[Real Beat] Experimenting with a 4-Day Workweek... Turnover Rate Halved, 20% of Companies Are 'Negative' [Office Shift]⑧

61 Companies and Over 2,900 Participants Engage in 6-Month Program
Applied in Five Types Considering Company Characteristics

Editor's Note[Jjinbit] is short for 'Jung Hyunjin's Business Trend' and 'Real Business Trend,' a segment that showcases trends in the changing nature of work. The segment within Jjinbit called 'Office Shift' closely examines changes in offices triggered by the COVID-19 pandemic and aims to lay the groundwork for finding answers to new work styles through experiments we have conducted together. It will be delivered to you every Saturday and Sunday morning. After 40 installments, it will also be available as a book.

[Asia Economy Reporter Jung Hyunjin] 'The world's largest 4-day workweek experiment is underway.'

Foreign media described the 4-day workweek experiment that started in the UK in June last year this way. It was a large-scale experiment by private organizations with over 60 participating companies and nearly 3,000 participants. Eight months later, on the 21st (local time), the nonprofit organization Four Day Week Global, which hosted the experiment, announced that 9 out of 10 companies involved decided to continue the 4-day workweek. Foreign media praised it as "a successful experiment" and "a major breakthrough."

How was the 4-day workweek experiment conducted? We took a detailed look at the results and reports of the 4-day workweek experiment conducted in the UK.

◆ Working hours ↓ · Productivity ↑ … Stress down by 40%

The core of this experiment was to reduce working hours to 80% without decreasing productivity while maintaining wages. The goal was to improve work environments that satisfy both employers and employees by efficiently adjusting work processes to reduce working hours, increase productivity, and raise employee satisfaction. Companies were recruited through applications, and 9 out of 10 participating companies were small businesses with fewer than 100 employees.

The first condition of the experiment was that productivity increased. According to the experiment result report released by Four Day Week Global, an analysis of about 20 companies that provided financial information showed that sales increased by 1.4% immediately before and after the experiment. Compared to the same period last year, sales increased by 35%. Although average working hours decreased from 38 hours per week to 34 hours, sales increased, indicating productivity growth.

Working hours were reduced but did not reach a full 32 hours per week. Four Day Week Global acknowledged that some companies worked more than 40 hours per week before the experiment, and some worked more than 32 hours during the 4-day workweek trial. Nonetheless, they highlighted that an average reduction of 4 hours per week was achieved. The number of working days decreased from an average of 4.86 days to 4.52 days, about 0.3 days less. This suggests that some worked half a day on the shortened day. While working hours were reduced, challenges remain to fully achieve a 4-day workweek.

The effect of reduced working hours felt by employees was successful. Among approximately 2,900 participants, 39% reported reduced stress, and 40% said their sleep quality improved. 54% found it easier to balance work and family life. Sick leave days decreased by about two-thirds, and employee turnover dropped by 57% compared to before. In a situation where labor shortages are severe due to the Great Resignation, the 4-day workweek appears to have helped retain employees.

◆ Applied in five types on the ground… What about your company?

[Image source=EPA Yonhap News]

A notable point in this experiment is how the 4-day workweek was actually implemented on the ground. Even when trying to introduce the system, the application method inevitably varies depending on the workplace situation. Four Day Week Global introduced that they engaged in months of discussions with participating companies, conducted Q&A sessions about the 4-day workweek policy for all employees, reviewed legal issues, and introduced new software as part of the preparatory work.

Joe O'Connor, CEO of Four Day Week Global, told the U.S. employment platform The Muse, "No matter how excellent the plans and preparations are, some will feel like moving to a completely different country," and said they spent weeks preparing.

Four Day Week Global categorized the 4-day workweek models found on the ground into five types.

The typical 'Fifth day stoppage' type, where everyone stops working on one day, and the 'Staggered' type, where employees are divided to take days off on Monday, Friday, etc., are representative. A video game company, where collaboration among all employees was important, designated Friday as a holiday so everyone rested that day. Conversely, a UK digital marketing company needed all employees to be available all five days, so they created a 'buddy system,' pairing employees with similar tasks to cover for each other during their days off.

There was also a 'Decentralised' type, where decision-making authority was given to departments. A UK housing cooperative participated in the experiment; since the tasks of the community communication team and the building maintenance team differed greatly, each department was allowed to decide. Along with decentralization, a 'Conditional' type was introduced, where only departments that met certain performance levels adopted the 4-day workweek. This method caused inequality between departments, and some companies that adopted it stopped the experiment during the trial period, according to Four Day Week Global.

Lastly, there was an 'Annualised' type, which adjusts the average daily working hours to 32 hours annually. This system is applicable in industries with peak seasons. One restaurant, busy in summer, extended working hours during the summer but significantly reduced them in winter.

What if an emergency occurs on a holiday after the 4-day workweek is introduced? The experiment lasted six months, and such an event actually happened. In one small factory participating in the experiment, power supply was suddenly cut off, halting operations. The 4-day workweek experiment was suspended at that time, and employees later said in interviews that it was a reasonable cause to accept as employees. Four Day Week Global explained, "It is advisable for managers to explain to employees that emergencies can occur during a 4-day workweek."

◆ Did all participating companies succeed?

Was the large-scale experiment only successful? Among 61 participating companies, 56 said they would continue the system, while 5 said they would not. Considering that 70 companies were initially announced as participants in June last year, it seems that 14 companies showed willingness to voluntarily adopt the 4-day workweek but were ultimately negative about full adoption.

Requests for experiment details from companies that dropped out mid-experiment or chose not to extend after the trial were denied by Four Day Week Global. The organization responded, "We are cooperating to broaden understanding of the problems they faced and to seek feasible solutions."

There were also cases where companies adopted the 4-day workweek but faced difficulties during the experiment. According to The Guardian, Rebellion Robotics, a robot company participating in the experiment, adopted a 4-day workweek by designating Friday as an official company holiday but extended working hours Monday through Thursday. During the experiment, David Mason, Chief Product Officer (CPO), lamented delays in production schedules when launching a flagship product at a trade show. This was due to having only eight employees and insufficient working hours.

Receiving company contact on holidays was not completely resolved either. Although a minority, companies that adopted the conditional 4-day workweek reported that unpredictability on holidays made it difficult for employees to travel or make plans.

John Boys, Senior Labor Market Economist at the UK's Chartered Institute of Personnel and Development (CIPD), emphasized to Bloomberg News, "The core of this (4-day workweek) experiment is to gather evidence from multiple companies and challenge what seems impossible."