Four Day Work Week – Work hard, Rest Harder
Is it time to pivot to a four-day work week for the workforce? As a hospitality consultant with over two decades of experience in evaluating Hotel Valuations and Return on Investment (ROI), I have often wondered if organisations lack adequate metrics for measuring the value of talent and employee ROI. Investments in the workforce are often misrepresented as detrimental to budgets, with no recognition of the softer aspects of service or the value as a result of that service. Today, with the advent of technology, the proliferation of hotel brands with blurred products and services, the only real differentiator can be the service brought about by individuals who work in these hotels. Therefore, to me personally, the focus must shift to making long term strategic decisions. So, what if some of these decisions are unconventional or may sound absurd for a sector known for its long working hours?
Many hotel companies have taken decisions to reset their people strategies post the Covid-19 pandemic. However, most have been straightforward, and what we have heard often is that they have reduced payroll costs and reduced the number of employees by combining certain roles and responsibilities. That may seem like a short-term fix, however, I am not too sure of combined roles or reducing pay as a long-term strategy. The industry got a taste of its own medicine right after these measures were taken. We are now at an all-time low in terms of the quality of personnel in hotels. In fact, the problem has gone further with an all-time low enrollment in hospitality colleges across the country. I would say that broadly speaking, the issue here is low monetary benefits and long working hours.
So, if we want to value our employees and get a good ROI from them, we need to pivot our solution around them. And this is not just applicable to hotels but can be applied across all sectors.
One possible solution can be a four-day work week, which has become a hot topic.
In recent years, Microsoft Japan ran a one-month trial, which showed productivity levels to go up significantly, apart from ancillary savings in electricity, reduced paper printing, among others. Spain in 2020 was one of the first countries to work on a national shift to a four-day work week or 32-hour week. Another example would be the government of Iceland, which between 2015 and 2019 conducted one of the most comprehensive 4-day work week trials in the world. The experiment involved over 2,500 workers across government agencies and public institutions. Employees worked reduced hours with no reduction in pay. The results were remarkable — productivity either remained constant or improved across most workplaces, while employees reported lower stress levels, better work-life balance, and overall increased well-being. The success of the trials prompted a large-scale shift in Iceland’s labour model, with 86% of the workforce now having the right to request shorter hours.
More recently, in the United Kingdom, a 4-Day Week Trial (2022–2023) involved 61 companies, including some in the hospitality space. Over 90% continued the policy post-trial.
My view is that the idea may not work for every organisation and some companies may benefit from other forms of flexibility. However, the burnout rate in hotel operations can be high, and this is something I strongly urge large hotel corporations to at least seriously evaluate. The four-day week was used first in the immediate aftermath of the great depression of 1930s to reduce unemployment. However, the idea has gained more relevance in recent years and could become a more accepted and doable global trend.
Some Obvious Benefits:
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- Improving the ability to attract and retain talent
- Increasing overall employee satisfaction
- Potential lower employee absenteeism and sickness reports
- Increased productivity
Peripheral Benefits:
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- Planet Earth – reduced commuting to work could actually reduce work travel-related emissions by 15-20%
- Work-life balance is better for employees, more time with family, with potential to travel together and provide a boost to tourism and taxes to governments
If employees are indeed your most valuable resource in your organisation, then give them a return on investment they truly deserve.
The potential “how” and hurdles for companies to overcome the transition to a four-day week: The biggest hurdle probably remains the government labour laws that exist in each country, state and municipality. There has to be flexibility, and the political masters need to understand that this is a give-and-take situation – longer hours in exchange for more time off. I presume the best selling point is that it has the potential to reduce unemployment.The question for the organisation, or for that matter, the industry I understand best (hospitality), is that does this mean lower payroll costs? In my view, potentially the answer to the same is yes. Most hospitality firms have already reduced payroll, and if they decide not to bring them back to original levels, then one way is to give employees more time off with their families by providing for extended weekends. With staggered rosters, creative shift design, and smart use of tech (e.g., automation in back-of-house functions), hotels and restaurants can still maintain coverage without increasing headcount. It’s a matter of intention and innovation.The how is perhaps easier to handle and will need to be adapted to each organisation or sector this is adapted. A legal, consulting or advisory firm can easily transition to a four-day work week. However, manufacturing and services will need to work through this much more carefully. Our recommendations for the same are simple
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- Start Slow – start with one or two departments or perhaps implement in one location to test the waters and assess the situation.
- Middle-Level Engagement – The middle level in every organisation is key. A decision of this nature needs to have the buy-in of the majority. If middle-level managers need to be on board with the decision and to help implement.
- Engage and Review the Line Staff – While the four-day work week may resonate with a vast majority of employees, as it offers a better work-life balance, one needs to look at the motivations of various employees. For example- in a developing country like India, you do not want your staff attempting to potentially do two jobs, as it may defeat the very purpose. So, it’s important for both the middle-level managers and the line staff to have a frank discussion.
- Finally, if you have taken the decision to try this out, then it’s extremely important to monitor its implementation. Does it work in hotels or organisations that have multiple work shifts? Do the traditional 3 shifts (in hotels) become 2 shifts per day, for example?
For more information, please contact Manav at [email protected] and Aatreyi at [email protected]
