Four-day workweek gains traction in the UK to boost productivity

A response to declining productivity

Some economists and businesses view the four-day workweek as a potential solution to the productivity decline observed in the UK and other Western economies. Productivity, or economic output per hour worked, has seen an average growth of only 0.75% between 2010 and 2019 in the UK. The Bank of England predicts this trend will continue in the coming years, partly due to increased administrative constraints related to Brexit.

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Positive outcomes for the majority of affected businesses

Five Squirrels was among the 61 companies – most of which have 25 employees or fewer – that participated in the world’s largest four-day workweek experiment last year. Out of these 61 companies, 56 maintained this policy after the trial, with the vast majority reporting that productivity and overall performance were preserved.

Investments to support the transition

The transition to a four-day workweek can be facilitated by investments in equipment and training. For example, Five Squirrels purchased new machines to produce smaller quantities of products with less labor intensity and also invested in a new labeling machine. Additionally, the company implemented a weekly schedule to group tasks together rather than switching between them, increasing the labeling rate of bottles from 25 to 120 per hour.

A moral argument in favor of the four-day workweek

“It’s been almost 100 years since we moved to a five-day week… it’s high time we started thinking more coherently about the next steps,” said Jan-Emmanuel De Neve, a professor of economics at the University of Oxford.

De Neve believes there is a moral argument in favor of the four-day workweek, as many workers report poor mental health. Although large companies are generally more skeptical about this idea, trials and the COVID-19 pandemic have forced employers to be more open to different working practices.

An advantage for small and medium-sized businesses

Nick South, a senior partner at Boston Consulting Group, believes that small and medium-sized businesses could leverage the four-day workweek to attract talent. Large companies may have more difficulty implementing this policy on a large scale, while smaller businesses with a more shared corporate culture could find it easier to adapt to this new dynamic.

Finally, British recruitment agency Reed.co.uk has reported an increase in the number of job offers featuring a four-day workweek since the beginning of the year, although this policy may not be suitable for all businesses.