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In the United Kingdom, companies such as Five Squirrels are testing short hours to assess productivity, which has been growing at timid levels for years and with bleak prospects. The result: 40% growth in sales in just six months, according to its managers.
What may seem like an eccentric experiment to many has become a massive trial in the UK: the four-day work week for every three days off.
Eager to find a solution to the slowdown in productivity growth that has affected this country and other economies in recent years, companies like Five Squirrels are carrying out pilot projects to implement this journey.
The results, so far, have been satisfactory, according to its owner Gary Conroy, self-described “chief squirrel” (chief squirrel). “There are fewer errors because people can afford to be a little more focused. They’re a little less tired.”
Since June 2022, the British skincare maker’s 15 employees have worked four days a week, though they are still paid for five. Also, to maintain performance, they don’t answer calls, ignore emails, and turn off instant messaging for four hours a day.
Robert Bogdan, head of manufacturing, develops a skin care product at 5 Squirrels, a skin care company in Hove, Great Britain. April 18, 2023. REUTERS/Anna Gordon
“We saw a huge increase in productivity across all metrics (…) People are actually exceeding targets and we had a 40 percent increase across all areas that we measure. That ultimately led to a 40 percent increase in revenue and profit over that six-month period. We are delighted,” said the businessman.
A solution to slow productivity growth?
Productivity is measured as the amount of economic output per hour worked. In the UK, it grew at an average of around 2% a year from the 1970s until the run-up to the financial crisis, underpinning a steady rise in living standards.
However, between 2010 and 2019, that increase averaged just 0.75% a year and the Bank of England forecasts that it will be close to zero for years to come, partly because of the red tape involved in leaving the European Union.
Five Squirrels is one of 61 UK-based companies that took part in the world’s largest four-day weeklong trial, most with 25 or fewer employees. Satisfied with the result, 56 have already adhered to the policy.
According to the World Economic Forum, similar experiments have already been carried out in other parts of the world with positive results. While critics of the initiative say it’s impractical in certain industries, supporters say a shorter workweek means less stressed employees and a better work-life balance.
With AP and Reuters
