The 4-day week – What Australian leaders need to know.

In the past five years, employees and employers have challenged the established norms which have governed our workplaces for the better part of the previous century. New technology has enabled more flexible and productive modes of working and demonstrated that work can be completed very differently to how it’s been done in the past.

Catalysed by the pandemic, the employment landscape has undergone a seismic shift and forever changed the way employees view their jobs and what they expect from their leaders. Employees now place greater value on flexibility and work/life balance – particularly Millennials and Gen Z, who are now an increasingly large part of the Australian workforce.

More recently, employers around the world have ramped up four-day work week experiments. It’s an idea that has captured news headlines, government attention and the hopes of many. Early research is indicating that the four-day work week could deliver positive outcomes for both leaders and employees across a range of industries.

LHH have examined these promising results from the recent Australian trials and prepared a ‘4-day work week’ report that steps you through the case for and against the four-day work week.

We asked James McIlvena, Managing Director, LHH for his thoughts on this new working arrangement that’s gaining popularity…‘Although cyclical factors undoubtedly play a role in the war for talent, aging populations and skills shortages make it hard to find good employees. Against this backdrop, employers will need a competitive edge. A four-day week may be just that.’

He remarked ‘the four-day work week is likely to be a gradual and iterative process requiring some trial and error to ensure productivity remains at 100%. The 100/80/100 model can only work when leaders and employees agree on how employees’ working hours will reduce by 20%. These arrangements need to be specific to the individual and their role to be effective’.

‘While many industries may look to benefit, some may struggle to reduce hours worked, especially as some roles don’t allow for the 100/80/100 rule. Shift workers, for example, need to be present to achieve 100% productivity. The nursing and childcare sectors – where staff to patient/child ratios must be maintained at fixed levels – face similar dilemmas.”

Referencing LHH’s own research, Mr McIlvena noted that despite mental health improving for 83% of staff who work a four-day week, they’re not as available for their colleagues as they were before, potentially affecting collaboration. Indeed, 56% of employees say that working a four-day week has made it harder to work as a team.

He concluded as organisations, governments and commentators across the globe debate the merits of the four-day work week, Australian HR leaders must be prepared to advise on the initiative’s relevance and benefits for their own organisations.

The research demonstrates that a high level of leadership capability, agility and change management is needed to navigate workplace change of this magnitude. Leaders need to sustain a continuous improvement posture that provides the emotional safety that their teams will need to realise both productivity savings and employee well-being improvements.

The 4-day Work Week Report – What HR leaders need to know.

LHH’s report on the four-day work week steps leaders through the case for the new working pattern by drawing on their own research as well as results from recent local trials by not-for-profit: 4 Day Week Global. LHH reveals practical insights to help organisations evaluate the merits and challenges – and equip leaders to spearhead the four-day working week debate.

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Press contact:

Laura Neal, Head of Marketing, Australia, New Zealand and Singapore
laura.neal@lhh.com