Four-day week: the case for small business owners – Startups.co.uk

The four-day week is a big and largely untapped asset for brand new companies that may supercharge progress and efficiency, and permit them to compete extra successfully towards bigger corporations.

There are a selection of appreciable dangers related to the launch of any new enterprise. The four-day week might look like an pointless addition that provides few advantages to the enterprise outdoors of employees welfare. However this could not be farther from the reality.

A four-day week stimulates innovation. Rested minds are extra inventive. They’re extra prone to think about and uncover new methods to enhance your online business. One in 4 sick days are a direct results of overwork; whereas a four-day week reduces sickness-related absences.

The UK four-day week trial noticed a major decline in stress and burnout for workers, with 71% of workers reporting decrease ranges of burnout and an general 65% discount in absenteeism. Constructive psychological well being elevated by 43% and optimistic emotion at work elevated by 64%.

New companies are all about creativity and innovation and an abundance of this in the beginning of any new enterprise, is crucial to producing the momentum to get the enterprise off the bottom and preserve sustained progress. A shortened work week creates the situations for these brilliant concepts to flourish.

Debunking the parable of the ‘lazy’ four-day employee

When workers are properly rested, they’re additionally extra productive. A four-day week virtually at all times results in elevated productiveness. The UK trial confirmed enterprise efficiency both elevated or no less than remained constant, with 55% of workers reporting a rise of their potential at work. 4-day week trials by massive corporations corresponding to Microsoft in Japan noticed productiveness will increase as important as 40%.

This may give new companies a a lot wanted benefit over bigger, well-resourced corporations, permitting them to compete extra successfully. Because the CEO of 1 consultancy agency put it:

“If you realise that day [off] has allowed you to be relaxed and rested, and able to completely go for it on these different 4 days, you begin to realise that to return to engaged on a Friday would really feel actually flawed – silly really”.

Time saved = cash gained

Elevated innovation and productiveness naturally results in elevated revenues. Individuals within the UK four-day week trial noticed revenues rise by 1.4% throughout the trial and 35% in comparison with the identical interval in 2021.

A four-day week additionally permits companies to save lots of on overhead prices. That is essential for brand new companies, the place cash will be tight. Shifting to a four-day week can save corporations cash on utilities like lease, electrical energy and power consumption.

In November 2021, a research by the Henley Enterprise Faculty, discovered that companies saved round 2.2% of their complete turnover, by providing a four-day week.

Most significantly for brand new corporations, the coverage provides them a aggressive edge within the labour market. Startups present attractive employment alternatives for staff however can typically be deemed dangerous, notably throughout a price of residing disaster, the place the perceived stability and safety of bigger corporations can dissuade staff from switching jobs.

Recruitment benefits

A four-day week helps appeal to the perfect expertise from day one. It makes your organisation stand out from rivals, and extra enticing to essentially the most proficient workers within the subject. Companies with a shortened work week have seen a surge in purposes: Atom Financial institution’s four-day working week led to a 500% surge in job purposes. Total, 63% of companies within the UK trial discovered it simpler to draw expertise with the coverage.

In addition to attracting the perfect expertise, a four-day week ensures that companies are in a position to retain these proficient staff. In the course of the UK trial, resignations dropped by 57%. This diminished each prices and disruption for companies; important for startups which might be working with restricted assets.

A four-day week additionally permits smaller corporations to fend off competitors from bigger corporations with extra enticing wage packages, wooing proficient workers away from their place at startups.

Small corporations best-placed to take benefit

Along with all these advantages, startups lend themselves extra naturally to a four-day week for logistical causes. One of the widespread issues for employers who’re considering of embarking on a four-day week pilot is the impact it should have on present employment contracts.

Throughout a trial interval, employment contracts are virtually at all times left as they’re. When making the choice to maneuver completely to a four-day week, there are two choices. One is to re-write employment contracts to recognise the discount in weekly hours and a brand new four-day working sample. The opposite is to go away contracts as they’re and the four-day week is seen as gifted to staff.

That is mostly carried out by way of a employees opt-in settlement that may be renewed yearly. For startups debating a four-day week, having it built-in into the enterprise from day one can mitigate the necessity to alter employment contracts at a later date. It will keep away from confusion across the influence on part-time staff.

I relaxation my enterprise case

The argument for the four-day week for SMEs and startups is extremely sturdy. A four-day week stimulates innovation by giving workers extra time to relaxation, which at first of a brand new enterprise enterprise will be essential to its potential to get off the bottom.

The four-day week is a useful resource for companies. Simply as a lot as it’s a profit for staff, companies that need to be extra productive and aggressive ought to undertake it on that foundation alone.

For employers keen on shifting to a four-day week, our Nationwide Rollout Programme can help. Discover out extra right here. 

The 4 Day Week Marketing campaign shall be launching their Mini-Manifesto on Tuesday 13 June. Join the occasion right here.

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