The 4-Day Work Week: Dream or the Future of Work?

Exploring what it is, where it’s being trialled, and whether it could work for regional businesses

What Is a 4-Day Work Week?

A “4-day work week” isn’t simply “working one extra hour per day” to squeeze the same 40 hours of pay into four days. In most modern pilots, it means reducing total paid hours to around 80 percent (e.g. 32 hours instead of 40), while maintaining 100 percent of take-home pay. Employers and employees agree to rethink processes - cutting unnecessary meetings, automating routine tasks, and prioritising outcomes over hours at the desk .

Global Trials: From Reykjavik to Perth

• Iceland (2015–2019): Over 2,500 public-sector workers shifted to 35 hours/week with no pay cuts. Well-being skyrocketed and productivity held steady or improved, leading many organisations to adopt permanently .

• Microsoft Japan (2019): A “Work Life Choice Challenge” granted Fridays off, slashed meeting lengths, and capped attendance. The result? Sales per employee jumped 40 percent and electricity use fell 23 percent .

• Perpetual Guardian, New Zealand (2018): A six-week pilot saw 240 staff nominate one weekday off each week with full pay. University assessments reported higher engagement, lower stress, and improved customer satisfaction, so much so that the scheme remains in place .

More recently, the 4 Day Week Global initiative has run six-month trials across Ireland, the UK, the US, Canada, Australia, and New Zealand - encompassing over 140 companies and nearly 3,000 employees. Early reports indicate a 90 percent retention of the shorter week at trial end .

What the Data Says: Benefits and Caveats

1. Employee Well-Being & Retention

   • Reduced burnout: A peer-reviewed Australian study found dramatic drops in stress and burnout, alongside improved mental health .

   • Higher job satisfaction: Over 90 percent of trial participants reported greater work-life balance and overall happiness .

2. Productivity & Performance

   • Trials show productivity maintained, or in some cases boosted, when processes are optimised to eliminate waste. Notably, UK tech firm Civo reported no drop in output after adopting a permanent four-day week .

3. Business Outcomes

   • Lower turnover costs and fewer sick days often offset any increased per-hour wage cost.

   • Some employers even saw cost savings in facilities and utilities (e.g. Microsoft Japan’s 23 percent cut in power consumption) .

4. Challenges

   • Client-facing services may need staggered schedules to ensure coverage five days a week.

   • Cultural resistance: Shifting mindsets from “hours = effort” to “outputs = value” can be the biggest hurdle .

   
   

Could It Work for Regional Businesses?

For regional enterprises, where teams are smaller, employees often wear multiple hats, and personal ties to community are strong, the four-day week holds unique promise and some distinct challenges:

• Promise

  • Talent attraction & retention: In areas where opportunities can be limited, offering a four-day week can be a powerful recruitment differentiator.

  • Community engagement: Employees with extra days off are more available for local events, volunteering, or side gigs - strengthening brand presence in the region.

  • Operational resilience: Reduced overheads on closed days (electricity, rental expenses) can be particularly impactful for small- to medium-sized businesses.

• Challenges

  • Customer expectations: Retailers, hospitality venues, or professional services must ensure that critical customer touchpoints are staffed across all five weekdays. Consider rotation models or core-hours coverage (e.g. every staff member works four of five days, with overlapping schedules) to maintain service levels.

  • Multi-role flex: When one person covers marketing, operations, and customer support, scheduling must be meticulously planned to avoid gaps, perhaps through cross-training or hiring part-time “floater” roles.

Getting Started: A Thought-Starter for Regional Leaders

1. Pilot Program (4–8 weeks):

   • Identify one team or department (e.g. admin, marketing) and agree clear objectives: what outcomes must be achieved each week?

   • Gather baseline metrics (productivity, customer satisfaction, absenteeism).

2. Design the Schedule:

   • Compressed Hours: Four 8-hour days, or

   • Reduced Hours: Four 7.5-hour days plus a half-day one week per month, or

   • Staggered Days Off: Ensure five-day coverage without overtime.

3. Communicate & Train:

   • Host workshops on time management, meeting efficiency, and digital tools to keep workflows streamlined.

   • Set up regular check-ins to gather feedback and troubleshoot.

4. Review & Iterate:

   • At pilot end, compare performance against baseline: Did outputs hold? Did customer satisfaction change?

   • Survey staff on well-being and professional development.

5. Scale Thoughtfully:

   • Roll out to additional teams in phases, adapting the model based on each group’s unique needs.

   
   

Conclusion

The four-day work week is more than a trendy idea, it’s a movement rooted in decades of research and hundreds of real-world pilots. While it’s not a one-size-fits-all solution, regional businesses stand to gain in employee happiness, community engagement, and operational savings. By starting small, measuring rigorously, and remaining flexible, any regional leader can decide whether the four-day model is a passing dream, or the future of work in their town.