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The concept of a four-day work week is gaining attention in Australia, with various trials and discussions highlighting both potential benefits and challenges.​

There have been a number of companies trial or implement the 4 day work week here in Australia over the last few years; including Medibank who increased their initial trail  from 250 employees to 500 employees after positive results, Our Community confirmed in November 2022 that the trial of the 4 day work week would be made permanent and in January 2025, Robert Half’s research revealed that over a third of Australian businesses surveyed envisage their organisation will shift to a four-day work week within the next five years.

So, have you dreamt about implementing a 4 day work week? What are the positives and impacts on your business? Would a 4 day work week actually work for your business? 

Firstly, there are a number of different ways a 4 day work week could look. Such as;

1. Compressed work week 

a. Employees work 4 x 10-hour days instead of 5 x 8-hour days.

b. Ensures full-time hours while offering an extra day off.

c. Common in industries that require constant coverage, such as healthcare, IT, and customer service

2. Staggered Scheduling

a. Employees take different days off (e.g., half the team works Monday-Thursday, the other Tuesday-Friday).

b. Ensures continuous business coverage while still reducing working hours.

c. Used in customer service, recruitment, and sales where availability is crucial.

3. Shorter daily hours

a. Instead of reducing the number of days, total weekly working hours are reduced without increasing daily hours.

b. Employees might work 6-hour days across five days.

c. Best suited for creative and knowledge-based industries where focus and output matter more than hours worked.

4. The 100:80:100 Model

a. Employees work 80% of the time for 100% of the pay, with the expectation of maintaining 100% productivity.

b. Popular in knowledge-based industries (e.g., IT, consulting, finance) where output matters more than hours worked.

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Of the examples above what have been the reported positive outcomes? 

Medibank indicated that participates indicated 4.5% more satisfied and 6.7% felt more engaged with their work. 

Our Community reported that their trial 82% satisfaction rating, a 44% drop in absenteeism and a 9% drop in resignations. 

Other benefits companies have reported are;

1. Enhanced Employee Well-being

a. Approximately 64% of employees experienced reduced burnout, and 38% reported feeling less stressed under a four-day work week. 

2. Improved Talent Attraction and Retention

a. Companies offering a four-day work week have found it easier to attract and retain talent, as this flexible arrangement is highly valued by employees seeking better work-life balance.

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Some companies surveyed showed mixed results, with several challenges reported across a number of industries. Such as;

1. Operational Challenges in Continuous Service Industries:

a. Industries that require daily operations, such as healthcare and retail, face difficulties with a four-day work week. Maintaining continuous service may necessitate hiring additional staff or increasing overtime, potentially escalating operational costs.

2. Variability in Role Adaptation:

a. Not all roles adapt seamlessly to a reduced workweek. Differences in job functions can impact the feasibility of a four-day schedule, with some positions struggling to manage workload within the shortened timeframe.

3. Increased Work Intensity and Stress:

a. Condensing work into fewer days can lead to heightened work intensity. Employees may experience increased stress and potential burnout as they strive to maintain productivity levels within a shorter period. 

4. Customer Satisfaction Concerns:

a. Reduced operating days might result in decreased customer satisfaction, especially if clients expect services five days a week. This gap can lead to frustration and potential loss of business. ​

5. Impact on Small and Medium-Sized Enterprises (SMEs):

SMEs may struggle with the transition to a four-day work week due to limited resources. The Australian Chamber of Commerce and Industry has expressed concerns that such a shift could negatively affect the effectiveness of smaller businesses.

6. Accrual of Employment Entitlements:

a. A shortened workweek could affect how employment entitlements, like annual leave, accrue. Employees might accumulate larger leave balances, impacting the employer's balance sheet

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In conclusion, can a 4 day work week actually work? 

In knowledge based industries where the focus is on out come such as IT, consulting, marketing or creatives then, in short yes it could work, as long as the company structure and implementation model have been well thought out. 

Where it faces challenges, healthcare, retail, recruitment and customer service roles. It would seem to be difficult to implement without increasing costs through overtime or adding more hires. 

A four-day work week can work, but it requires careful planning and industry-specific adaptation. Businesses must consider operational requirements, employee well-being, and customer expectations to determine the best approach. While some companies, like Medibank and Our Community, have reported success, others—particularly those in essential services—may struggle to implement it effectively. Ultimately, flexibility in execution is key to making the model work.

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What are you thoughts? As an employee would you like to see more companies adopting a 4 day work week? And as an employer, would you ever consider a 4 day work week? 

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