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A report into emerging four-day work week trends in Australia has found companies that trialled the model experienced overwhelming success.
Key points:
- Ten Australian businesses who were trialling four-day work weeks took part in the study
- All of the companies have continued with a four-day week, with four companies adopting the change permanently and the other six extending the trial
- Despite reduced working hours, 70 per cent experienced an increase in productivity while the other 30 per cent said productivity remained the same
Swinburne University of Technology interviewed senior managers from 10 different Australian organisations who were trialling what is known as the 100:80:100 model.
Employees get 100 per cent of the pay for working 80 per cent of their previous hours in exchange for a commitment to maintain 100-per-cent productivity.
When asked to rate the success of the four-day work week on a scale of one to 10, employers gave an average score of 9.25.
Swinburne University of Technology Associate Professor John Hopkins told ABC Radio Melbourne that he had never seen such positive results in more than a decade of researching flexible work arrangements.
"This was by far the most enjoyable projects I've ever worked on, just because of the enthusiasm and positivity of all the people that were saying how amazing it had been for that business," he said.
"They really wanted to share it and they wanted more people to do it."
After moving to a four-day week, 70 per cent of the companies said productivity was higher and 30 per cent said it was about the same as before.
None saw a drop in productivity.
Companies told researchers that moving to a four-day week also led to fewer sick days being taken and better employee retention and recruitment.
For employees, a four-day week meant more time for life administration, hobbies, exercise and self care.
No downsides
Melbourne software business Our Community first adopted a four-day week as part of a six-month pilot in mid-2022.
Managing director Denis Moriarty said it worked so well that after five months he adopted the change permanently.
"I can't even think of a downside," he said.
"We are now an employer of choice.
"We've reduced turnover and have 37 per cent less sick leave."
The business started the trial as part of a global pilot program, which provided companies with some training resources to help staff improve their productivity, including a module called "detoxing your diary".
This resulted in fewer meetings and each meeting took up less time.
Mr Moriarty also asked staff ideas about how the company could raise revenue and become more efficient.
After receiving 193 pages' worth of responses, Mr Moriarty said the company stopped doing things that were not essential, automated some data collection and started a new training course that has already generated about $200,000 worth of revenue.
Mr Moriarty said living and working through lengthy COVID-19 lockdowns inspired the change.
"The world changed and I changed in that time, so I felt something needed to be done to move the company forward … we wanted the company to grow," he said.
"It's been a year since we've started it and I can proudly say we are more prosperous and our employees are more prosperous."
Smaller businesses lead the way
The 10 companies that took part in the Swinburne University of Technology study were based in various states and industries, including logistics, marketing, recruitment, and consulting.
Six of the companies had fewer than 20 employees and the other four were medium-sized businesses with up to 200 employees.
"It tends to be the smaller organisations that are leading the way at the moment," Dr Hopkins said.
"Organisations were saying that they couldn't necessarily compete with bigger firms on salary, so they were competing on working conditions and offering a four-day week."
To retain or improve productivity while staff worked fewer hours, the study found companies reduced the frequency and duration of meetings as well as identifying and reducing "non essential" or "low value" work.
Dr Hopkins said four of the companies have adopted a four-day work week permanently, while the other six have extended the trial.
Instant improvements
Brunswick design agency Your Creative has also adopted a four-day week permanently after beginning a trial in August last year.
Client and operations director Liz Indrans said they saw instant results, with improved staff morale and productivity.
"I can't imagine going back," she said.
"When we started we thought there would be teething issues, there were a few but not as many as we expected."
Ms Indrans said "strategic rostering" was required to make sure the company could continue to meet clients' needs five days a week.
They have also reduced meetings and many staff do not use work email accounts so time can be spent creating.
Despite the reduced working hours, Ms Indrans said the company has continued to thrive.
"We've always been able to meet our deadlines. We are getting more work and are still able to take on new clients," she said.
"I think it's helpful for creativity too; the next day [employees] come in a bit more fresh."
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