More Productivity, Less Work

At their desks for eight hours fewer each week, employees at a New Zealand-based company experienced an improved work-life balance, reduced stress – and even increased productivity.

BY SIMON CAPSTICK-DALE

Teamwork and collaboration among employees were strengthened during the trial.

Andrew Barnes, founder of Wellington-based trusts and estates firm Perpetual Guardian came up with the idea for a four-day work week after reading a report which suggested people spend less than three hours of their work day productively occupied.

In March 2018, he began trialling a four-day work week at his company in New Zealand’s capital city of Wellington, with the hope that productivity would remain unaffected and employees would be significantly happier. Many four-day work week initiatives tested prior required staff to work longer hours as a compromise for their ‘day off’, or they would get paid less for working a shorter week. But in this trial, tracked and assessed by two researchers from the University of Auckland Business School and Auckland University of Technology, all 240 staff were given one day off of their choice – at full pay.

THE NUMBERS

To the surprise of Barnes – and a bevy of media awaiting the results – the change actually boosted productivity among employees, who also reported spending more time with their families, exercising, enjoying hobbies and being outdoors. The majority of interviewees said the shorter work week helped to open up meaningful opportunities both on and off the job. Some employees said, for instance, that gaining an extra day allowed them to participate in volunteer work or pursue educational programmes. Others used the time to completely switch-off.

The psychological benefits for employees of increased downtime are hardly earthshattering, but more significant was a 20% increase in productivity, varying degrees of improvement in team and customer engagement, 24% improvement in work-life balance, and 8% drop in the stress levels of employees.

Work attendance also improved, and overall, workers less frequently left the office early and took fewer extended breaks. Revenue remained stable throughout the trial and overheads such as electricity and consumables (like coffee) dropped. Added to the company’s financial benefits were those for employees, who spent less money on fuel and vehicle maintenance, and parents forked out less for childcare needs.

While employee performance levels remained steady – a remarkable achievement considering they worked 20% fewer hours – there was also an attitude shift among many employees who began working smarter, but not necessarily harder. The reduction in working hours encouraged them to find ways of increasing their productivity.

For example, meetings were reduced from two hours to 30 minutes – another psychological boost for most – and employees created signals for their colleagues to indicate when they needed to work without distraction. Improved focus was another positive spin-off. The consensus among interviewees was that having less time to complete tasks made them more goal-oriented. With the necessity of being more productive, they made a concerted effort to complete one task at a time, and consciously refocus whenever concentration began to wane.

Teamwork and collaboration among employees were also strengthened during the trial. The majority of employees said they learnt more about the job responsibilities of colleagues, and where possible, offered their help to co-workers on tight deadlines.

BENEFITS WHICH TRANSCEND THE WORKPLACE

There are gains outside of the workplace as a result of people working shorter hours, such as the environmental benefits of reduced carbon emissions from fewer commutes and carbon-consuming hours of office or factory operation. During ‘off hours’, a typically slower pace of life for employees encourages transit options like cycling instead of driving. With 20% fewer cars on the road during rush hours, traffic congestion is eased, which has positive implications for urban design.

WORKING MOTHERS HAVE MOST TO GAIN

Barnes also sees the trial at his company as a potential means of helping to close the gender pay-gap, supporting the notion that women should not have to negotiate about hours but rather their productivity.

Should the four-day work week trial have the domino effect on organisations that Barnes envisions, working mothers stand to benefit most from the policy, many of whom return to work from maternity leave having to negotiate part-time hours, but performing the equivalent of full-time work.

APPLICATIONS FOR THE FUTURE

While the four-day work week was deemed a huge success for most trial participants at Perpetual Guardian, a small minority of employees did not adapt as easily. A handful of workers reported feeling increased pressure to complete their tasks within a shorter timeframe. Others reported they were bored on their off-day and missed the work environment.

Whichever side of the fence you sit on, the trial has sparked international debate around its potential improved employee wellbeing, bolstered productivity and cost-saving benefits for companies. Perpetual Guardian recently implemented the scheme permanently, making the four-day week an option for all full-time employees from November 2018. Other companies worldwide are now also beginning to explore the benefits of this work less, live more philosophy.