4 Day Week

Four-day week an ‘overwhelming’ success in Iceland

Several large-scale trials of a four-day workweek in Iceland were an “overwhelming success,” with many workers shifting to shorter hours without affecting their productivity, and in some cases improving it, in what researchers called “groundbreaking evidence for the efficacy of working time reduction.”

The experiments, run by Reykjavík City Council and the Icelandic government between 2015 and 2019, initially included just a few dozen public sector workers who were members of unions and then expanded to include 2,500 workers from both the public and private sector – representing 1% of the country’s workforce.

Although the experiment was dubbed a “four-day week” most workers did not actually take a full day off work but aimed to reduce their hours from 40 to 35 or 36 each week.

As part of the project, employees from a range of professions — including offices, kindergartens, social service providers and hospitals — moved from a 40-hour working week, to a 35- or 36-hour working week, but received the same pay.

Research into the trials, published this month by researchers from the UK think tank Autonomy and Iceland’s Association for Sustainable Democracy (Alda), showed the time saved at work was largely achieved by scrapping unnecessary meetings, taking shorter breaks and moving services online to allow offices to shut earlier.

Workers reported feeling less stressed and at risk of burnout, and said their health and work-life balance had improved. They also reported having more time to spend with their families, do hobbies and complete household chores.

Bosses said that because they had to think carefully about how office hours were managed, meant there was no significant drop-off in productivity to the ability to provide services.

The amount of overtime people did also remained flat, indicating workers had not just moved in-office tasks to their own free time.

Costs to bosses didn’t rise either, except in the area of healthcare, where it was necessary to employ more staff to cover the shift patterns.

Will Stronge, director of research at Autonomy, said: “This study shows that the world’s largest ever trial of a shorter working week in the public sector was by all measures an overwhelming success.

“It shows that the public sector is ripe for being a pioneer of shorter working weeks – and lessons can be learned for other governments.”

Gudmundur Haraldsson, a researcher at the Association for Sustainability and Democracy (Alda), said: “The Icelandic shorter working week journey tells us that not only is it possible to work less in modern times, but that progressive change is possible too. Our roadmap to a shorter working week in the public sector should be of interest to anyone who wishes to see working hours reduced.”

A number of other trials are now being run across the world. Spain launched a pilot scheme in March which aimed to cut the working week to 32 hours, to see if it was possible to boost the country’s economy as it lifted coronavirus restrictions and aimed to boost employment. Employees of companies taking part in the scheme would try to reduce their hours but maintain the same level of pay. In New Zealand, consumer goods giant Unilever is giving staff in New Zealand a chance to cut their hours by 20% without hurting their pay in a trial. New Zealand Prime Minister Jacinda Ardern has voiced support for a four-day working week and the Scottish and Welsh governments have also set up commissions to explore the idea.

While the benefits are clear, managing a change in working hours like this can be daunting for HR, payroll and managers. Our customers say some of the key challenges involved in managing flexible working policies lie in making sure they have the correct amount of staff with the appropriate skills to meet customer demand, that flexible working policies are applied fairly across all employees and that the change doesn’t result in an increase in manual processes related to scheduling and tracking working hours.

The good news is that a Workforce Management system like Softworks automates the recording of employee Time and Attendance freeing managers and employees up to focus on their core roles. After all, if companies want to offer their employees a reduced working week it makes no sense if there is a corresponding rise in admin processes to manage this.

Softworks Employee Scheduling/ Rostering allows you to create schedules based on employees skills and availability at the touch of a button, saving hours and making sure you’re adequately staffed to meet customer demand. Softworks Employee Self-Service App allows employees to view their work schedules, check leave and flexi-time balances and request leave anytime they like, freeing up managers from answering time consuming enquiries. Finally Softworks Reporting and Dashboards give you a clear picture of attendance trends, overtime, costs, balances and much more so you can make real-time and strategic decisions based on the most accurate information.

Summing Up:

It’s fantastic to hear about the success of the “4 day week” trial. While it may not work for every sector we’re seeing an increasing trend towards different and new ways of working. To support this, it’s important to have a flexible Workforce Management system that simplifies and automates employee Time and Attendance, Absence Management and Scheduling freeing you up from admin and allowing everyone to make best use of their new working hours.

To find out how Softworks can help you manage your workforce effectively, get in touch to book a Demo today.