The four-day work week: what SMEs need to know

The Netherlands is well ahead of the rest of the EU in terms of work-life balance. Dutch employees work an average of just over 32 hours per week, largely thanks to the country’s embrace of a four-day work week. 

Many businesses may be hesitant to adopt a shorter work week due to fears of the impact on productivity or revenue. Despite its inclination towards more relaxed work hours, the Netherlands has one of the highest GDP per capita in Europe, but recent research shows that productivity has not grown in recent years.

With improved staff wellbeing, lower sickness absence, and stronger retention on the table, small businesses may be considering whether a four-day work week can pay off, or whether the impact on productivity is too high-risk.

What the Dutch model really shows

For some businesses, a ‘four-day week’ might translate to compressed hours. That is, working a full 40-hour week by starting earlier and finishing later, to enjoy an extra day off. 

But many Dutch companies actually skip the fifth workday, instead opting for a 32-hour work week. This lighter working schedule has become commonplace in the Netherlands, with several big-name companies working in this way. 

This approach is the opposite of the typical ‘hustle’ culture approach, such as the 996 model, which is popular in Chinese and US tech firms.

Advocates of the four-day work week speak of its benefits, including improved staff wellbeing, fewer sickness absences, and boosted employee retention. 

However, it’s not all positive. While it’s true that the Netherlands has one of the highest GDP per capita in Europe, the OECD (Organisation for Economic Co-operation and Development) told the BBC that productivity hasn’t grown in the last fifteen years. 

So while the Dutch may be enjoying a healthy work-life balance, alongside comfortable wages, stalling productivity signals that the four-day work week should be approached carefully.

Why this matters for small businesses

Often, smaller firms are already working with leaner teams and tighter resources than their larger counterparts. Shifting to fewer hours will inevitably affect capacity more immediately than it might in a larger business. 

However, as demonstrated in the Netherlands, working a lighter week could improve your team’s morale and energy levels. Working shorter hours can actually be more fruitful while staving off burnout and absenteeism, which is a win-win. 

Additionally, due to it being a relatively rare employee perk in the UK, advertising a four-day work week could help attract and retain top talent, which can be particularly advantageous in competitive sectors already facing shortages. 

Practical considerations before adopting a four-day week

If the four-day work week sounds appealing, there are a few things to consider before clocking off on Thursday afternoon. 

Working shorter hours will mean that something has to give. Many companies successfully working four-day work weeks minimise unnecessary meetings, which is a common time drain. 

Other ways to free up time and tighten up operations include a sharper decision-making pipeline and optimised workflows. Using software to automate admin tasks can be hugely beneficial for winning back lost time.

As seen in the Dutch example, the impact on productivity can be real. When trialling a shorter week, track productivity before and after by looking at metrics such as revenue, delivery timelines, customer response rates, and staff absences. 

The shift to a four-day work week embodies the mentality of ‘work smarter, not harder’, and with the continuing rise of AI and automation, shorter weeks could become more realistic, without affecting productivity.