As you’ve likely heard, there’s a proposed bill for the Thirty-Two Hour Workweek Act.
This proposed bill is in response to the impact technology has in the workplace and increased productivity. This bill proposes a four-year plan to reduce the 40-hour workweek to 32 hours. Federal overtime rules would begin at 32 hours and it stipulates that companies cannot reduce compensation or benefits for employees who move from 40 to 32 hours. In addition, the bill includes daily overtime rules and limits.
While workweek hour shifts in not a new concept, it’s something to take into consideration whether a bill is enacted or not.
There can be many pros to reducing hours, but only when done strategically.
For HR professionals, it would mean revisiting policies and timekeeping practices.
For employees, it could mean a better work-life balance and flexibility. As we continue to see a rise in the sandwich generation and employees taking on more stress, this could be a gamechanger.
In fact, some companies have already trialed the 4-day workweek and found success.
“A recent four-day week pilot program of 3,000 workers at over 60 companies in the United Kingdom showed that happy workers were more productive—over 70 percent of workers reported greater satisfaction with their time and feeling less burnt out, while participating businesses saw a 35 percent average increase in revenue. In a separate pilot program of 41 companies in the United States and Canada, workers reported similarly positive results, while none of the participating companies expressed a desire to return to a five-day workweek. These studies have also found reduced workweeks result in lower childcare costs and reduced carbon emissions.”
For organizations, it would mean potentially restructuring production schedules, possibly more hiring, and even looking at operational hours to avoid costly overtime expenditures.
Regardless of the law at this point, it is important to look at your organization, employee health, and productivity and ask yourself if it’s working for everyone. Each company is unique while a four-day workweek may work for one organization, more vacation time may be the answer for another.
If you’re looking for support creating a sound strategy for your organization’s unique needs and wants, let’s connect today!
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