On Monday 6 June, more than 3,300 workers at 70 UK companies started working a four-day week with no loss of pay. The trial is based around a 100:80:100 model – 100% of pay for 80% of the time, in exchange for a commitment to maintain 100% productivity.
The report’s researchers asked recruiters for their views on this new working pattern:
- 79% of recruiters think the four-day working week will become the norm before 2030
- 86% of recruiters think the four-day working week is a good thing (employers measured slightly less at 76%)
- The top three pros of the four-day working week for recruiters are: (1) happier employees – 80%; (2) more flexibility for staff – 73% and (3) increased employee retention – 56%
But the report has also identified potential issues for employers, as well as a five-year timeframe for a four-day working week to substantially transform the job market:
- The top three cons of the four-day working week for recruiters are: (1) having to find cover for workload – 44%; (2) reduced hours might reduce work output – 43% and (3) compression could cost money – 33%
- Only 21% of recruiters believe that the four-day working week will change the job market considerably in the next year, but this jumps to 61% if we fast-forward five years
Natalie Kerr, Chief Commercial Director at NatWest Rapid Cash says:
“Recruiters clearly see the four-day working week and personal wellbeing gaining popularity among employees. But many businesses are reluctant to provide a better work/life balance due to increased operational costs.
“At NatWest Rapid Cash, we believe the most effective way for SME employers, and recruiters, to meet staffing challenges is to strengthen their working capital. Cashflow is key when it comes not only to staffing but also to having the flexibility to adopt new models of working, and to make the most of growth opportunities.
“NatWest Rapid Cash has been designed for just this, helping businesses improve their cashflow by unlocking capital in unpaid invoices.”
The post-Brexit landscape, pandemic, conflict in Ukraine and subsequent cost-of-living crisis have all led to operational challenges for SME businesses. And with a four-day working week predicted to have a significant impact on the job market, it will be the companies with the finances to embrace change that will achieve their business goals.
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