Workplace Disruption or Productivity Miracle?
The data is in Australia’s productivity is stagnating, or at worse on the decline.
In Australia, it’s measured by the Australian Bureau of Statistics (ABS) and the Productivity Commission, primarily using labour productivity (output per hour worked) and multifactor productivity (output per combined unit of labour and capital). That’s a fancy way of saying
we measure productivity by how much gets done for every hour people work, and how much gets done for the mix of effort and resources that go into it.
With all of the talk around how to boost productivity, one suggesting is getting a lot of attention, the 4 day work week. Many benefits are touted but these proposed benefits also come with drawbacks to be properly considered before implementing.
Improved Employee Well-Being
A 4-day work week arguably allows employees more time to rest, pursue personal interests, and spend time with family. This additional downtime can lead to reduced stress levels and better overall mental health. Employees often return to work feeling refreshed and energised, which can enhance their performance. On the flip side, how do you feel getting all of your work done when Monday is a public holiday? Changing days alone, is not an automatic provider of wellbeing, if work load is not assessed as well.
Reduced Energy Consumption
Companies can reduce their energy consumption and overall operational costs by closing offices one extra day each week. This assumes that no work will take place on the 5th day, but we suggest you are likely to see companies maintaining their operating days, with employees providing coverage on a roster cycle given the nature of certain types of work.
Attracting and Retaining Talent
Offering a 4-day work week can be a significant competitive advantage in attracting top talent. Many job seekers value flexible working arrangements and are more likely to choose employers who offer innovative work schedules. Additionally, current employees are more likely to stay with a company that prioritises their well-being. This type of arrangement could have adverse affects on the talent pool and drive up competition in lower skilled roles.
Enhanced Creativity and Innovation
With more time to rest and recharge, employees may experience a boost in creativity. A well-rested mind is often more open to new ideas and problem-solving, which can drive innovation within the organisation. It might be the case that creativity can flow more naturally in this set up, or employees may feel the pressure to deliver and action items given the reduced hours which does not make way for creative and collaborative discussion which could be seen as a distraction.
Conclusion
The 4-day work week could be game changer when it comes to moving the dial on Australia’s productivity concerns. However, companies would benefit from trialling these type of arrangements and tracking the pros and cons before making a decision more widely.