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What happenedA four-day work week may be here to stay, at least in the United Kingdom. A recent trial had 61 organizations and about 2,900 workers adopt a four-day workweek, and now, most are not going back to five days of work per week. In fact, about one in six employees who participated in the experiment said no amount of money would convince them to return to a five-day-a-week schedule.So whatThe four-day work week experiment was organized by 4 Day Week Global, a non-profit organization. And its results were a “resounding success,” according to organizers.The idea behind the experiment was to see if workers could cut their hours but maintain their productivity. If they could, it would set the stage for better work-life balances on a whole. Given the way the COVID-19 pandemic has changed the way people work, employees today are increasingly looking for flexibility. And offering it up is a good way for companies to better retain talent. That could include shrinking the traditional work week. “This is the case for (reduced) burnout, life and job satisfaction, mental health and reduced commuting time,” said Dr. Dale Whelehan, chief executive of 4 Day Week Global.Now whatIf the four-day work week gains traction, it could expand to the U.S. But that could end up being a mixed bag. While the UK trial cut the work week to four days, it didn’t cut pay as a result. It’s unclear as to whether a four-day work week in the U.S. would come at the cost of a reduction in employee wages. And that’s something U.S. workers may not be able to afford.A 2022 survey found that 63% of Americans were living paycheck to paycheck with no money in a savings account to fall back on. If wages were to be slashed in the process of cutting working hours, it could drive many consumers deep into debt.But there are other financial implications that might come with a four-day work week, too. Working fewer hours at a primary job might make it possible for more people to ramp up their side hustle incomes, thereby improving their financial picture. And there could be savings to be reaped in the form of lower commuting costs.On the other hand, an increase in free time could lead to an uptick in spending. If the traditional two-day weekend becomes a three-day weekend, workers may be inclined to travel more and spend more time pursuing hobbies. That may be good for their mental and even physical health, but it could put a strain on their finances.In fact, there’s another risk that might come from the four-day work week — boredom. It’s common for consumers to fill their downtime by shopping, whether online or in stores. But that could lead to explosive credit card balances. So if U.S. workers are granted the gift of extra time off on a weekly basis, they’ll need to learn to make the most of that time without busting their budgets.Alert: highest cash back card we’ve seen now has 0% intro APR until 2024If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes. Read our free reviewWe’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
Image source: Getty Images
What happened
A four-day work week may be here to stay, at least in the United Kingdom. A recent trial had 61 organizations and about 2,900 workers adopt a four-day workweek, and now, most are not going back to five days of work per week. In fact, about one in six employees who participated in the experiment said no amount of money would convince them to return to a five-day-a-week schedule.
So what
The four-day work week experiment was organized by 4 Day Week Global, a non-profit organization. And its results were a “resounding success,” according to organizers.
The idea behind the experiment was to see if workers could cut their hours but maintain their productivity. If they could, it would set the stage for better work-life balances on a whole.
Given the way the COVID-19 pandemic has changed the way people work, employees today are increasingly looking for flexibility. And offering it up is a good way for companies to better retain talent. That could include shrinking the traditional work week.
“This is the case for (reduced) burnout, life and job satisfaction, mental health and reduced commuting time,” said Dr. Dale Whelehan, chief executive of 4 Day Week Global.
Now what
If the four-day work week gains traction, it could expand to the U.S. But that could end up being a mixed bag.
While the UK trial cut the work week to four days, it didn’t cut pay as a result. It’s unclear as to whether a four-day work week in the U.S. would come at the cost of a reduction in employee wages. And that’s something U.S. workers may not be able to afford.
A 2022 survey found that 63% of Americans were living paycheck to paycheck with no money in a savings account to fall back on. If wages were to be slashed in the process of cutting working hours, it could drive many consumers deep into debt.
But there are other financial implications that might come with a four-day work week, too. Working fewer hours at a primary job might make it possible for more people to ramp up their side hustle incomes, thereby improving their financial picture. And there could be savings to be reaped in the form of lower commuting costs.
On the other hand, an increase in free time could lead to an uptick in spending. If the traditional two-day weekend becomes a three-day weekend, workers may be inclined to travel more and spend more time pursuing hobbies. That may be good for their mental and even physical health, but it could put a strain on their finances.
In fact, there’s another risk that might come from the four-day work week — boredom. It’s common for consumers to fill their downtime by shopping, whether online or in stores. But that could lead to explosive credit card balances. So if U.S. workers are granted the gift of extra time off on a weekly basis, they’ll need to learn to make the most of that time without busting their budgets.
Alert: highest cash back card we’ve seen now has 0% intro APR until 2024
If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.
Read our free review
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
