4-Day Workweek: Revenue & Burnout Study
- A new study suggests that adopting a four-day workweek can improve employee mental health and boost a business's bottom line.
- Schor's analysis encompassed over 245 businesses and nonprofits piloting four-day schedules.
- Most organizations reported improved bottom-line metrics, including increased revenue and fewer resignations.
Four-Day workweek: Benefits Extend to Productivity and Well-being
A new study suggests that adopting a four-day workweek can improve employee mental health and boost a business’s bottom line. Economist Juliet B.Schor, a lead researcher at 4Day Week Global, noted in The Wall Street Journal that reduced work time correlated with health benefits.
Schor’s analysis encompassed over 245 businesses and nonprofits piloting four-day schedules. The programs, spanning the U.S., U.K., Brazil, and Ireland, involved 8,700 employees and lasted at least six months. Results indicated that nearly 70% of workers reported less burnout, over 40% experienced better mental health, and 37% saw improved physical health.
Employers also saw positive changes. Most organizations reported improved bottom-line metrics, including increased revenue and fewer resignations. Over 90% of the 200-plus companies starting a six-month trial by June 2023 maintained the four-day schedule a year later.
Civo, a cloud computing provider with 84 employees, implemented a four-day week in January 2021 after a pilot program in 2020.CEO Mark Boost told The Register that the company has continued the policy for four years, citing positive staff feedback and sustained productivity. “Every employee is on a four-day week and most employees opted for Fridays off,” Boost said.
Kickstarter, which began its four-day week pilot in 2021, has seen employee engagement rise by 50%. CEO Everette Taylor told Kevin O’Leary in July that employees are “vrey productive” during their shorter workweeks.
however, the BBC reports that a compressed workweek can intensify workloads, perhaps increasing employee stress.
In 2019, Microsoft Japan gave its 2,300 employees five fridays off in August without cutting pay. The trial led to a 40% productivity increase and a 25% reduction in time off. Despite these results, Microsoft ended the program without description.
A LiveCareer survey in January revealed that nearly 70% of U.S. employees support a four-day workweek, even with longer hours. The survey of 1,130 Americans indicated that most believe it would boost productivity and improve work-life balance.
What’s next
As the four-day workweek gains traction, more companies are expected to experiment with the model, closely monitoring its impact on productivity, employee well-being, and overall business performance. The focus will likely be on finding the right balance to maximize benefits while mitigating potential drawbacks.