📆 4 Day Week Pioneers: Global Trials, Real Results

Hello! 👋

It’s Thursday, 5 Sep, and I’ve been thinking a lot about the 4-day workweek lately. The idea is really gaining steam across industries, and it’s fascinating to see how different countries are experimenting with it. From the UK’s pioneering efforts to New Zealand’s bold moves, one thing is becoming clear—less really can be more. A shorter workweek is proving to boost productivity while also giving people more balance in their lives.

The 4-day workweek has moved from being a distant dream to a hotly debated solution for the modern workplace. But how does it actually work? And more importantly, does it work? Let's take a look at the real-world trials that are shaking up traditional work norms. First time reading? Join over 300 intellectually curious readers. Sign up here.

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Key Idea

The traditional 9-to-5, five-day workweek has been the bedrock of modern work culture for over a century. However, it's worth noting that the 5-day workweek is a relatively recent innovation. It only became standard in the 1940s following Henry Ford's adoption of a two-day weekend for factory workers in the 1920s. But as the world evolves, so do our expectations of work.

Enter the 4-day workweek—a concept that has gained momentum globally as companies and governments experiment with a more flexible approach to productivity.

What exactly is a 4-day workweek?

Dr. Rita Fontinha, Director of Flexibility at Henley’s World of Work Institute, defines the 4-day workweek as a flexible approach that allows businesses to maintain full-time pay while reducing time at work. This model is typically implemented in one of two ways:

• Compressed Hours: Employees work the same total hours (e.g., 40) but compressed into four days with longer shifts.

• Reduced Hours: Employees work fewer hours (usually 32) for the same pay, following the 100-80-100 rule: 100% pay for 80% time with 100% productivity.

The goal? Enhanced productivity, reduced stress, and happier employees. The success of the 4-day week lies in its flexibility. Organizations across the globe are testing different models, and results vary by industry and geography. Here are the most common variations:

• Classic “Friday Off”: The most popular model, where employees enjoy a permanent three-day weekend. Results from UK trials show a 39% reduction in employee stress and improved mental well-being.

• Staggered Week: Some companies alternate days off among employees, allowing half the team to take Mondays and the other half to take Fridays. This allows for business continuity while reducing employee fatigue.

• Mid-Week Break: A less common but effective approach is having Wednesdays off. This offers a mid-week reset, boosting productivity in the remaining days.

• Conditional Models: Companies like Microsoft Japan experimented with a 4-day week that combined shorter hours with reduced meeting times, resulting in a 40% increase in productivity.

Global Leaders in the 4-Day Workweek Movement

As more countries embrace flexible work, the 4-day workweek is gaining traction. From pilot programs to permanent shifts, these experiments are transforming productivity and work-life balance. I've been closely following these trials and am excited about their potential for businesses globally. Here are a few standout examples.

UK: A Groundbreaking Trial

In June 2022, the UK launched the world’s largest 4-day workweek trial with 61 companies and nearly 3,000 employees. After six months of experimentation, 92% of companies chose to continue the model, with 18 making it permanent. The results were impressive:

• Productivity improved or stayed the same, with some companies reporting a 35% increase in revenue.

• Employee well-being skyrocketed. 65% fewer sick days were taken, and 71% of workers reported reduced burnout.

• Stress levels dropped by 78%, and employees enjoyed more time for hobbies, family, and self-care.

• Businesses saved money as the reduced office hours also cut operating costs. The economy saved £104 billion annually, with potential ripple effects on consumer spending, tourism, and broader economic growth.

Interestingly, there are now recruitment firms in UK that help applicants find roles exclusively at 4-day week companies. [Link]

Japan: A Cautious Move Towards Shorter Weeks

While Japan’s work culture is famously intense, the country is slowly warming up to the idea of flexible workweeks. Some companies have adopted the 4-day week, but the shift is gradual as many workers hesitate to be the first to embrace this change.

The Japanese government hopes the 4-day week will encourage parents, caregivers, and older workers to stay in the workforce longer.

In 2019, Microsoft Japan experimented with the model by offering employees three-day weekends for a month. The move boosted productivity by 40% and resulted in more efficient work.

Belgium: Flexibility by Law

Belgium became the first European country to legislate a four-day workweek in February 2022. The law allows employees to choose between a four- or five-day workweek without a reduction in salary. However, this option doesn’t reduce total working hours; employees must condense their usual weekly hours into fewer, longer workdays.

Iceland: A Proven Success

Iceland was one of the first countries to seriously test the 4-day week. Between 2015 and 2019, they ran trials covering over 1% of the workforce. To ensure quality control, the results were analyzed by British think tank Autonomy and the Icelandic non-profit Association for Sustainability and Democracy (ALDA).

The results? 86% of Iceland’s workforce now enjoys reduced hours, as productivity either held steady or improved, while worker satisfaction soared. The pilot was dubbed a success by researchers and Icelandic trade unions negotiated for a reduction in working hours.

Spain: The National Pilot

Spain is in the midst of a three-year national pilot aimed at testing the impact of a 32-hour workweek. The goal is to improve work-life balance and boost overall productivity, while also addressing the country’s high unemployment rate. If successful, this could become a model for other European countries looking to embrace the 4-day week on a large scale.

New Zealand: Leading by Example

In New Zealand, trust company Perpetual Guardian adopted the 4-day week permanently after a successful trial. The shift resulted in higher employee engagement and improved productivity. The experiment is now seen as a blueprint for other businesses globally, proving that reducing hours doesn’t mean reducing output​.

UAE: Sharjah’s Bold Step Toward a 4-Day Workweek

Sharjah became the first emirate in the UAE to adopt a 4-day workweek across the public sector in 2022. The results have been staggering: employee productivity increased by 90%, and job satisfaction rose significantly. Notably, the new work system led to a 40% reduction in road accidents due to decreased commuter traffic.

Other Examples

Germany, South Korea and Australia are also exploring shorter workweeks in sectors like tech, finance, and services. In The Netherlands, many workers already work reduced hours, enjoying some of the shortest workweeks in the world.

Why It Matters for CXOs: The Business Case for a 4-Day Week

The business benefits of a 4-day week are substantial:

• Attract and Retain Talent: Offering a 4-day workweek is a recruitment magnet, with ZipRecruiter showing a 15% increase in applicants for jobs offering this perk. The UK trial found that 63% of employers reported improvements in attracting top talent. The talent war is real, and a 4-day week could be the advantage your company needs.

• Boost Productivity: Microsoft Japan saw a 40% boost in productivity during their 4-day workweek trial​. Workers were less bogged down by meetings, instead focusing on deep work. This result has been replicated successfully among knowledge workers in multiple trials.

• Reduce Costs and Environmental Impact: With fewer office days, companies are saving on utilities, reducing absenteeism, and lowering their carbon footprint. In the UK, businesses saved £18,000 per year, and employee commutes also saw a sharp decline, contributing to environmental benefits.

• Reduce Burnout: Research shows that burnout is often a result of long working hours. By offering more flexible schedules, companies can significantly reduce stress levels and improve employee retention.

Capitalism has long promoted the idea that longer hours equate to more productivity. But as research shows, this is often a false economy—what you get instead is burned-out, disengaged workers who eventually leave for better opportunities. Flexible schedules can foster more engaged and loyal employees, which is crucial in today’s competitive hiring landscape.

A number of modern companies are in fact transitioning to a 4 day workweek.

While the 4-day workweek brings many benefits, it’s not a one-size-fits-all solution. Some challenges include:

• Non-salaried Workers: Reducing hours for hourly workers or industries that require continuous operations (e.g., healthcare, manufacturing) is tricky.

• Employer Hesitation: Some businesses remain cautious, especially in high-pressure sectors, where cutting hours could be perceived as lowering output.

• Industry-Specific Hurdles: As with remote work, shorter hours may not work for every industry. Moreover, a 4 day workweek in its current form is limited to white collar workers.

Time to Take the Leap

As the UK Labour Party is poised to push for legislation to make the 4-day workweek standard across the country, the movement is gaining serious momentum. This shift has the potential to become law in the near future, making now the ideal time for CXOs to evaluate its viability for their own organizations.

After reading this newsletter, don’t miss Juliet Schor’s insightful TED talk. She’s leading global trials on the 4-day workweek and offers great insights into how this model is reshaping work culture and boosting productivity.

The 4-day workweek isn’t just a passing fad—it’s a well-supported, transformative approach to the future of work. With data showing improvements in both productivity and employee well-being, it’s clear this model has staying power. As more companies and governments embrace it, the traditional 5-day week could soon become a thing of the past, a relic from the industrial era.

If you’re ready to rethink how we approach work, now is the perfect time!

Enjoyed the read? Stay ahead with unique insights on the future of work and living.

Recommended reads

Curated news, articles, and opinion-pieces about the future of work and living - just for you.

A. The current RTO push is about power — and real estate [Fast Company]

The latest push for return-to-office (RTO) policies is less about productivity and more about power dynamics and real estate costs. Employers are using RTO mandates to regain control and justify expensive office leases, even though many workers prefer remote work and have proven they can be just as productive at home. It's a power play disguised as a cultural necessity, with real estate costs playing a significant role in driving this trend.

B. Workers in Japan can’t quit their jobs. They hire resignation experts to help [CNN]

In Japan, resignation agencies are booming as workers seek help to quit jobs in a culture where leaving is seen as disrespectful. These agencies offer a stress-free exit from toxic workplaces, reflecting a growing pushback against Japan’s overwork culture​.

C. Chinese offices emptier than during Covid pandemic [Financial Times]

Office vacancy rates in China's major cities have surged past Covid levels, driven by economic slowdown and cost-cutting, with rents dropping up to 15%. As remote work gains popularity, these trends point to a bottoming economy.

D. White-Collar Work Is Just Meetings Now [The Atlantic]

White-collar work has become dominated by meetings, with communication now prioritized over creativity. This shift has led to a "meeting-industrial complex," where managing frequent meetings is more valued than deep, productive work

E. Human Developers Will Soon Be a Thing of the Past [Business Insider]

AWS executive Matt Garman stated that the future of software development will shift from coding to focusing on innovation and meeting user needs, with AI taking over routine tasks. He encouraged developers to adopt AI tools, aligning with other tech leaders who predict that AI will reshape the role of programmers.

F. Work from Home is powering productivity [International Monetary Fund]

Robert Solow's 1957 paper emphasizes that economic growth stems from both increased labor and capital, as well as productivity gains. This analysis extends his argument, suggesting that the fivefold rise in remote work since the pandemic could similarly boost growth and deliver broader benefits.

G. This Labor Day, The Back-To-Office Push Is Decidedly Quieter [Forbes]

The relative belief, at least within the United States, that we're going to return to a five-day-a-week office routine for corporate employees is now pretty narrowly held.

About me

What truly matters in the workspaces and homes of tomorrow? What changes are unfolding, why do they matter, and where will they take us?

My name is Kartik and for the past 7 years, I’ve delved into the shifting landscapes of real estate, technology, business, and consumer behavior. With experience spanning corporate strategy, startups, and consulting, I’m now focused on shaping the future of work and living. My mission is to explore what’s coming next and how it will redefine the way we live and work. Through Bold Efforts, I share my insights and discoveries along the way.

Reposts

A. Remote-first companies' stocks have outperformed the S&P 500 by an impressive 2.4x over the past two years [Link]

Over the past year, remote-first companies have done more than just adapt—they’ve excelled. The data shows they’ve delivered a remarkable 38% return over the last year, leaving the S&P 500’s 19% return in the dust.

B. Spotify is undergoing a fascinating remote work experiment that has been unfolding over the past three years (and counting) [Link]

Their WFA program had been brewing since early 2020, even before the world turned upside down. The company is on its way to become a fully distributed company by 2025.

C. Remote work is quietly but powerfully transforming global wealth distribution and redefining our economic landscape [Link]

By tapping into the potential of remote work, we’re not just changing where people work—we’re changing how the world prospers. We are experiencing one of the most significant inter-city wealth shifts in history!