In just a few years, the four-day week has shifted from a fringe concept to the mainstream in corporate workplaces across the world.
According to a white paper by the UK’s Henley Business School, employers have been warming to the idea since the Covid-19 pandemic; 65% of the UK businesses surveyed had introduced a four-day working week for either some or all their staff. As a consequence, employee satisfaction had improved and sickness levels had fallen. And, by the end of 2021, businesses that had implemented the four-day week had saved £104bn: 2.2% of the UK’s turnover.
Among the companies to adopt the so-called 100:80:100 model –100% of pay for 80% of the time, with a commitment to maintain 100% productivity – is Australia’s Two Sides Accounting. Since making the switch, the business has observed greater productivity and improved employee wellbeing.
The catalyst came when the firm hired a practice manager for four days a week because there was not enough work to fill a normal working week. The realisation that Fridays tended to be quiet prompted founder and director Natalie Lennon to extend the offer to all employees.
‘Many firms fall into the trap of chasing growth and becoming busy’
On her day off, Lennon remotely monitors voicemails in case something urgent pops up. ‘Most clients are accepting of it as long as their work is getting done,’ Lennon says. ‘If something is urgent on a Friday, it gets handled.’
More balance
While business leaders are often hesitant to implement a four-day work week due to productivity concerns, Australian unions are adamant that it can be good for business. Michele O’Neil, president of the Australian Council of Trade Unions, says shorter working hours are good for both workers and employers, allowing people to live happier, healthier and more balanced lives.
‘For workers in some sectors, shorter working hours can be delivered through moving to a four-day work week. For other people, this could be achieved in other ways, such as more time off or fairer rosters,’ she says.
With many sectors experiencing a talent shortage, a pilot study by 4 Day Week Global demonstrates that making the shift to working one day less a week makes it 83% easier to attract talent, with resignations down 57%.
Long weekends every week can also lead to performance improvements. A study recently published in Nature Human Behaviour journal found that four-day weeks can boost performance and reduce burnout. In the study, 2,896 employees from 141 companies across the UK, Ireland, Australia, Canada, New Zealand and the US reported a considerable drop in sleep problems for four-day workers, which led to improved wellbeing and greater productivity.
Making a smooth transition
When moving from five days to four, businesses should first ensure that they:
- consider operational needs and client requirements
- run a trial to iron out any issues
- conduct surveys to understand internal concerns and address those early
- create a communication strategy and set clear expectations
- leverage digital tools to automate low-value steps such as approvals and reporting
- monitor productivity levels and financial performance.
Meanwhile, in a 2023 study conducted by Australia’s Swinburne University of Technology, seven of the 10 companies trialling a four-day week reported higher productivity, with the other three maintaining pre-trial levels.
Digital benefits
The move towards the four-day week comes as accounting firms around the world adopt a range of new digital tools including AI, reducing administrative bottlenecks.
‘I have a constant feel for where the business and workflow is without being in the office’
Many firms also tend to work asynchronously, which shifts knowledge workers to higher value work and improves collaboration across time zones. This means that work can be put down and picked up again days later without negative outcomes for clients.
When Paul Meissner founded 5ways Group Chartered Accountants, he decided to do away with the idea of time sheets from the outset. ‘Many firms fall into the trap of chasing growth and becoming busy, trying to chase more revenue, which doesn’t always equate to more profit,’ he says.
Managing workflow
By contrast, Meissner started his own practice in 2010 to create more time for himself and his family, transitioning to four days a week three years after launching. ‘My fifth day is now spent golfing,’ he says.
When working out how to manage the workflow, Meissner borrowed heavily from the agile methodology of software development; in particular, the concept of scrum meetings to communicate what teams are working on, what they will work on next, and what needs to be handled quickly have worked well.
‘Many clients see the four-day work week as something to aspire to’
In between these huddles, staff have full autonomy to work and make decisions as they see fit. ‘As the business owner, I know that these huddles give me a constant feel for where the business and workflow is without having to be in the same office,’ Meissner says.
While he admits to losing one large client following the shift, Meissner says that having more flexible working arrangements has been an overall success.
‘Accountants and their clients share such a personal, professional relationship that there can be great understanding with the demands of family and life,’ he says. ‘Many clients see the four-day work week as something to aspire to rather than something that gets in the way of our professional relationship.’
Moving to a four-day week has, Meissner concludes, enabled him to ‘perform in the business and build fantastic family relationships, as well as giving me a factor that necessitates creating a super-efficient firm to achieve my income goals’.
