With trials of 4 day working continuing in the UK, the CIPD has recently issued their own survey detailing companies’ perspectives on the feasibility of 4 day working weeks. This is based on the model of 100% pay for 80% work and 100% output. It is fair to say that, even with the varying reports of success across the globe and a general recognition of the benefits for staff and potentially the business, there are still a number of uncertainties that are holding back companies in the UK. Despite the potential benefits, the survey, which was completed by 2000 senior HR practitioners, shows that as little as 1% of employers plan to reduce working hours without reducing pay in the next three years.
So what is holding these companies back?
Cost-to-productivity concerns
One of the principle concerns remains that companies will not receive the same output if hours are reduced. 68% of the parties surveyed agreed that they will need to boost the adoption of technology in order to move towards a four day week, and that they are not there yet. Although global trials have indicated productivity levels can be maintained after adopting the model, businesses may need to “see it to believe it” for themselves before they decide to implement it. With no signs of the ongoing cost of living crisis slowing down, many businesses may not view this as the time to be experimenting
Practical concerns
32% of businesses surveyed were concerned that a 4 day working model would not suit everyone in the organisation. Like homeworking, a 4 day working model will likely lend itself more comfortably to some employers, and indeed some specific roles, than it will to others. This then leads to the question of how can the company treat all of the staff fairly? The same question arises when companies consider how to treat their current staff who work 4 days or less. Will these people need to receive an uplift in pay for working the same hours? According to the survey, this group of people make up 25% of staff across the UK. If they are given an increase in pay, will they then be expected to reach a higher level of output in exchange for this uplift? Or will pay be more focused on output than time put in?
Not compatible with business
55% of those surveyed agree that reducing working hours without reducing pay is a great idea but simply could not happen for their specific organisation. This could be because of the above reasons, or additionally could be because the organisation employs customer facing roles, or must have people on standby at all hours. A move to a 4 day week would require additional staff (at greater cost) to ensure the same hours are covered. These issues will be seen across many sectors for different reasons.
Conclusion
As with any new, radical idea, there will be people that are very enthusiastic about it, and others who will drag their feet until they see evidence of the benefits. It took a pandemic to force companies to embrace homeworking when the technology was already available. Although the results of the trial may provide information to help persuade a number of companies, it appears that businesses will take some convincing before they are encouraged to take a leap of faith. Combine this with the raft of uncertainties in the economy at the moment, and a general feel that workers will need to work harder to drag companies out of any potential difficulties, and it may be some time before we see a majority of companies embracing this model voluntarily. 37% of those surveyed did not see a four day week as being likely to materialise in the next ten years.
Whatever the future holds for working models, we will be keeping a keen eye on any progress and emerging patterns of work, and will certainly be ready to advise clients on any transitions if they feel the time is right for them. If you have any questions about the 4 day week, or varying working hours, then contact the team on 03330 430350.
