Britons would take an 8% pay cut for a four-day work week

Flexible working models like a four-day working week could be the key to retaining talent, as a new survey makes it clear that employees will move from and to jobs for this staff benefit.

New data suggests that employees are not only keen, but would be prepared to take a financial hit to gain the flexibility of four days working.

It comes as a growing number of firms are opting to take part in national pilot programmes of a four-day working week to gauge whether it can work for them.

Our own research suggested in 2023 that 78% of employees would be in favour of adopting this flexible working model, but did add that they would want to know how it would impact their pay, and how it would be implemented.

What does the data say?

With the Employment Rights Bill around the corner, the findings from Owl Labs show that those working in small businesses in the UK would be willing to sacrifice, on average, 8% of their salary for a four-day week.

73% of employees termed the four-day week as “an important benefit”, with this figure rising to 77% among Millennials and 72% among Gen Z. A staggering 45% said that they would give up 10% or more of their salary to get this perk.

The study also polled views on everything from stress in the workplace to the impact of employer political views, and even AI avatars. However, it is the stark figures on flexibility that stand out.

The report brought together the views of 2000 UK employees as part of a wider survey of 8000 respondents working in the UK, US, Germany, and France.

As well as revealing the readiness to take a financial hit, the data also revealed that 93% of those working in small businesses would take action if they were no longer allowed to work remotely or hybrid.

Almost half said that they would start job hunting, while 27% would expect a raise to make up for the lost flexibility, and 4% said that they would simply quit. Of those who would job hunt, a quarter said that they would then look for a more flexible role than their previous employment.

Hybrid working as the new norm

Despite the fact that the Return to Office mandates keep coming, this latest report confirms that flexibility is now expected by the vast majority of employees.

The data showed that nearly two-thirds of those surveyed already work in a hybrid model. They go in either three days (40%) or four days (27%) a week – both of which are up from 2024. The findings suggest that they want this to continue.

As well as working from home and adopting a four day working week, other models are also gaining interest. The survey found that 67% of workers are interested in microshifting. This is structured flexibility with short, non-linear work blocks matched to their energy, duties, or productivity. This number increased to 72% for Gen Z and Millennials, compared to 45% for Gen X and 19% for Boomers.

For those looking to move roles, this kind of flexibility is high on their want list. Of the 28% who said that they were actively looking for a new job, half put a better work/life balance as their main reason. This figure was the same as 2024, but a step up from 41% in 2023.

Employee engagement

With employment costs having risen after the employer NIC rise in April, the report flags the question as to whether a shortened work schedule could be the answer to balancing the books, and both keeping and attracting talent.

The results would suggest that many employees are now used to flexibility. They also believe that it should be allocated to fit an employee’s circumstances. As Frank Weishaupt, CEO of Owl Labs, explains: “68% believe that employers should provide more flexibility for those that need it most, like working parents”.

If this flexibility is taken away, employees will quickly voice their anger or even move roles. The survey revealed that nearly a third of workers admitted that they have posted about their job/employer negatively on social media.

For those businesses seeking out the best talent to ride out these stormy seas, the survey revealed that 44% of those interviewed were prepared to reject any role that does not offer flexible hours.

Even ahead of the sweeping reforms from the Government, employees are showing a strong stance on what they want from their employment; and businesses who can deliver the work-life balance that is so valued, could get their pick of the best people for their business.