Nov 15th, 2022
Australia’s employment landscape has come a long way since the 40-hour working week came into effect over 70 years ago. This was underpinned by the notion that individuals should have 8 hours of work, 8 hours of sleep, and 8 hours of leisure each working day. As other nations across the world adopted the same approach to work, many predicted that ongoing scientific and technological advancements would enable societies to progressively reduce the working week over time (with one economist predicting a 15 hour work week would be possible). It seems that progress on that front has stagnated – the 40-hour work week continues to be the norm for full-time workers across Australia.
This is where the global movement advocating for a 4-day work week has arisen. There is increasingly widespread suggestion that the 5-day week is no longer viable or fit for purpose, neither for employers nor their employees. The idea behind this movement is based on the 100-80-100 principle – that is, employees retain 100% of their salary while only working 80% of the hours, provided they maintain 100% productivity in their work.
Reducing working hours and adding one day to the weekend is said to have benefits for employees and employers. With more free time, employees can fit in more life admin, personal care, time spent with family, and other activities that would otherwise not be accounted for in the standard weekend. Overall, there is a strong argument that this would improve the health and wellbeing of employees, which would in turn have flow on effects for employers through reduced sick days and improved productivity during working hours, as well as potentially lower overhead costs.
The benefits could even extend beyond the workplace, with some arguing that the 4-day work week can lower carbon emissions, alleviate the burden on healthcare systems, and result in fewer family breakdowns.
The not-for-profit organisation known as the 4 Day Week Global Foundation is leading the movement, funding research and supporting businesses across the globe to join pilot programs for 4-day work weeks. The organisation was founded with the intention of “creating a new way of working which will improve business productivity, worker health outcomes, stronger families and communities, challenge the gender equality issue, and work towards a more sustainable work environment.”
These trials and pilot programs have been undertaken by businesses of varying sizes in a range of industries and across a number of countries, including the USA, UK, Canada, Spain, New Zealand and most recently, Australia. While a six month pilot study kicked off in August involving 20 companies across Australia and New Zealand, the latest big name to partake in trialling the 4-day week is global company Unilever, which is responsible for a range of Australian household staple brands such as Dove, Continental, Rexona, and Vaseline.
Unilever had previously trialled an 18-month pilot in the company’s New Zealand branches which resulted in strong outcomes for the business and positive employee metrics such as increased engagement and lower absenteeism. Notably, they found that employee stress was reduced by 33 per cent, and work-life conflict dropped 67 per cent. The success of this endeavour has led Unilever to expand the 4-day week trial to its Australian counterparts. Other organisations participating in trials across the world have largely been able to attest to the benefits, with many implementing the 4-day week permanently following the end of the trial.
While the idea of a 4-day week sounds great, it would ultimately be a huge transition from the current norm in working patterns and there will undoubtedly still be some kinks to iron out. For instance, there are different ways that businesses might implement the 4-day week in practice – employees might all work the same days of the week, they might have rotating days off, or their working days might change on occasion depending on business priorities.
There is also the question of whether employees can really accomplish 5 days of work in lesser time. Sean Gallagher, director of Swinburne University’s Centre for the New Workforce, feels that most non-office jobs are not suited for compressed hours, and the 4-day week might only result in employees working longer hours just to meet their deadlines and targets.
So, is a 4-day work week on the horizon for Australia? In comparison to other OECD countries, Australia has just begun to dip its toes into the 4-day work week. As the trials in Australia are still underway, it might be too soon to tell how the general Australian public would receive these proposed changes. One thing is for sure – the 4-day week global movement will likely continue to make waves and steadily gain traction on a broader scale, prompting organisations to reflect on the possibilities for work in the future.
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