'World's Largest' 4-Day Workweek Experiment in Its Ninth Month... Midterm Evaluation? [Jjinbit]

[Image source=EPA Yonhap News]

"The four-day workweek is working. (For companies conducting the experiment) most are successful, but not everyone has succeeded."

[Asia Economy Reporter Jeong Hyunjin] Bloomberg News reported on the 19th (local time) that the nonprofit organization Four Day Week Global released a mid-term evaluation of the UK's four-day workweek experiment, which started in June. This was because 78% of respondents, who were representatives of participating companies, answered that the transition to a four-day workweek was going well. Only 2% reported difficulties in the transition. Eight out of ten companies participating in the experiment expressed satisfaction.

With over 70 UK companies participating, this experiment is regarded as the "world's largest four-day workweek experiment." The number of employees involved in the experiment reaches 3,300. The core of this experiment, which runs until November, is to maintain 100% of wages as before while reducing working hours to 80%. Led by Four Day Week Global, this experiment is being conducted in about 180 companies across countries including the UK, the United States, New Zealand, Australia, Ireland, and Canada.

What is important here is maintaining 100% productivity. Among UK experiment participant company representatives, 86% said they would continue the four-day workweek even after the experiment ends in November. This is based on productivity. About half of the respondents, 49%, said productivity improved with the introduction of the four-day workweek, and the remaining 46% said productivity was stably maintained. Four Day Week Global CEO Jo O'Connor said, "If productivity is maintained, it can be considered a productivity success," calling it very encouraging.

◆ How was the four-day workweek transition experiment conducted?

The UK's four-day workweek experiment process is attracting global attention. CNN reported in early last month, the second month of the experiment, that some employees were satisfied with lifestyle changes due to the four-day workweek introduction and were performing their tasks well. Although there was initial chaos during the transition period, employees gradually adapted and found order. While there remains a possibility of returning to a five-day workweek if productivity worsens, it was evaluated as helpful in resolving issues such as burnout.

CNBC reported earlier this month on the case of UK digital marketing agency Literal Humans adopting the four-day workweek. This company, participating in Four Day Week Global's UK experiment, designated Fridays as holidays and set up separate personnel for emergency standby for clients, attempting the transition to a four-day workweek. If employees had to work on Friday, they took a substitute holiday on Monday.

William Gadsby Pitt, Chief Strategy Officer of Literal Humans, evaluated, "Productivity decreased by 5%, but employee happiness increased by 50%, and we were able to attract more talent." In the early stages of the experiment, some employees worked extra hours between Monday and Thursday, but later they completed all tasks within working hours by distancing themselves from phones and working in coworking spaces, which are collaborative spaces, rather than cafes.

This is similar to UK fintech company Atom Bank, which previously introduced a four-day workweek without wage cuts. The company announced in a press release last month that job applications received in January increased by 49% compared to the same month last year, and employee retention rates also improved. Having switched the work system in November last year, nine out of ten employees who participated in the survey said they could complete all necessary work within four days and found efficiency in work methods due to the shorter workweek. At the same time, customer service evaluations and productivity improved.

◆ One in five companies 'gave up'... Why did they stop the experiment?

However, not all companies participating in the UK's four-day workweek experiment succeeded. CEO O'Connor told Bloomberg that one in five companies dropped out midway, and half of those stopped at the planning stage. The two main problems faced by company representatives who considered adopting the four-day workweek were conflicts with conventional industry work methods and difficulties in improving work processes to maintain the same output despite fewer working days.

O'Connor pointed out, "The main reason companies drop out at the planning stage is that leadership thinks too much and loses courage." He said, "They try to fix all problems as much as possible before starting the experiment. This is impossible. Most productivity gains and process improvements happen at the team level." He added, "They think they are open and that company decision-making is bottom-up, but in reality, that is often not the case."

Bloomberg also reported that companies faced difficulties adopting the four-day workweek when the company size was too small or when some employees had to be on-site five or seven days a week, requiring precise scheduling for a few employees. Unexpected events such as changes in company leadership or financial situations also caused schedule changes during the experiment.

Transitioning from the century-old five-day workweek inevitably requires many changes. As seen in the UK experiment, initial confusion may occur. However, by maintaining an open mind and actively communicating within the organization, efforts to find efficient methods will gradually lead to solutions. CEO O'Connor said, "Usually, companies need us at the beginning," adding, "When requests for our help gradually decrease, that means the four-day workweek is well established."

Editor's Note[Jjinbit] is short for ‘Jeong Hyunjin’s Business Trend’ and ‘Real Business Trend,’ a corner that shows trends in corporate management such as organizational culture and HR systems. Based on analyses from foreign media and major overseas institutions that have not received much attention, we will deliver fresh and differentiated information and perspectives.