The Great Resignation has changed the workforce. With a record number of people leaving their jobs and a record number of open positions in the U.S., the dynamic between employees and employers is shifting. Now, employees hold the leverage. They know that if they leave their current position, there are plenty of other companies that need them.
In the competition to hire and retain employees, you might naturally go straight to salary. A higher salary would surely attract employees, right? Not necessarily. 61% of employees would be willing to accept a lower salary if a company offered a great benefits package.
Clearly, benefits are a game-changer when it comes to hiring and retaining employees. Some benefits are standard, such as health insurance and dental, and employees have come to expect these. That means employers and HR teams need to be more creative with what they offer and ensure it satisfies current employees and prospects.
One of the newest benefits trends is the 4-day workweek. Keep reading to learn more about this benefit, the pros and cons, and how to figure out if this trend is right for your company.
What is the 4-day workweek?
A 4-day workweek is ideally a 32-hour week with no loss in productivity, pay, or benefits. The 4-day workweek gives employees an extra day off of work, typically Friday.
A few years ago, the 4-day workweek might have felt outlandish. Now, 50 U.S. companies have adopted the 4-day week, and countries around the globe—including Spain, Japan, Scotland, and Iceland—are considering it.
What are the benefits of the 4-day workweek?
Reduced employee turnover: The 4-day workweek grants employees more free time, meaning they are less likely to face burnout. Burnout leads to absenteeism and less engaged employees. Plus, it also increases employee turnover, which costs employers 90% to 200% of an employee’s annual salary.
Increased revenue: Microsoft Japan saw a 40% increase in employee productivity due to the 4-day workweek, plus a 23% lower electricity bill.
Reduced environmental impact: If reducing your company’s environmental impact is a priority, the 4-day workweek will benefit the fight against climate change by reducing commute hours.
Happier employees: The main impact (and the reason it’s a great benefit to offer) is that it makes employees happier. Plus, when your employees are happier, they’re more loyal to your company.
What are the cons of the 4-day workweek?
Too much work, too little time: Some employees might struggle to get all their work done in 32 hours. This could lead to increased stress.
Won’t work for every business model: If clients and other businesses still operate on a 5-day schedule, then employees collaborating with them can’t take a 3-day weekend.
Not every field will see increased productivity: In some jobs, a 4-day workweek won’t make the employees more productive. Warehouse workers and truck drivers face physical constraints that make the productivity of their job tied to time.
Reduced customer satisfaction: In some fields like tech and customer service, a company working only 4 days a week could see a reduction in customer satisfaction.
How to make the 4-day workweek possible
If a company wants to hire and retain employees by offering a 4-day workweek, here’s how they can move to a shorter workweek:
1. Re-evaluate tasks and prioritize them
2. Reduce and shorten meetings, and minimize other disruptions
3. Increase automation
4. Set goals that are achievable within a shorter workweek
5. Give regular employee feedback to help them continue improving
Most importantly: Measure outcomes, not hours.
At the core of the 4-day workweek: flexibility
Although a 4-day workweek is all the buzz, it’s not feasible for every industry. Although your workplace may still need to work 5 days a week, your employees can still get more done based on outcomes and productivity versus the need to work 40 hours week in and week out.
And while your employees may still need to work 5 days a week, there are other ways to offer flexibility. Employees want flexibility. 59% of employees state that “flexibility” is more important to them than salary or other benefits.
If a 4-day workweek doesn’t sound feasible, here are solutions to offer flexibility:
1. Customized working hours/flex time
2. Alternative scheduling
3. Remote work
4. Extra Paid Time Off (PTO)
We can help with benefits
As you’re implementing flexibility into your workplace benefits, don’t forget about the importance of communication. When employees understand their benefits, they are 100% more likely to trust their employer’s leadership. LearnYour Benefits helps you with open-enrollment, onboarding, and year-round promotions.
Most importantly, we lift the burden of benefits messaging off your shoulders. Interested in learning more about how we can help? Request a demo today!
