Four-Day Working Week – How New Laws Could Affect UK Firms

As one of the policies suggested by the new government, the right to ask for flexible working has reignited calls for a four-day working week. The number of businesses adopting a four-day week for their staff has increased in recent years, and could rise further still. But what would such a change mean for your business?

 

A four-day working week will not be imposed

Perhaps in an effort to get ahead of any outcries from worried employers, ministers and government spokespeople were quick to clarify that there are no plans to impose such large wholesale changes on business owners.

Education Minister, Jacqui Smith hasn’t given any more details on the government’s thoughts on a four-day working week, but did warn that they wouldn’t “apply to everyone”. As Education Minister, Smith’s thoughts here would surely include the working hours of teachers. While there’s little scope for having pupils attend school for just four days each week, there is potential for a staffing rota to accommodate four-day working weeks for the teachers.

The problem there, however, is that schools are already operating with a shortage of teachers, and workplaces with similar issues could also find themselves unsuitable for a shorter work week.

 

Only one of two models

The four-day working week framework has some scratching their heads as to how it could possibly work for them. The truth is, that there are two models of four-day week that suit different businesses.

Speaking to LBC, the education minister explained that the government’s plans were chiefly concerned with just one of these models. “What we’re talking about,” she clarified, “is the type of flexible working that allows you to use compressed hours.

“So perhaps instead of working eight hours a day for five days, you work 10 hours a day for four days.

“You’re still doing the same amount of work, but perhaps you’re doing it in a way that enables you, for example, to need less childcare, to spend more time with your family, to do other things, that encourages more people into the workplace”.

 

Keeping to eight hours

The other model is a straight cut of the fifth workday from the week, keeping to eight-hour days for the other four. This is the model that most four-day working week campaigners are pushing for. One such campaign group, 4 Day Week, has made this clear on their FAQs page. Not only do they state that a “four-day week is a 32-hour working week (or less) worked over four days, with no reduction in pay” but they also dismiss the claims of a compressed hours model being a four-day working week.

Under the question, “Does working a standard working week (40 hours) over four days instead of five count as a four-day week?”, the site answers, “No, this is not a four-day week. This is a five-day work week with compressed hours resulting in four very long work days. This is not what we are campaigning for”.

Campaigners claim that a four-day working week of 32 hours on the same pay as a 40-hour week leads to more productivity than traditional models. In a six-month pilot programme involving 61 participating companies, 56 of them decided to continue with a four-day working week afterwards. Most surprisingly, the resultant report showed that revenues “stayed broadly the same” and actually rose by 1.4% on average.

Similar trials in Germany, Australia and South Africa all reported positive results too, with over 90% of participating firms continuing with the shorter week.

 

Benefits of a four-day working week for employers

The benefits of the 32-hour model are obvious for employees, but what do business owners get out of paying the same amount for less work?

 

Increased productivity

Although there was only a third of participants that divulged their revenues in the UK trial, other studies elsewhere have told a similar tale of unharmed revenues. In a 2021 report of an Icelandic trial covering over 1% of their working population, they too reported a maintaining or improving of participants’ revenues.

The same study looked at the working habits of several European nations and discovered a correlation between fewer working hours and increased productivity. Iceland had the longest working hours, but recorded the lowest productivity scores, while Norway has the shortest hours but enjoys the strongest productivity.

 

Better employee wellbeing

While the idea of employee wellbeing can sometimes be a little vague, in practical terms it can bring a host of benefits. Happier staff members are less likely to experience burnout and take sick leave. In fact, it was also found that there was a 57% decrease in staff leaving during the UK pilot.

 

Strategical opening times

If you’re using the compressed hours model, you may find there’s scope for changing opening hours to suit your business.

For example, a cocktail bar may not be busy at the start of the week, so could close completely every Monday, and have full-time staff on 10-hour shifts on its busier days instead. For some businesses, closing on their less productive days can actually save them money.

 

Attracts extra talent

By providing the flexibility for workers to have an extra day off each week, you’re able to open up positions to a wider pool of candidates.

Those with childcare commitments, elderly parents to care for, or other issues may find that the extra day makes working for your company a viable proposition for them. For those businesses opting for the 32-hour model, they may find that they can attract top employees for less money if they’re attempting a better work/life balance.

 

Lower costs

If you decide to close your business entirely for an extra day a week, you’ll save a good amount on operating costs. In simple terms, they’ll be reduced by a fifth. Over the course of the year, that can make for a significant saving.

 

Meet green and sustainability goals more easily

Even in an office-based business, the reduced carbon footprint achieved by saving on energy costs for an extra day each week can be substantial. Add to that the lack of commuting on that day too, and sustainability goals can be met far more easily.

 

 

Potential issues with a four-day working week for employers.

 

Staffing issues

With most firms set up to serve a five-day working week, switching to four could throw up multiple staffing problems. This could be especially true of those opting for a compressed hours model. Switching to ten-hour shifts may be difficult for some workers.

Earlier in the year, Morrisons canned their four-day working week for head office staff after employees complained about working on the occasional Saturday.

 

Not enough time

Of the few participating companies that rejected the four-day working week after the trial, a common complaint among them was that there simply wasn’t enough time to complete everything. This was in response to the 32-hour model.

This seems to demonstrate that not all businesses are suitable for such a work week. If you suspect that your workforce is already working to its maximum capacity, then a reduction in hours is unlikely to work

 

Increased burnout

There’s a chance that workers taking on ten-hour days may be more susceptible to experiencing burnout than before. Businesses thinking of taking on a compressed hours model will need to take an educated guess as to how their staff might react to it and cope with it after implementation.

Asda trialed a compressed four-day working week in July this year, but reverted back to five after staff found the longer shifts too demanding.

 

Disgruntled customers

While adopting flexible working conditions such as a four-day working week doesn’t necessarily mean that the company itself is only open four days a week, some do decide to take this approach.

In these instances, there may be the occasional backlash from customers hoping to get in touch on the day you’re not open. This may be more of an issue for those providing products needed in an emergency, such as a garage offering tyre changes.

 

So will the changes affect my company?

It’s expected that the autumn budget announcement will reveal plans to improve flexible working rights for employees.  Many believe that this will include a right to ask for a four-day working week.

All talk of these changes so far suggest that employers are not obliged to accept such requests, however.

It is thought, though, that employers will be expected to accommodate requests as long as they are reasonable enough.

In general, it seems as if the expected policy changes shouldn’t have too much of an effect on UK businesses. Rather than the 32-hour model championed by campaigners, any four-day working weeks are more likely to be a result of compressed hours.

The compressed hours model may suit businesses that have a large enough workforce to rota days off around, but short-staffed companies could find such requests too difficult to implement.

 

Looking for ways to increase productivity?

Forbes Burton have helped thousands of businesses just like yours to increase their productivity through innovative growth strategies, practical streamlining, and expert advice. Call us on 0800 975 0380, or email [email protected] for a free consultation to see how we can benefit your company.