Employers use 4-day work week as recruitment tool, study finds

While some employers see a benefit in offering employees a shortened work week, other employers worry about meeting operational goals and adequately serving customers if they require employees to work fewer hours.

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Employers are experimenting with flexible work weeks in the wake of the pandemic in an effort to recruit and retain talent and improve work-life balance. Five percent of employers are offering a four-day work week either as a formal policy or on a case-by-case basis, according to a new report from the International Foundation of Employee Benefit Plans. The survey defined a four-day work week as a decrease in the required weekly work hours from 40 to 32 hours. 

One percent of employers are in the process of piloting a four-day schedule, while 14% of employers are considering doing so, the report found. Some of the employers surveyed said they have implemented a four-day work week across the company, but many employers indicated they only offer it to certain job functions, specific employees or those working in certain locations. Meanwhile, 80% said they are not considering this type of schedule. 

Forty-one percent of employers who are implementing a four-day, 32-hour work week said they are doing so because employees requested it, while 36% said it is a retention strategy and the same percentage said it is for work-life balance and company culture reasons. Just more than a quarter of employers said they are implementing a shortened work week as a recruitment tool.

Nearly 70% of employers that are considering implementing a four-day work week come from five industries, including professional services, manufacturing and distribution, health care and medicine, nonprofit and high technology, according to the survey.

“As the traditional work week saw a major upheaval with the pandemic, a few employers are implementing a four-day work week for recruiting and retention reasons,” said Julie Stich, CEBS, VP of Content at the International Foundation. “However, most employers, even if interested, are struggling to figure out how to make that a reality while trying to meet business operation goals.”

Employers who do not offer four-day work weeks cited several reasons. The largest percentage of employers (42%) said upper management was not interested, while 38% worried about difficulties with implementing a shortened work week throughout their organization. Thirty-six percent cited the potential for a negative impact on business operations and 32% said they would be unable to support their customer base under a modified work week. Other concerns included administrative burden and potential costs.

Related: Remote workers balk at returning to the office, study finds

Following the upheaval of the pandemic, flexible work schedules have remained common. Most employers are sustaining hybrid work arrangements, with 88% of employers who responded to the survey saying they offer some type of remote option ranging from fully remote (50%) to working remotely on certain days of the week (75%). Twenty-four percent of employers offer compressed work weeks, which are defined as working 40 hours in less than five days.