The four-day work week is catching the imagination of innovative employers around the world, including in SA. The most recent results of four-day week pilots from Ireland and the US were released on December 1, and they showed positive results for the companies and employees piloting the innovation.
These organisations from across various sectors have been trying out the four-day week for a six-month period, with regular data collection by researchers to monitor employee and organisational performance and satisfaction. A similar pilot is scheduled for SA in 2023.
Analysis of the 33 Irish and US firms employing almost 1,000 employees again demonstrated the positive effects for employee retention, wellbeing and satisfaction. The results also showed a positive effect on company performance and productivity.
What do these results tell us about what SA might experience when the pilots are conducted next year? While the pilot does not oblige companies to continue with the four-day week when the pilot period is over, many of the Irish and US companies did continue with a four-day week after the pilot or are positively considering retaining the shorter working week.
Almost all employees (97%) said they “definitely wanted” to continue. At this stage there is no reason to think SA companies will not reap similar positive rewards and report positive sentiments.
Compared with early results, these data show the Irish and US companies continued to grow during this pilot, with increased revenue and even increased employment. What these results suggest is that four-day week does not constrain growth in dynamic economies, nor the ability to expand with new employees — Ireland is one of the fastest growing economies in Europe.
This is not necessarily evidence of a four-day week improving revenues or creating more employment. In the case of SA, with a stagnant economy, these expansion concerns are perhaps less relevant, but they do demonstrate that employers should not be worried about the four-day week constraining the responsiveness of their organisations.
Boosting employee wellbeing
The effects on wellbeing are particularly interesting, with employees reporting less burnout, lower levels of fatigue and fewer sleep problems. These results relate to more time devoted to physical and mental health, but also through an overall better work-life integration (balance) thanks to shorter working hours and more time for unpaid activities.
Interestingly, compared to some other results, these findings do not show a significant rise in work intensity. The employees in the pilot worked an average of 34 hours per week over a variety of reduced working hour options, with less than half working the free-Friday option.
The pilot studies found few employees taking on new paid work in their increased free time. Rather, there were increases in leisure activities, volunteering and hobbies. This is a positive result since reducing time in one job to work elsewhere was not the desired outcome of the experiment. However in the case of SA, we might expect a different effect for some in an economy with high levels of inequality, talent shortages and low wages. This will be an interesting area to explore in the SA data.
Analysis of the 33 Irish and US firms employing almost 1,000 employees demonstrated the positive effects [of a four-day work week] for employee retention, well-being and satisfaction.
The increased time off paid work allowed employees to spend more time on care. After leisure, most free time is dedicated to housework and care work. Though men did spend slightly more time on childcare, it was found that women continued to do the lion’s share of unpaid care work. In SA, where the share of unpaid work in the home is unevenly distributed, this is an area to be monitored to avoid the unintended consequence of women taking on further burdens of unpaid work while men use their new found “leisure” time for other activities.
The likely effects of the four-day work week trials in SA will include many of the positive aspects for employees and employers identified elsewhere in the world. Clearly the context of the weak SA economy will provide a new layer to the analysis, as will racial diversity (74% of the overseas sample were white). There will also be some new challenges and perhaps new benefits not seen elsewhere.
There are already more than 20 employers signed up for the 2023 pilot, with many more interested in doing so before the mid-January deadline. What is clear is that the results and analysis by researchers at Stellenbosch Business School will provide the first picture of the effects and possibilities of the four-day week in an emerging economy.
They will be eagerly anticipated as the four-day week innovation continues to spread around the world.
• Prof Smith is director of Stellenbosch Business School.
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