We’re moving to a 4-day workweek. What things do we need to consider?

Transitioning to a 4-day work week is a significant change for sure. Hopefully, the workers will still keep 40 hours weekly. But, even then, you may face a lot of upset folks who will lose a significant part of their income. Given the limited information you have, it’s crucial to gather more details from the owners before preparing notice letters and implementing the change. Here are some key areas to focus on and questions to ask:

Work Schedule and Hours

• What is the goal of this reduction?

• Will the employees maintain a 40-hour work week spread over 4 days, or will there be a reduction in total hours?

• What will be the new daily schedule? Will it still be 6am-5pm, or will it change?

• How will overtime be calculated and managed under the new system?

Compensation and Benefits

• Will there be any changes to the employees’ base pay?

• How will the new schedule affect overtime earnings?

• Will there be opportunities to recoup some of the financial loss with production incentives?

• Will there be any adjustments to benefits packages?

• If employees lose coverage, COBRA will apply.

Operational Considerations

• Which day of the week will be the non-working day?

• Will all production team members have the same day off, or will it be staggered?

• How will this change impact production schedules and deadlines?

Legal and Compliance

• Are there any labor laws or regulations that need to be considered when implementing this change?

• Will employment contracts need to be amended?

• Does leadership understand that workers may be eligible for unemployment due to a reduced schedule?

• Your state doesn’t have any special rules about a 4-day workweek. So, that is a plus.

Employee Support

• What resources or support will be provided to help employees adjust to the new schedule?

• How will the company address potential challenges, such as childcare arrangements or commuting issues?

Performance and Productivity

• How will the company measure and maintain productivity with the new schedule?

• What adjustments might be needed in workflow or processes?

• Production expectations must be reframed so employees do not suffer accusations of low performance.

Communication Plan

• How will the change be communicated to clients, suppliers, and other stakeholders?

• Frame the change as a positive. Outline all the benefits so employees can see both sides of the change.

• What ongoing communication will be provided to employees during the transition?

• Leadership must be willing to hear the employees’ complaints and concerns. Minimizing their feelings and the impact this will have may lead to an unexpected turnover and cost more than you save in lower morale, performance, and recruiting and hiring replacements.

Preparation Steps

1. Gather Information: Schedule a meeting with the owners to get answers to the above questions.

2. Legal Review: Consult with the legal department or an employment lawyer to ensure compliance with labor laws.

3. Policy Updates: Review and update relevant company policies, including attendance, overtime, and leave policies.

4. Payroll Adjustments: Work with the payroll department to adjust systems for the new work schedule.

5. Employee Support: Prepare resources to help employees manage the transition, such as time management tips or work-life balance guidance.

6. Feedback Mechanism: Set up a system to gather employee feedback during and after the transition.

7. Trial Period: Consider suggesting a trial period to assess the impact of the change before making it permanent.

Helping Affected Employees

• Clear Communication: Prepare detailed information packets explaining the changes, including new schedules, overtime policies, and any impacts on benefits.

• Q&A Sessions: Organize Q&A sessions where employees can ask questions and voice concerns.

• Training: Provide training on time management and productivity techniques for the compressed work week.

• Flexibility: If possible, offer some flexibility in choosing which 4 days to work, to accommodate personal needs.

• Regular Check-ins: Schedule regular check-ins with employees to address any issues that arise during the transition.

By addressing these areas and preparing thoroughly, you can help ensure a smoother transition to the 4-day work week for both the company and the employees. Remember to maintain open communication throughout the process and be prepared to make adjustments as needed based on feedback and results.

Lisa Smith, SPHR, SCP