The Government has issued non-statutory guidance to local authorities who are contemplating adopting a four-day working week arrangement for their staff. Essentially, the guidance states that the Government does not support the adoption of a four-day working week by local authorities.
But what does the evidence thus far say in terms of the pros and cons of four-day working week arrangements?
Government Guidance
In its new guidance on whether local authorities should adopt four-day working week arrangements for staff, the Government, specifically the Department for Levelling Up, Housing and Communities (DLUHC), states: "The government does not support a 4-day working week in local authorities, as it does not believe that it delivers local taxpayers’ value for money....Councils which are undertaking 4-day working week activities should cease immediately and others should not seek to pursue in any format. Value for local taxpayers is paramount and no further focus should be given by local authorities on this matter."
Warning
The DLUHC adds: "Should councils disregard this advice and there is evidence of service decline or failure, DLUHC or another government department may raise concerns directly with the authority, monitor performance more closely and consider options to correct declining performance."
South Cambridgeshire District Council
The new guidance follows in the wake of a decision by South Cambridgeshire District Council to continue with its trial of a Four-Day Working Week until March 2024. Lee Rowley, the Local Government Minister, wrote to the Council Leader, Bridget Smith, calling upon the Council to "voluntarily end your experiment with taxpayers' money immediately".
Rowley added: "While we remain hopeful that it will not be necessary, I wish to reiterate that we are currently considering other financial options available to us regarding ending 'four-day weeks' in the local government sector, should it remain necessary to do more later in the autumn."
What Does The Evidence Say?
But all this begs the question, what is the evidence for and against a four-day working week?
The Evidence For A Four-Day Working Week
Proponents of the four-day working week often cite studies that suggest it can lead to increased productivity. One notable example is a study conducted by Perpetual Guardian, a New Zealand-based company that trialed a four-day working week, with employees reporting a significant increase in productivity, creativity, and engagement, leading to a 20% improvement in company performance. Additionally, employees reported lower stress levels, increased job satisfaction, and better work-life balance.
Another study conducted by Microsoft Japan revealed similar results. During a month-long trial of a four-day working week, productivity increased by nearly 40%. The study also found that employees took fewer sick days and were more motivated to accomplish tasks efficiently.
Research also suggests that reduced working hours can improve mental health and well-being while also promoting a better work-life balance. A British Medical Journal study, for example, found that working long hours increases the risk of depression and anxiety. Moreover, a study conducted by the University of Melbourne found that reduced working hours resulted in improved cognitive ability and functioning. Another survey by Utah State University Study found that employees who worked compressed working weeks reported lower levels of job stress, whilst researchers at Henley Business School found that employees who had more control over their working hours reported higher job satisfaction and better work-life balance.
Offering a 4-day working week can also be a powerful recruitment and retention tool. Research indicates that employees are more likely to choose an employer that prioritizes work-life balance, leading to a more engaged and committed workforce. In support of continuing with its trial of a four-day working week, Bridget Smith, the South Cambridgeshire District Council leader stated: "As time goes on, it is becoming increasingly clear that recruitment has been positively affected, both in terms of the quality and number of applicants, and the consequent success in filling vacant posts."
Moreover, restaurant chain Shake Shack piloted a four-day working week in some of its locations, resulting in improved retention rates, reduced turnover costs, and increased customer satisfaction due to higher employee morale.
There is also evidence to suggest that a four-day working week can also benefit the wider economy. A study commissioned by the New Economics Foundation, for instance, estimated that a shorter working week could increase overall well-being and reduce carbon emissions, leading to improved sustainability and quality of life.
The Evidence Against A Four-Day Working Week
Critics, on the other hand, argue that implementing a four-day working week may have detrimental effects on businesses and the economy. One concern is that reducing the number of working days could lead to a decline in overall output and competitiveness. Companies may struggle to meet customer demands and maintain profitability with fewer working hours available.
Moreover, opponents argue that costs may increase as employers would need to hire additional staff to compensate for the reduced working hours. This could place a financial strain on businesses, particularly smaller ones, potentially leading to job cuts or decreased wages.
Additionally, some industries and job roles may not be suitable for a compressed working week. Jobs that require continuous customer service or operations that rely on regular working hours may face challenges in implementing a four-day working week. Flexibility and adaptability are crucial factors to consider before adopting such a policy.
Furthermore, switching to a four-day working week presents logistical challenges in terms of operational adjustments, the unequal distribution of workload, and financial issues. To begin with, implementing a four-day working week requires careful planning and operational adjustments to ensure seamless workflow. Some businesses may struggle to accommodate client demands, maintain customer service standards, or shift production schedules.
Reduced working hours could also potentially lead to an uneven distribution of workload among employees. Organizations must address this concern by properly reallocating tasks and responsibilities to ensure fairness and avoid overburdening certain individuals.
Finally, transitioning to a four-day workweek may increase labour costs if additional staff must be hired to compensate. Organizations must carefully evaluate the financial feasibility and long-term sustainability before making the switch.
A Mixed Picture
The research evidence surrounding the adoption of a four-day working week presents a mixed picture. While some studies indicate positive outcomes, such as increased productivity and employee satisfaction, others highlight potential negative consequences for businesses. Ultimately, the decision to implement a four-day working week should be carefully considered, taking into account industry-specific factors, employee preferences, the logistics and costs involved, and the aims and objectives of the organization.
