The Rise of the Four-Day Workweek

January 22, 2025

Four Day Work Week happy employee

The traditional five-day workweek is facing its biggest challenge since Henry Ford first popularized it in 1926. As companies worldwide experiment with the four-day workweek, the results are consistent: maintained or boosts in productivity, happier employees, and stronger retention rates.

Here, we’ll explore how organizations worldwide are reimagining the workweek, examine the compelling data behind this movement, and provide practical insights for HR teams considering this transformative change.

The Data is Undeniable

In 2019, Microsoft Japan’s four-day workweek experiment led to a stunning 40% productivity increase, while reducing electricity costs by 23%.Between 2015 and 2019, Iceland’s nationwide four-day workweek trials involved 2,500 workers—roughly 1% of the country’s workforce. The results were so successful that now 86% of Iceland’s workforce has either moved to shorter hours or gained the right to negotiate them.

More recent large-scale trials have continued to produce compelling evidence. In the UK’s 2022 trial involving 61 companies, 92% of participating organizations decided to continue the four-day model. The results showed stress levels dropped by 39%, while burnout decreased by 71%. Perhaps most impressively, participating companies saw sick days reduced by 65% and staff turnover fell by 57%.

The Hidden Benefits of the Four-Day Workweek

While gains in productivity make headlines, HR professionals are discovering additional advantages as well. Enhanced recruiting power has become increasingly evident as job seekers prioritize flexibility. Gender equality has improved through better work-life balance, enabling more equitable caregiving arrangements. Companies have also noted reduced environmental impact from decreased commuting, along with lower operational costs and notably increased employee engagement.

Implementation Considerations for HR

For HR teams considering the transition, schedule structure represents a crucial decision point. Some organizations opt for four 10-hour days, while others embrace a 32-hour week with four 8-hour days. Still others implement staggered schedules to maintain five-day coverage for clients.

Successful programs typically maintain full pay and benefits, viewing the change as a productivity optimization rather than a reduction in work. This approach requires thoughtful revision of time-off policies, meeting schedules, and performance metrics. Client communication protocols must also evolve to ensure service continuity.

Despite the positive results, implementation isn’t without hurdles. Companies must carefully address client expectations and availability. Those operating across multiple time zones face additional coordination challenges. Organizations also need to develop strategies for managing peak season demands and maintaining emergency response procedures.

The Path Forward with Commonwealth Payroll & HR

The four-day workweek isn’t just a trend—it’s a forward-thinking approach that’s reshaping the future of work. Transitioning to a four-day workweek requires thoughtful planning, whether you’re just exploring the idea or ready to take the next step—and that’s where we come in. At Commonwealth Payroll & HR, we provide the tools, expertise, and personalized support to help you navigate every aspect, from payroll and scheduling to compliance and employee engagement. If you’re considering this innovative approach, contact us to see how we can help you make informed decisions and set your business up for success.

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