Surprisingly, a recent German study is examining whether cutting back on work might truly help address the labor shortage.
Critical labor shortages are affecting Germany, Europe’s economic powerhouse. A quarter of the nation’s businesses report that they cannot find enough employees, and there are estimates of two million unfilled jobs in the economy. Numerous businesses are experimenting with a seemingly paradoxical solution to the situation at hand: having employees work fewer days.
31 German enterprises started a “four-day” workweek trial program at the beginning of February. The project’s leadership teams include management consultancy Intraprenör and non-profit organization 4 Day Week Global (4DWG). In March, 14 more businesses joined the program.
During the six-month trials, which are anticipated to involve up to 600 employees, the German public research university University of Münster will conduct an evaluation. The German experiment, however, is not the same as several other attempts to explore a reduced work week in other nations.
Are employees more effective when they put in fewer hours at work, as earlier studies have indicated? Will additional nations adopt a four-day workweek schedule, and is it feasible for the world economy to change to one like this? Al Jazeera conducted inquiries and spoke with scholars, professionals, and economists who were involved in the study.
In summary, researchers, specialists, and economists agree that the German test has flaws but also employs more advanced tools to compare stronger data than previous experiments conducted in other nations. The outcome may provide the most lucid illustration of the advantages and disadvantages of a four-day workweek to date. Even those who support the idea the most, though, acknowledge that it might not be feasible to shift all employment to a reduced workweek.
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The Lengthy Debate About The Short Workweek
The 19th-century labor union movement, which pushed for eight hours of work, eight hours of leisure, and eight hours of relaxation, created the need for a work-life balance in certain parts of the world.
So, the first full trial of a shortened work week occurred in the modern economy. Senior lecturer of De Montfort University in the United Kingdom, where he teaches corporate social responsibility and business ethics, traces the history of the shorter work week back to the 1940s when American drivers of delivery trucks for petrol and fuel worked four days a week.
According to him, numerous studies on four-day work weeks have been carried out in the ensuing decades, particularly since the 1960s. The study discovered that the four-day work week, or 4DWW, gained enormous popularity in the early 1970s, mostly in the US, in both academia and the general press. It didn’t endure. Rarely was there any interest left by the end of the 1970s.
At the time, working 10 hours a day, four days a week, was the most common technique for testing a four-day workweek. This approach was explored in various economic sectors, including manufacturing.
In addition to the benefits that were reported—such as higher morale, job satisfaction, lower absenteeism, and so forth—it was told to Al Jazeera that there was evidence of increased employer monitoring and intensified work—due to longer daily hours—which could result in more stress rather than less.
The World Employment and Social Outlook report from the International Labour Organisation, which was released in January, states that the average number of hours worked each week worldwide is 44. The amount of work that can be done in a day is limited by legislation in each country; if this amount is exceeded, employees are entitled to overtime compensation.
According to a previous ILO survey, North America had the lowest average weekly work hours (36 hours), and Northern, Southern, and Western Europe had the lowest average weekly work hours (37.2 hours). South Asia had the highest average (49 hours), and Eastern Asia came in second (48.8).
Previous to the COVID-19 epidemic, one in three individuals worldwide worked 48 hours a week, which is regarded as long working hours. For example, most workers in India work long
hours in the office. Around the world, just 25% of workers work fewer than 35 hours each week.
The Paradox
According to a professor and the chair of a team studying how work is changing at the University of Münster, the fundamental premise of the decreased working hours trial is that employees who work fewer hours will have more time to unwind after work.
The experiment’s designers hypothesized that this would enable employees to concentrate better when they return to their employment. Bachmann participates in the German trials and is a member of 4DWG’s research team.
Trial advocates stated that luring people to companies that offer better work-life balance is one of the primary objectives in tackling the labor shortage in the German economy. They added that it would help businesses, particularly those in fields like healthcare and education, where salaries are generally lower, and in fields like law or IT, where labor is very competitive.
Political experts will tell you that “everyone has to work more hours and not less” in response to the labor shortage. In an interview with Al Jazeera, co-founder and partner of Intraprenör, the Berlin-based consultancy running the trials, stated, “A four-day work week is an attractive concept to solve labor shortage as it makes it easier for companies to gain more attraction with the right talent.” The participating companies’ primary goal is that.
Labor shortages are the main obstacle to Germany’s economic progress, according to comments made lately by the Economy Minister. While the estimated number of competent workers in Germany is predicted to increase to five million by 2035, he calculated that there are only two million job openings.
Giving workers more time for leisure and physical activity, it was stated that the four-day workweek is anticipated to improve their mental and physical health and lower the amount of sick leave that occurs. To enable women into more full-time jobs and alleviate the labor shortage, males should, for example, devote more time to caring for their children or older people.
According to the German pharmaceutical industry’s research-based group, VFA, excessive sick leave rates in Germany cost the country over 26 billion euros ($28.5 billion) in lost economic value in 2023. These rates are among the highest in wealthy nations.
After conducting the “world’s largest” six-month study in the UK in 2022—a trial in which 2,900 people from 61 organizations took part—the UK-based research group Autonomy and the 4DWG discovered promising results.
Although there was no impact on business income, the trials witnessed a 65% decrease in absenteeism from work owing to illness and personal leave, as well as a decrease in stress and burnout. Employee reports of increased labor intensity were also observed during the studies. Nine out of ten businesses are still operating on a four-day workweek after a year, and half of them have permanently implemented this schedule.
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Putting Together A Four-Day Workweek
The German trials have been created with flexibility, considering the diverse needs of different sectors. A managing director and creator of 4DWG told Al Jazeera that the company’s philosophy is founded on the 100-80-100 rule, a productivity-focused meaningful reduction in work time that entails 100% remuneration for 80% of time and 100% productivity. Various companies will employ different approaches to that. It is important to note that the German experiment is not just a matter of cutting working hours.
While lowering weekly labor hours from 40 to 32, which would fit a four-day work week with eight hours each day, most participating companies in the German experiment have not decreased their hours. Bachmann stated that in order to avoid a salary cut, “they must drastically reduce their working time by at least 10% of their current weekly work time while maintaining the same pay.”
Reducing work hours even further would be “too much” for many organizations, according to Bachmann. Certain companies are offering their employees a day off during the week because participation in the trials is optional, and the parameters are flexible. To acquire the three scheduled days off from work, each employee may have to work longer hours on the days that they are still employed.
The “four-day” work week has been tested in New Zealand, the UK, the US, Ireland, and Australia, among other nations where the 4DWG team has conducted comparable research. Experiments with compressed work hours have been carried out in the past in Sweden, Finland, Iceland, and Portugal despite the current demands for lower work hours from labor unions.
Co-founder of 4DWG told Al Jazeera that in order to do this, “some of the unproductive activity that occurs in the workplace on a daily basis is effectively eliminated.” Potential causes of the issue may include meetings, procedures, behaviors, disruptions, excessive internet usage, etc. Giving people additional time allows them to handle a variety of issues outside of the workplace.
Lockhart stated that following the trials, “some form of reduced work hour week” has been maintained by 90% of the companies that have taken part in the global trials to date. 4DWG’s studies have demonstrated a “25 percent” improvement in corporate productivity, she claimed.
Nevertheless, independent investigators who have examined the results and procedures of 4DWG’s trials and other comparable pilot programs carried out in Iceland and New Zealand have discovered numerous shortcomings, such as problems with sample size, data gathering, and transparency in disclosing the trial results.
Design errors
Recently, a senior policy analyst at Madrid-based Innovation Growth Lab emailed Al Jazeera to say, “The four-day week trials conducted by organizations with the explicit goal of demonstrating positive outcomes undoubtedly have substantial empirical constraints that the majority of journalists are not taking into account.”
Important issues were discovered by Cuello, who last year submitted a study article titled Assessing the Validity of Four-day Week Pilots. These experiments are not indicative of the entire economy because the participating enterprises choose to participate willingly and are not selected at random.
When he asked employees about their productivity and well-being before, during, and after the experiment, they overreported the information. The Hawthorne effect is a phenomenon that can arise from over-reliance on self-reporting. It basically means that workers may claim favorable effects in the hopes that they would result in permanent work-hour reductions, knowing that they are being watched throughout the short-term trials.
Also, studies of past experiments with four-day work weeks have revealed certain difficulties. Researchers have noted employee weariness and stress due to the shortened work week, even if other researchers have discovered evidence of decreased stress. This is because employees may work longer hours in a day, even on days off.
In addition, Cuello’s study demonstrated how the four-day work trials ignored potential confounding variables in their attempt to find a relationship between shorter workweeks and either higher employee well-being, or productivity during the trial time.
Advocate groups gathered information from businesses on key performance metrics as part of the trials and then compared it to the same period last year. Yet, they might not have taken into account other outside variables like severe weather that might have been affecting productivity prior to the trial period starting.
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Getting over challenges
The trials in Germany can differ in that regard. Bachmann stated that by gathering “more objective data” and going beyond self-reported data, the experiment is seeking to address some of the shortcomings noted in the earlier experiments.
The investigators will collect hair samples from the staff members to measure their stress levels and any changes in them. They will measure the amount of cortisol in their bodies before, during, and after the trial period.
Aside from wearing fitness trackers for the duration of the experiment, about 200 workers will also have their heart rates, sleep habits, and levels of exercise monitored. Yet even in this situation, Backmann acknowledged, the Hawthorne effect cannot be eliminated since workers who are aware they are being watched can, for example, become more active. She noted that seasonal shifts could also have an impact on the mental health of the personnel because the trials started in the winter and would terminate in the summer.
To make sure workers don’t report feeling less stressed because they were expecting the trial to be successful or to account for social desirability effects, the researchers will also gather data from a control group of companies that won’t be cutting back on working hours. In some companies, staff members would also answer brief questionnaires and wear fitness trackers.
To determine whether employees reported a significant change in behavior, the survey will monitor employee personality attributes during the six-month trial period. As there shouldn’t ideally be a significant change in an employee’s personality over six months, Bachmann explained, “This would give us an indication whether the employees’ responses to the survey are completely true.”
Still, some restrictions are evident already.
According to Penn State University economist and labor expert Lonnie Golden, transitioning to a four-day work week has been difficult for the retail, industrial, and construction industries—where employee hours are usually longer—. WorkFour, a non-profit founded in collaboration with 4DWG, has an advisory board, and Golden told Al Jazeera that there was more acceptability in other areas.
According to the German trial experts, objective results are anticipated later this year. Additionally, Bachmann stated that they would remain honest even in the event of disappointing news. Bachmann argued against the idea that all organizations should immediately adopt a four-hour workweek.
In conclusion, the idea of a 4-day work week is gaining traction in Germany as a response to the labor shortage. While this concept has its pros and cons, it could lead to improved work-life balance and productivity for employees. Companies can also benefit from reduced overhead costs and increased employee satisfaction.
At Dynamic Staffing Services, we can be a valuable partner for companies looking to implement a 4-day work week. We can provide flexible staffing solutions to help cover the necessary workload while employees enjoy their extra day off. Additionally, our expertise in HR management can assist companies in navigating the legal and logistical challenges of such a transition.
Ultimately, the decision to adopt a 4-day work week should be based on the unique needs and goals of each company. But with the right approach and support, it could be a promising solution to the challenges of today’s labor market. If you are looking to fill the gap by hiring overseas workers, contact us today at +91-11-40410000 or email enquiry@dss-hr.com to know more about our services.
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