The concept of the four-day working week has garnered significant attention in recent years, particularly as the post-pandemic workforce seeks better work-life balance and businesses face pressures to increase productivity.
With trials in the UK and across Europe delivering promising results – as well as rumours that the government may push for the option to be available – it's worth examining whether small businesses could benefit from this shift. Could a four-day week boost productivity, morale, and employee retention, or might it just be a recipe for headaches, operational challenges and additional costs?
The case for a four-day week
The appeal of a four-day working week is obvious for many employees: more time for personal pursuits, family responsibilities, or simply to recharge.
The UK’s largest pilot of the four-day week, involving 61 companies and nearly 2,900 workers, reported significant benefits. Most notably, 92% of the participating firms chose to continue with the four-day week after the trial ended, with 18 of them making it a permanent change. This notable success, especially considering the diverse range of sectors involved, suggests that the concept could be scalable across industries.
- Employee well-being is a critical factor driving the push for a shorter workweek. The UK pilot found that 71% of employees reported reduced levels of burnout, and 39% felt less stressed.
- Work-life balance improved for many, with 60% of participants finding it easier to manage paid work alongside caregiving responsibilities. Happier employees are likely to be more engaged and loyal, reducing turnover and the costs associated with hiring and training new staff.
A German four-day week trial mirrored these findings, with 73% of participating firms planning to stick with the new working model after their trial concluded, with improved employee morale and well-being cited as major benefits.
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Productivity: can less be more?
For small businesses, maintaining or improving productivity is often a primary concern when considering a reduction in working hours.
Interestingly, the UK trial indicated that a shorter week did not compromise productivity. In fact, company revenues stayed broadly the same during the trial period, with an average increase of 1.4%, and some firms even reported revenue growth of 35% when compared to the same period in previous years. This aligns with findings from Iceland’s earlier trial in 2021, which demonstrated that productivity remained stable or improved despite the reduction in hours.
Employees appear to become more focused when they work fewer hours, cutting out distractions and prioritising their tasks. This refocusing may be due to the fact that workers are more energised and less burnt out, enabling them to concentrate better during the shorter working week.
Recruitment and retention: a strategic advantage
In a competitive labour market, offering a four-day week could give small businesses a strategic advantage in recruitment.
According to the British Business Bank, 68% of companies offering a four-day week found it easier to attract talent. For small businesses that often struggle to compete with larger firms on salary alone, offering enhanced work-life balance through a shorter working week can be a powerful differentiator.
Moreover, employee turnover decreased significantly during the UK’s four-day week trial, with participating companies reporting a 57% drop in staff departures. This reduction in turnover could be invaluable for small businesses, where the costs of recruiting and training new staff can be especially onerous.
Environmental and financial benefits
A less obvious but important advantage of a four-day week is its positive impact on both the environment and business costs. Fewer commuting days mean reduced carbon emissions, which aligns with sustainability goals many businesses are striving to meet. The 4 Day Week Campaign noted that reducing the working week by one day could cut the UK’s carbon footprint by 127 million tonnes per year—equivalent to taking 27 million cars off the road.
Financially, a shorter week could also help businesses reduce operational costs. Companies might see savings in areas such as utilities, office supplies, and maintenance, with 66% of businesses in one survey reporting cost reductions as a result of adopting a four-day week. For small businesses, where controlling overheads is critical, these savings could be valuable.
Potential drawbacks and challenges
While the benefits are compelling, the four-day week is not without its challenges.
One of the key concerns for small business owners is whether it can be implemented across all industries. Sectors that require constant customer interaction or 24-hour operations, such as retail or healthcare, may struggle with staff shortages if employees are only available four days a week.
Another concern is the potential for overloading employees during compressed workdays. Some models of the four-day week suggest that staff compress 40 hours of work into four days. However, longer working hours can lead to increased fatigue, potentially negating the well-being benefits of the shorter week. Some employees in trials reported feeling exhausted by the end of their longer workdays, and businesses like Morrisons and Asda found that compressed hours led to dissatisfaction – and dropped the plan.
Customer satisfaction could also be impacted, particularly in businesses where responsiveness is key. A survey found that 75% of businesses not offering a four-day week expressed concerns about customer service availability. For small businesses that rely on building strong, personal relationships with clients, ensuring adequate coverage during the entire working week may be a sticking point.
Costs and legal considerations
While there are cost-saving opportunities, there are also potential financial drawbacks. For example, businesses may need to pay overtime or hire temporary staff to cover for employees on their day off, which could offset any cost savings achieved through reduced operational expenses.
Legally, the right to request flexible working, including a four-day week, is already enshrined in UK law. Since April 2024, employees have had the right to request flexible working from day one of their employment. However, the government is looking to tighten regulations, making it harder for employers to refuse such requests without solid business reasons. Small business owners will need to be prepared to navigate this changing landscape and consider how best to manage flexible working requests while maintaining continuity.
Is a four-day week right for your business?
While there are cost-saving opportunities, there are also potential financial drawbacks. For example, businesses may need to pay overtime or hire temporary staff to cover for employees on their day off, which could offset any cost savings achieved through reduced operational expenses.
The evidence suggests that the four-day week can bring significant benefits in terms of productivity, employee well-being, and recruitment. The results from trials in the UK and abroad indicate that businesses can thrive under this model, even seeing financial and environmental gains. However, it’s not a one-size-fits-all solution.
Ultimately, whether the four-day week is right for your business will depend on the nature of your operations and workforce. If implemented thoughtfully, with a focus on maintaining productivity and customer satisfaction, it could provide a valuable tool for improving both employee retention and overall business performance.
If you’re looking to crunch the numbers on changing up your work patterns or need help getting reliable data to make a decision, why not get in touch with one of our experts?
