Has society outgrown the 40-hour workweek?
In 1940, Congress amended the Fair Labor Standards Act, making the 40-hour workweek law; overtime pay is required for anything more. Eighty years later, it is still standard to give workers two days off each week, even though today’s technology allows people to work anytime, from anywhere.
The New Zealand based nonprofit 4 Day Week Global believes society is
This program will encompass a six-month trial, where companies will be trained by international organizations that have already implemented the schedule, have access to a network of peers who are also in the program and work with researchers who will establish productivity metrics and an impact assessment. Given that Perpetual Guardian saw employee engagement levels rise by as much as 40%, the program may prove attractive to U.S. companies who wish to emphasize productivity but still attract and retain talent in a national labor shortage.
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Employee Benefit News spoke with Charlotte Lockhart, CEO of 4 Day Week Global, to get a glimpse at what this program could mean for employers and employees, and why it may be time to move on from the Monday through Friday grind.
What inspired 4 Day Week Global to launch these pilot programs?
The number of hours that we're working today is not giving us the society that we want anymore. When we first went to a 40-hour workweek, society was structured quite differently. Generally, it was just the fathers who went to work and the mothers took care of all the home, school and community things. Work didn’t come into our lives at home and on the weekends. Now with phones and laptops, that’s changed. Now, mothers and fathers both work.
It has become clear that there was a need for structure around global movements that encourage the conversation about how we reduce work hours. We established 4 Day Week Global to basically create that structure, and these programs allow us to become more mindful around how we support global initiatives.
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Why should employers consider switching to a four-day workweek?
In January “BC”— before COVID — it occurred to me: Is there any other employee benefit that doesn’t cost the employer anything but increases their productivity by 20% or more?
What other benefits do we give our people? We give them leave, higher pay, medical insurance and life insurance, but all of that costs money. Some of these things companies are required to do, but if you are doing more than the minimum, then you’re generally doing it because it’s the right thing to do for your people.
Here is a benefit that matters to people. An employer could give me all the gym memberships they’d like, but I’m not going to use it because I don’t have the time. Time is the one thing employees truly value because they can spend it in whatever way they want to spend it. They choose. Employers need to remember that we borrow people from their lives.
Employees would definitely value more time away from work, but how does the four-day workweek benefit employers?
This is an employer benefit because your workplace will be more productive. Why is it more productive? Because your employees will find how they can be more productive so they can go home. You get to say to your employee, “bring your best self to work and I’m going to give you all the time in the world to be your best self somewhere else.”
When we say, “I want you to be more productive at work and here's a consultant that’s going to come in and study what you’re doing with your time management,” all an employee hears is layoffs are coming. Your employees don’t feel safe and they're not going to fully engage with the program because basically, you're saying that they’re not productive and they’re bad.
People will be really efficient if it’s clear that once they get the job done, you are letting them go home. You’re asking people to provide a certain amount of product. When you have a happy, engaged workforce, they will do that for you.
So to be clear, I'm absolutely not talking about reducing pay. If productivity stays the same or higher, then we just reduce work hours.
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Once an employer is on board with the program, do they still struggle to change?
They overthink it. Employers try to solve all the potential problems at once. But so much of that is going to be resolved in your pilot. In the pilot program, we're putting in place a structure that will help you design your pilot. We have researchers that will follow you through your pilot, so you will be able to see the results of what you've been doing. You have a network of leaders that are also in this program, so you’re not alone. You will learn from each other. Then they have mentors along the way.
And as a modern employer, you have to be agile in your thinking and solve the problem with your people — from the shop floor up. You won’t know what can be done more efficiently until everyone really applies their minds to it.
What happens if a company realizes they cannot close for a day?
Then look at ways you might be able to reduce work hours. When Perpetual Guardian ended their pilot, they did a four-day week, but employees didn’t have to be stuck with a specific day. People took different days off. We now encourage companies to get down to that 32-hour workweek by allowing employees to take time off that best suits them.
There’s this fabulous story about this one guy who comes in five days a week but starts at ten in the morning so he can walk his daughter to school. Now how many fathers would give their right arm for that chance?
At the end of the day, as human beings, we're all looking to provide a better life for the next generation. I want my sons to grow up and be able to walk their daughters to school. I want my young men to grow up and be able to look after their physical and mental health and maintain good relationships. I want them to engage in charitable work and be part of their community. I want them to be happy. They shouldn’t always be at work. Work doesn't always come first.
