PEOPLE AND CULTURE

NEWS

Four-day week will be in place by end of decade, survey suggests

5 Jul 2022

    • A new independent survey to better understand the attitudes of employees and employers towards ways of working trends has been commissioned by NatWest. It found that 78% of employers think the four-day working week will become the norm by 2030, whilst 71% of employees would not opt for a reduced working week if it meant they had to take a pay cut.

    The survey was carried out by Censuswide on behalf of NatWest Rapid Cash during May 2022.

    Flexible working has already changed the economy and the trend looks set to continue throughout the 2020s. Employers across the country must overcome current financial and operational challenges if they are to realise its potential to improve both the economy and the mental health and wellbeing of their employees. Flexible working can describe a place of work, for example homeworking, or a type of contract, such as a temporary contract. It also includes part-time working, flexitime, job sharing and shift work. Employees have the right to request flexible working under certain conditions.

    When asked if they “believe the four-day work week is a good idea”:

    • 88% of employees agreed or strongly agreed;
    • 76% of SME employers agreed or strongly agreed; and
    • 86% of recruiters agreed or strongly agreed.

    When asked whether offering a four-day working week automatically makes an employer more appealing:

    • 88% of employees agreed or strongly agreed;
    • 79% of SME employers agreed or strongly agreed; and
    • 88% of recruiters agreed or strongly agreed.

    SMEs that capitalise on this trend and offer flexible working options to their employees could potentially edge out over their competition when it comes to attracting new candidates – and recruiters predict that this is how the market is moving. In fact, 78% of recruiters believe that the four-day work week will be a reality in the UK by the end of the decade.

    But how do employers currently feel about this prospect? When listing the potential impacts, they said that the pros could be:

    • Happier employees (60%).
    • More flexibility for staff (60%).
    • Increased employee retention (47%).
    • Increased productivity (48%).

    The cons could be:

    • Having to find cover for a workload (46%).
    • Reduced hours might reduce work output (45%).

    When asked specifically about productivity, 78% of office workers think the four-day working week could bring about a somewhat positive or very positive impact – a sentiment 68% of SME employers seem to share.

    As well as comparing attitudes on key trends, the survey also sought to gauge what the real-world impact of these trends could be on businesses and recruitment agencies in the short- to mid-term.

    Over a third of UK SMEs identified staffing costs as a pressure point that’s impacting their cash flow. That’s a significant number, and candidates may demand more from employers both on the wage front to contend with the cost of living, and around ways of working.

    But businesses may not be in the best shape to tackle challenging staffing costs, with 30% currently battling late payments from their own clients, and a quarter of SMEs suffering from weak cash flow. Innovative financing solutions and a revised offering to employees may, therefore, help businesses remain competitive and attract quality candidates in the current climate.

    Beyond the present, the survey looked to understand the impact ways of working trends could have on SME bottom lines. The data indicates that the impact could, in fact, be positive on the whole. Employers were asked what the exact financial and operational impact of a four-day work week could be; they said that they would expect:

    • Reduced employee burnout (27%).
    • Less overall business expenditure (35% of SME directors).
    • An increase in business productivity (30% of managers).

    Consequently, the implementation of new ways-of-working trends could see SMEs paying less money for office rental costs, which are often one of the most expensive overheads businesses face – while simultaneously benefiting from an increase in employee productivity.

    It’s important to note, however, that the four-day week isn’t likely to be implemented today, or even this year. The survey found that only 25% of respondents currently offer a four-day week, and 60% of all employers do not feel financially and operationally prepared to offer a four-day work week at present.

    That said, a third of employers say they will implement a four-day week if they must, while 43% intend to implement one but haven’t gotten around to it yet. Ultimately, 79% of employers expect the four-day week to be implemented in the UK by 2030.

    The data that has emerged from this research piece tells a clear story of how views toward emerging ways of working trends, such as flexible working and the four-day week, are positive on the whole. It also indicates that businesses don’t yet feel financially equipped to properly implement four-day working weeks, with over a quarter of SMEs suffering from weak cash flow.

    As recruiters and SMEs look to manage their costs while adapting and reacting to the evolving jobs market, it’s crucial that they’re able to connect with employees to gauge expectations, benchmark against their competition, and finance their operations. In this way they can ensure they’re well-positioned to grow and thrive as the jobs landscape continues to evolve.