day working week.

Rather than simply jumping into a new setup, it may be better for employers to test the system first to help them to determine its impacts.

By implementing a trial period, businesses can gather data, identify potential issues and assess the overall impact and outcome.

Consider the impact on employee performance

After establishing a system for measuring effectiveness, employers should consider how to sustain employee performance in a flexible work environment. One strategy is to recruit candidates who enjoy flexible schedules. Promoting the four-day working week during recruitment can help attract candidates who are particularly motivated by this type of arrangement.

What exactly will the schedule look like?

Many businesses need to operate five to seven days a week, making implementing a four-day working week more complex to ensure customers’ needs are met.

One option is to put their employees on alternating four-day schedules. For example, half a customer service team might take off Mondays, while the other half takes off Fridays.

Will your customers approve?

As always, it’s important to understand your customers. Are they likely to approve of the decision for a more flexible work schedule for your employees? Transparency is key.

Not all employees are interested in a four-day working week. If this is the case for your company, assess whether your business can withstand your employees working both a more traditional work schedule and a four-day working week.