As part of our horizon scanning of 2021 Employment Trends at the start of the year we talked about flexible working and the four-day week.
The impact of the COVID-19 pandemic has meant that many organisations are engaging in new ways of working. There has been a lot of focus on home-working and hybrid-working, and we have supported many of our clients in adopting these types of working arrangements. We have also written a number of blogs about home and hybrid working.
However, home and hybrid working are not the only options being considered by employers and employees alike and in recent years there have been reports about the four-day working week and about the benefits it can bring. The potential benefits of moving colleagues to a four-day working week have recently been back in the headlines with the news that a trial in Iceland between 2015 and 2019 where workers were paid the same to work for less time, has been “an overwhelming success”.
Could this be another post pandemic way of working that we see on the rise?
The BBC reports that workers found it benefited their health, wellbeing and family life. These are some of the benefits we have talked about in our articles on the impact on mental health and wellbeing of home working and hybrid working.
Whilst it might seem counterintuitive to employers to pay their workers to work fewer hours, according to the BBC, the researchers involved in the Iceland trial found that “productivity remained the same or improved in the majority of workplaces.” This could make a positive difference to employee engagement, performance, absenteeism and consequently, the employer’s financial performance.
Focus on the four-day working week is not just taking place outside of the UK. The Institute for Public Policy Research Scotland (IPPR Scotland) recently published its report, “Changing Times: the future of working time in Scotland”, in which it set out its recommendations to cut working time in Scotland.
The IPPR Scotland points to changes that have occurred in the way we work as a result of COVID-19, commitment by the SNP to explore a reduced working week and results from international studies as well as looking to address underemployment - and the less talked about overemployment, where people need to work more than one job to try and make ends meet - wellbeing and gender equality as reasons to explore reductions in working time.
Among their recommendations is that the SNP’s commitment to introduce a four-day working week pilot be expanded. As such, it may not be long before more employers and employees are actually working a shorter week without a reduction in pay.
Whether or not employers move to a four-day working week where the employers are paid to work shorter hours for the same money, we anticipate that more employees will consider having the option of working a shorter week to be a positive and that they will be looking for it when they are searching for jobs. It also seems clear that for many employees, the COVID-19 pandemic has led to them taking stock and considering their work-life balance. While many people will not be able to afford to take a reduction in pay, others will want to reduce the time they spend working. This could be to spend time on developing their “side- hustle” (which may end up eventually being their main source of income), spending more time with family or perhaps travelling (when we’re allowed to do that more freely).
With many organisations having to move to home-working overnight, 2020 saw a step change in flexible working. As employers and employees become more familiar with the different forms of flexible working and their associated benefits (including employee wellbeing and productivity), it seems clear that operating different and more innovative working arrangements will increasingly become the norm. Productivity rather than presenteeism is becoming the key focus with employers concentrating much more on the question of whether their employees are meeting their key deliverables rather than on where and when the work is actually being done.
As an employer, if you are considering whether or not to implement a four day working week (with accompanying salary reduction or not) then take a look at our article on Post Pandemic working: The Four Day Working Week .
Once you’ve read that article, please do get in touch with a member of our Employment Team to discuss how we could assist you further.
