When automotive heavyweight Henry Ford rolled out the 40-hour, five-day workweek in 1926, his goals were simple and pragmatic: improve productivity, enhance employee wellbeing, and - just as importantly - boost his car sales by giving his workers more leisure time to enjoy themselves.
Fast forward to today, and the logic behind a shorter workweek has evolved. It's less about driving consumerism and more about nurturing the greatest asset a business has: its people.
The four-day workweek has emerged as a powerful model that prioritises employee wellbeing while maintaining - if not improving - productivity.
How Does a Four-Day Workweek Work?
The most common approach is the 100-80-100 model: employees work 80 percent of the traditional hours but receive 100 percent of their salary and are expected to maintain 100 percent productivity.
Typically, this means four standard eight-hour days instead of five, with no requirement to "cram" 40 hours into fewer days - and, importantly, no pay cut.
The extra day off might be uniform across the business - for example, closing every Wednesday or Friday - or staggered to ensure workplace coverage.
Some companies even split it into two half-days, offering flexibility that suits both organisational needs and personal preferences.
The goal isn't just to trim hours - it's about working smarter by cutting out inefficiencies and distractions that plague longer workweeks.
Interestingly, when employees know they have that coveted extra day off, unproductive habits like extended coffee breaks, long lunches, and unnecessary meetings tend to vanish.
The incentive of more leisure time sharpens focus and work efficiency - a win for everyone.
Who's Leading the Four-Day Workweek Revolution?
Around the globe, a wave of countries are embracing the four-day work week with open arms.
Iceland blazed the trail with extensive trials that saw a majority of employees adopt reduced hours without pay cuts.
Belgium legislates for compressed workweeks, and Japan is pioneering reduced schedules in its public sector.
Closer to home, New Zealand has become a beacon for private sector four-day trials, with companies like Perpetual Guardian and Unilever showing the way.
Australia is rapidly catching up, with a diverse range of businesses from health insurer Medibank to retail giant Bunnings hopping on board.
Trials and pilots continue to expand, making shorter work weeks increasingly mainstream.
Four-Day Workweeks in Australia: Real-World Success Stories
Many Australian companies have jumped on the bandwagon, pioneering trials that are already delivering inspiring results:
- Medibank doubled its trial participation to 500 employees, reporting happier, healthier and more efficient staff, alongside sustained business performance
- Bunnings, Australia's largest hardware retailer, made the four-day week official in 2024 after a successful pilot
- Ikea formalised a four-day option for staff, with 30 percent of employees embracing it by 2024
- EES Shipping and Versa also introduced the model to combat burnout and boost talent retention.
Other innovators include Cliniko, Lyssna, and Equality Media + Marketing, all adopting variations of the 100-80-100 framework to reduce burnout, improve productivity and attract top talent.
Does the Four-Day Workweek Actually Boost Productivity?
Evidence increasingly points to a resounding yes.
A shorter week motivates employees to work more strategically, slashing unproductive time and boosting morale.
The societal ripple effects are profound: better work-life balance, stronger families, and even environmental benefits thanks to decreased commuting.
A landmark peer-reviewed study published in Nature Human Behaviour looked at nearly 3,000 employees across six countries, showing clear improvements in performance, reduced burnout, and better retention.
Locally, companies like Raisely have reported not just happier employees but tangible performance boosts.
Similarly, EES Shipping noted rises in productivity and drops in sick leave, while Medibank's trial evidenced sustained business outcomes alongside better employee health and engagement.
What Needs to Happen for Four-Day Workweeks to Flourish in Australia?
It's not a silver bullet for every industry. Some sectors, especially retail, often compress a 38-hour workweek into longer days rather than cutting hours outright.
Success requires careful planning, training employees to work smarter - not harder - and thoughtful workflow management.
Crucially, employee buy-in matters. Studies warn that employer-imposed compressed weeks risk fatigue and decreased health, which can hurt productivity.
Flexibility and collaboration are key - workers should have agency regarding how their additional day off is taken.
Constant monitoring is essential to prevent work creeping back into that "extra" day, or erosion of conditions like overtime pay.
Public sector leadership and private sector pilots will pave the way for more widespread adoption, as organisations learn and adjust to make the model work sustainably.
Where Will The Four-Day Week Be In Five Years' Time?
The four-day workweek isn't a one-size-fits-all solution. It will flourish in some industries, be challenging in others, and take time to embed deeply.
Advances in technology and AI could accelerate adoption by automating routine tasks and freeing human workers to focus on high-impact work.
While it may take longer than five years for the four-day week to become a norm, continuing to champion the benefits and experimenting with flexible models is critical.
After all, a future where we work less without giving up more is an inviting vision worth striving for.
The Future Is Now: Why the Four-Day Workweek Matters
The four-day workweek is far more than a trendy buzzword - it's a clear signal that the world of work is evolving to better fit the demands of modern life.
By reclaiming precious time without sacrificing productivity, organisations can build healthier, happier, and more engaged teams.
The path to this future won't be uniform or straightforward, but with thoughtful planning and genuine collaboration, a shorter workweek could be the transformative shift we've been waiting for.
It's time to work smarter, live better, and maybe even drive more for leisure (and drive to work a little less) - just like Henry Ford might have imagined, almost a century ago.
