February 23, 2023

How 4 day work weeks = 35% more revenue

Authors:

Partner at Hirewell. #3 Ranked Sarcastic Commenter on LinkedIn.

deliverables > hours worked

4 day work weeks = 35% more revenue. But the real takeaway: deliverables > hours worked.

If you missed it, 4 Day Week Global ran a study of 61 UK companies who moved to a 4 day, 32 hour work week. Paid the same. The employee results weren’t a surprise to anyone: better sleep, less stress, better mental health, less resignations, etc.

👉What shocked everyone: revenue rose 35% at these companies (on average.)

And 56 of those companies said “F it, we’re keeping this going forever.”

So…how?

Without looking at the management model of each company in the study, there’s 2 logical conclusions:

1. Working 32 hours at 100% is better than working 40 hours at 50%.

(Note: made up percentages for illustration purposes.)

We all know what it’s like to fire on all cylinders. And to mail it in because we’re burned out. Productivity wise, you get more done in less time when you’re sharp and focused.

2. Any rational manager who is cutting hours but still needs to meet their goal is going to make deliverables the focus. Not the hours spent at the desk.

The real question is: with the modern work world is hyper focused on results and growth, why are hours worked even a concern for salaried employees to begin with? What Jedi mind trick did previous generations play on us?

Look at freelance workers. You can pay for hours worked. Or you can pay a flat rate for deliverables.

Most businesses like paying flat rates for projects. Costs are predictable. And they only really care about outcomes. As long as the work is done well and on time, no one cares for second how many hours went into it. Or when.

The salary world really is an ongoing slate of deliverables at a fixed cost, with the benefit of more predictability and stability. (Jury’s out on the last one tbh.)

It just “feels” like hours should be tracked, too. Because that’s how we’ve always done it.

Granted, there’s some limitations here. Professional services businesses can’t 4 days until their clients do. And no, I didn’t miss that the org conducting at it is called “4 Day Week Global” – there’s a motivation for curve fitting data if I’ve ever seen one.

👉I’ll promise you one thing: if the business magnates of 1900’s had data showing they’d be richer by working people less, they absolutely would have.

Partner at Hirewell. #3 Ranked Sarcastic Commenter on LinkedIn.

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