Four-day week leads to increase in revenue

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Four-day week leads to increase in revenue

The four day a week trial has been adopted by numerous companies with some reporting that its revenue has increased, even though they have cut a whole day from their working week without reducing staff salaries.

Gloucestershire-based PR agency, Radioactive PR is celebrating a successful year after implementing a four-day working week, without cutting staff pay. The agency, has increased its earnings by 70 per cent in the last year and has also maintained its net margin.

Feedback from both staff and clients have been positive. When staff were asked ‘do you think you’ve enjoyed a better work-life balance since it was implemented?’ with a scale of 0-10, 0 (not at all) to 10 (definitely) three quarters of the team selected 10 – definitely. The next question was ‘do you think there has been a drop in communication with clients since the four-day week began?’ 100 per cent of the team answered 0 – not at all.

This move has led to staff sick days halving from 1.1 per employee which was the level before the initiative was implemented, as well as the amount of CVs received per job advertised doubling.

Rich Leigh, the founder of Radioactive PR, said:

We’re one year into four-day working week and the results are fantastic – turnover is up 70 per cent and net profit has increased. In the last year, I’ve been clear with the team that it’s ours to lose. And it still is – I wouldn’t steer us into an iceberg if it was clear it wasn’t working.

MRL Consulting Group which is headquartered in Brighton started a six-month trial of the four day working week back in May 2019. The company has offices in France and Germany as well, which have also implemented the four-day week.

David Stone, chief executive of MRL Consulting said:

If we can make this work it’s a no brainer as well as a game changer.

He goes on to explain that it can help with work-life balance, improve mental health issues and reduce workplace absenteeism and a reduction in illness.

Digital marketing agency Versa based in Australia also enjoy a four-day week. This rule has nearly been in place for a year now. Tiffany Schrauwen, a project manager for the company is a fan of this rule.

The day cut from the company’s working week is Wednesday. Since the shortened week was introduced to the company, revenue has increased by 46 per cent and profits have tripled. However, Kath Blackham, CEO of Versa does not think the four-day week should take all the credit for these positive results.

Ms Blackham said:

We win work because we’re known for having great work.

Momentum, the grassroots Labour party group is reviewing the merits of the four-day week for public sector workers in its manifesto for the next general election.

Still, not all trials of the four-day week have been successful. Some start-ups which have tested the four-day week in the US and have had to return to five day working after finding the day off made the company less competitive and staff more stressed.

Interested in the future of work? We recommend the Future of Work Summit 2019.

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